HomeNewsAave v2 targeting stablecoin borrowers with its liquidity mining program

Aave v2 targeting stablecoin borrowers with its liquidity mining program

Aave has come up with a new way to attract stablecoin borrowers to its v2 platform. The platform will pay out governance token rewards exceeding 20% to users borrowing stablecoins.

As of now, if a user deposits stablecoins into the protocol, he/she can earn an additional yield between 4.78% and 13.49% on top of their regular gains. This will be in the form of staked AAVE (stkAAVE) tokens. Wrapped BTC deposits will earn you an extra 4.59% while ETH deposits are earning 2.11% in rewards.

However, stablecoin borrowers are receiving rewards between 5.15% and 22.05%.

The liquidity mining program was passed on April 24 through a governance vote. Roughly 2,200 staked AAVE ($880,000) is set to be distributed to lenders and borrowers until July 15.

More than two-thirds of rewards have been allocated to the USDC and USDT markets. The remaining 32.5% will be distributed through Aave’s DAI, ETH, BTC and GUSD markets.

The company stated:

“AIP 16 increases the liquidity in the Aave Ecosystem Reserve, which can be used to fund grants, devs, and builders through a community-led grants programme.”

Aave said they wanted to reward stable tokens in order to discourage risky borrowing. This will also boost the stablecoin’s liquidity.

According to DeFi Llama, Aave is the sixth-largest DeFi protocol with a TVL of roughly $7.5 billion.

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