Aave Governance

    This dashboard consists of two parts. In the first part, the state of governance in the Aave protocol is analyzed. In the second part, the activities of voters in different parts of the Aave protocol (borrow/lend/flashloan) are investigated.

    πŸ“– Introduction

    πŸ”΅ Aave Protocol

    Aave was founded in 2017 by Stani Kulechov in Switzerland. Aave is a decentralized and non-custodial liquidity protocol that users can use to participate in depositing and borrowing activities. This protocol is considered a reliable name in decentralized finance (DeFi).

    It is important to mention that the lending protocol of this company was previously known as EthLend. At that time, the platform focused only on Ether lending; But after it rebranded to Aave in 2018, other Ethereum network tokens were added to the protocol's portfolio of lendable and borrowable assets.

    In 2018, the founders of lending platform EthLend announced plans to launch Aave. The name Aave is derived from a Finnish word meaning "ghost". Finally, Aave protocol was officially launched in January 2020 and EthLend activity was completely stopped. The most important decision of this platform was to change the peer-to-peer (P2P) lending strategy to the pool-based strategy that was unveiled in the first version of this protocol.

    Aave protocol is an open source protocol that allows users to create their own decentralized financial markets on different blockchains. Depositors are users who provide the liquidity of this protocol by depositing base cryptocurrencies in lending pools. Their goal is to earn money by getting rewards. On the opposite side, Borrowers are users who can borrow the desired asset from the protocol.

    πŸ›οΈ Aave Governance

    Aave is a fully decentralized, community governed protocol by the AAVE token-holders. AAVE token-holders collectively discuss, propose, and vote on upgrades to the protocol. AAVE token-holders (Ethereum network only) can either vote themselves on new proposals or delagate to an address of choice.

    In order to vote you need to have AAVE tokens or stkAAVE (Staked AAVE) tokens. You can use both and the amount will be summed up in your voting. [1]

    🧠 Purposes of Dashboard

    Aave protocol can be analyzed from different aspects. In this decentralized lending market, no central entity can prevent users from offering or receiving loans. Everything is managed by smart contracts and no money is held by the company itself. In addition, the Aave protocol provides access to financial services in areas where it is not possible to receive facilities. These are all advantages that cannot be achieved in traditional markets. Because this platform is completely decentralized, all decisions are voted on this platform and users who are holders of AAVE or stkAAVE tokens can participate in this voting. Therefore, the main purpose of this dashboard is to check the state of governance in Aave Protocol and analyze the activities of voters.

    This dashboard consists of two main parts. In the first part, the state of governance in Aave protocol is evaluated, then in the second part, the activities of voters as suppliers, borrowers and receivers of Flashloan are examined.

    The following metrics are analyzed in this dashboard:

    β–Ά Part.1. State of governance in Aave

    1️⃣ The number of proposers, proposals and the number of unique voters

    2️⃣ Number of Proposal per Month and per Year

    3️⃣ Total Number of Proposals by Status

    4️⃣ Number of New Voter per Month

    5️⃣ Status of Proposals

    6️⃣ Results of Proposals by Voter Count/ Voting Power

    7️⃣ Top 10 Voters Based on Proposal Count/ Average Voting Power

    8️⃣ Classification of Voters Based on Average Voting Power

    9️⃣ Distribution of Proposal Count

    β–Ά Part.2. Voter activity in Aave protocol β†’ Voters as Depositors/ Voters as Borrower/ Voters as Flashloaner

    1️⃣ Total Volume of Supplied/Borrowed/ by Voters & Total Volume of Flashloan Received by Voters

    2️⃣ Total Number of Deposit/Borrow/Flashloan TXs recorded by Voters

    3️⃣ Total Number of Voters as Depositors/Borrowers/Flashloaners

    4️⃣ Volume of Tokens Supplied/Borrowed by Voters per Month & Flashloan Volume Received by Voters per Month

    5️⃣ Number of Deposit/Borrow/Flashloan TXs recorded by Voters per Month

    6️⃣ Top 10 Voters (as Depositors/Borrowers/Flashloaners) by Number of Deposit/Borrow/Flashloan TXs

    7️⃣ Top 10 Voters (as Depositors/Borrowers/Flashloaners) by Total Supplied/Borrowed/Flashloan Volume

    8️⃣ Total Number of Deposit/Borrow/Flashloan TXs recorded by Voters Based on Tokens

    9️⃣ Total Volume of Tokens Supplied/Borrowed by Voters & Total Volume of Flashloan Received by Voters Based on Tokens.

