We would like to thank the community for your overwhelming support and enthusiasm for the Aave Companies’ ARC submitted to the community for retroactive funding for the development costs of Aave Protocol V3. We are grateful for the feedback we received regarding the funding model and audits and have incorporated this feedback into this amended proposal.
Below is a summary of amendments that we are making based on feedback from the community:
Total Funding Ask:
The total retroactive funding request for the development costs of the Aave Protocol V3 by Aave Companies is $16.28 million.
Amended Audit Summary:
Regarding the request to provide proof of receipts for amounts paid to each individual auditor for V3, although we believed that we would be able to provide this information, the confidentiality obligations in our contracts will not allow for that.
We believe transparency is important and as is customary, we share as much information as possible, and so we have provided individual code audit reports from each auditor. We encourage you to review these to understand the depth and breadth of the audits performed, which ensure critical security measures were undertaken and validated, and that the code for Aave Protocol V3 was reviewed by the auditors and such review was performed to the highest standard. Given that we are unable for contractual reasons to provide a breakdown of the costs per auditor, we are providing a 20% discount on the auditing line item, or $320,000. This amount has been removed from the total requested in AAVE tokens.
We hope that the DAO will feel comfortable with the amount of detailed information provided and that the reports provide the desired level of confidence, validation, and trust that the services described in the reports were performed.
In the future, it may be best to achieve transparency to ask auditors to make proposals directly to the community. In this case, to achieve full transparency, the audit proposals and results would go directly through the DAO.
Amended Funding Model Summary:
This updated proposal amends the original proposal, requesting that the funds be made available to the Aave team as follows for the past costs of development of Aave Protocol V3:
- Upon agreement by the DAO, Aave Companies will receive $6.28 million in AAVE tokens to be deposited in the protocol’s Safety Module by Aave Companies as follows:
- $3.14 million of retroactive funding provided in AAVE tokens which will be deposited in the Safety Module for a period of one (1) year after which the tokens will be free to be used, and
- $3.14 million of retroactive funding in AAVE tokens that will be deposited in the Safety Module for two (2) years after which the tokens will be free to be used.
- $10 million, to be reimbursed to Aave Companies as follows:
- $5,456,993.61 million in USDC, USDT and DAI, and
- $4,543,006.39 million comprised of:
- $1,148,881.31 million in alternative stable assets such as sUSD and FRAX, and
- $3,394,125.08 in higher volatility assets such as SNX and CRV.
With these proposed amendments and clarifications to the original proposal, we will go to Snapshot.