In the field of decentralized finance (DeFi), AAVE, as a leading protocol, has always been at the forefront of innovation and development. Recently, AAVE launched a new concept-Anti-GHO token. The introduction of this token not only brings new opportunities to users, but also brings more possibilities to the AAVE ecosystem. This article will examine in detail the introduction, combustion and distribution plans for Anti-GHO, and its impact on the future development of AAVE.
Introduction to Anti-GHO
Currently, stkAAVE users in the AAVE ecosystem are able to enjoy a 3% discount when minting and borrowing GHO. This offer will be replaced by the newly launched Anti-GHO token. Anti-GHO tokens are generated by stkAAVE holders who mint GHO in a linear manner and proportional to the interest accrued by all GHO borrowers.
Users can use Anti-GHO tokens in two ways: Burning Anti-GHO: Users can choose to burn Anti-GHO to mint GHO, which can be used to repay debts for free.
GHO security module stored in stkGHO: This gives the user more flexibility and choice.
Through the introduction of Anti-GHO tokens, the relationship between AAVE stakers and GHO borrowers is enhanced. This not only enhances user participation, but also lays the foundation for a broader revenue sharing strategy in the future.
Combustion and Distribution Plan
The AAVE protocol also launched a new burn and distribution plan. This program allows for the redistribution of net excess protocol revenue to token stakers, subject to the following conditions:
Aave Collector Net Holding: This holding will be calculated at recurring cost for the last 30 days and the service provider has a service period of 2 years.
Aave Protocol Annualized Revenue: The Aave Protocol's 90-day annualized revenue needs to be 150% of all protocol spend year-to-date, which includes the AAVE acquisition budget and the aWETH and aUSDC Umbrella budgets.
As the AAVE protocol continues to grow, we will start to see Aave protocol buyback amounts reach 8 figures, and this number is expected to increase further as the protocol grows. This mechanism not only motivates users to participate in staking, but also enhances the stability of the entire ecosystem.
AAVE’s scarcity and market performance
It’s worth noting that the AAVE token is almost fully diluted, with no significant supply unlocking in the future. This feature is significantly different from recent tokens that have a high fully diluted valuation (FDV) due to their scarce initial circulation. These tokens often suffer from sharp price drops after a token generation event (TGE).
In contrast, AAVE’s stability and transparency have allowed it to perform well in the market. With the launch of Anti-GHO, AAVE's ecosystem will become more robust and user trust will be further enhanced. All this lays a solid foundation for AAVE's future development.
future outlook
As the DeFi field continues to develop, AAVE, as a leader in the industry, is consolidating its market position through innovative mechanisms and token strategies. The launch of Anti-GHO tokens not only provides users with more choices, but also injects new vitality into the AAVE ecosystem.
In the future, AAVE may continue to introduce more features and services to meet the needs of users. In addition, as the world's attention to DeFi increases, AAVE will also face more challenges and opportunities. How to maintain an advantage in the fierce market competition will be the key to AAVE's future development.
in conclusion
Overall, AAVE’s Anti-GHO token is an important innovation in its ecosystem. By strengthening the relationship between pledgers and borrowers, AAVE not only enhances user participation, but also lays the foundation for future revenue sharing strategies. As the market continues to evolve, AAVE will continue to play an important role in the DeFi field and promote further development of the industry.
In the future, AAVE will continue to explore more possibilities to adapt to the rapidly changing market environment. Whether through the launch of new products or the optimization of existing mechanisms, AAVE will be committed to providing users with better services and experiences.