    🧱 Methodology

    In this dashboard, Flipsidecrypto database is used to extract data. The list of tables used are:

    We used Table ethereum.aave.ez_votes to get data about voters. In the same way, we went to table ethereum.aave.ez_proposals to check the status of the proposals.

    But in the second part of this dashboard, the activities of the voters are monitored. For this reason, we first extracted the voters' addresses from table ethereum.aave.ez_votes, then by joining this table with tables ethereum.aave.ez_deposits, ethereum.aave.ez_borrows and ethereum.aave.ez_flashloans, we analyzed the activities of voters as depositors, borrowers and flashloaners.

    πŸ”” Attention

    In the second part of this dashboard, only the activity of the voters on the Aave platform on the Ethereum network is examined.

    Considering that in the second part, the activity of the voters is examined in terms of receiving a flash loan, so it is necessary to give an explanation in relation to it;

    Flash loans are special transactions that enable asset borrowing. Borrowing is possible as long as the borrowed amount (along with its fee) is returned before the end of the transaction. In these transactions, there is no need for the user to provide collateral before entering into the transaction. So, the most important feature of these loans is the lack of collateral. The reason for this is that these loans must be executed in one of the Ethereum network blocks. If the borrowed amount is not returned for any reason, the transaction will be canceled completely. In traditional finance, you cannot find a process similar to the Flash Loan mechanism.

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    πŸ”Ž Findings


    • So far, 164 proposals have been submitted, of which 76% (125 proposals) have been executed and about 13% (21 proposals) have failed, the rest of the proposals (18 proposals) have expired or are in the queue.

    • Since December 2020, only in March 2021, no proposal has been submitted for voting.

    • The number of proposals submitted every month shows an upward trend. In other words, the number of proposals has increased year by year;

      2 (2020) β†’ 52 (2021) β†’ 84 (2022)

      In the first two months of 2023, 26 proposals have been presented, which is an increase of about 188% compared to the first two months of 2022. (A total of 9 proposals were recorded in the first two months of 2022.)




    • In November 2022, the largest number of proposals have been executed (12 proposals out of 14 proposals)

    • In February 2023, the largest number of proposals are in the queue.

    • In December, the largest number of new voters participated in the proposals. In this month, 1644 unique addresses have voted for the first time. (There were 9 proposals for voting this month)

    • From July 2022 onwards, new voter participation increased dramatically.

    • From September to December 2021, the number of new voters has dropped significantly.

    • The lowest number of new voters were active in April 2022. This month, only 7 new addresses participated in Aave governance for the first time.

    • So far, 42 unique addresses have recorded a total of 164 proposals.

    • The address 0x683a4f9915d6216f73d6df50151725036bd26c02 has submitted 47 proposals so far. This address is the top proposer in terms of the number of proposals. The addresses 0x55b16934c3661e1990939bc57322554d9b09f262 and 0xf71fc92e2949ccf6a5fd369a0b402ba80bc61e02 are in the second and third places with 24 and 11 proposals, respectively.

    • 21 proposers have submitted only 1 proposal. On the other hand, 11 proposers have submitted 2 proposals.


    • Some proposers have participated as voters in the governance of Aave, out of 42 proposers, 23 addresses have also participated in voting.

    • The average voting power of the top proposer is about 33.5k AAVE. This address has voted in 46 of the 47 proposals it has presented.

    • Among different proposers, the address is 0x378a9c9c44b41c0e8970c358470e4e72eb782302 has the highest average voting power. This address submitted only one proposal and voted in only one proposal. voting power of this address was about 262k AAVE.

    • The address 0x070341aa5ed571f0fb2c4a5641409b1a46b4961b is the top proposer in terms of the number of votes. (This address has participated in 102 proposals.)

    Voter activity in Aave protocol: πŸ’ΈVoters as Depositors

    πŸ”Ž Findings


    In this part, the activities of voters as suppliers have been analyzed. The obtained results show:

    • About 41.6% of the voters have been active in the role of supplier on the Aave platform.

    • In May 2021, the largest volume of assets was deposited by voters on this platform.

    • The volume of assets deposited by voters has entered a downward trend since May 2021.

