/biz/ - Business & Finance

few understand how high aave will run. follow the money. let's go boy dot jpeg.

>>19285312
Dig. It's worth the worm-hole, and you'll understand more about DEFI. Pic-related is a major indicator.

"LEND was originally used as a utility token within the ETHLend platform. It provided users with a variety of benefits including reduced fees, improved loan-to-value ratios, and staking rewards.

However, as ETHLend shut down and was replaced by Aave, the LEND token took on additional use-cases including platform governance as it moves toward a more decentralized model.

LEND holders are able to vote on proposals made by the development team, as well as economic parameters including interest rates, liquidation configurations, and new assets.

The protocol is currently using roughly 80% of platform fees to burn LEND tokens on the open market. This implies that the LEND supply will consistently be decreasing, which may improve token value over time.

Moving forward, LEND will see increased staking utility to support protocol governance, including a claim on protocol fees in exchange for acting as the first line of defense in the case of liquidity events by malicious borrowers."

Resources :

https://tokentuesdays.substack.com/p/lend-not-youre-aave-rage-token

https://en.cryptonomist.ch/2020/01/26/stani-kulechov-aave-genz-money-bank-account/

https://forum.makerdao.com/t/lend-mip6-collateral-onboarding-aave/2529

>>19244715
That's how most people think. You need to read more before this hits 50 cents and you hate yourself for not researching it :

This is like... ONE month.

"The lending protocol’s annualized earnings have surged to a peak of 234% as the protocol was generating over $1M in average annualized earnings just a few weeks ago in April.

The increase in annualized earnings has driven PE Ratios to an attractive 43.25, according to Token Terminal. PE Ratios are a fundamental metric when valuing capital assets - an asset class commonly fitting to many DeFi tokens. In the lens of 30-day average annualized earnings, LEND’s PE ratio is slightly higher at 45.94.

For reference, traditional PE ratios tend to lie somewhere between 20 - 40 for many companies. The fact that Aave (along with Kyber) - which are emerging protocols for an open financial system - are valued in line with traditional equities is a great sign that crypto investors may be undervaluing the token. "