{"id":17100,"date":"2023-01-29T10:53:41","date_gmt":"2023-01-29T14:53:41","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=17100"},"modified":"2023-01-29T10:53:41","modified_gmt":"2023-01-29T14:53:41","slug":"aave-seeks-proposal-to-clear-itself-of-bad-debt-can-it-overcome-these-obstacles","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/01\/29\/aave-seeks-proposal-to-clear-itself-of-bad-debt-can-it-overcome-these-obstacles\/","title":{"rendered":"AAVE Seeks Proposal To Clear Itself Of Bad Debt \u2013 Can It Overcome These Obstacles?"},"content":{"rendered":"

The lending platform AAVE has been enjoying positive news lately. According to reports, AAVE has passed a governance proposal that would eradicate all bad debt it accumulated when Avraham Eisenberg, orchestrator of the Mango Markets exploit<\/a>, targeted the platform\u2019s Ethereum V2 liquidity pool back in November 2022.\u00a0<\/p>\n

However, the governance token of the platform, AAVE, has not responded either positively or negatively. According to data from CoinGecko<\/a>, the token registered losses in the daily and weekly time frames. But these losses are too miniscule to revert the token\u2019s gains from the start of the year.\u00a0<\/p>\n

\u00a0With the launch of AAVE\u2019s V3 on its mainnet, the crypto might be in a position to tally new highs if the situation permits it.\u00a0<\/p>\n

The Gist Of The Proposal & On-Chain Developments<\/strong><\/h2>\n

Based on the proposal<\/a>, the token has over 2,677,749 units of CRV in debt on its Ethereum V2 CRV reserve. This is worth, at the date of the proposal, over $2.5 million. The proposal would use V2\u2019s stablecoin reserve to buy the necessary number of units of CRV to pay the debt.<\/p>\n

This obviously was accepted by the community positively, being implemented immediately by January 25th. This would reverse the damage of the exploit attempt, proving the liquidity of the protocol.\u00a0<\/p>\n

The deployment of AAVE\u2019s V3 on Ethereum was also implemented. According to DefiLlama<\/a>, the crypto is in the top 4 among all platforms. AAVE V3, the Ethereum pool deployment, has over $526.52 million total value locked.\u00a0<\/p>\n

At $86.02, What\u2019s In Store For AAVE?\u00a0<\/strong><\/h2>\n

The token is currently consolidating around the $85.8 support range. This could be a sign that the token still has room to regain lost ground from 2022\u2019s bear market. However, this can only be achieved if the token closes with a green candle to continue AAVE\u2019s rally when the year started.\u00a0<\/p>\n

Investors and traders should target the token\u2019s current resistance at $90.15. If the bulls can consolidate at the token\u2019s present support, we can see an upward push towards $94.70.\u00a0<\/p>\n\n

Investors should also monitor the token\u2019s correlation with Bitcoin and Ethereum as these would have a big influence on its price movement in the short to medium term. <\/p>\n

As these major cryptocurrencies retest their crucial resistances, a breakthrough by either one or both of these coins would boost AAVE\u2019s momentum to regain lost ground.\u00a0<\/p>\n

With this in mind, investors and traders should exercise caution in the short to medium term as the token can still be clawed by the bears to revert back to $78.65.<\/p>\n

Featured image by Kanalcoin.com<\/em><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The lending platform AAVE has been enjoying positive news lately. According to reports, AAVE has passed a governance proposal that would eradicate all bad debt it accumulated when Avraham Eisenberg, orchestrator of the Mango Markets exploit<\/a>, targeted the platform\u2019s Ethereum V2 liquidity pool back in November 2022.\u00a0<\/p>\n

However, the governance token of the platform, AAVE, has not responded either positively or negatively. According to data from CoinGecko<\/a>, the token registered losses in the daily and weekly time frames. But these losses are too miniscule to revert the token\u2019s gains from the start of the year.\u00a0<\/p>\n

\u00a0With the launch of AAVE\u2019s V3 on its mainnet, the crypto might be in a position to tally new highs if the situation permits it.\u00a0<\/p>\n

The Gist Of The Proposal & On-Chain Developments<\/strong><\/h2>\n

Based on the proposal<\/a>, the token has over 2,677,749 units of CRV in debt on its Ethereum V2 CRV reserve. This is worth, at the date of the proposal, over $2.5 million. The proposal would use V2\u2019s stablecoin reserve to buy the necessary number of units of CRV to pay the debt.<\/p>\n

This obviously was accepted by the community positively, being implemented immediately by January 25th. This would reverse the damage of the exploit attempt, proving the liquidity of the protocol.\u00a0<\/p>\n

The deployment of AAVE\u2019s V3 on Ethereum was also implemented. According to DefiLlama<\/a>, the crypto is in the top 4 among all platforms. AAVE V3, the Ethereum pool deployment, has over $526.52 million total value locked.\u00a0<\/p>\n

At $86.02, What\u2019s In Store For AAVE?\u00a0<\/strong><\/h2>\n

The token is currently consolidating around the $85.8 support range. This could be a sign that the token still has room to regain lost ground from 2022\u2019s bear market. However, this can only be achieved if the token closes with a green candle to continue AAVE\u2019s rally when the year started.\u00a0<\/p>\n

Investors and traders should target the token\u2019s current resistance at $90.15. If the bulls can consolidate at the token\u2019s present support, we can see an upward push towards $94.70.\u00a0<\/p>\n

Investors should also monitor the token\u2019s correlation with Bitcoin and Ethereum as these would have a big influence on its price movement in the short to medium term. <\/p>\n

As these major cryptocurrencies retest their crucial resistances, a breakthrough by either one or both of these coins would boost AAVE\u2019s momentum to regain lost ground.\u00a0<\/p>\n

With this in mind, investors and traders should exercise caution in the short to medium term as the token can still be clawed by the bears to revert back to $78.65.<\/p>\n

Featured image by Kanalcoin.com<\/em><\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-17100","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/17100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=17100"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/17100\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=17100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=17100"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=17100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}