This is a proposal to raise the liquidity mining cap from $10M to $30M for $AAVE
After the activation of the Balancer Based Safety Module yesterday, the liquidity for $AAVE quickly crossed the 30M mark as new LPs join the AAVE/BAL incentivized Safety Module. Current APY by staking in the Safety Module is 350%, only considering the AAVE rewards, which will presumably attract a lot of liquidity, making Balancer the best protocol to trade AAVE on chain.
What is The Safety Module?
The Aave Safety Module acts as a collateral for the whole Aave ecosystem. AAVE holders, and now - with the new Balancer Based Stake - AAVE/ETH holders benefit from long term rewards for securing the protocol from insolvency, while at the same time bearing the risk of being slashed in case of shortfall events.
Having a very liquid onchain market and a consistent capital allocated in the Safety Module greatly increases the safety of the Aave ecosystem and the Aave protocol liquidity providers.