Can Ghost Protocol Status Be Permanently Erased with New AAVE Proposals?

Can Ghost Protocol Status Be Permanently Erased with New AAVE Proposals

The recent exploits of Aave have garnered the attention of the crypto community. Since the ‘Ghost Protocol’ was recently dubbled, the blockchain has been actively responding to community ideas in anticipation of the Merge.

As as yet, the AAVE community has not settled on whether or not to halt ETH borrowing ahead of the long-awaited Merge. The proposal to put a temporary hold on Ethereum funding voting began on August 30 and will run through September 2.

The proposal’s focus is on reducing the risks associated with Ethereum’s PoW hardfork’s high use. Users that stand to gain from ETH-PoW by borrowing $ETH before the Merge pose a threat to the Ethereum market. At the time this article was published, 48.9% of AAVE investors supported the idea, while 49.8% opposed it.

I can’t wait to see what happens in the next several days as a result of this suggestion. In addition, a proposal for AAVE v3 Retroactive Funding is now being developed for the project. Some novel capabilities are detailed in the proposal.

Capital efficiency in the Aave ecosystem was bolstered by the addition of new nodes like the Isolation Mode and the High-Efficiency Mode. According to the idea, Aave DAO would fork over $15.2 million to Aave companies. If it happened, work on V3 would be finished.

Analyzing the Data

At the time of writing, Aave’s locked-in DeFi total value was around $6.1 billion (DeFiLlama). However, the majority of that sum was invested in Ethereum and amounted to $4.57 billion. In second place, Avalanche has $780 million. However, it was still much behind the $14.35 billion annual peak reached in April of 2022.

Value of AAVE

With this publishing, AAVE prices have become bearish, falling 1.67 percent in the last day to around $86.13. Despite a general uptick in the cryptocurrency market by August 31st, the alternative token remained pessimistic.

According to data compiled by Coinmarketcap, Aave saw a rise of 18.31% in trading volume over the course of the previous day. Nonetheless, with these initiatives in motion, Aave will lay a substantial groundwork in advance of the Merge. The project won’t be hindered by its ‘Ghosting Protocol’ label any longer.

On the other hand, bears are riding the crypto wave. Within the past day, most investments have seen losses. While this blog was being written, Bitcoin’s price was limply above the $20,000 barrier. The value of all cryptocurrencies on the market has dropped by 1.27 percent in the last day, to below $981.34 billion.

Keep an eye out for further developments.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.