Aave Proposes Eliminating ETH for Gas Payments: What Does This Mean For Ethereum and DeFi?

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Aave is one of Defi’s first success protocols. After the launch in 2018, the platform has not only expanded to serve other Ethereum Layer-2 solutions such as the base and will, but now it has an algorithmic stablecoin similar to Dai, called GHO.

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On February 12, Aave revealed that there was a proposal to change the way the GHO commissions will be paid. Mining and GHO transfers have a commission as a solution that operates on a public master book. However, From The gas commissions change according to the offer and demand, it was necessary to guarantee predictability.

Adopt GHO for the payment of the gas?

In an X post, Aave said that establishing a new framework for GHO users to pay gas commissions using Stablecoin, not Eth, as is currently in case, would solve the problem of the floating gas commissions, stabilizing the transaction costs consequentially.

To do this, the team will use their native bridge as a liquidity pool during Gho’s extraction. For this reason, security is required, considering how bridges can be susceptible to attacks, introducing weaknesses. In light of this, the framework also crowns safety and liquidity, making them an integral part of its Basic infrastructure.

The lenses chain, an Ethereum Layer-2 platform, will be the first to adopt GHO as its native gas token. The lenses chain is ideal for testing this proposal as the Layer-2 platform that uses Rollup to accelerate transactions processing and reduce costs.

Layer-2 will benefit from this initiative since if they replace the payment of the gas in ETH with GHO, Users will be assured that transaction costs will be foreseeable.

However, it is worth knowing that the gas commissions are already low when they deal with layer-2, and it will be interesting to see how users will receive this proposal.

In addition to this development, Aave continues to grow in force. The chain data show that over $ 20 billion of activities have only been moved to Aave only in the last year.

Second DefillamaThe protocol now manages more than $ 19 billion as a total blocked value (TVL), with most of the activities blocked on Ethereum.

The Ethereum Foundation moves over 30,000 Eth to Aave

Yesterday, the Ethereum Foundation, the organization in charge with By promoting the first platform of intelligent contracts, he moved over 30,000 Eth to Aave.

The Foundation relieves the pressure on the second most precious coin lending part of its millions of ETHs. After dropping below $ 3,000, there are fears that Eth can slide to $ 2,000 or worse while the market is rekindled following earnings in the fourth quarter of 2024.

For months NowThe Ethereum Foundation has been criticized for having contributed to accelerating the ETH Sell-Off, spreading the uphill on the rise. Last year they sold thousands of ETHs to cover operating costs.

After the criticisms, which could see the changes of the leadership, the Foundation is Now adopt a different approach. A of them It implies the ETH loan and the use of the performance received to cover costs.

Aave, the governance sign of the Aave Protocol, is under pressure, like Eth. From the daily graph, the token is flat, with Support above $ 200. Although the upward tendency remains, buyers must intervene and reverse the losses of the last few weeks of negotiation.

(Aaveusdt)

A clear break above $ 275 May lift the feeling subsequently The return prices to the maximum of the fourth quarter 2024.

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Aave wants the payment of the gas in detail GHO

  • Aave proposes a new framework for the payments of gas taxes

  • Lente chain to try the use of GHO for gas commissions instead of ETH

  • Stable aave prices but in a tendency to rise

The post Aave proposes to eliminate ETH for gas payments: what does this mean for Ethereum and Defi? He appeared first out of 99bitcoin.

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