Aave DAO Governance Executes $1 Million Token Swap With Balancer

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Aave DAO Governance Executes $1 Million Token Swap With Balancer
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According to both parties, the swap occurred via a smart contract that used a flat rate of 1 AAVE for 11.829 BAL tokens.

Aave DAO, the governance arm of the Aave decentralized finance protocol, has swapped $1.6 million worth of its AAVE tokens with $1.13 million in Balancer tokens in an exchange for each project’s treasury coin.initiated by LlamaPay developer Matthew Graham in March. The proposal, which was subsequently amended, called for Aave to swap 16,908 AAVE tokens for 200,000 BAL coins.

According to details from the on-chain voting page, the vote passed unanimously with nearly 400,000 in favor of the proposal. The processWith the vote concluded, the swap occurred via a smart contract that used a flat rate of 1 AAVE for 11.829 BAL tokens. Using this rate helps with the wide difference of over $500,000 in the token swap, according to the value of each token.

According to the proposal, the treasury swap will enable Aave and Balancer to play a more prominent role in the governance of other’s protocols. The treasury swap will also provide a “strategic advantage” for Aave in the “Balancer wars.”, Aave proposed the creation of a stablecoin called GHO, pegged to the US dollars. Based on the proposal, Aave users will be able to mint the stablecoin against the supplied ratio of collaterals.

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