Aave is considering a $50 million continuous buyback program.

Aave (AAVE), a significant player in the world of decentralized finance (DeFi), is making a new development that has caught the attention of investors. The protocol's governing body, Aave DAO, has opened discussions on a proposal for a 50 million dollar permanent AAVE buyback program, which will be financed by protocol revenues.

This proposal, presented by the Aave Chan Initiative (ACI) team, aims to make Aave's current buyback practice permanent. The proposal emphasizes that this program will support the AAVE price in the long term, enhance the efficiency of the protocol's treasury, and create a continuous buying pressure in the market. ACI argues that the previous buyback program was successful and this strategy should become a permanent part of the Aavenomics system.

According to the proposal, the Aave Finance Committee (AFC) and TokenLogic teams will purchase AAVE on a weekly basis, ranging from 250,000 to 1.75 million dollars. This amount can be dynamically adjusted based on market conditions and protocol revenues. Additionally, the proposed plan allows Aave to use its Bitcoin (BTC) and Ethereum (ETH) reserves for growth initiatives and even convert them into yield-generating assets.

Aave's move comes at a similar time to other projects in the DeFi ecosystem that are adopting token buyback strategies. For example, platforms like Uniswap, Pump.fun, and Raydium also aim to enhance capital efficiency. Aave continues to be one of the strongest players in the DeFi sector, with a loan volume exceeding 25 billion dollars. The company also recently launched its Horizon platform, introducing lending services based on real-world assets, and is preparing to integrate Maple Finance’s yield-generating assets.