Aave Launches Its v2 Liquidity Mining Program
Aave Launches Its v2 Liquidity Mining Program
April 30, 2021
Aave Launches Its v2 Liquidity Mining Program
Aave Launches Its v2 Liquidity Mining Program
April 30, 2021

Aave has launched its v2 protocol liquidity mining incentives for paying out governance token rewards exceeding 20% to users who borrow stablecoins. 

It has been reported that users who deposit stablecoins into the protocol can earn an additional yield of between 4.78% and 13.49% on top of their regular gains in the form of staked Aave (stkAAVE) tokens as of April 27.

However, Wrapped Bitcoin (wBTC) deposits are also paying an extra 4.59%, while Ether (ETH) deposits are garnering 2.11% in rewards.

The report said that the highest rewards appear to be going to stablecoin borrowers, who are currently receiving rewards of between 5.15% and 22.05%. The liquidity mining program was passed through a governance vote on Saturday, with 2,200 staked Aave (stkAAVE) set to be distributed to lenders and borrowers until July 15, worth roughly $880,000 at current prices. The program will be reviewed in July.  

ALSO READ :  Report: Volume Of Transactions In The South Korean Digital Currency Market Exceeds Daily Average Transaction Amount Of Stock Market

Likewise, more than two-thirds of rewards have been designated to the USD Coin (USDC) and Tether (USDT) markets, with the remaining 32.5% being distributed among Aave’s Dai, ETH, wBTC, and Gemini Dollar (GUSD) markets.

Aave stated:

“AIP 16 increases the liquidity in the Aave Ecosystem Reserve, which can be used to fund grants, devs, and builders through a community-led grants programme.”

It added that it wanted to reward stable tokens more to discourage risky borrowing and boost stablecoin liquidity. With around 40% of Aave’s TVL still locked in its version 1 iteration, the v2 rewards campaign is also intended to migrate users to its updated protocol.

Thus, Aave said:

“By introducing liquidity mining rewards only on Aave v2, liquidity providers and borrowers will naturally migrate toward the optimized version.”

Source: Cointelegraph


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Coinbase Active Users Increase By 120%

Coinbase Active Users Increase By 120%

The active users of Coinbase, the major cryptocurrency exchange, have increased by 120%, while trade volumes tripled. It has been reported according to documents filed with the US Securities and Exchange...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.