Aave DAO Launches "Merit" Airdrop, Distributing 280 WETH to Borrowers

Aave DAO Launches "Merit" Airdrop, Distributing 280 WETH to Borrowers

Aave, a decentralized finance (DeFi) protocol, has launched its new reward program called "Merit" today at 18:00 UTC. The airdrop system, introduced by the Aave Chan Initiative (ACI), aims to reward Aave's users based on their alignment with the protocol's objectives.

The Merit program employs a booster-based model to reward specific user actions, determining the weekly distribution of WETH and GHO tokens. Today's launch sees the distribution of 280 WETH to WETH borrowers, with an airdrop to GHO borrowers and stakers planned for next week.

Merit has already attracted around 200k ETH migrated from other protocols into Aave. The program uses Merit boosters and diluters to adjust token distributions based on a user's actions. Staking AAVE, participating in governance, and being a first-degree user will be rewarded, while some behaviors may lead to reduced rewards.

The Aave DAO has approved a total budget of $5 million for the initial 90-day Merit program, allocating $2.1 million in ETH and 2.9 million GHO. As the program continues, Merit is expected to become a permanent feature, with plans for annual budgets surpassing $20 million.

Users can claim their airdrop at the page. Merit Round 2 and 3 are scheduled 45 and 90 days from now, respectively. An extension proposal is set to be presented to the DAO in April.

The Merit program is an addition to the existing benefits for Aave users, who will maintain the same rates and parameters when using the Aave protocol. The launch of Merit signifies a milestone in Aave's efforts to incentivize user alignment and nurture a community committed to the protocol's long-term growth.

Read more