Aave Founder Proposes Establishment of a Treasury Reserve: Using Earnings to Repay Aave Shortfall and Prevent Market Panic

BlockBeats News, April 24th, Aave ecosystem contributor Aave Chan Initiative (ACI) founder Marc Zeller posted, suggesting the following approach rather than initiating donations:

Establish a deposit vault named "DeFi United ETH"; transfer Aave's wETH income to this vault with an annualized yield cap of 5%; tokenize the vault's deposit certificate for trading, named "AaveETH"; and gradually repay the deficit through interest and principal.

He proposed allowing user deposits and setting the vault capacity to the worst-case scenario deficit size. Zeller stated that if this approach had been taken at the time, enough funds might have been raised as early as last Saturday. He believes that Aave itself has sufficient income, and Aave DAO and Labs each have reserves in the hundreds of millions of dollars, ultimately able to resolve the issue and avoid market panic. He added that he would also deposit most of his ETH into the vault.