First, let’s do a very quick introduction to Aave: Aave is a protocol, which you can lend/borrow money to get interest or fund. One concrete example, you want to buy a coffee during the lunch break, but you forgot your wallet, then you asked your friend to lend you $3.18 for a coffee and when you get your wallet, you pay back him $3.2. In this example, you borrowed $3.18 from your friend to overcome the embarrassing situation and then you paid him $3.2, $0.02 as interest. Now in the Defi world, Aave protocol is the friend always around to lend/borrow your money and it runs by interests. And here, the interest is the Rewards we are talking about here. More details can be found in the Aave official introduction website: https://docs.aave.com/aavenomics/safety-module.
Let’s look at the lending/borrowing markets rewards firstly, to understand and get familiar with that, we need to know one contract, name is Aave: Incentives Controller, contract address is: 0xd784927Ff2f95ba542BfC824c8a8a98F3495f6b5. This smart contract control the incentive distribution across the Aave ecosystem, if we took a quick look at the Etherscan for this contract, then we can find users usually use it to claim rewards.
Go deeper into each transaction, we can see this address (From part) get $0.75 from the Aave rewards program.
So, having this information, now let’s do the data analysis step by step.
Daily rewards and the cumulative rewards amount
Based on this logic, looking at the Daily Aave lending with the cumulative rewards, easily found that the cumulative rewards goes higher and higher (for sure) and it keeps a constant rate, not drop/down by the curve rate. This is good sign for a protocol as the stability will keep locking more and more users.
