Aave has begun modifying its protocols in response to the new proposals. These modifications could possibly enhance the protocol’s declining fee generation.
Aave [AAVE], a decentralized lending and borrowing protocol, has made significant protocol enhancements to persist in the extremely competitive DeFi market.
In a 14 April tweet, the protocol’s governance made progress on multiple fronts, including expansion into the zkEVM space, the addition of Risk Stewards, and the whitelisting of new protocols.
After launching on zkSync’s V2 testnet, Aave is slated to access the zkEVM space via the zkSync Era protocol.
The decision to launch on zkSync was motivated by a desire to attract more users to the protocol. It also seeks to be regarded as the preeminent platform for borrowing within the expanding zk ecosystem.
Aave is also planning to whitelist the Stargate liquidity transport protocol on its ecosystem. This will allow users to access assets on a variety of chains reliably and securely.
The Aave protocol has proposed a two-month trial of shielded voting for governance purposes. Shielded voting is a mechanism that enables electors to keep their ballots secret during the entire voting process, only revealing their selections and the results after the vote has concluded.
The protocol’s health continued to deteriorate despite the efforts to enhance it. According to data from Token Terminal, the network’s collected fees decreased by 17.7% over the past month. During the same time period, the number of active developers working on the protocol decreased by 35%.
A decrease in the number of active developers suggests that new enhancements and updates may take longer to go live than usual.
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