In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
Taking another step in decentralization, Aave Protocol has just announced the handover of admin keys to governance. With this announcement, the Aave team will give up the control of admin keys – giving ownership of the LendingPoolAddressProvider & TokenDistributor contract to the Aave Governance.
Enabling governance in the hands of token holders
Earlier this year, the protocol went live on Ethereum Mainnet, putting the governance in the hands of its native token (LEND) holders. Shortly after this announcement, the token holders, for the first time, voted for the LEND token migration to the AAVE token. Thus making the AAVE token new governance token of the protocol at a rate of 100 LEND per 1 AAVE. The migration is in effect, and a total sum of approx 85.81% LEND has already migrated to AAVE.
Since the first governance voting, the Aave community has been continuously involved in many proposals, discussions, and more in the governance forum. The forum is live at governance.aave.com and facilitates discussion for Aave Improvement Proposals (AIPs), risk factors, and general governance discussions.
It is worth clarifying that the Aave Protocol is a non-custodial platform. So, the transfer of admin keys represents granting permission to AAVE token holders to make key decisions about the protocol. Therefore, the protocol allows the users to not only hold full-control over their funds. But at the same time, giving the community to have full control over the protocol.
Migrating the ownership of Aave Protocol
With this announcement, the ownership of the Aave Protocol will migrate to the governance of smart contracts. It will be facilitated by:
- Setting the Aave Governance contract as Lending Pool Manager. Thus enabling the governance to change parameters such as LTVs, thresholds, enable/disable as borrowing/collateral, etc. on the protocol contracts.
- Giving them ownership of LendingPoolAddressProvider & TokenDistributor contract to the governance. Therefore, it will be able to manage protocol fees and token distribution.