Arana Digital Delegate Platform

Key Info

Name: Arana Digital

Delegate Address: 0x0579A616689f7ed748dC07692A3F150D44b0CA09 (aranadigital.eth)

Aave Protocol Leads: @0xjchen, @GuangyeCao

Email: arana.governance@gmail.com

Telegram: cryptojchen, Guangye_Cao

Current Voting History: Boardroom (start March 6, 2024)

Legacy Voting History: Boardroom (last Aave vote for our team under Michigan was Feb 27, 2024)

About Us

We are a governance group composed of ex-Michigan Blockchain members. Our team is currently made up of five individuals, all of which are deeply steeped in the crypto space and have multiple years of participation in protocol governance. With delegation history for DEXs, money markets, L2s, liquid staking protocols, and stablecoins, we’re acclimated with a breadth of sectors. We bring a diversity of experience to DAOs–our members have consulted for companies like Immutable and dYdX, worked at crypto investment and trading firms, set up various validator nodes, and run educational events for university students.

Delegate Statement (Why You Should Delegate to Us)

History with Aave DAO

Our team members, while they were a part of Michigan Blockchain, have served as prominent Aave delegates for the past 1.5 years. We’ve had the pleasure of collaborating with various service providers, like Gauntlet, Chaos Labs, Llama, Karpatkey, Flipside, etc during our tenure. We’ve also been able to converse with numerous teams who’ve approached Aave for a diversity of reasons. Prominent examples include–

  • Working closely with Centrifuge to ensure the DAO most effectively made an entrance into the RWA space
  • Back-and-forth with the risk assessors around events like the Curve fiasco in Q3 2023 and the bad debt debacle with Avi Eisen in December 2022
  • Aiding Celo through the Aave deployment process (underway) by co-authoring the proposal and responding to feedback from BGD labs and the risk assessment teams
  • Collaborating with Pyth to potentially introduce a backstop oracle–which we ended up stepping back from after a handful of conversations with Chainlink
  • Co-proposing Aave private voting as well as delegate gas rebates

Focus Areas:

1. Governance Development
Governance works best when we strike a balance between efficiency and decentralization, with mechanisms in place to align the incentives of many stakeholders. That’s why we initiated the private-voting experiment to reduce herding and bot participation on Snapshot, and we will continue to look for ways to encourage optimal stakeholder behavior, and to improve agility without compromising decentralization. Our experience with various other DAOs, combined with familairy with the Aave ecosystem, enables us to effectively take on this task.

2. GHO Adoption
Given GHO’s importance in the Aave Ecosystem, we will support proposals that increase the use cases of GHO, as that is the only sustainable way to maintain the peg. GHO also strengthens Aave’s bottom line. The interest payments from GHO borrows, for instance, can generate fees for Aave. These fees can contribute to the protocol’s revenue, benefiting AAVE token holders and stakers through potential buybacks, burns, or distribution as rewards. Aave can also diversify its offerings and mitigate risks associated with reliance on external stablecoins via GHO. The continual integration and growth of GHO into DeFi requires strong community-based stewardship, and we are committed to aid in that effort.

3. Aave Expansion
We believe that Aave needs to, with an optimistic yet tactical lens, approach expanding to new markets. Our team is intimately familiar with the process behind collaborating with the necessary stakeholders, like BGD Labs and DAO risk assessors, prior to deploying Aave on another chain. Such considerations take proper assessment of the drawbacks and potential benefits associated with the destination chain’s technical architecture and market dynamics.

4. Treasury Management
On a similar note, we are heavy proponents of treating DAOs as sustainable businesses, which means properly considering Aave’s runway as well as the composition and diversity of the treasury. We are grateful to have groups like Karpatkey and TokenLogic present to help facilitate this process. Our team is also excited to see creative votes, like the Centrifuge RWA adoption proposal, surrounding treasury management.

Delegation

If you would like to delegate your AAVE to us, please reference the below address:

0x0579A616689f7ed748dC07692A3F150D44b0CA09 (aranadigital.eth)

Conflict of Interest

We are actively sourcing delegation for various protocols–an official list will be disclosed soon.

Arana Digital’s (AD) sister company, Arana Ventures (AV), is an investment group managed by two out of the five current members of AD–AV invests in small cap tokens in the public market, hence $AAVE doesn’t fall under AV’s investment mandate. The two firms are legally separate and operationally siloed.

Waiver of Liability

By delegating to Arana Digital, you acknowledge and agree that Arana Digital participates on a best efforts basis and will not be liable for any form of damages related to its involvement in Aave governance.

