Aave Proposal Targets $3.5M in Added Annual Revenue Through Reserve-Factor Changes
TL;DR: TokenLogic proposes changes to Aave's reserve factors across 54 reserves. Its model estimates $3.5 million in additional annual revenue, using November 9 balances and rates; governance has not yet approved the changes. Aave's latest revenue proposal focuses on how lending income is divided. A November 12 submission from TokenLogic covers 12 V3 instances and V2 Ethereum, with the modeled blended reserve factor rising from 12.0% to 12.7%. The practical issue is straightforward: the protocol treasury would retain a larger share of interest, leaving a smaller share for suppliers where a change applies. Whether that improves the economics over time depends partly on how those suppliers respond. What the reserve factor controls Aave's official FAQ defines the reserve factor as the percentage of...