Aave DAO Approves Proposal To Acquire 443,674 AURA From Olympus DAO

September 7, 2023 - Around 2 mins mins to read

Key Points:

The Aave community has approved a proposal to buy back over 440,000 AURA with DAO funds.
Over the next few months, veBAL and vlAURA support for the GHO team is expected to decrease.
The proposal is to replace that lost support by purchasing AURA.

Aave DAO’s ARFC proposal for the acquisition of 443,674 AURA at a total cost of 420,159.28 DAI units was approved with an approval rating of 83.69%.

Aave DAO Approves Proposal To Acquire 443,674 AURA From Olympus DAO

Olympus DAO seeks payment in DAI, with an exchange rate of 0.9470 DAI per AURA unit (approximately the current market price). The number of AURAs is 443,674 with the total cost of Aave DAO being 420,159.28 DAI units. Aave DAO currently holds 2.873 million units of aDAI on Aave v2.

This proposal aims to replace support from Aura Finance by purchasing 443,674 AURA units from Olympus DAO. Olympus DAO is reducing exposure to AURA due to changes in Olympus DAO’s route.

Before the Balancer Holdings Ecosystem Update detailing the impact on Aura Finance’s AIP-42, the most effective way for Aave DAO to launch GHO stablecoin is through vlAURA vs. veBAL.

According to the proposal, the initial commitment from the Aura Finance team is 400,000 vlAURA units for the first 3 months period. However, over the next few months, veBAL and vlAURA support for the GHO team is expected to decrease. Therefore, the proposal is to replace that lost support by buying AURA.

Olympus DAO is in the process of consolidating its treasury and is looking to sell its AURA shares via OTC. AURA via the vlAURA governance token is also a more effective way to incentivize liquidity than purchasing BAL.

GHO is the private stablecoin of Aave, the leading lending protocol on Ethereum, which was launched earlier this year and received a lot of attention.

GHO will be backed by a series of tokens chosen by users, and most importantly, owned and managed by the entire Aave community without belonging to a certain individual or organization.

GHO’s current website allows DeFi users to mortgage cryptocurrencies including DAI, USDC, AAVE, LINK, and ETH to borrow GHO, DAI, USDC, and LINK.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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