Bullish on $AAVE! Last week, a new proposal went live, laying the foundation for the next steps for $AAVE .

After diving into the details, here are my thoughts on the Aavenomics update and the Aave Protocol. 👇🧵

In the DeFi summer of 2021, Aave stood out as a pioneering money market that provides non-custodial decentralized lending services, where users earn yield by providing liquidity.

At the peak of the bull run, Aave's TVL reached a staggering $18 billion and attracted thousands of users.

However, the subsequent bear market and black swan events such as the FTX crash, UST depegging, and CeDeFi bankruptcy took their toll.

Despite this, Aave remained resilient during the trough and continued to build.

In 2023, Aave regained momentum with the release of V3. Since then, its TVL has surged 251.2%, becoming the largest non-LST DeFi dApp.

A series of updates were introduced this year to improve the efficiency of the protocol, making Aave appear severely undervalued.

Aave founder Marc Zeller proposed a fee switch proposal, planning to buy back Aave tokens from the secondary market.

One of these is the Aavenomics update, which aims to change the architectural security module and enhance the token economics of the protocol.

📍 Aave Fee Switch:

Since the launch of Aave, the community has been looking for revenue sharing. With over $140 million held in the Aave treasury and new developments on the horizon, Aave is expected to generate additional revenue.

Rather than sharing revenue directly like other protocols, Aave adopts a “buy and distribute” model. This means that they will buy AAVE from the market and use excess revenue to distribute it to stakers.

✅ Let’s review Aave’s token economics and performance metrics:

- TVL: Aave’s TVL has grown 98.5% this year, with over $8 billion in active loans. As TVL and lending grow, so does the revenue generated by Aave.

- Price: Despite the massive increase in TVL, the price of $AAVE has not risen significantly.

- Market Cap: Currently at $1.53 billion.

- All-time High vs. Current Price: The current price is 5.5x lower than the all-time high in 2021.

In conclusion, I not only look forward to the return of $AAVE , but I think it is one of the tokens in this industry that will establish lasting sustainability.$AAVE