The governance smart contract where proposals are submitted and AAVE holders express their voting preference. Also see Governance Module.
Aave Improvement Proposals (AIP)
The framework that formalizes the community intent of improving the Aave Protocol, either in terms of configuration or new functionalities.
Component of the Aavenomics infrastructure that maintains an ongoing incentivized bid for minted or slashed AAVE to recapitalize the protocol in case of Shortfall Event. Also see Safety Module In Detail.
Ecosystem Incentives (EI)
Represents the part of the periodic issuance of AAVE (AI) used to incentivise liquidity providers, software developers and integrators to build value within the Aave ecosystem. Also see Policies section.
Ecosystem Reserve (ER)
The component holding the incentive reserve of AAVE and managing the distribution to the Safety Incentives and Ecosystem Incentives and the overall ecosystem. Also see Incentives Policy & AAVE Reserve section.
Recovery Issuance (RI)
The Recovery Issuance can be triggered whenever the Safety Module is not enough to cover the complete recovery of the protocol followed by a critical loss of funds. Also see Safety Module section.
Shortfall Event (SE)
Event in the Aave Protocol causing a state of deficit for the liquidity providers. Also see Shortfall Events section.
Safety Incentives (SI)
Represents the part of the periodic issuance of AAVE used to incentivize users to stake AAVE in the Safety Module (SM). Also see Policies section.
Safety Module (SM)
Also known as the Protocol Safety Module. Component in charge of shielding the protocol from insolvency, protecting the liquidity providers from risks resulting in loss of funds, such as liquidation and smart contract risk. Also see the Safety Module section.