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

Decentralized lending platform Aave AAVE -1.24% 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 FRAX +0.20% Finance, which recently voted in favor of a proposal to reimplement its own fee switch. Meanwhile, decentralized exchange Uniswap UNI -1.086% is in the final stages of preparation for its own fee switch proposal, expected to come in mid-April following a successful temperature check.