Aave Chan founder Marc Zeller teases upcoming 'fee switch' vote for Aave stakers

Quick Take

  • Aave Chan Initiative founder Marc Zeller has teased that a temperature check vote on distributing fees to Aave stakers could come as soon as next week, given Aave’s profits. 

Decentralized lending platform Aave might soon vote on whether or not to turn on a 'fee switch' and distribute fees to holders, according to a post on X from Aave Chan Initiative founder Marc Zeller. 

"Temp check to activate 'fee switch' next week," said Zeller, after noting that Aave DAO's current net profits sum to about $60 million per year, reflecting five years of operational costs. 

Zeller had previously teased the idea of activating fees for Aave stakers in another post on X. "A new version of the safety module will propose to the governance to distribute fees to stakers," he wrote on Mar. 16. 

Aave DAO recently approved changes to staking fees for its stablecoin GHO in an attempt to stabilize the token's peg. 

If Aave DAO chooses to activate fees, they'd be following in the footsteps of decentralized stablecoin protocol Frax Finance, which recently voted in favor of a proposal to reimplement its own fee switch. Meanwhile, decentralized exchange Uniswap is in the final stages of preparation for its own fee switch proposal, expected to come in mid-April following a successful temperature check. 


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Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].