Aave Defi protocol will be refunding their borrowers and receiving $16 million in funding as a result of their recent governance vote. The funds will not only be given to Aave for future work on the project but also retroactively, meaning that they’ll receive money, not just for future work but also for work done by other developers up until now.
The news comes after a vote among token stakeholders finalized with a result of 73.8% in favor and 26% against the proposal. As a decentralized lending protocol, Aave intends to become the leading lending platform for Ethereum-based smart contracts. The team is set to receive $16.3 million in the form of its governance token (LEND), which will be distributed among all LEND holders at a ratio of 1:1.
Aave Set For Big Gains
Aave wants to become one of the leading decentralized financial applications on the Ethereum network by providing an alternative way for people living in countries with poor access to credit get affordable loans through a global network of lenders and borrowers.
It also aims to improve transparency in microfinancing markets through its open-source software and external audits by third parties such as R3 or PWC. The decentralized lending protocol that launched on Ethereum, is to receive $16.3 million in the form of its governance token (LEND).
The money will be shared between all LEND holders, who can use it as they see fit. The LEND token represents ownership over Aave’s DAO (decentralized autonomous organization), which allows token holders to vote on issues such as development funding and other key decisions.
According to Aave Co-Founder and CEO Joonas Laakso: “This is an important milestone for us because it means we have reached out main goal — to attract enough external capital so that we could support our own business with self-generated cash flows from day one. This also means that we can now divert resources from fundraising efforts into development and business growth.”