At present, Aave has a leading trend in the entire defi sector. Aave is currently the top lending platform in the market. Since the outbreak of defi summer in 2020, it has experienced peaks and troughs and has withstood the long-term market test. In the box oscillation area of $50-$110 for 2 years, it has a trend of getting out of the box oscillation and rising in the past month.
The main reason why Aave has performed so well recently is that token staking can earn protocol income. The Sky Aave Force proposal introduced will empower traditional finance with defi. In the past 30 days, Aave has distributed token rewards of up to 1.59m.
The remaining part of the fees collected by the protocol after the distribution is the protocol income. Aave protocol fees and distribution methods:
1) Interest paid by the borrower, 90% is distributed to the lender;
2) Flash loan fee, the fee is usually 0.09% of the borrowed amount, of which 30% belongs to the protocol treasury and the other 70% is distributed to depositors;
3) GHO minting fee and interest income. Currently, the total amount of GHO Mint is 100 million, the borrowing interest rate is 1.5%, and all interest income will belong to the vault. (https://gho.xyz/)
4) In V3, instant liquidity fees, liquidation fees, and portal fees paid through the bridge protocol will also be charged, the latter two of which have not yet been activated.
Aave's platform token AAVE can be used for governance and earning passive income. Aave provides two staking methods for AAVE token holders. AAVE stakers will bear up to 30% of the security risk of the entire protocol. In return, stakers can receive AAVE token rewards and protocol income dividends.
Currently, Aave receives about 300 million US dollars in fees each year, and the protocol's income is more than 50 million US dollars.
We will wait and see whether Aave can return to its peak
