Aave Chan Initiative Delegate platform

Aave Chan Initiative Delegate platform

Key Info

Introduction

The Aave-Chan Initiative (ACI) is a delegate platform founded by Marc Zeller, the founder of Pandemic an independent blockchain consulting company working with the Aave Companies since 2019. The ACI aims to participate in governance discussions on Aave and create snapshot votes & AIPs to be submitted to community vote for the benefit of the Aave protocol.

Delegate Statement (why you should delegate to us)

The Aave-Chan Initiative, while being a new structure, already has a long track record in the Aave governance (Co-author of AIP-1) and forum discussions.

As the Aave ecosystem is getting more mature, the protocol benefits from more delegation diversity with their independent visions and value propositions for the Aave protocol.

As delegates, we commit to dedicating our time and resources to support Aave’s development and growth.

What voters can expect from Aave-Chan Initiative:

  • Active: we have a strong track record of governance participation and will be involved in governance at each step of AIPs process from ARCs to onchain AIPs votes
  • Vision: The ACI main goal and focus is the Aave protocol success, ACI is dedicated to DeFi ethos and long-term games.
  • Focus: ACI has no plan to expand into other protocols governance actively and will remain laser-focused on Aave.

Our main focus points at launch are:

  • Treasury efficiency:

Every $ in the Ecosystem Reserve, in the Aave DAO treasury, should be cherished as the property of every AAVE token holder, and each spending should be done with the full intent to provide the maximum benefit for the Aave protocol ecosystem and not just be considered as a “buffet” to drain easy money by overcharging services. the ACI is fully dedicated to playing “Scrooge McDuck” in Aave and will have a slightly softer spot toward spending in Dev & risk mitigation over other aspects.

By providing a defacto alternative to current existing services, the ACI will provide both cooperation and competition to existing services with the full intent to contribute to the efficiency of these services.

  • Treasury Efficiency (II):

The Aave DAO treasury is currently only gaining yield from depositing into Aave. Both for increased yield and for strategic & synergies reasons the ACI is supportive and wants to participate in less passive management of the DAO treasury, such as examples from llama by doing risk-averse investments that will increase yield:

  • convert part of WETH into LSDs to gain staking yield

  • Deposit part of stablecoins into stableswaps

  • stake veTokens and vote for Aave related pools

  • regularly convert part of long tail assets into wETH or stablecoins

  • Treasury diversity:

The ACI is supportive of Protocol Owned Liquidity (POL) and bonding. While most, if not all, of “DeFi 2.0” died, some ideas executed in a non “ponzi” way do have an added-value proposition.

With the emergence of GHO, we think there are opportunities to diversify the Aave DAO treasury and rework the Safety module with more robust models and ACI want to be an actor of governance discussions around this point.

  • Stablecoin diversity:

The DeFi ecosystem is addicted to USDC, and it’s a central point of failure and an Achilles heel to the ecosystem. While we consider Circle to be a trustworthy and non-hostile actor, supporting decentralized stablecoins diversity to provide alternatives makes the ecosystem both more resilient and attractive.

Aave is the leader of stablecoin diversity and will soon deploy GHO to participate in this diversity, the ACI is a supporter of this strategy.

  • LSD diversity:

Liquid staking derivatives or LSDs, are the best form of collateral at the disposal of an Aave user, as yield-bearing by nature, yield is linked to actual economic activity. One of the goals of ACI will be the support the onboarding of a more diverse set of LSDs into Aave V3, leveraging supply & borrow caps and isolation mode to increase diversity while maintaining risk mitigation at the protocol level.

  • DeFi synergies:

One of the reasons Aave reached a leadership position was their dedication to the protocol to act as a team player with the ecosystem and encourage synergies.

Yield-bearing assets and LP tokens as collateral could be strategically onboarded in protocol V3 to attract more liquidity and allow users of other protocols to gain borrowing power in Aave.

Aave was a pioneer in this area with the AMM V1 market; while it was too early to show success, time only proved the potential of these assets as the ecosystem gained maturity.

The ACI is in favor of increased synergies with Curve, Balancer, Arrakis, and others actors.

Transparency

The ACI fully commits to declaring all votes in the current thread and summarizes the reasons for each vote in complete transparency.

Conflicts of Interest

Aave-Chan Initiative is founded by Marc Zeller, the founder of Pandemic, an independent blockchain consulting company working with the Aave Companies since 2019; The founder owns AAVE and multiple assets in the ecosystem. The founder is also an Angel investor in various ecosystem projects and will disclose accordingly.

Delegate address
Aavechan.eth (0x329c54289Ff5D6B7b7daE13592C6B1EDA1543eD4)

25 Likes

Like many others in the AAVE community, we believe the community is fortunate to have one who’s both knowledgeable and reputable to become a delegate. We look forward to see Marc and Aave-Chan continue to contribute to AAVE governance.

