The decentralized finance protocol Aave has reported buying back 50,000 AAVE tokens over the past two months as part of its buyback program.
AAVE Token Buyback
Aave has spent $10 million on buying back AAVE tokens, with an average purchase price of $199.74. Currently, AAVE tokens are valued at approximately $13 million based on the market price of $264, representing an unrealized profit of about $3 million.
Continuation of the Buyback Program
The buyback program, managed by the Aave community, is set to continue at a weekly volume of $1 million for the first six months, resulting in a total buyback of approximately $50 million annually.
Aave's Financial Stability
Since the initiation of the buyback process, the Aave DAO treasury has consistently remained above $100 million, indicating that the protocol is financially stable and has a sustainable capital structure.
Aave's aggressive buyback policy is viewed as a strategy to preserve token value and increase investor confidence by reducing supply. New developments are expected in the coming weeks.
