The Aave Governance Initiative (ACI) has recommended that the Aave DAO shut down economically unviable L2 instances, as more than half of Aave's cross-layer L2 and L1 replicas are underperforming. ACI's report highlights that over 86.6% of Aave's revenue is generated from the mainnet, prompting a proposal to discontinue these L2 operations. Additionally, ACI suggests reforming the fork framework to prevent value dilution from third-party forks and aligning performance incentives with KPIs.
In response to shrinking profit margins in the lending sector, ACI plans to promote the GHO stablecoin's development. The organization advises maintaining AAVE buybacks of $500,000 to $1 million weekly for 18 months and utilizing over $100 million in reserves for growth and partnerships. ACI also proposes leveraging GHO credit lines backed by BTC, ETH, and AAVE. A framework of growth investment principles will be presented to the DAO soon.
ACI Urges Aave DAO to Shut Down Underperforming L2 and Reform Fork Framework
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