After waiting anxiously for months, the docs are finally here! What a pleasure it was reading them.
As always when releasing new information, questions start popping up. After checking the Aave discord, I saw team members forwarding questions towards this forum. So here I am. Starting off myself.
Nr 1: It is made very clear that the Genesis Team will code the AIP’s. Sure, the community will discuss it before hand, and approve it afterwards, but still, there is explicit wording that the Genesis Team will be between. Other teams in this space often say that anyone can implement an approved proposal in their project, if it is voted in. Why the emphasis on having the Genesis Team doing it?
Not saying I don’t like the team, it just seems unnecessary to have the focus on one team, in such a decentralized project.
Nr2: “ In case the SM is not able to cover all of the deficit incurred, the Protocol Governance can trigger an ad-hoc Recovery Issuance event. In such a scenario, new AAVE is issued and sold in an open auction for market price prioritizing the Backstop Module .”
Does this mean creating new AAVE out of thin air?
Nr3: “ The Safety Module is built on top of existing AMM technologies. An 80% AAVE/20% ETH liquidity pool using Balancer will be used to provide benefits in terms of market depth for the AAVE token and earnings from locking AAVE. This also extends to BAL tokens and trading fees on top of the SI and protocol fees, while reducing the impact of a Shortfall Event on the AAVE token itself.”
"Since Balancer Labs is distributing BAL governance tokens to liquidity providers, having the SM liquidity in Balancer enables the users to receive BAL tokens on top of trading fees, protocol fees and SI rewards.”
It’s quite a move to include Balancer in the design like this. What if Balancer quite/breaks/gets hacked. This introduces new risks quite vital to the AAVE system. It also means stakers will earn BAL. I guess it is a seen as a risk worth taken? I am curious to see what the community will think.
Nr4: am I correct in seeing burnings are no longer part of the tokenomics? Fees will now completly be used for incentives?