5 Likes

Marc / Aavechan has been one of the most impactful representant of Ethereum ethos and decentralisation through his work with the Aave companies and within the Aave communities and it’s healthy for the protocol to have him represent an independant voice within the Aave governance.
ACI focus on true open source, risk management and financial conservatism makes me looking forward to delegate to them.
The individual proposals for treasury diversification will have to be thoroughly checked by multiple parties to make sure that we do not end up adding more risks to the protocol but overall it’s a welcome addition to further decentralise Aave delegates, which is a space where the community must always be mindful of centralisation risks.

2 Likes

Risk Parameter Updates for Aave v2 Polygon

Vote Result: YAE

Rationale

We voted Yae. While V3 is the future of Polygon, unfreezing specific assets with disabled borrowing does not increase protocol risk and allows users to manage their position. unfortunately, this AIP didn’t reach quorum, and we’re supportive of a re-run.

2 Likes

Aave StarkNet Phase I - Aave <> StarkNet Bridge deployment/activation by Aave governance

Vote Result: YAE

Rationale
We voted YAE. Pretty exciting to see the first steps of Aave toward a new ETH L2. Starknet Zk will allow scalability and new use cases for Aave and is a good direction for Aave expansion.

2 Likes

Set LDO, stMATIC, MaticX and SD Emission_Admin for Polygon v3 Liquidity Pool

Vote Result: YAE

Rationale

The ACI voted YAE, LSDs yield loops are a strategic growth vector for Aave increasing both liquidity & borrow volume and thus protocol revenue.
This AIP allows LSDs partner on polygon to participate in LM program to support Aave liquidity growth, it’s a clear win-win for every party involved.

3 Likes

Freeze Aave V1

Vote Result: YAE

Rationale

the ACI voted YAE, Aave V1 is not gas optimized and lack the upgrades of V2 & V3. A freeze will still allow users to repay their position and withdraw.

unfortunately this proposal didn’t meet quorum but as it was non-contentious we’re supportive of a re-run.

2 Likes

[ARFC] Repay Excess CRV Debt on Ethereum v2

Vote Result: YAE

Rationale

the ACI voted YAE use USDC to buy CRV, considering the excess debt amount, usage of the safety module is not required, also as CRV is a strategic asset for the emergence of GHO and considering there’s around 30m$ in DAO treasury in stablecoins, using part of DAO stablecoins while keeping the CRV seems the most efficient strategy.
we regret the lack of an “Abstain” option in this vote, while the ACI had no intention to abstain it’s important that the diversity of opinions of the community can be voiced and encourage @Llamaxyz to follow standards if possible.

[ARFC] Ethereum v2 Collector Contract Consolidation

Vote Result: YAE

Rationale

the ACI voted YAE, consolidating the books to USDC is a net positive for the protocol and with the upcoming emergence of V3 the time to do this is fit. we appreciate llama optimization on premium, theses assets auctions from the protocol are basically “slippage-free” winning trades and great opportunities for arb & Market markets, the ACI is supportive of more systemic integration of the auctions (such as with DEX aggregators) to make the clearing of it as fast and smooth as possible while optimizing the premium to make sure the DAO gets the best possible deal from it at the benefit of the protocol.
Discussions are ongoing with several potential integrators on this.

[ARFC] [ARFC] Receipt of Gauntlet Insolvency Fund

Vote Result: ABSTAIN

Rationale

the ACI voted ABSTAIN. While we have no strong opposition to this proposal, sending the AAVE to the Ecosystem reserve is basically a gift to the Safety module stakers and these funds will eventually run out. we have the feeling that a more strategic usage of these StkAAVE could have been done (Use them to power a discounted credit line of GHO minting and provide GHO liquidity for example)

Hi @MarcZeller,

Thank you for the feedback on the [ARFC] Receipt of Gauntlet Insolvency Fund proposal. Please note, that using the stkAAVE to support GHO adoption is something being looked into. With v3 not yet deployed on Ethereum and seeing v2 liquidity migrate to v3 very slowly, any proposal using stkAAVE to support lower GHO borrowing rates just now is a bit early. If such a proposal was to emerge at a later date, it will likely be at a larger scale than what would be supported by the Gauntlet holding.

Great delegation thread. I really like reading your feedback on each of the proposals. Thank you for being a consistent voter as well. :slight_smile:

1 Like

In accordance to our previous position, the ACI voted YAE on the Re-run of this proposal.

Finger crossed for quorum!

