Arana Digital Delegate Platform

Key Info

Name: Arana Digital

Delegate Address: 0x0579A616689f7ed748dC07692A3F150D44b0CA09 (aranadigital.eth)

Aave Protocol Leads: @0xjchen, @GuangyeCao


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.


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.


Onboard weETH to Aave v3 on Ethereum

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

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

Vote: Yes.

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

Stablecoin Harmonization and Asset Parameters Optimization

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

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

Vote: YAE

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

Introduce “Hold StkGHO” Reward Action

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

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

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

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

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.


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

[Temp Check] Onboard Catapulta

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

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

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

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

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.


[ARFC] aAMPL interim distribution

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

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

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

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

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.

[ARFC] - Chaos Labs Engagement Amendment

Vote: YAE

Reasoning: Chaos Labs has done a great job as a risk manager for Aave. Given the improved market conditions and their on-going work on the risk oracle, we think the increase of $400,000 is fair.

[ARFC] Chaos Labs Risk Parameter Updates - GNO on V3 Gnosis

Vote: YAE

Reasoning: Given GNO’s market conditions and the relative health of the main GNO users on Aave, we think Chaos Lab’s recommendation to loosen LT, LTV, and debt ceiling makes sense.

[ARFC] Onboard New Risk Service Provider

Vote: 1st choice: LlamaRisk, 2nd choice: Allez Labs, 3rd choice: OpenBlock

Reasoning: LlamaRisk was our first choice primarily because of their extensive experience with stablecoins and LSTs for Curve and Prisma. Additionally, their proposed scope complements that of Chaos Labs, as they bring Legal Regulatory Advisory, Qualitative Analysis, and Policy Work, which Aave lacks right now. Lastly, although this is a minor point, LlamaRisk’s budget is very reasonable.

Allez Labs is composed of former Aave Companies members. While we like their expertise in Aave, their breadth of experience is limited relative to LlamaRisk, and they have not published any in-depth analysis or long form writing to showcase their technical abilities.

[ARFC] “Merit is Forever” Reward System Program Extension

Vote: YAE

Reasoning: Given the success of Merit Rounds 1 & 2 as estimated and conveyed by ACI, we are in favor of the extension. According to the ACI, the first 2 rounds have been effective at bringing ETH back to Aave from Morpho optimizer, and at increasing the amount of GHO borrowed. However, we’d also like to see more in-depth analysis of the impact so far, and formal KPI or methodology for measuring impact in the future.

[TEMP CHECK] GHO Cross-Chain Rollout Plan - First Network

Vote: Arbitrum

Reasoning: Arbitrum was our preferred choice as the first step in the rollout plan because 1) Arbitrum has the highest DEX TVL out of all the proposed chains / L2, 2) LTIPP will also provide 750K ARB (~$900K USD) as incentives.