Disclaimer: We are currently engaged in a consulting relationship with Aave and also hold $AAVE tokens
Governance as a source of alpha
As analysts, a key part of our research involves spending time reading and engaging in community governance discussions. Over the last few months, we’ve participated and generated proposals to projects as varied as Aragon, PowerPool, Aave, Nexus Mutual, Melon Protocol, Yearn Finance, Pickle Finance and many others. This is how we keep our finger on the pulse of the latest developments in crypto, as well as where things are headed. One of the things that makes us most bullish on this industry is the quality of discourse that can be gleaned from the top DeFi communities as well as the level of insight of many of the community members.
Aave in particular has one of the strongest communities in the DeFi space. Forged in the fires of the bear market, Aave’s community has self-selected for the most knowledgeable, engaged and long-term oriented participants. This is what enabled Aave to continue maintaining and growing its TVL during DeFi summer despite no liquidity mining incentives being deployed. It’s also what allows Aave to innovate so quickly, constantly launching new products and integrations such as flash loans, delegated credit lines, and most recently acquiring its e-money license.
In this post, we’d like to highlight one of Aave’s recent product ideas, the impa