# Aave Proposes Revenue Redistribution

> An upgrade to the current safety module that will use Aave v3 aTokens for staking and slashing.

**Published by:** [ETH Daily](https://ethdaily.io/)
**Published on:** 2024-07-25
**Categories:** news, 2024, july2024
**URL:** https://ethdaily.io/514

## Content

Quick TakeAave proposes Umbrella Safety Module.Velodrome introduces GovNFTs.Umbra Research introduces srAMM.Virtual Currency Tax Fairness Act.","version":"1.0","provider_name":"Spotify","thumbnail_url":"https://i.scdn.co/image/ab67656300005f1f1875de96f2c9ce40b4ba4d66","type":"rich","thumbnail_height":300}" format="iframe">Aave Proposes Revenue RedistributionListen to this episode from Ethereum News on Spotify. Aave proposes to implement revenue redistribution. Velodrome introduces GovNFTs. Umbra Research develops a Sandwich-Resistant AMM. And the U.S. Senate reintroduces the Virtual Currency Tax Fairness Act. Read more: https://ethdaily.io/514 Sponsor: Firefly is a one-stop Web3 social aggregator developed by Mask Network.https://spotify.comListen on: Apple | Spotify | Castbox | YouTube Aave Proposes Umbrella Safety ModuleAave published a proposal for implementing the Umbrella Safety Module, an upgrade to the Aave Safety Module that introduces revenue redistribution. The Aave Safety Module provides stakers with rewards in exchange for providing bad debt coverage protection. Umbrella will replace the current safety module, aiming to segregate bad debt coverage, eliminate reliance on secondary market liquidity, and activate slippage-free debt burn coverage. Instead of using stkGHO and stkAAVE tokens, Umbrella will utilize Aave v3 aTokens for staking and slashing. Rewards will also be in their respective aTokens, financed by the local reserve factor collection. The proposal also seeks to launch a program to buy AAVE on secondary markets and distribute it to the ecosystem reserve. Following community feedback, the proposal will proceed to a temp check snapshot vote.Velodrome Introduces OP GovNFTsVelodrome introduced GovNFTs, ERC-721 tokens designed to manage the vesting of ERC-20 tokens and enhance governance participation by enabling holders to delegate voting rights even while tokens are locked. GovNFTs aim to help streamline the distribution of Optimism Grants, allowing recipients to vote without having to wait for tokens to vest. The GovNFT portal allows users to connect their wallets to set up delegation preferences. Users can also lock ERC-20 tokens to create a GovNFT. The recipient can then claim tokens as they become available. Velodrome has already distributed OP tokens as GovNFTs to incentivize active governance participation.Sandwich-Resistant AMM ResearchBlockchain research company Umbra Research developed a concept for a sandwich-resistant AMM (sr-AMM) as an application-layer solution to combat MEV attacks. In a typical sandwich attack, an attacker front-runs a user's order by purchasing the asset first, allows the victim's trade to execute at the inflated price, and then profits by back-running the transaction with a sale. The sr-AMM design ensures that no swaps execute at a price better than the starting price at the beginning of a trading slot. At the start of each slot window, it resets both prices and liquidity conditions. The sr-AMM keeps the bid price unchanged after a buy order, which disrupts the economic feasibility of sandwich attacks. However, the model does result in a wider trading spread.Virtual Currency Tax Fairness ActCoinCenter director Jerry Brito annunced that the Virtual Currency Tax Fairness Act has been reintroduced in the Senate with bipartisan support, aimed at simplifying the tax implications of small cryptocurrency transactions. The bill proposes to exemption low-value transactions from capital gains tax. It would allow for the exclusion of up to $200 in gains per transaction from taxable income, provided the transaction doesn't involve cash equivalents, business, or investment property.Other NewsFarcaster Frames supports PolygonCoinbase USDT to USDC auto conversionZora introduces Sparks unitStarknet Payment HubBitwise posts ETH banner in NYBase introduces Onchain NetworkFollow us on X, Lens, and Farcaster.

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