AAVE reimburses gas fees for delegates for on-chain votes and AIPs, while a possible correction is evident

AAVE reimburses gas fees for delegates for on-chain votes and AIPs, while a possible correction is evident

aave, the credit protocol of the Defi industry, has introduced a new update. For the first time, the AAVE management committee has decided to reimburse all gas fees that the recognized delegates spent on voting in the chain and the provision of AAVE improvement proposals (AIPS) on the platform. This decision was made due to the continuous increase in Ethereum gas fees, which led to increased costs for the delegates.

The compensation of gas fees offers the delegates numerous advantages. On the one hand, it promotes better decision -making and a wider voter base by facilitating access to student organizations and other interest groups. In addition, the reimbursement of gas fees enables AAVE to keep its top delegates and effectively compete with other Defi platforms such as Makerdao.

Financing for these refunds most likely comes from the income of the AAVE protocol, which uses various mechanisms such as interest fees for loans and other protocol fees. However, a decline in gas fees can lead to a decline in the protocol revenue. Last year Aave recorded a decline in network fees by 76 %, which led to a decline in sales of 71 %.

Despite these challenges, Aave was able to increase its Total Value Locked (TVL) by 59 % since the beginning of the year. According to Defillama, the current TVL of AAVE is $ 5.857 billion, whereby the V2 use is a share of 66 %.

The governance token from AAVE, AAVE, has had an increase of 38 % in the last 30 days and achieved a value of $ 71.06. However, there were signs of profit-taking because the owners began to sell their Aave tokens. Technical indicators such as the relative strength index (RSI), the Money Flow Index (MFI) and the Chaikin Money Flow (CMF) provide information on a possible downward trend and an upcoming price correction.

Despite the possible price decline, AAVE remains one of the leading platforms in the defect sector due to its innovative functions such as the compensation of gas fees for delegated and continuous growth of its ecosystem.