Category: NFT News

Aave Closes In On Zero Token Incentives While Borrowing Surges

By Published On: March 25, 20242.8 min readViews: 1100 Comments on Aave Closes In On Zero Token Incentives While Borrowing Surges

“We don’t need it anymore,” said Marc Zeller, founder of the Aave Chan Initiative.

Aave is about to achieve the Holy Grail of tokenomics as the token incentives on the Decentralized Finance (DeFi) lending platform are about to drop to zero while activity continues to climb.

According to TokenTerminal, monthly token incentives – additional yield in AAVE tokens that originate from the Aave Reserve, used primarily to incentivize specific actions – have been downtrending since late 2021. AAVE token incentives are down 37% from their peak in Dec. 2023 of $335,000 to $214,000 in March 2024.

Incentives spiked 137% in the past 30 days, however, reaching $225,000.

Active loans on the platform, on the other hand, are on a consistent uptrend, notching a 31% increase over the past 30 days, reaching $5.7 billion, the highest since June 2022.