Aave should compensate its users due to the sheer incompetence of ACI

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They have raised caps on a Sunday night, blowing up the markets, possibly blowing up many people, and making a lot of people lose money.

The proposal to raise caps to 20k and 9k borrow weeth was extremely unprofessional. It led to a huge spike in all borrow markets.

This proposal wasn’t implemented by Chaos labs, which had been making a good job in the last raises on al chains.

This proposal was implemented on a Sunday at 9pm GMT, time of the week of low liquidity and activity overall.

ACI and aave are the sole responsibles for this irresponsible proposal, and the users should be rewarded according to their losses.

This proposal aims to compensate at least 50% of losses in interest spikes, and 100% of liquidation losses.

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Hello Rami,

  1. The 30-day rate to borrow wETH is currently at 2.15%. While there was a spike in interest rates, such fluctuations often attract liquidity and help markets self-stabilize. As of now, the rate has already decreased to 11.1% and is expected to normalize further within the day.

  2. The proposal for these changes was initiated approximately 10 days ago and underwent a 5-day voting period. The execution time was publicly available in the governance tab, providing transparency & large heads-up for everyone.

  3. DeFi is 24/7; proposal are automatically executed by the Aave Robot when the timelock expires. there’s no human element in our decentralized governance execution

  4. If you feel you have been treated wrongly, it’s your right to create an actual proposal and complaint. This is a decentralized DAO.

What is non-negotiable is respect for the governance process.

Please refer to the TEMP CHECK process and edit this post to match the proposal framework.

I locked this topic; meanwhile, it will be re-opened as soon as it’s compliant with the framework.

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