$AAVE will allocate $1 million per week for token buybacks from the market
The DeFi protocol Aave has introduced an update to its tokenomics, including the launch of a token buyback program for AAVE tokens. The initial amount is $1 million per week for the first six months, after which the budget will be adjusted based on the project's income.
Aave is the largest DeFi protocol for lending and liquidity management, allowing users to earn interest on deposits and take loans without intermediaries.
The buyback will be financed from the protocol's excess income generated from fees and operations within the ecosystem.
Aave's treasury currently holds $115 million, which is 115% more than a year ago, and most of the funds are in liquid assets, including stablecoins.
At the same time, Aave will launch Umbrella — a system to protect users from debts during periods of market volatility. This will help maintain a stable income stream and fund future buybacks.
