AaveToken (AAVE) トケノミクス

The AAVE token is the native governance token of the Aave Protocol, a decentralized liquidity management platform. The token economics are structured around a fixed supply, a migration from a previous token, and mechanisms designed to incentivize protocol security, governance participation, and ecosystem development.

Issuance Mechanism

The AAVE token operates with a maximum token supply of 16.00 million.

The current AAVE token is an ERC-20 token that resulted from a migration from the protocol's original token, LEND, which was launched in September 2017.

• Migration from LEND: The migration to the AAVE token occurred in October 2020. LEND tokenholders were able to exchange their tokens for AAVE at a 100 LEND = 1 AAVE ratio. This process reduced the total number of tokens held by users from 1.3 billion LEND to 13 million AAVE.
• Initial Minting: The total supply of 16.00 million AAVE was minted during this migration. Of this supply, 13.00 million AAVE (81.25%) was claimable by LEND tokenholders, and the remaining 3.00 million AAVE (18.75%) was minted directly to the Aave Ecosystem Reserve.
• Multi-Chain Deployment: The ERC-20 AAVE token has been bridged to various EVM-compatible networks, including Polygon (MRC-20 AAVE), Avalanche (ARC-20 AAVE), Arbitrum (ArbERC-20 AAVE), and Optimism (ERC-20 equivalent AAVE).

Allocation Mechanism

The initial allocation of the AAVE token was split between the original tokenholders and the Ecosystem Reserve:

The Aave Ecosystem Reserve funds are controlled by AAVE tokenholders and stakers via on-chain governance.

Usage and Incentive Mechanism

The AAVE token serves multiple critical functions within the Aave ecosystem, primarily centered on governance and protocol security.

1. Governance

AAVE is the protocol's primary governance token. Tokenholders can participate in Aave's on-chain governance, which affects parameters related to the protocol, including asset listings, rewards, permissions, and parameter tuning for the GHO stablecoin.

• Proposal Creation: At least 1,600.00 AAVE in Snapshot voting power is required to create a proposal.
• Voting Power: An address's governance power is proportional to its balances of AAVE, interest-bearing AAVE tokens (aAAVE) through Aave V3, and staked AAVE (stkAAVE) on Ethereum, plus any delegated tokens. Users can delegate proposal and voting power separately.
• Aave Improvement Proposals (AIPs): Protocol changes must be ratified through AIPs. These proposals are categorized into:
  • Short Timelock Proposals: Cover protocol risk parameters, Ecosystem Reserve spending, and contract permissions. They require a Minimum Quorum of 2% and a Vote Differential of 0.5%.
  • Long Timelock Proposals: Cover changes to the AAVE and stkAAVE tokens and governance parameters. They require a Minimum Quorum of 20% and a Vote Differential of 15%.

2. Safety Module Staking (Protocol Security)

The Safety Module is a mechanism on Ethereum where users stake AAVE, ABPT (Aave Balancer Pool Liquidity Provider), or GHO tokens to act as a backstop against "Shortfall Events" (bad debt).

• Incentives: Stakers receive AAVE "Safety Incentives" from the Aave Ecosystem Reserve. As of April 15, 2024, 820.00 AAVE are distributed daily pro-rata to Safety Module stakers.
• Risk: In a Shortfall Event, a portion of the staked tokens is slashed (sold) to mitigate the deficit.
• Staked Tokens: Upon staking, users receive equivalent staked tokens (stkAAVE, stkABPT, or stkGHO).

3. Liquidity and Contributor Incentives

The Ecosystem Reserve is used to incentivize various participants:

• Grants: Users and contributors can apply for AAVE through "Rapid Grants" (under $20,000), "Grants" ($20,000 to $80,000), or "Community Grants" (over $80,000) from the Aave Grants DAO. Community Grants require acceptance via a Snapshot vote.
• Supplying & Borrowing Incentives: Users can receive incentives for supplying and borrowing assets on Aave V3 markets across various chains (e.g., Metis, Optimism, Polygon). Historically, Aave V2 markets also used stkAAVE tokens for incentives, distributing 2,200 stkAAVE daily until the program ended in May 2022.

4. Utility as Collateral

AAVE can be used as collateral to borrow other assets on Aave V2 and V3 protocols across supported chains (Ethereum, Polygon, Avalanche, Arbitrum, and Optimism). Notably, AAVE itself cannot be borrowed on Aave.

5. Potential Fee Switch and Buyback

As of July 2024, Aave Governance is considering a proposal to activate a fee switch mechanism and buy back AAVE tokens from the secondary market to promote sustainable economics.

Locking Mechanism and Unlocking Time

The primary locking mechanism for AAVE tokens is associated with the Safety Module staking and the vesting schedule of the original LEND tokens.

Safety Module Locking

When users stake AAVE in the Safety Module, the tokens are subject to a lock-up period defined by a "cooldown period" before they can be unstaked and claimed.

• Cooldown Period: Users must activate and wait for the conclusion of a cooldown period before claiming their staked tokens. As of April 15, 2024, this period is 20 days and can be changed via Aave Governance.
• Claim Window: Once the cooldown period ends, users have two days to claim their tokens. If the tokens are not claimed within this window, a new cooldown period must be initiated.

Initial LEND Vesting

The original LEND tokens, which were later exchanged for AAVE, had an initial two-year vesting schedule with bi-annual unlocks. This vesting schedule applied to the initial LEND allocation before the migration to AAVE. Information regarding any current vesting schedules for team members or advisors compensated with AAVE is not publicly disclosed.