Demand for LEND has surged dramatically over the last week as the token undergoes a rebranding.

Aave, the non-custodial “DeFi” protocol, earlier launched its Aave Improvement Proposal (AIP1) to allow community consent over the migration from its governance token LEND to its rebranded avatar AAVE. In retrospect, the switchover attempted to take people’s opinions on the new changes proposed to Aave’s protocol existing economic model.

The modification introduced new Safety Incentives that would enable users to earn income by staking AAVE tokens in a reserve via “Safety Module.” For that, users would need to give up their LEND holdings. They will receive AAVE tokens instead at an exchange rate of 100 LEND per AAVE.

AAVE, LEND, DeFi, cryptocurrency
Aave Safety Module flowchart
Aave Safety Module flowchart

The proposal also promised an additional 400 AAVE in rewards every day when taking the 100 LEND > 1 AAVE swap into account.

“AAVE holders will be incentivized to backstop the protocol from shortfall by staking to the Safety Module,” explained Matt Kaye, the managing partner at Blockhead Capital in California. “The SM includes a builtin backstop mechanism to prevent the excess flow of AAVE into the open market as not to increase AAVE sell pressure.”

The AIP1 went through unharmed on Thursday with the majority “YAE.” The team announced that it would release more information about the migration on Friday.

LEND Surges

Meanwhile, the LEND/USD exchange rate jumped by 8.79 percent in the last 24 hours due to the migration hype. That brought the pair’s total rebound up by almost 20 percent, with a session high near $0.6.

lend, bitcoin, aave, cryptocurrency, crypto, lendbtc, lendusd
LEND performance amid the protocol upgrade hype. Source: TradingView.com
LEND performance amid the protocol upgrade hype. Source: TradingView.com

The surge appeared to have come from traders’ inclination to hold AAVE. At first, it has to do with the rewards. At the same time, AIP1’s commitment to add adds a 3M token Aave Reserve to a community governed treasury further increased the appeal of LEND among serious stakers.

LEND could surge towards its 50-day moving average (red) as it keeps up with the token migration hype. A successful breakout, on the other hand, would confirm $0.65 as its next upside target.

“A consolidation phase,” said an analyst, “will produce several strong entry opportunities in the coming weeks, possibly months, before LEND gets going on its next leg up.”

He said the LEND/USD could surge another 20,000 again on Aave’s credibility as an emerging decentralized finance project.

1% deposit bonus on crypto in buyucoin

1% Deposit Bonus & Withdrawal Fees On Crypto Deposit in BuyUcoin

BuyUcoin giving 1% deposit bonus on crypto and reimbursement of crypto withdrawal fees for Indian user who have funds on banned crypto exchange. In the wake of the recent ban ...
Read More
Bitcoin ETFs

A Decade in the Making: US SEC Approves 11 Bitcoin ETFs, Igniting Market Enthusiasm

After years of anticipation and regulatory scrutiny, the U.S. Securities and Exchange Commission (SEC) has granted approval to 11 Bitcoin ETFs applications, marking a significant milestone in the cryptocurrency and ...
Read More
Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?

Will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved?

Everyone wants to know that bitcoin will Bitcoin Price Increase 200% When Bitcoin ETF Is Approved? We talk about the Bitcoin ETF, an important part in the cryptocurrency space. According ...
Read More

10 Must-Have Features on Bitcoin Staking Site

Crypto has provided many benefits for online gambling, and almost all relevant gambling sites now offer it as a payment method.  With so many gambling sites, players, especially those without ...
Read More
Christmas in the cryptocurrency world arrives early as the pre-holiday crypto market heats up

Christmas in the cryptocurrency world arrives early as the pre-holiday crypto market heats up

Happy Cryptomas to all of you! During the bullish state of the crypto market, margin-lending platforms and decentralised exchanges were the most often used DeFi protocols. Bitcoin is Up 167% so ...
Read More
Share with Others