November Newsletter
Hello Aave Community!
This month you saw a sneak peek at the latest Aave glow up—V2 on the Kovan testnet! If you haven’t already, feel free to check it out and test it here. Never played around with testnet before? Don’t worry—the Aave testing FAQ has got you covered on everything from how to connect you to the test client to how to get ETH and tokens for testing. The cool part about testnet is that you can try the Aave Protocol functionalities in a safe environment without spending real assets.
Technical & Development Updates
The Aavengineers have been hard at work on Aave V2, so stay tuned!
Governance & AIPs
November saw the first Governance Call take place, where we discussed many of the hot topics on the governance forum. Keep up with all the discussion on the governance forum here.
AIP-2 and AIP-3 both came to governance vote and were passed with overwhelming “yae” votes from $AAVE and $stkAAVE holders.
Here’s a short and sweet breakdown of what this means:
AIP-2 was a proposal to stop burning $LEND and instead collect the fees from V1 to bootstrap a protocol fund.
AIP-3 proposed some V1 upgrades for a seamless transition to V2 by using a Flash Loan powered migration tool to allow users to make the transition without having to close their V1 loan positions.
For a deeper dive into these proposals, check out this twitter thread.
Events & Community
Catch the episode of Yield TV where Stani talks the much-anticipated V2! Stani also gave a talk “Demystifying DeFi with Aave Protocol” at Hong Kong Blockchain Week, and Stani also spoke on a panel at Istanbul FinTech Week.
If you’ve missed out on any events, you can watch many of them on the official Aave YouTube channel!
In other news, Aavegotchi frens are doing an epic Aave-themed NFT raffle, and Aave has also teamed up with Axie Infinity to bring you a cool new collab. Be sure to check it out—gaming + NFTs + DeFi = 🔥!
Aave-themed Aavegotchi wearables include Jordan, Stani, and Marc
Monthly Metrics
November saw a recovery across the cryptocurrency market with a 34% price increase across the protocol’s liquidity. Transaction volumes across the protocol are growing towards the record set in September with nearly $3m in deposits and liquidity close to its peak level. This is accompanied by good utilisation, in particular across stablecoins, leading to $1.6m of monthly income for depositors from borrow rates and Flash Loans. The table below shows a breakdown of the $1.9B in the protocol as well as the yields generated by each reserve.
Flash Loans have become a key financial primitive of the DeFi ecosystem, reaching a cumulative volume of $1B on Aave, with $300m just this month. The $900k Flash Loan fees have been distributed to depositors. In November, Flash Loan fees represent 17% of the income.
Join us and stay tuned
Check out the latest edition to the governance forum: the Aave Learning Center! This is a place to post questions, learning resources, and general information that could be helpful to others. The Aave community is the best asset, and the Learning Center welcomes contributions from everyone.
There are some Aavesome events and updates coming up in December, so be sure to follow Aave on Twitter or join the Discord server!
Cheers,
Aave Team