    • In the past months, the volume of assets supplied by voters on the Aave platform has faced a significant drop.

    • The highest number of voters have been active in November 2022. In this month, 781 voters recorded 1064 deposit transactions to Aave pools.

    • From November 2021 to February 2022, the level of activity of voters as suppliers was lower than at any time.
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    Voter activity in Aave protocol: πŸ’° Voters as Borrower

    πŸ”Ž Findings


    • 34.3% of the voters were also active as borrowers.

    • Currently, the total amount borrowed by voters is about 2.4B USD.

    • The number of borrowing transactions related to voters reaches more than 9.7k TXs.

    • In August 2021, the volume of loans received by voters has reached the highest amount. In the months of April, May and October 2021, the volume of loans received by voters has increased significantly.

    • In the past months, the amount and number of loans received by voters has decreased.

    • The largest number of loans Received by voters is for January 2021.

    • At the end of 2021 and also at the beginning of 2022, the activity of voters in the field of borrowing from the Aave platform has decreased.

    Voter activity in Aave protocol: ⚑ Voters as Flashloaner

    πŸ”Ž Findings


    • Voters in the field of receiving flash loans less than other parts (lending or borrowing).

    • Only 149 voters have received flash loans so far. The volume and number of flash loans received by these users are equal to 60M USD and 578, respectively.

    • The largest volume of flash loans received by voters was recorded in April 2021.

    • In the past months, the volume of flash loans received by voters has dropped significantly.

    • The most activity of voters in the field of receiving flash loans is related to the month of February. This month, 45 voters have received flash loans for 67 times.
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    πŸ›οΈ Aave Governance Analysis

    πŸ”Ž Findings


    • Proposal_104 had the highest number of voters. (2,558 voters)

    • From proposal_80 onwards, the average number of voters per proposal increased.

    • Proposal_116 had the highest number of voters for the NAY option. (232.252k AAVE: NAY vs. 81.279k AAVE: YAE)

    • Proposals_14 and Proposals_106 were executed with the most decisive votes.

      Proposal_14 β†’ 3.316M AAVE: YAE vs. 0 AAVE: NAY β†’ About 2.7M AAVE of voting power in this proposal corresponds to the address 0x4a49985b14bd0ce42c25efde5d8c379a48ab02f3. About 221k AAVE of the voting power of proposal No. 106 is also related to the same address.

      Proposal_106 β†’ 3.208M AAVE: YAE vs. 0.48 AAVE: NAY β†’ About 1.5M AAVE of voting power in proposal_106 corresponds to the address 0x25f2226b597e8f9514b3f68f00f494cf4f286491.

    • The highest voting power for the NAY option is related to proposal_22.

    πŸ”Ž Findings


    • The top 10 addresses that voted for the most number of proposals are:
    Voter⭐==Proposal Count==Average Voting Power
    1πŸ†πŸ₯‡0xa0efd27acc781549d5b78e89e561aa0903932d561128.163401955
    2πŸ₯ˆ0x070341aa5ed571f0fb2c4a5641409b1a46b4961b10257473.884004646
    3πŸ₯‰0x62a43123fe71f9764f26554b3f5017627996816a6566695.299221041
    40x329c54289ff5d6b7b7dae13592c6b1eda1543ed46593020.337616832
    50xc17cb209d5abdb2d00f566a1e48f558debc264e163117038.559023454
    60xb83b3e9c8e3393889afb272d354a7a3bd1fbcf5c5280636.196970536
    70x80dc468671316e50d4e9023d3db38d3105c1c146517068.451949694
    80x55b16934c3661e1990939bc57322554d9b09f2625164838.145247977
    90x704de5696df237c5b9ba0de9ba7e0c63da8ea0df5110692.72668668
    100x683a4f9915d6216f73d6df50151725036bd26c024833506.776728143

    πŸ”” Among the 10 addresses that voted for the highest number of proposals, the address 0xc17cb209d5abdb2d00f566a1e48f558debc264e1 has the highest average voting power.


