According to Cointelegraph, decentralized lending platform Aave may be considering enabling a “fee switch” to distribute fees to holders. The news was shared by Marc Zeller, founder of the Aave Chan Initiative, on the X social platform.
“A temporary check of the ‘fee switch’ will be enabled next week,” Zeller said, after previously noting that the Aave decentralized autonomous organization’s (DAO) net profit was about $60 million per year, reflecting five years of operating costs.
Aave is a crypto lending platform that runs on multiple blockchain networks. It allows borrowers to borrow in one cryptocurrency while using another cryptocurrency as collateral. It is governed by holders of the Aave token, who collectively form the AaveDAO.
In an earlier post on the X social platform, Zeller hinted at the possibility of implementing fees for Aave stakers. “A new version of the security module will propose distributing fees to stakers,” he wrote on March 16.
A fee switch will allow governance to control and adjust fee-related policies based on the needs and goals of the platform. Aave DAO recently approved a change in staking fees for its stablecoin GHO to maintain the token’s peg. If Aave DAO proceeds with enabling fee activation, it will follow the lead of Frax Finance, which recently supported a proposal to reintroduce a fee switch.
