• The lending platform AAVE recently passed a governance proposal to eliminate bad debt.
• AAVE’s crypto token registered losses in the daily and weekly time frames.
• If the bulls can consolidate at the token’s present support, it could push towards $94.70.
AAVE Passes Governance Proposal, Token Sees Miniscule Losses
The Gist of the Proposal
The lending platform AAVE recently passed a governance proposal that would eradicate all bad debt it accumulated when Avraham Eisenberg orchestrated an exploit targeting its Ethereum V2 liquidity pool back in November 2022. According to DefiLlama, the proposal uses V2’s stablecoin reserve to buy the necessary number of units of CRV to pay off their debt worth over $2.5 million at that date. Furthermore, deployement of AAVE’s V3 on Ethereum was also implemented which has over $526 million total value locked and is in top 4 among all platforms.
Despite this news, AAVE’s crypto token registered losses in both daily and weekly time frames according to data from CoinGecko; however these losses are too miniscule to revert its gains from start of the year so far. Currently consolidating around $85.8 support range, investors and traders should target the token’s current resistance at $90.15 for further gains pushing towards $94.70 if bulls can consolidate at present support level of the token.
Mainnet Launch & On-Chain Developments
The launch of AAVE’s V3 on mainnet has been successful so far with positive developments taking place on-chain as well as off-chain such as passing governance proposals with clear implications for future growth prospects for this project and other DeFi projects alike moving forward into 2021 and beyond!
In conclusion, despite registering miniscule losses lately, with successful launch of its mainnet and passing governance proposals with clear implications for future growth prospects; AAVE is still positioned well to make new highs if situation permits it and could be a good consideration for investors/traders who are looking for long term investments or short term opportunities respectively in DeFi space this year!
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