    • The top 10 addresses with the highest average voting power are:
    VoterProposal Count⭐Average Voting Power
    1πŸ†πŸ₯‡0x25f2226b597e8f9514b3f68f00f494cf4f28649111519125.42127172
    2πŸ₯ˆ0x4a49985b14bd0ce42c25efde5d8c379a48ab02f321463179.98355173
    3πŸ₯‰0x378a9c9c44b41c0e8970c358470e4e72eb7823021262799.540071463
    40x77ee2b5b256f6a7a168f1c0730042c54c55edf382237633.751373333
    50x3596390e5fa968e053ed3375db7e4c04f384d0ee1231392.241904107
    60xf1a39ccaa7b3e0a6f82c0806518925b54024f0111230964.541904107
    70xdd709cae362972cb3b92dcead77127f7b8d5820239187777.353725838
    80x32b61bb22cbe4834bc3e73dce85280037d944a4d3167389.375404975
    90x3b08aa814bea604917418a9f0907e7fc430e742c1149999.91
    100xc17cb209d5abdb2d00f566a1e48f558debc264e163117038.559023454

    πŸ”Ž Findings


    • About 80% of voters have an average voting power of less than 1 AAVE.

    • Only two voters had an average voting power of more than 1M AAVE.

    • The largest number of voters participated in only one proposal. (3,968 voters)

    • Only two addresses have participated in more than 100 votes.

    πŸ”Ž Findings


    Examining the performance of voters as depositors (lenders) shows that:

    • The address 0x60a71287353f3ac632f3e75fd1be532850aa5f4d is the top voter in terms of the number of deposits. This address has voted only one proposal with a power of 2.67 AAVE.

    • Examining the top ten voters in terms of the β€œnumber of supply transactions” shows that all of them, except for one address, voted for only one proposal.

    • The address 0x9c5083dd4838e120dbeac44c052179692aa5dac5 is the top voter in terms of deposit volume. This address has deposited a total of $1.08B USD in 308 transactions. This address has voted for only one proposal with a power of 1,119 AAVE.

    • Analysis of voters as lenders shows that WETH has the largest volume of deposits by them. WBTC, USDC and AAVE are next.

    • Checking the number of deposit transactions of different currencies by voters shows that the number of loans related to WETH was more than any other currency. stETH, USDC and LINK are also in the next ranks.

    πŸ”Ž Findings


    • Among the voters, the address 0x9c5083dd4838e120dbeac44c052179692aa5dac5 received the largest volume and number of loans (the top borrower in terms of number and volume of transactions). This borrower has received a total volume of 812.7M USD in 308 transactions. The voting count of this address is equal to 1.

    • USDC, USDT and DAI account for the largest share of loans received by voters.

    πŸ”Ž Findings


    • The address 0x60a71287353f3ac632f3e75fd1be532850aa5f4d is the top flash loaner in terms of the number of loans received.

    • The address 0x4a49985b14bd0ce42c25efde5d8c379a48ab02f3 is in the first place by receiving about 15M $USD flash loan.

    • DAI, USDC, USDT and WETH have the largest share of flash loans received by voters.

    πŸ’‘ Conclusion

    This dashboard consists of two parts. In the first part, the state of governance in the Aave protocol is analyzed. In the second part, the activities of voters in different parts of the Aave protocol (borrow/lend/flashloan) are investigated.

    The results of the first part show that the number of proposals presented every month is increasing. For example, the number of proposals in the first two months of 2023 has grown by 188% compared to the same period in 2022. Additionally, the number of executed proposals is about six times the number of failed proposals. An interesting finding is the growth of the number of voters who participate in the governance of the Aave protocol for the first time. The number of these voters reached 1644 addresses in December 2022.

    The results also show that about 29% of the proposals (47 proposals) were proposed by ==0x683a4f9915d6216f73d6df50151725036bd26c02==. This proposer has also appeared as a voter and has voted for 46 proposals with an average vote strength of 33,506 AAVE. However, it's unclear who this proposer is and why they have proposed so many proposals.

    Moreover, about 80% of the voters have an average voting power of less than 1 AAVE. Also, about 54% of the addresses have voted for only one proposal. The address 0xa0efd27acc781549d5b78e89e561aa0903932d56 is the top contributor with 122 votes for different proposals.

    In the second part, the activity of the voters was also examined. About 41.6% of voters have interacted with the Aave protocol as lenders, and 34.3% as borrowers. However, only 2% of them have received a flash loan from the Aave platform so far. Voters have lent more WETH to the platform than any other currency. As borrowers, voters have received more USDC and USDT than any other currency. USDT and DAI also have the largest share of flash loans received by voters.

    πŸ’Ž Overall, the dashboard provides valuable insights into the governance and activities of voters in the Aave protocol.

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