May Newsletter
Hello Aave Community!
The Aave Protocol surpassed $20B in market size (deposits + borrowings)! The Aave Market on Polygon in particular exhibited tremendous growth. May was an incredible month full of governance votes, community events, and #BUIDLing. Keep reading for the highlights!
Governance & AIP Updates
AIP19: The community approved a proposal from Julien Bouteloup to whitelist Curve as a claimer of $stkAAVE rewards, allowing Curve liquidity providers in Curve pools based on a-tokens to claim their share in $stkAAVE.
AIP17: A proposal from Shreyas Hariharan to form a Grants committee, with the mandate of supporting the community by awarding grants to individuals and projects that request funding for their initiatives around Aave, was approved. Grants DAO is now live.
AIP18 and AIP20: Aave governance approved two proposals with the goal of continuing rewards going to $stkAAVE holders, who are doing their part in securing the protocol and providing the security module.
AIP21: An approved proposal from Shreyas Hariharan that added reserve factors for $GUSD and $CRV on the Aave v2 market, in order to let the Aave protocol accumulate those tokens when interest is paid out.
Events & Community
The Aave Grants DAO hosted an insightful Aave Community Call full of alpha leaks 👀 @0xbilll on twitter did an excellent written recap, or you can watch the whole call on YouTube here.
Don’t miss out on the video from the Lendit FinTech panel including Stani, Sergey (Chainlink), and Kain (Synthetix), as well as the Enterprise Ethereum Alliance interview with Stani on how financial institutions are interacting with DeFi protocols.
Mysterious egg AITO 🥚 did an epic marshmello NFT drop on the Aito social media platform. NFTs on Aito are staked with $AAVE so artists continue to earn from their sales and NFTs increase in value.
Monthly Metrics
The Crypto Markets experienced significant contraction in the second half of May, with up to 70% price contraction on some of the assets listed on the Aave Protocol. Even with the stressed environment, the Protocol’s liquidity grew organically now at $21.5B +68% Monthly. Over 50% of Aave’s liquidity is on the V2 market with $12.6B and $7.9B on Polygon while the number of Polygon current users has just surpassed V2 at 29,000.
The Aave Protocol coped well with the extreme market volatility, experiencing $478m of liquidations, 65% of the total volume. Aave has a strong liquidator network: liquidations are permissionless, meaning that anyone can participate in the liquidation process. To find out more about how to do so, you can watch a live stream on the subject this Thursday.
In total, Aave Depositors have received nearly $80m this month: interests, liquidity mining and Flash Loan fees; showing that that protocol can provide diversification from market performance. The Aave ecosystem also benefits from this high activity collecting $5.8m via the reserve factor and V1 Flash Loan referral fees.
Join us and stay tuned
Be part of the Aave Community on Discord and follow Aave on twitter for regular updates!
Cheers,
Aave Team