April 27, 2021: $AAVE Your Cake and Eat it Too 🎂😋

AAVE approves liquidity rewards for both borrowers and lenders

Curve Market Cap @CurveCap

$AAVE #stkAAVE

POLONIUS: Neither A Borrower Nor a Lender Be

AAVE: Why not both?

That’s right… this move is so classic we’ve got to bust out the rare and super-unpopular Shakespeare memes for this one. Just yesterday the AAVE DAO approved AIP-16, bringing liquidity mining to the popular protocol.

Aave @AaveAave

AIP-16 received overwhelming ‘yea’ votes from the community and has officially been executed. This proposal, created by @paraficapital, introduces liquidity mining incentives for Aave V2 ⛏️🗳️ app.aave.com/governance/11-…

For the next three months, 2,200 $stkAAVE are being distributed each day. $stkAAVE is essentially the same as the native $AAVE token, but it is staked in their safety module with a ten day cooldown period and two day redemption window.

The $stkAAVE rewards are being split between both lenders and borrowers, which perpetuates the DeFi trend of blasting early adopters with a firehose of free money.

Cryptoyieldinfo @Cryptoyieldinfo

If you are not paid to both lend and to borrow on all your positions, you're not doing it right. $INV $MATIC $AAVE

Seignior Bonaparte 🦅 @cryptobonaparte

Only in crypto can you get paid a base APY and additional incentives for both lending and borrowing assets. $AAVE bringing us an early DeFi summer 🚀🚀 TradFi does not stand a chance https://t.co/VaGvWzCa2F

Aave @AaveAave

2200 $stkAAVE per day will be distributed at a 50/50 ratio between depositors and borrowers. The allocation strategy is based on the markets’ borrowing demand. Markets with a higher dollar value borrowed will receive a higher share of the daily stkAAVE incentives.

For stablecoins they will be distributed 50/50 between lenders and borrowers, with a 95/5 split for the riskier ETH/BTC markets. The following assets are incentivized:

Does this mean it’s free money time?

DefiMoon @DefiMoon

Alpha LEAK🤑 ⚙️Deposit $USDC or $DAI on $AAVE (Farm stkAAVE) ⚙️Borrow $USDT/DAI/USDC (Farm stkAAVE) ⚙️Deposit borrowed stables into Curve $LUSD pool to farm $LQTY (and soon $CRV) ⚙️Deposit farmed LQTY into @LiquityProtocol to get $ETH redemption fees and LUSD mint fees. Risk!🚨

Emilio Frangella @The3D_

AIP 16 has been queued by the community - It's official, liquidity mining coming tomorrow 6:53PM CET on the @AaveAave market Estimated APR: DAI 12.67% supply - 37.6% borrow USDT 14.25% - 41.7% USDC 15.87% - 43.2% ETH 5.65% - 1.65% BTC 6.25% - 1.85%

Well, a few caveats to consider. Note this is only for variable borrows, not stable.

WormholeOracle @WormholeOracle

Ok confirmed #Aave farming is only for variable borrows. My entire incentive to migrate just evaporated, congrats on this https://t.co/YFssMSyrrq

WormholeOracle @WormholeOracle

So... are stable borrows earning $AAVE now? Only variable? https://t.co/Xv8xIuqhkP

Additionally, you have to claim liquidity mining rewards in order to receive more AAVE.

Emilio Frangella @The3D_

remark - $stkAAVE liquidity mining rewards start accrueing more $AAVE only when you claim them. Once you claim, you can go to the "STAKE" menu on top, and see your staked balance and your compounded $AAVE rewards. #safetyissexy

Nonetheless, the prospects have got the DeFi world hot and bothered.

Paris Rouzati 🥬 @parisrouz

Yeah, sex is great, but have you ever tried depositing to @AaveAave and receiving staked $AAVE in return?

goodgirlgonecrypto.onlymarketbuy @gggonecrypto

$CRV x $AAVE is such a fucking beast combo to yield farm with these low gas prices. You gotta love to see it lads lel

As always, this bleeds over to the benefit Curve. This is already up for a Curve vote.

Charlie - Curve.fi @charlie_eth

Liquidity mining rewards from @AaveAave on the aave and saave pools will be distributed to liquidity providers via staking gauge. Curve will need to pass an AIP to whitelist a contract to allow that.

gov.curve.fi[Discussion] AAVE Staking Rewards for AAVE and sAAVE PoolsThis is somewhere between an announcement and a discussion. As some of you may have heard, AAVE will begin liquidity mining rewards in a couple of days. We have discussed a solution with the AAVE team that will allow liquidity providers in the aave and saave pools to claim AAVE from the gauge. T…

In terms of Curve pools, although many users tend to focus on boosted rewards, by raw cash AAVE is king. Both north of 10% this AM:

Unsurprisingly, AAVE value locked skyrocketed past 10 billy overnight.

stani.eth 👻 =(⬤_⬤)= 👻 @StaniKulechov

10 Billy 🔥

For more on AAVE, make sure to check out this recent interview with Stani Kulechov conducted by Bitcoin Suisse.

Ian Simpson @ian_simpson80

Super interesting to get the thoughts of one of #DeFi’s pioneers - @StaniKulechov from @AaveAave ! Thanks for the insights! 😀 bitcoinsuisse.com/research/speci… @BitcoinSuisseAG @CoinDesk @Cointelegraph #crypto #ethereum

bitcoinsuisse.comInterview with Aave CEO Stani Kulechov | Bitcoin SuisseAs CEO of Aave, an up-and-coming decentralized lending protocol, Stani Kulechov and the Aave team have helped fuel the rapid rise of decentralized finance (DeFi) in 2020 and 2021.

---

For more info, check our live market data at https://curvemarketcap.com/ or our subscribe to our daily newsletter at https://curve.substack.com/. Nothing in our newsletter can be construed as financial advice. Author is a $CRV maximalist, owns no $AAVE.