Aave Proposal Targets $3.5M in Added Annual Revenue Through Reserve-Factor Changes
Summary
TokenLogic has proposed raising reserve factors across 54 Aave reserves in 12 V3 instances and V2 Ethereum, increasing the modeled blended rate from 12.0% to 12.7%. Based on November 9 balances and rates, the changes could generate an estimated $3.5 million in additional annual treasury revenue. Higher factors direct more borrower interest to Aave’s treasury and less to suppliers, though they do not directly change borrower rates. Actual revenue could differ as balances, rates and supplier behavior change. Governance has not approved the proposal; community feedback and an onchain vote are expected next.