4 Likes

Onboard weETH to Aave v3 on Ethereum

https://snapshot.org/#/aave.eth/proposal/0xd5807ee6ec3d33e7d86805a4287540b0a9801430ee0900ff6babb698e4f2a273

Vote: YAE

Reasoning: eETH is the first LSP to natively restake on EigenLayer and has a good liquidity profile one chain. The conservative risk parameter also helps to alleviate potential market risks

Add gmBTC on Arbitrum V3

https://snapshot.org/#/aave.eth/proposal/0x166051b26be60fa3a64d7815b848b9b670a284b3da01c2d440c7815c400d7950

Vote: YAE

Reasoning: The risk manager has taken a very conservative approach in designing the risk parameters given the distinct nature of gmBTC compared to other vanilla-wrapped derivatives. This allows the protocol to remain solvable after all positions are liquidated and collateral is recovered.

Ethereum v2 Reserve Factor Adjustment

https://snapshot.org/#/aave.eth/proposal/0x26a03c08359c340f63b78b0c3e96d37aa0adeda65814643b0886d4719048ea7e

Vote: Yes.

Reasoning: We continue to support the AAVE V2 deprecation plan.

Stablecoin Harmonization and Asset Parameters Optimization

https://snapshot.org/#/aave.eth/proposal/0x22407c9362bc3294e3ddd5428fdd5c08312459595573a864ec8ebac61ad95b94

Vote: Yes.

Reasoning: From the breakdown of the collaterals supplied on AAVE V3 Ethereum, we did see that there’s no much supply for alternative stables and long-tail assets. We agree that focusing on the main-stream stables would help mitigate market risk in extreme situations and appropriately manage the rewards associated with such asymmetric risks.

[collaterals supply on AAVE V3 Ethereum]

Aave Liquidity Committee Funding

https://snapshot.org/#/aave.eth/proposal/0xd6229e068e755336339bd8a314136e18ef00b22a95430476b6fa3665e9300548

Vote: YAE

Reasoning: The GHO liquidity committee has been playing a vital role in maintaining the peg and liquidity of GHO for the past five months. The stability module and the continuously updating liquidity provision strategy has greatly improved the liquidity profile since then.

Set Liquidity Observation Labs as Emission manager for wstETH on Scroll

https://snapshot.org/#/aave.eth/proposal/0xb70490f6b0623631686d34f4ca99a7d45394ad29fdd504df3cd6e68790b22b9c

Vote: YAE

Reasoning: This allows the Foundation to actively make inventive programs to bootstrap the wstETH markets on AAVE.

Introduce “Hold StkGHO” Reward Action

https://snapshot.org/#/aave.eth/proposal/0x81e98d2c31cdd5df48a49230db86248d388fd17a94cb8266ffff3aad30753fd1

Vote: YAE

Reasoning: We support the addition of “Hold StkGHO” as it will incentivize the minting and staking of GHO, as well as NOT selling the StkGHO, which should help maintain the peg.

Add gmETH on Arbitrum V3

https://snapshot.org/#/aave.eth/proposal/0xc0b723e76fa6682a58983695b7a015c3a5b928c89c2f400375c6a971ef1aba99

Vote: YAE

Reasoning: Onboarding the gmETH would unleash the power of ETH-USD LP token from the largest perp dex and creating consistent revenue flow for AAVE.

Amend Safety Module Emissions

Vote: YAE

Reasoning: The DAO has been progressively reducing the incentives for Safety Module stakers, following the prior research conducted by Xenophon Labs and Llama. This proposal aims to maintain the stability of GHO, while simultaneously ensuring a fixed emission for $AAVE.

Onboard wbETH on Aave V3 BNB Chain

https://snapshot.org/#/aave.eth/proposal/0x0a560e2ce5a751fdc6b4dddd4743c1e7f08b87d5fe4238d9b408ca11d6ca5c2f

Vote: YAE

Reasoning: It’s great to see wbETH be the first liquid staking derivatives landing on AAVE V3 BNB Chain.

Onboard BNBx on Aave V3 BNB Chain

https://snapshot.org/#/aave.eth/proposal/0x9510ea1d3c9fd0f1fd67b05860ca2f1dafb65b983ff1f81d962b7dea0c47b13b

Vote: YAE

Reasoning: Stader is moving towards a decentralized LST provider on the BNB chain. The market cap of BNBx has increased from $10M to $30M over the past half year. Following wbETH, onboarding BNBx would help boost the revenue flow of AAVE V3 on the BNB chain.

Onboard sUSDe to Aave V3 on Ethereum

https://snapshot.org/#/aave.eth/proposal/0xb90482da7be5d63810bf61463800a64bbbcd9c1b0c9f5f1154657bd880e21e11

Vote: YAE

Reasoning: USDe has revolutionized the way of creating a crypto-native stablecoin while maintaining almost zero delta exposure. Onboarding USDe would future boost the adoption of this new stablecoin and provide new revenue streams for AAVE.

