Aave Labs Issued 12-Month Grant To Develop V4 Iteration

Aave governance greenlit a $12 million GHO grant for Aave Labs to build out Aave v4 over 12 months.

Aave governance approved a grant of 12 million GHO to Aave Labs for the development of Aave v4 over 12 months. Aave Labs will receive 3 million GHO up front and the remaining funds will be streamed over the course of one year.

Aave Labs will use the grant to build out Aave v4, which will include a modular architecture, Chainlink-powered automatic interest rate adjustments, interest rate premiums for assets with higher risk profiles, an updated liquidation engine, support for interest payments in the form of GHO to asset suppliers, improved efficiency of GHO minting, a GHO-based “soft” liquidation mechanism, and new visual branding for the project.

Aave Labs will also provide monthly progress reports to the Aave DAO. Aave governance passed the grant proposal with 116,333,334 votes in favor and 1,000,000 votes against. The proposal had a quorum participation rate of 1.1%.

Aave governance also passed an Aave Improvement Proposal (AIP) to deploy the V3 codebase on Lido, pending the completion of an integration audit. The proposal will enable the deployment of stETH in V3, facilitating the use of the Lido liquid staking derivative within Aave.

Aave governance passed the AIP with 108,340,000 votes in favor and 1,000,000 votes against. The proposal had a quorum participation rate of 1.1%.

Aave governance members voted against an AIP to integrate Fei’s FEI stablecoin into Aave V3. The proposal sought to enable the use of FEI as both a borrowing and lending asset on Aave V3.

Aave governance rejected the proposal with 60,520,000 votes against and 45,860,000 votes in favor. The proposal had a quorum participation rate of 1.1%.