$AAVE is preparing to let native Bitcoin participate directly in on-chain lending, and even use some of the revenue to buy back tokens, but the token price is falling instead.
Here’s what happened: On November 9, the Aave DAO passed the Babylon integration proposal with 100% approval. Today, a new risk analysis has also drawn attention.
In the future, users will be able to lock native BTC on the Bitcoin network and borrow USDT or USDC through Aave V4, without first wrapping their BTC as WBTC.
Even more interesting is the revenue allocation: once annual revenue from the new business exceeds $500,000, some of it will be used to buy back AAVE and BABY, with 85% of the buyback funds allocated to AAVE.
As of this evening, AAVE is trading at around $123.47, down 1.77% in 24 hours. Open interest in futures is about $316 million, down 3.33%.
I think this is more significant than simply adding lending assets, because it explicitly introduces a mechanism for capturing value for the tokens.
But for now, this is still at the governance stage and has not officially launched. Liquidation risks, actual borrowing demand, and how much funding the buybacks can generate are all unknown.
Strengthening the protocol’s long-term prospects doesn’t mean the price will rise in the short term. The key things to watch next are the final vote and real-world launch data.
#CPI高于预期，美股与BTC再度承压
Here’s what happened: On November 9, the Aave DAO passed the Babylon integration proposal with 100% approval. Today, a new risk analysis has also drawn attention.
In the future, users will be able to lock native BTC on the Bitcoin network and borrow USDT or USDC through Aave V4, without first wrapping their BTC as WBTC.
Even more interesting is the revenue allocation: once annual revenue from the new business exceeds $500,000, some of it will be used to buy back AAVE and BABY, with 85% of the buyback funds allocated to AAVE.
As of this evening, AAVE is trading at around $123.47, down 1.77% in 24 hours. Open interest in futures is about $316 million, down 3.33%.
I think this is more significant than simply adding lending assets, because it explicitly introduces a mechanism for capturing value for the tokens.
But for now, this is still at the governance stage and has not officially launched. Liquidation risks, actual borrowing demand, and how much funding the buybacks can generate are all unknown.
Strengthening the protocol’s long-term prospects doesn’t mean the price will rise in the short term. The key things to watch next are the final vote and real-world launch data.
#CPI高于预期，美股与BTC再度承压
