{"id":13072,"date":"2025-02-14T10:31:58","date_gmt":"2025-02-14T10:31:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=13072"},"modified":"2025-02-14T10:31:58","modified_gmt":"2025-02-14T10:31:58","slug":"aave-proposes-eliminating-eth-for-gas-payments-what-does-this-mean-for-ethereum-and-defi","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=13072","title":{"rendered":"Aave Proposes Eliminating ETH for Gas Payments: What Does This Mean For Ethereum and DeFi?"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Aave is one of DeFi\u2019s first successful protocols. After launching in 2018, the platform has not only expanded to serve other Ethereum layer-2 solutions like Base and Arbitrum but now has an algorithmic stablecoin similar to DAI, called GHO.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_67af1b0b0dd51\" data-coin-id=\"aave-new\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_67af1b0b0dd51-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_67af1b0b0dd51-chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67af1b0b0dd51-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67af1b0b0dd51-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67af1b0b0dd51-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_67af1b0b0dd51-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_67af1b0b0dd51-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_67af1b0b0dd51-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_67af1b0b0dd51-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_67af1b0b0dd51-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_67af1b0b0dd51-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_67af1b0b0dd51-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<p><span data-preserver-spaces=\"true\">On February 12, Aave revealed that there was a proposal to change how GHO fees will be paid. GHO minting and transfers come with a fee as a solution operating on a public ledger. However, <\/span><span data-preserver-spaces=\"true\">since<\/span><span data-preserver-spaces=\"true\"> gas fees change depending on supply and demand, there was a need to ensure predictability.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Aave Labs proposes a gas token framework for <a href=\"https:\/\/twitter.com\/GHO?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">@GHO<\/a>.<\/p>\n<p>Using GHO as a gas token enables predictable pricing for gas fees, particularly in low-fee networks. <a href=\"https:\/\/t.co\/6TZR2tW9VJ\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/6TZR2tW9VJ<\/a><\/p>\n<p>\u2014 Aave (@aave) <a href=\"https:\/\/twitter.com\/aave\/status\/1889744428161483019?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 12, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Adopt GHO For Gas Payment?<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">In a post on X, Aave said establishing a new framework for GHO users to pay gas fees using the stablecoin, not ETH as is currently the case, would solve the issue of fluctuating gas fees, stabilizing transaction costs as a result.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">To do this, the team will use their native bridge as a liquidity pool when minting GHO. For this reason, security is needed, considering how bridges can be susceptible to attacks, introducing weak points. In light of this, the framework will also embed security and liquidity management, making them integral to its<\/span><span data-preserver-spaces=\"true\">\u00a0core infrastructure.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Lens Chain, an Ethereum layer-2 platform, will be the first to adopt GHO as its native gas token. Lens Chain is ideal for testing this proposal as a layer-2 platform that uses rollups to speed up transaction processing and lower costs.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Lens Chain will run on <a href=\"https:\/\/twitter.com\/GHO?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">@GHO<\/a><\/p>\n<p>The first L2 with a stablecoin gas token. <a href=\"https:\/\/t.co\/8gFOeMwx3D\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/8gFOeMwx3D<\/a><\/p>\n<p>\u2014 Lens Chain (@LC) <a href=\"https:\/\/twitter.com\/LC\/status\/1889743207904485631?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 12, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Layer-2 will benefit from this initiative since if they replace gas payment in ETH with GHO, <\/span><span data-preserver-spaces=\"true\">users will be assured that transaction costs will be predictable. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Nevertheless, it is worth knowing that gas fees are already low when transacting on layer-2s, and it will be interesting to see how users will receive this proposal.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Beyond this development, Aave continues to grow in strength. On-chain data shows that over $20 billion worth of assets were moved to Aave in the last year alone. <\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">ICYMI: <a href=\"https:\/\/twitter.com\/aave?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">@aave<\/a> added over $20 billion in net deposits in the past year. <a href=\"https:\/\/t.co\/ff5nRpyQTm\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/ff5nRpyQTm<\/a><\/p>\n<p>\u2014 Token Terminal | We are hiring! (@tokenterminal) <a href=\"https:\/\/twitter.com\/tokenterminal\/status\/1889838459365499201?