Can Aave's liquidity mining create a boom?
As one of the largest projects in the DeFi field, Aave will not know whether its liquidity mining can promote the popularity of DeFi.
In view of the previous experience of Curve issuing coins, some users expressed concern: Curve was so beautiful when it first issued coins, and its market value reached more than 90 billion US dollars when it was launched, which directly exceeded the market value of Ethereum. Isn't it a chicken feather now? Will Aave finish as dismal as Curve?
What is the future of Aave's liquidity mining? The market will give us the answer by then. To be sure, Aave will not be like Curve.
Because Aave's token was launched as early as 2017, it has already experienced a round of bull and bear market baptism. Even if liquidity mining is subsequently started, only a small amount of tokens will be issued, which is far less than Curve in terms of the degree of bubble.
As the head project of the loan agreement, Aave has locked up close to US$1.3 billion, and its core business has formed a scale and is stable. It also needs to consider the specific market environment when it starts liquidity mining.
In addition, it is understood that only the additional 3 million tokens in Aave are used for mining, accounting for only 18.75% of the total. Some unsuspecting users also asked, Aave has developed so well, do you still need to take advantage of liquidity mining?
In the initial information disclosure of the team, the additional tokens were issued because the tokens used to incentivize the development of the ecosystem had been exhausted, and the team considered the need to issue new tokens. The additional tokens will be used. Make safety guarantee incentives and ecosystem incentives.
The security guarantee incentive is that the user will use the mortgage AAVE as a guarantee to prevent insolvency problems that may occur during the borrowing process. The ecosystem incentives are similar to the current mining projects in the market. Users earn mining rewards by making a market in Balancer, or borrowing or lending from the Aave loan pool.
Therefore, there is a certain difference between Aave's mining and mining projects on the market. The consensus now is that everyone thinks DeFi will collapse, but they don’t know when.
Judging from the popularity of Uniswap mining, it seems safe in a short time. However, if the market is already in danger when Aave starts liquid mining, even if Aave is the leader of DeFi, it will be difficult to shake the market on its own.