The Aave DAO has voted in favor of "Frontier," a pioneering 'Staking as a Service' product proposed by the Aave Chan Initiative (ACI). This groundbreaking service aims to further decentralize the protocol's staking exposure and actively participate in network security. It also will make Aave DAO the first to run nodes directly.
With the bold step of transitioning from merely obtaining Liquid Staking Tokens (LSTs) like stETH and rETH to actively running validator nodes, Aave DAO is demonstrating its commitment to Ethereum's network decentralization and security.
ACI will operate "Frontier" and run validator nodes on behalf of the DAO. This strategy aims to enhance the DAO's passive income and promote a diversified staking strategy.
For this trailblazing experiment, the Aave DAO will operate 32 Stader minipools of 4 ETH each, allowing community members to gain staking exposure through ETHx.
The ACI partnered with Stader on behalf of the Aave DAO to acquire the necessary SD tokens to run the DAO’s minipools.
"Frontier" brings numerous benefits to the Aave DAO, particularly in terms of enhanced diversity and increased alignment.
Enhanced Diversity: By pioneering Liquid Staking Tokens (LSTs) diversity, the Aave DAO has already set a precedent for other organizations. The introduction of "Frontier" as a 'Staking as a Service' product will further this diversity. It will enable the DAO to incorporate new ecosystems and assets that may not have been included in the main pools. This broadening of horizons will allow for a more robust and diverse staking strategy, enhancing the resilience and potential of the Aave DAO.
Increased Alignment: Many DAOs in the ecosystem acquire stETH to generate passive income from their ETH holdings and stop there. Aave DAO previously pushed the envelope by adding exposure to rETH, highlighting its commitment to diversity. The launch of "Frontier" takes this commitment to the next level, with the Aave DAO becoming the first ever DAO to run nodes. This move not only increases alignment with the Ethereum network but also reinforces the DAO's synergy with other protocols such as Stader. It also expands the market share of alternative LSTs, making it easier for passive investors to acquire ETHx. This proactive approach embodies the pioneering spirit of the Aave DAO.
Marc Zeller, founder of ACI, said of the initiative, "Frontier represents a significant leap forward for Aave DAO. By taking the proactive step to run nodes and expand our staking strategy, we're not just increasing our alignment with the Ethereum network - we're also setting a precedent for DAOs everywhere.”
Stader Labs is a multichain liquid staking platform with $350M+ in TVL. Since the inception of ETHx, their LST on Ethereum, Stader has strived to foster decentralization and ease access to staking for smaller operators. Their most notable being able to run permissionless Ethereum validators with only 4.4 ETH.
Amitej Gajjala, co-founder at Stader Labs, noted, “Stader is honored to partner with ACI and Aave DAO to further Frontier. This is an essential move for fostering decentralization of Ethereum network, and signaling the pivotal role DAOs and communities can play in this.”
The Aave DAO continues to lead the way in decentralized finance, setting new standards and pushing boundaries. This new initiative, aptly named "Frontier," represents the spirit of pioneering and innovation that the Aave DAO brings to the ecosystem.
Contact Information:
ACI: [email protected]
Marc Zeller - Founder, ACI.
Telegram: @Lemiscate
Frontier snapshot: https://snapshot.org/#/aave.eth/proposal/0x6fc11878e04e6bd26def1077115f67294c7a4cb0b91d4c4eacfa4e036791cfef