TechFlow news, on August 23, on-chain analyst Ai Auntie (@ai_9684xtpa) analyzed that previous proposals indicated Aave, as a WLFI lending ecosystem partner, will adopt the same reserve factor mechanism in this Aave v3 instance as in the main Aave instance.
AaveDAO will receive 20% of the protocol fees generated by the WLFI Aave v3 instance and will obtain approximately 7% of the total WLFI token supply for participation in future WLFI governance processes, liquidity mining, and advancing the decentralization of the WLFI platform.
Revenue distribution will be executed through a trustless smart contract, which directly allocates the corresponding portion of protocol fees to the AaveDAO treasury address and the WLFI treasury address.
Impacted by this news, AAVE briefly surged above 385 USDT and is currently trading at 369.05 USDT, up 14.85% in the past 24 hours.
