Aave Set to Launch Liquidity Mining Program

Famous DeFi lending protocol, Aave have recently announced its intentions to launch a liquidity mining program. Aave is a money market protocol that is fully decentralized. Users of the Aave network can lend and borrow crypto assets while releasing a collateral.

Prior to the announcement of the LM program, borrowers and lenders on the network were not granted access to mining liquidity rewards. However, the recent adjustment on the operation of the network implies that liquidity providers and borrowers will now earn rewards for providing liquidity on the Aave network. This reward is in addition to the standard interest received on the platform.

It was announced that stAAVE will be the token that will be distributed to liquidity providers. At the moment, there are about 2.9 million AAVE tokens in the ecosystem’s reserve. This makes the total worth valued at about $1 million. Each day, 2,200 stAAVE tokens will be disbursed as extra rewards for liquidity providers.

Most of the rewards of the program will be allocated in stable coins. In the past, the lack of a liquidity mining program has been a slight set back to the growth of the Aave network. Virtually all other competitors of the Aave network offer competitive yields in their LMP.

The Goal of Aave Liquidity Mining Program

Aave investor, Anjan Vinod noted that the purpose of granting liquidity mining rewards is to encourage borrowing and lending amongst users of the Aave network. This will also increase decentralization in the Aave ecosystem.

Aave is one of the top decentralized lending platforms. Despite the absence of a liquidity mining program in the past, Aave has consistently grown to become a giant in its niche.

Aave currently boasts of a total value locked (TVL) in its various markets worth $6.8 billion. It is the goal of the Aave community members to improve the TVL. It is expected that the liquidity mining program will help to achieve this goal.

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