Aave Chan founder proposes creating a deposit treasury to repay Aave shortfall with yields, avoiding market panic

Odaily, Aave ecosystem contributor Aave Chan Initiative (ACI) founder Marc Zeller has proposed, instead of launching a donation drive, to establish a deposit treasury called “Defi United Eth.” This treasury would channel Aave’s wETH revenue into it, cap the yield at 5% APR, issue a tradable deposit token called “AaveETH,” and gradually repay both interest and principal. He stated that users could deposit ETH into the treasury, and the treasury capacity could be set to match the total shortfall under the worst-case scenario. In his assessment, enough funds could have been raised last Saturday to exceed what was needed. Marc Zeller also noted that Aave has ample revenue, and both the Aave DAO and Labs hold nine-figure treasury funds.