New Aave token trades at premium amid whale migration

  • Almost 40% of LEND tokens have already migrated to AAVE

  • New staking opportunities fuel migration

  • AAVE token is trading up 2% at $ 46

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Aave, DeFi lending protocolDecentralized Finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More, launched its token migration and supply reduction after a near unanimous community vote. Against this backdrop, a new token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More trades at a premium to the old.

The Aave project originally updated its tokenomics roadmap in July, when it received a proposal to cut supply by a factor of 100 and migrate from the current LEND tokens to the new AAVE governance token..

This migration aims to align the methods of rewarding token holders with the interests of the protocol, including protecting against insufficient funds when rewarding holders with staking opportunities..

Whale migration

The upgrade and migration process includes a safety module (Aave Safety Module or SM) that allows for staking rewards of up to 11% per year.

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The new AAVE tokens, located in the security module, serve as a reserve that protects the protocol from unexpected losses, risks associated with smart contracts and encryption oracle errors.

However, this innovation is not without risks – staking participants risk losing up to 30% of their assets in the security module in the event of a lack of funds. However, in the initial stages of migration this will not happen in order to maintain liquidity.

It looks like Aave whales have already started migrating – IntoTheBlock recorded several large transactions exceeding $ 100,000. According to migration tracker Aavewatch, 39% of the total supply has already migrated..

More than a third of LEND’s offerings went to AAVE in just four days, which confirms tangible support from large holders in the Aave ecosystem.

New Aave token trades at premium amid whale migration

Other metrics, including the number of active addresses, also show growth as token holders switch to a new asset.

Token dynamics

DeFi platform token LEND has been in the lead this year, gaining over 5,000% since the beginning of January and hitting a record high just below $ 1 on August 27. Since then, the price has noticeably adjusted, but the holders are not giving up the token.

New Aave token trades at premium amid whale migration

Even after a 50% drop in quotes from the $ 0.90 high, almost 92% of LEND addresses are currently profitable.

Today, Oct 9, LEND is trading at $ 0.45, while AAVE reached an intraday high of $ 47 during the Asian trading session..


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