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HomeAltcoinAave DAO Governance Executed $1M Token Swaps With Balancer

Aave DAO Governance Executed $1M Token Swaps With Balancer

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The Aave DAO governance executed $1M token swaps with Balancer and according to both parties, the swap occurred in a smart contract that used the flat rate of 1 AAVE for 11.829 BAL tokens so let’s read more today in our cryptocurrency news.

Aave DAO governance arm executed $1M worth of tokens with $1.13 million in Balancer tokens in exchange for each project’s coin. The treasury swap followed after an on-chain vote from the community based on the proposal initiated by developer Matthew Graham. The proposal was amended and called for Aave to swap 16,908 AAve tokens for 200,000 BAL coins. As per the details from the on-chain voting page, the vote passed unanimously with 400,000 in favor of the proposal.

With the vote concluded, the swap happed via a smart contract that used a flat rate of 1 AAVE for 11.829 BAL tokens, and using this rate helps the wide difference of $500,000 in the token swap as per the value of each token. Showing the reasons for the treasury swap, the proposal stated that the token exchange will enable Aave to obtain BAL to provide liqudity for 80/20 BAL: ETH pool on Balancer, and Aave will lock the liquidity position and get the vested BAL tokens with the vesting period being for one year.

Balancer And Aave, pool, boosted, exchange

The proposal states that Aave will use the BAL voting power to vote for more rewards for pools that support the Aave token pairs and in turn, will increase the liquidity and revenue for Aave. The swap will make both protocols major holders of each other’s tokens:

“The token exchange, plus additional acquisition, is significant enough for Aave to become a Top 30 holder of BAL tokens, based on etherscan BAL holder rankings. Balancer will become a Top 80 AAVE holder.”

According to the proposal, the treasury swap will enable Balancer and Aave to play a role in the governance of other protocols. The treasury swap will provide a strategic advantage for AAve. Aave proposed the creation of the stablecoin called GHO pegged to the US dollars and based on the proposal, Aave users will be able to mint the stablecoin against the ratio of collaterals.

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