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 13, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">According to <\/span><a class=\"general-link\" href=\"https:\/\/defillama.com\/protocol\/aave\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">DeFiLlama<\/span><\/a><span data-preserver-spaces=\"true\">, the protocol now manages over $19 billion as total value locked (TVL), with most assets locked on Ethereum.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Ethereum Foundation Moves Over 30,000 ETH to Aave<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Yesterday, the Ethereum Foundation, the organization <\/span><span data-preserver-spaces=\"true\">tasked with<\/span><span data-preserver-spaces=\"true\"> promoting the first smart contracts platform, moved over 30,000 ETH to Aave.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">EF Treasury has deployed:<\/p>\n<p>\u2013 10,000 ETH into Spark<br \/>\u2013 10,000 ETH into Aave Prime<br \/>\u2013 20,800 ETH into Aave Core<br \/>\u2013 4,200 ETH into Compound<\/p>\n<p>We&#8217;re grateful for the entire Ethereum security community that has worked diligently to make Ethereum DeFi secure and usable!<\/p>\n<p>\u2014 Ethereum Foundation (@ethereumfndn) <a href=\"https:\/\/twitter.com\/ethereumfndn\/status\/1889978208986280031?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 13, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The foundation relieves pressure on the second most valuable coin by lending a portion of its millions of ETH. After dropping below $3,000, there are fears ETH may slide to $2,000 or worse as the market recoils following gains in Q4 2024.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For months <\/span><span data-preserver-spaces=\"true\">now<\/span><span data-preserver-spaces=\"true\">, the Ethereum Foundation has been <a class=\"general-link\" title=\"Vitalik Buterin Announces Major Leadership Shakeup At Ethereum Foundation. New Crypto To Buy In 2025!\" href=\"https:\/\/99bitcoins.com\/news\/vitalik-buterin-announces-major-leadership-shakeup-at-ethereum-foundation-new-crypto-to-buy-in-2025\/\" rel=\"\">criticized<\/a> for helping accelerate the ETH sell-off, diffusing upside momentum. Last year, they sold thousands of ETH to cover operational costs. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">After criticism, which could see leadership changes, the foundation is <\/span><span data-preserver-spaces=\"true\">now<\/span><span data-preserver-spaces=\"true\"> taking a different approach. One <\/span><span data-preserver-spaces=\"true\">of them<\/span><span data-preserver-spaces=\"true\"> involves lending ETH and using the received yield to cover costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">AAVE, the governance token of the Aave protocol, is under pressure, like ETH. From the daily chart, the token is flat, <\/span><span data-preserver-spaces=\"true\">with<\/span><span data-preserver-spaces=\"true\"> support above $200. Although the uptrend remains, buyers must step in and reverse the losses of the past few trading weeks.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/www.tradingview.com\/x\/yK8GSKWf\/\" width=\"1499\" height=\"859\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/symbols\/AAVEUSDT\/\" target=\"_blank\" rel=\"noopener nofollow\">AAVEUSDT<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">A clear break above $275 may lift sentiment, <\/span><span data-preserver-spaces=\"true\">subsequently<\/span><span data-preserver-spaces=\"true\"> driving prices back to Q4 2024 highs.<\/span><\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/presales\/dave-portnoy-new-meme-coin-went-100000-but-what-is-the-best-meme-coin-to-buy\/\" target=\"_blank\" rel=\"noopener\">Dave Portnoy\u2019s New Meme Coin Went 100,000% But What Is The Best Meme Coin to Buy?<\/a><br \/>\n<\/strong><\/p>\n<p><strong><a class=\"general-link\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Aave Wants Gas Payment in GHO Details<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Aave is proposing a new framework for gas fee payments    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         Lens Chain to trial use of GHO for gas fees instead of ETH     <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        AAVE prices stable but in an uptrend     <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/aave-proposes-eliminating-eth-for-gas-payments-what-does-this-mean-for-ethereum-and-defi\/\">Aave Proposes Eliminating ETH for Gas Payments: What Does This Mean For Ethereum and DeFi?<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Aave is one of DeFi\u2019s first successful protocols. After launching in 2018, the platform has not only expanded to serve other Ethereum layer-2 solutions like Base and Arbitrum but now has an algorithmic stablecoin similar to DAI, called GHO. &#8211; Price Market Cap &#8211; &#8211; &#8211; 24h 7d 30d 1y All Time Log On February [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-13072","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13072"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13072\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}