DeFi Governance Roundup: Streamlining Operations and Recent Controversy

The proposal sought to onboard the OP token as a collateral asset in Aave V3 on Optimism. The OP token is the native governance token of the Optimism Collective. The proposal also included the option for the Optimism Foundation to potentially seed incentives in order to bootstrap the initial liquidity pool. The approval of the proposal would place Aave as one of the first DeFi platforms to support the OP token as collateral. 

Aave V3 already has a significant presence on Optimism. At the time of writing, approximately 31.3% or $413 million of the $1.32 billion total value locked (TVL) on Aave V3 is on Optimism, only behind Avalanche. With a reasonable share of TVL, listing the OP token as a collateral asset seems like a logical step forward to grow the Aave money market ecosystem on Optimism further by offering a wider range of collateral options.