JP-14: Open AAVE.e-AVAX market

Proposal by Nadim of Ava Labs recording a temperature check vote of 25 in favour and 1 against

High Level:

Aave V3 is one of the core DeFi protocols on Avalanche and has been deeply integrated across the ecosystem. Its token, AAVE, is one of the top DeFi tokens with over $1.2B in market capitalization and daily volumes ranging between $50M to $200M across all exchanges. There is over $400K in liquidity currently in the V2 AAVE - AVAX pool.

Specifications:

Listing on the Avalanche LB Market Token name: AAVE.e Contract ID: 0x63a72806098bd3d9520cc43356dd78afe5d386d9 (https://snowtrace.io/token/0x63a72806098bd3d9520cc43356dd78afe5d386d9) Coingecko: https://www.coingecko.com/en/coins/aave Coinmarketcap: https://coinmarketcap.com/currencies/aave/

Tokenomics:

AAVE is primarily used as a governance token for the Aave protocol (tokenomics doc). Governance proposals require holding AAVE tokens and votes are weighted based on how many tokens a wallet holds. Users can stake their tokens into the Safety Module (SM) to provide funds that can be used to secure the protocol in exchange for a reward paid in Aave tokens and issued by the ecosystem reserve (the % of the bonus is periodically decided by governance, and these token emissions are classified as safety incentives or SI). The total supply of AAVE is 16M, of which 13M were redeemable by holders of the previous token, LEND, and the remaining 3M was allocated to the Aave Reserve and controlled by the AAVE token holders, to incentivize the Aave Ecosystem growth and development.

Summary:

AAVE is a widely adopted DeFi token that plays a core part in the governance and safekeeping of the Aave protocol. It is already listed on Trader Joe V1 (paired with AVAX) and would benefit from the efficiency of a V2 listing which could boost trading volume and allow for more capital efficiency with the same level of liquidity. This listing would also help consolidate Liquidity Book as a primary venue for trading Avalanche ecosystem tokens.