2 Likes

These proposals are reviewed collectively by @0xJChen and @GuangyeCao

[Temp Check] Onboard Catapulta

https://snapshot.org/#/aave.eth/proposal/0x7f0a1decfe7c5b23078759c18db87c0dc43aadaaf981b53da734823b866cf201

Vote: YAE

Reasoning: We support the onboarding of Catapulta to handle new chain / L2 deployments of Aave v3. Currently, there is a long wait for new EVM network analysis and deployments. Catapulta will take the deployment task off of BGD’s plate, which will hopefully increase the number and speed of deployments.

Generalized LT/LTV Reduction on Aave

https://snapshot.org/#/aave.eth/proposal/0x4067d91ef5864925136d10ec9419f032a70f7e6489740386e348488426656274

Vote: YES

Reasoning: The risk associated with long-tail assets has proven to be a critical vulnerability for lending protocols. Both the design of the oracles and the asset risk parameters play significant roles here. At the same time, these long-tail assets contribute only a small amount to the protocol’s revenue. Lowering the LT and LTV ratios is a natural step to further protect the protocol here, especially on alt L1s with less liquidity.

[ARFC] Chaos Labs - Borrow Cap Reduction on Aave Ethereum

https://snapshot.org/#/aave.eth/proposal/0x9fb23244675bb07e1b5406fa4276aeeb712a80026721e2321ce41bd0e612de73

Vote: YES

Reasoning: Similar to the above rationale, this proposal also targets at minimizing the theoretical exposure to long-tailed debt

Onboard osETH to Aave v3 on Ethereum

https://snapshot.org/#/aave.eth/proposal/0x3dc8b06441d0f1dcd6f4a53d06d62e9bb1ac87ced19020d9c735854bbf68b835

Vote: YES

Reasoning: On the security front, over-collateralization reduces AAVE’s exposure to unfavorable depegs. From the perspective of the Ethereum ecosystem, supporting osETH is an important step in promoting DVT.

GHO Stewards + Borrow Rate Update

https://snapshot.org/#/aave.eth/proposal/0xc26346b891974968c6fa1745b2cfa869d2d0e5875e9fc2bd661167ae19314c6b

Vote: YES

Reasoning: Stepping up with MakerDAO is the only strategy before GHO gains a wider market share. The proposal aims to enhance GHO’s stability and growth by allowing more flexible borrow rate adjustments and enabling the stability committee to respond more quickly to market volatility.

2 Likes

[ARFC] aAMPL interim distribution

https://snapshot.org/#/aave.eth/proposal/0xb7226dd6441b67225924082215f7a512bfd98252897ee43a879084e07ab53607

Vote: YES

Reasoning: the community has identified that the aAMPL supply of the asset is bigger than the sum of the vAMPL supply plus available liquidity. This first proposal would make up the aAMPL suppliers.

[ARFC] Onboard Catapulta as Aave V3 Deployment Service Provider

https://snapshot.org/#/aave.eth/proposal/0x12a6595813c54482f48c825046ae701c45c5a8ac4d103c9a770c97d73b1345d6

Vote: YES

Reasoning: Catapulta team has profound knowledge and tracked record in serving AAVE. Onboarding Catapulta would add another safety layer for AAVE’s multichain deployment strategy in the long term.

[TEMP CHECK] Onboard ezETH to Aave V3 Ethereum

https://snapshot.org/#/aave.eth/proposal/0x4bf182cff2248f9dcaf11e6d30791fc44f9d1c5fd4116fe66903dec39ca56810

Vote: YES

Reasoning: Renzo has become the second largest staking derivatives with more than $2.5b TVL. We agree that LRT should be an important part of unlocking new revenue flows for AAVE. However, in the following ARFC, we will keep an eye on the risk analysis from risk managers, as liquidity and oracle stability have been two significant concerns for LST/LRT.

[TEMP CHECK] Onboard OpenBlock as Aave Risk Service Provider

https://snapshot.org/#/aave.eth/proposal/0xfdd5f215f845ec1733f07997160864af31d6fb5347dc868684476ef42494f0b8

Vote: YES

Reasoning: OpenBlock has a proven record in analyzing LST with leading LST protocols. Their experience could be invaluable in understanding and designing the risk parameters for AAVE, especially considering that more LST/LRT will be onboarded in the near future. However it’s worth mentioning that the current risk managers have already conducted in-depth analyses in this domain. Despite this, the situation offers the DAO a chance to explore and assess potential risk managers by comparing their experiences, knowledge, and associated costs.

[TEMP CHECK] Allez Labs risk provider proposal to Aave DAO

https://snapshot.org/#/aave.eth/proposal/0x1ef144485f473c7049f56db0818c09a74ca92d6f67975f5dc620cccd9646e015

Vote: YES

Reasoning: Allez Labs possesses extensive knowledge and experience in AAVE, underscored by a clear roadmap and defined scopes of interest. However, there are instances where their initiatives overlap with those of current service providers, like those in the area of GHO with the GHO Stability Committee. The DAO should give more attention to the scopes of various service providers, along with the necessary redundancy, to ensure that funds are utilized efficiently.