Popular decentralized lending protocol Aave has grown at a rapid pace amid 2020’s DeFi boom, in large part thanks to excellent execution and stewardship from the Aave team in recent months.
Yet this ramping up has also brought Aave, currently DeFi’s fifth-largest app, to the point where the protocol no longer has to depend on such stewardship from Aave’s builders. This is precisely why these innovators are now notably passing off Aave’s reins to the project’s global community.
Governance Handed Over
In what’s already been a jam-packed year of major developments for Aave, the community governance hand off is arguably its biggest one yet.
Announced on Wednesday, Oct. 28th, the planned transition means that Aave’s protocol admin key will soon be in the hands of Aave Governance, the project’s community system.
This is a pivotal transfer, as the admin key can be used to change certain consequential parameters of the Aave protocol. With it soon to be out of the Aave team’s hands, stakeholders can verify the Aave system is administratively tamper-proof and directly steward the project collectively.
“The Aave Protocol has always been non-custodial, so users maintain full control over their funds, but in the true spirit of decentralisation, we want the community to have full control over the protocol as well,” Aave’s creators said on the news.
The Aave team unveiled Aavenomics, a major upgrade to the protocol’s governance and token systems, back in July. Promptly approved by community governance, this upgrade launched a LEND to AAVE token migration and kicked off Aave Governance as underpinned by AAVE insurance staking.
With this new governance system having already proven itself in the wild for weeks now, Aave’s creators decided the time has come to put the protocol in the community’s hands.
This process will start through the Aave team giving control of the project’s Lending Pool Manager contract, the “entity enabled to change…