Aave Starts Migration and Staking for AAVE Token Upgrade DeFi Rate

Aave – the leading DeFi money market protocol- has started their token migration from LEND to AAVE via the newly launch Migration Portal.

The migration from $LEND ➡ $AAVE is officially live! Head over to https://t.co/gzkAogBvGq to access the migration portal and staking 👻

For further instructions: https://t.co/H555f6d6v6

— Aave (@AaveAave) October 2, 2020

The token migration is the first step in the Aavenomics token upgrade, describing Aave’s path to full decentralization & autonomy. This will be a gradual and open-ended migration with no hard deadline, meaning there is no rush to convert token outside of earning AAVE staking reward.

This migration comes after the passing of the first Aave Improvement Proposal (AIP1) with 99% of LEND voters deciding in favor of the token migration. The new AAVE token will feature fresh tokenomics and new staking opportunities. A summary of some of the major changes that will occur during the migration is pictured below.

What’s AAVE and Why Stake It?

AAVE is the new governance token of the Aave Protocol used to participate in protocol governance. AAVE can be staked as insurance against shortfall events via the Safety Module in return for protocol rewards.

Today, AAVE holders can stake their tokens within the protocol Safety Module. Initially, the rewards will be distributed at a rate of 400 AAVE/day, to be adjusted and amended by AAVE governance.

Note that as with most things in DeFi, staking AAVE is not without its risks. In the case of a shortfall event, up to 30% of the staked AAVE could be slashed to cover the deficit. This mechanism is not turned on at the initial launch, but the Aave team does plan to activate it in the near future.

Unstaking AAVE also incurs a cooldown period of 7 days, meaning a user must initiate and undergo a short waiting period tokens can be exited from the Safety Module.

Many of the current mechanisms and limits implemented in the Aave Protocol are subject to change by governance. Tokenholders will be able to propose changes and the current various aspects of AAVE staking we are discussing could be completely different in a few months time.

If you have any issues with token migration or AAVE staking, check out their FAQ here or follow this guide put together by the Fire Eyes DAO.

AIP1 proposed one of the largest token transitions seen to date! We’re excited to participate in @AaveAave Governance and help shape the future of #DeFi 👻

Join 🔥_🔥 in migrating your LEND to AAVE!

Here’s everything you need to know:https://t.co/8hcYIZKjPz

— Callum.eth 🔥_🔥 (@gladstonecallum) October 2, 2020

All in all, the migration to AAVE signals a new chapter for the leading money markets protocol, set to introduce not only new incentives but a robust V2 upgrade with new features and gas optimizations.

As if Aave hadn’t proved itself as a core piece of infrastructure before, this migration solidifies Aave as a standing pillar of the vibrant DeFi community.

To stay up with Aave, follow them on Twitter!

The post Aave Starts Migration and Staking for AAVE Token Upgrade appeared first on DeFi Rate.

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