Should AAVE Remove Flash Loan Fees?

Voting ended over 4 years agoSucceeded

Rationale: AAVE's flash loan fees are not competitive with newer offerings on the market, and represent roughly 1% of protocol revenue. This revenue continues to steadily decline as more users switch to offerings like dYdX's free flashloans and Maker's new flash minting. AAVE governance should make a choice on whether to adapt to these changing conditions.

Proposal: Set flash loan fees to zero. This would essentially mean that the liquidity of AAVE would be available to all users with zero friction. The drawback is the loss of flash loan fees for depositors. Reducing flash loan fees is also an option, but there's no telling how long any new rate would stay competitive.

https://governance.aave.com/t/arc-reduce-flash-loan-fees-introduce-a-fee-for-1-tx-borrows-and-add-a-flash-loans-whitelist/3935

Off-Chain Vote

Reduce Flash Loan Fees to Zero

126.96 0.1%

Reduce Flash Loan Fees

1.29K 0.6%

Keep Flash Loan Fees

228.15K 99.4%

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Timeline

Jul 26, 2021Proposal created

Jul 26, 2021Proposal vote started

Aug 01, 2021Proposal vote ended

Oct 26, 2023Proposal updated