On October 29, Aave, the leading DeFi lending agreement project party, announced that the team has officially handed over the agreement management key to the governance smart contract, which will be managed by the community, which means that the Aave agreement is moving towards decentralization. It is a big step. It is reported that in the next few weeks, the Aave governance layer may also update more governance system parameters to make the proposal submission process more decentralized.
According to the data provided by qkl123.com, the value of assets locked in the current Aave agreement reached 1.1 billion US dollars, temporarily ranking fourth among all DeFi agreements.
The following is the full text of the official announcement:
Not long ago, Aave Governance launched the Ethereum mainnet, and its governance is jointly responsible by the holders of LEND tokens. Soon after, the first Aave Improvement Proposal (AIP) vote took place. LEND token holders voted to migrate LEND tokens to new AAVE tokens at a ratio of 100:1, effectively launching Aavenomics. After the migration was completed, the AAVE token became the new governance token of the protocol.
AAVE holders can vote on AIP, they can also pledge their AAVE tokens in the protocol security module to protect the security of the protocol, and in return, they can obtain security incentives. The first governance vote went smoothly, and many proposals and discussions appeared in the official governance forum. Obviously, the Aave community is full of great ideas and eager to actively participate in the future of the agreement.
Today, we are excited about the next important step in Aave’s decentralization process: the migration of protocol management keys to governance!
Aave was launched in January 2020. Since then, the Aave team has been in control of managing keys in case any problems arise. We hope that it will be released only when governance is truly ready. After all, we take safety very seriously, and our top priority is the safety of Aave users.
In addition, the protocol has undergone a lot of development and innovation in the initial stage, and the team hopes to ensure that these new features are launched as soon as possible without sacrificing security, so that users can do more with the protocol. The Aave protocol has always been non-custodial, so users can fully control their own funds, but in the spirit of decentralization, we hope that the community will also have complete control over the protocol.
Now that governance has been released and tested, it is time to migrate the ownership of the Aave protocol to the governance smart contract. To this end, we will:
Set the Aave governance contract as the loan pool manager, which is an entity that can change the agreement contract parameters (LTV, threshold, enable/disable borrowing/mortgage, etc.) and list new assets,
Grant the ownership of the LendingPoolAddressProvider contract to Aave governance. LendingPoolAddressProvider is a factory contract that is responsible for deploying all core parts of the system and can update it. In fact, it has full control over the agreement.
Grant the ownership of the TokenDistributor contract to Aave governance. The contract receives all agreement fees and manages their distribution.
In the coming weeks, the Aave governance layer may also update more governance system parameters to make the proposal submission process more decentralized.