[Temp Check] Deploy Aave on Metis

Vote Result: ABSTAIN

Rationale

the ACI rationale was explained in the thread here: Launch Aave V3 on Metis - #47 by MarcZeller

[ARFC] Aave DAO Policy Change: Halt Listings on all Aave v1 & v2 Non Permissioned Deployments

Vote Result: YAE

as stated many times, V3 is the future of Aave, with current market situation, the protocol needs to fully use the supply and borrow caps to limit risks, adding new listing to V3 exclusively will also add to V3 attractivity and support transition to the new version of the protocol

[ARC] Updated: Gauntlet <> Aave Renewal

Vote Result: YAE

As Gauntlet switched to a fixed fee model, the ACI is plainly supportive of this proposal. Independent third-party risk service providers are key to protocol resilience and the ACI is looking forward to working with gauntlet in 2023.

1 Like

Aave v2 ETH Interest Rate Curve Update

Vote Result: YAE

Rationale

LSD yield optimizer loops are a massive driver of Aave protocol revenue. This upgrade of interest rate strategy will both increase the expected yield of these strategies and overall protocol revenue while keeping risks at acceptable levels.
The ACI is plainy supportive of this proposal and will also support related proposals in the MATIC ecosystem.

Kudos to @Llamaxyz & Gauntlet for their collaboration on this AIP.

2 Likes

Super exciting to see the Aave Chan Initiative - @MarcZeller has always had his heart within the Aave community and been valuable contributor over the pasts years. ACI is a great initiative to support the Aave DAO directly as a delegate - will support Marc fully on the Aave Chan Initiative :ghost:

7 Likes

Freeze Aave V1

Vote Result: YAE

Rationale

The ACI position did not change with this re-run, V1 is legacy tech and as a cost-to-run (chainlink price feeds infra), we’re supporting progressively fading out legacy versions of Aave to allow focus on V3 and reduce overall cost.

Again, ACI position did not change from snapshot vote, we look forward to keep working with Gauntlet in 2023

Authorise the release of Aave <> Chainlink Proof of Reserve for Aave Avalanche

Vote Result: YAE

Rationale

Proof of Reserve is a net positive for the Aave protocol resilience, as Harmony market events shown, even a functioning Aave can suffer from infrastructure it’s built upon. PoR implementation while not eliminating risks, helps in these scenarios. the ACI is supportive.

[ARFC] Aave v3 Polygon wMATIC Interest Rate Update

Vote Result: YAE

Rationale

As stated multiple times and in line with our delegate platform, the ACI supports LSDs yield leverage strategies as big potential drivers of protocol revenue, this interest rate strategy allows for these strategies to scale and be more profitable while making Aave V3 on polygon more attractive overall.

[ARFC] BAL Interest Rate Curve Upgrade

Vote Result: YAE

Rationale

For the same reasons of wMATIC vote, the ACI is supportive of a proposal in line with its delegate platform.

1 Like

I fully support and trust @MarcZeller to play Scrooge McDuck to ensure rational spending :duck:

3 Likes

snapshot votes


[ARC]: Risk Parameter Updates for Aave V3 Optimism 2022-12-29

Vote Result: YAE

Rationale

This temporary arc is an act of caution given the relatively low liquidity of AAVE on OP. It should be followed by a more robust AIP later when risk teams will recommend risk parameters for this asset.

Approve pricing approach for WBTC on Aave

Vote Result: WBTC oracle based on WBTC

Rationale

It was not an easy choice, while we firmly believe wBTC value will always “mechanically” go back to peg due to bitgo redeemability and any offpeg event is temporary in nature. it is a better security practice to track the asset directly and not the underlying, in the case of Bitgo issue, doing this will allows liquidation to happen and reduce the negative consequence of this kind of event.

Updated: Aave Grants DAO Renewal

Vote Result: YAE

Rationale

The ACI supports this updated proposal, our “Scrooge McDuck” campaign allowed 750k$ cost-cutting while maintaining a high-quality of AGD program.

AIPs


  • Update renFIL rate strategy on Aave v2 Ethereum

  • Rewards controller update across V3 pools

  • Risk Parameter Updates for Aave v2 Ethereum - LTs and LTVs for Long Tail Assets

  • Risk Parameter Updates for Aave v2 Ethereum - LT and LTV (DAI, USDC)

  • Supply/Borrow Cap Updates for Aave v3

  • Chaos Labs Aave v2 Coverage

  • Risk Parameter Updates for Aave V3 Optimism Market (2022-12-29)

Vote Result: YAE

Rationale

the ACI voted in support of these proposals (rationales are the same as on snapshot vote). This batch of AIPs during the holidays all reached quorum thanks to the activity of platform delegates and the aave community, that being said, we do not recommend in the future to post AIPs in the middle of holidays to increase the odds of reaching quorum.

3 Likes