Aave DAO
This research was conducted on AAVE DAO. Why? We want to learn more about the DAO tools they use.
AAVE is one of the fastest-growing protocols that facilitates decentralized and non-custodial lending, allowing you to earn interest and borrow crypto assets. AAVE was designed to help remove the need for centralized entities such as banks by allowing users of the protocol to loan, and lend crypto assets with other users.
AAVE DAO Governance Process
AAVE is the main token on the AAVE protocol. AAVE allows users to participate in the project's governance model. For example, users can vote on a governance proposal that aims to improve a certain feature or increase yields within the protocol or the DAO.
Here are the steps for a successful governance proposal are:
Creating an Aave Request for Comments (ARC) is the first step in the governance improvement process. AAVE allows anyone to participate in the governance forum to participate in discussions that will improve the protocol.
Secondly, AAVE will use Snapshot to gauge community sentiment and preferences.
The third step in the governance improvement process is to prepare the Aave Improvement Proposal (AIP) based on the rough consensus gathered via snapshot and prepare the necessary payloads. Note that creation and submission of the AAVE Improvement Proposal (AIP) is exclusive to community members who has enormous proposition power.
Lastly, you can submit the AIP to the protocol for a governance vote. The AIP is uploaded online using IPFS, the voting is cast off-chain using the AAVE Snapshot Poll.
If successful, the AIP's payload will be automatically executed and implemented.
DAO Tools Used By AAVE DAO
Where the tools are used!
Snapshot Aave uses an off-chain tool know as “Snapshot” to host community discussion and measure initial sentiment around initiatives or proposals that will eventually be put through their on-chain governance mechanism.
What is Snapshot?
Snapshot, a decentralized governance platform that allows DAOs to easily create and vote on proposals without spending on gas fees! DAOs can use various voting types so they can tailor the voting process to their needs.
Resources
What is Tenderly?
Tenderly is a Web3 development platform that accelerates smart contract development and provides a fully integrated developer experience. Tenderly also combines in-depth debugging tools with observability and blockchain infrastructure.
Resources
AAVE DAO Onboarding Process
Any interested in contributing to the AAVE DAO can click here to join AAVE discord. Verify that you’re human by answering the Captcha question, you’re in.
The only way to get the AAVE governance utility token to buy the token on an exchange.
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