Decentralized lending protocol Aave (AAVE) has launched a new program called Merit. Within its framework, the most dedicated users of the project will be rewarded.
During the Merit program, the decentralized autonomous organization (DAO) Aave will distribute free tokens based on the actual contribution that the user has made to the development of the project. The protocol team is focused on real benefits, not artificial incentives, it says message.
What is the Merit program?
Yesterday, as part of Merit, Aave developers gave away 280 Wrapped Ethereum (WETH), or $762 thousand, to select lenders. Lenders and stakers of the protocol's stablecoin GHO (GHO) will receive an airdrop next week.
Aave DAO initially scheduled the program for 90 days. So far, $2.1 million in Ethereum (ETH) and $2.9 million in GHO have been allocated for the initiative. In April, members of the project's decentralized organization will vote on expanding Merit, possibly making the program permanent, with an annual budget of $20 million.
The main goal of the new reward system is to increase the attractiveness and operational efficiency of the Aave protocol. Merit is built on a booster model that allows you to earn points for certain actions. Specifically, such actions include liquid staking, lending in wETH and GHO, or locking up stGHO (staked GHO).
Strategy to fight competitors
Interaction with “unconsensual” protocols—those outside the Aave ecosystem—will result in eroded rewards. Moreover, blurring can reach -100%. Thus, the project wants to bypass all competitors.
Currently, only one protocol is considered “non-consistent” – Morpho, built on top of Aave. Earlier, one of the project’s DAO members, Mark Zeller, called Morpho a “leech” that takes away income from the project.
The co-founder and CEO of Morpho Labs disagreed with this statement. In response to Zeller's words, he statedthat the integration of Aave and Morpho brings a number of benefits to the main protocol, including liquidity and revenue for the autonomous organization of the project.
How AAVE reacted
According to CoinGecko, the native token of the Aave ecosystem practically did not react to the news about the distribution of tokens. Over the past 24 hours, the asset rate has increased by a slight 0.7% and at the time of writing is $113.43. In total, AAVE rose in price by 17% over the past month.
Aave remains one of the largest Ethereum-based protocols. According to DappRadar, the project ranks fourth in the ranking, behind only Lido Finance (LDO), EigenLayer and Maker DAO (MKR). Aave's total value locked (TVL) is $6.4 billion.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
