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In today’s episode:

• ✍️ Why the U.S. Strategic Crypto Reserve Could Be a Bad Idea

TOP STORY

AAVE Pumps 26% After Aave Drops Its Biggest Proposal Ever

Let’s talk about some wins today!

Aave just threw a game-changing proposal at the community, and the market ate it up like free alpha.

Quick Numbers:

• AAVE price: $215 (+15% in 24h)

• Market cap: $3.24B

• Trading volume: $677M (more than doubled overnight)

So... What’s the Hype About?

On March 4th, Marc Zeller (the guy running the Aave Chan Initiative, aka ACI) dropped a bombshell proposal called Aavenomics Implementation: Part One.

And according to Marc himself, this isn’t just a proposal — it’s the proposal. The biggest one Aave’s ever cooked up.

In short: Aave’s figuring out how to split the revenue pie, upgrade AAVE tokenomics, and manage its liquidity like a boss.

This is all built on something the community already approved back in August 2024 — a "TEMP CHECK" that laid out a plan to start redistributing Aave’s profits to contributors keeping the protocol alive. Now they’re ready to make it official.

What’s Inside the Proposal?

The whole thing is packed, but here’s the juicy part:

1. Aave Finance Committee (AFC) — A 4-member squad to manage the money moves. Includes:

   • ACI (Marc’s crew)

   • Chaos Labs (DeFi security nerds)

   • Tokenlogic (DeFi solutions team)

   • Llamarisk (risk management pros)

2. Treasury Moves — Tokenlogic gets the green light to manage funding for the first 6 months of Aavenomics. Each month, they’ll propose how to move cash around.

3. AAVE Buybacks & Rewards — The AFC will start using treasury funds to buy $1M worth of AAVE every week and return those tokens to Aave’s ecosystem reserve. (Basically, feeding the beast.)

New Toys Coming Soon

On top of all that, Aave’s cooking up two fresh features:

• Anti-GHO — A new non-transferable token to help clear GHO debt or convert into staked GHO (StkGHO). Think of it like a loyalty coupon... but for paying off your DeFi loans.

• Umbrella — A backstop system to protect users from nasty debt spirals when the market decides to rug itself.

For context: GHO (Aave’s stablecoin) is already flexing with a circulating supply of over $200M.

Oh, and One More Thing

Aave’s treasury is stacked. Cash reserves have doubled since mid-2024, hitting $115M. Turns out, running one of DeFi’s biggest lending markets pays pretty well.

Big Picture
Aave isn’t just tweaking the protocol — they’re rewriting the entire playbook.

If this proposal passes, Aave could become the DeFi blueprint for how to manage a multi-billion dollar treasury and keep token holders happy.

Meme of the Day 🤣

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.