\n<\/p>\n
Aave has stopped offering incentives to Ethereum v2 users in its native token, AAVE.<\/p>\n
At a total value-locked (TVL) of $8.57B, Aave is the third-largest DeFi protocol and the largest decentralized money market.\u00a0<\/p>\n
Aave had incentivized adoption on its v2 deployment since April 2021 by offering AAVE tokens to those that borrowed or supplied crypto.<\/p>\n
The rewards also let depositors continuously post borrowed assets as collateral, offsetting borrowing costs with the extra AAVE they earned.<\/p>\n
But on May 22, the protocol\u2019s rewards program expired<\/a> on v2.<\/p>\n Users can still earn incentives on Aave\u2019s v3 deployments on Avalanche<\/a> and Harmony in the form of those platforms\u2019 network tokens, AVAX and ONE.\u00a0<\/p>\n Harmony only rewards users that supply its native ONE token, Avalanche offers AVAX to those that supply seven out of the nine assets listed on the protocol, and to those that borrow stablecoins.<\/p>\n Aave has shown no interest in launching a new rewards program for v2.<\/p>\n For now, Aave\u2019s main rival, Ethereum-based money market Compound<\/a>, continues to offer COMP rewards to its users. But Compound\u2019s community is divided on whether to continue distributing incentives.\u00a0<\/p>\n In March, the Compound community voted to slash rewards by 50%<\/a> to prevent opportunistic yield farmers from harvesting all the rewards. The proposal\u2019s author, Tyler Loewen, emphasized that \u201can overwhelming amount of the COMP rewards are being farmed and instantly sold off.\u201d<\/p>\n Compound\u2019s community blames the inflationary incentive scheme for COMP\u2019s poor price performance<\/a>. The token has crashed 93.2%<\/a> from its peak of $910 last May. AAVE is also down 85%<\/a> since its May 2021 high of $662.<\/p>\n