ARC: Aave V3 Retroactive Funding

[JohannEid]

I fully support the proposal, having had the privilege to work with the Aave team for nearly 3 years I can attest to both the incredible hard work they’ve contributed to the space as well as the pioneering new improvements they’ve been able to unleash with each version of their protocol most notably v3.

The distribution looks fair to me and compatible with industry standard and certainly deserved for creating and shipping mission critical code securing billions in value.

Fully in favour!

[A_J]

Looking forward to responses from @AaveLabs on the following posts:

ARC: Aave V3 Retroactive Funding

@AaveLabs The Proposal makes sense. I suggest to amend the lockup period from: “the AAVE tokens received will be locked via smart contact for one year after being converted to stkAAVE to contribute to the protocol safety module, helping to reduce risk for the protocol. Following the one-year lock, Aave Companies would be free to use the tokens as we see fit.” to: “Following the one-year lock, Aave Companies would be free to use 50% of the tokens and remaining 50% tokens after a two-year loc…

and

ARC: Aave V3 Retroactive Funding

@AaveLabs The community will benefit from knowing how many full time resources are engaged on AAVE V3 in engineering and non-engineering roles respectively.

I feel there is no use of discussion forum if the post author @AaveLabs only responds to selected community comments.

[HelloShreyas]

Happy to see this proposal progress!

It is increasingly important that we judge undertakings like Aave v3 in terms of the value it adds to Aave DAO rather than solely the engineering and operational costs incurred. From that perspective, the amount requested is more than commensurate with the value provided by Aave Companies. Llama and I will vote for the proposal.

In the future, it will be ideal if Aave Companies lays out a structure for getting compensated on protocol development and new initiatives like GHO. There are limits to what can be publicly discussed, but getting funded from the DAO requires managing those trade-offs. That way, the DAO knows ahead of time what it is getting into and can discuss pros and cons.

[AaveLabs]

Thank you for your thoughtful response and recommendation @A_J. In line with your feedback, we will amend the proposal as follows:

– Aave Companies would be free to use 50% of the AAVE tokens the company received for the development of the Aave Protocol V3 after a one-year lock up from the date of DAO approval of the retroactive funding proposal, and the remaining 50% after two years from the date of the approval of the proposal.

Regarding providing details about full-time engineering and non-engineering resources dedicated to V3, this is a retroactive proposal which proposes funding for work completed, not future work. There are many contributors to the Aave ecosystem at this time, including those working on V3.

Thank you for your thoughtful feedback. Look out for updates to the proposal coming soon!

[AaveLabs]

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.

[sakulstra]

Disclaimer : I was part of the Aave companies in the past, during the development of Aave v3, but this is my opinion as a community member.

I support this proposal as in, “the aave companies did tremendous work and should be paid for that”.

That said I would wish for more transparency to set a better example for upcoming retroactive funding requests. If the proposal would have asked for 10M or 20M I would expect the answers in the topic to be pretty much the same as there’s no way to even vaguely estimate if it’s “fair compensation”. I think it is and not saying it isn’t just that is not very transparent from the outside.

Information which I think could be disclosed without exposing company secrets imo would be:

• rough time of development (not necessarily hours, but i guess “months of active development” should be an information given)
• ppl involved (there’s a graphic with the “aave pod”, but there could be more transparency on the number of ppl involved as in - is it 15M for 13ppl or 100ppl over 3month or 2years)

tl;dr;
I support the proposal, but would wish for as much transparency as possible to raise the bar for any other retroactive proposal in the future.

[sigp]

We (Sigma Prime) strongly support this proposal. Retroactive funding makes complete sense in this context. We have been interacting with the Aave Companies for a few years, and have been pleased with the level of professionalism displayed by the related contributors, along with the quality of the outputs delivered.

We look forward to continuing our work with them to ensure the security posture of the Aave protocol remains best-in-class.

[Tor_GAINS]

Definitely in favor of this proposal

The people working at the AAVE Companies are the most badass builders out there so I do not see how anyone could object to this vote

Otherwise and as @sakulstra mentioned, it’d be nice to have a few more graphs/details for any other retroactive proposals in the future

[AaveLabs]

The Snapshot for this proposal is live and voting has begun.

You can find it here: Snapshot

[A_J]

Thank you for incorporating my proposed changes in the final proposal.

[AaveLabs]

The AIP for this proposal is live and voting has begun.

You can find it here: AIP

With a positive vote on the AIP, the following transfers will take place via Guardian Multisigs and on chain execution.

To decrease the number of transactions that are required by the Guardian Multisig, we have reduced the requested WBTC by 0.24516711 in order to limit transactions only to those on Avalanche.

The requested AAVE tokens will then be staked immediately and held within the stated wallet for the duration of the proposed lock-up period.

To facilitate the payment of assets in Polygon Network the proposal also upgrades the implementation of two contracts, fees collectors of V2 and V3 markets. These upgrades will be useful for future proposals since it adds the ability of retrieving funds autonomously. By approving the AIP, users are approving the upgrade of these contracts.

A summary of token transfers can be found below:

Requested Token	Received Token	Token Contract Address	Vault Address	Chain	Contract Name	TWAP Price	# Tokens	Market Value USD	Discount	Market Price USD (w/ discount)	Market Value USD (w/ discount)	Transfer Method	Receiving Address
AAVE	AAVE	0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9	0x25F2226B597E8F9514B3F68F00f494cF4f286491	ETH	Ecosystem Reserve	85.7513914	76196.37	6533944.52	0%	85.7513914	6533944.52	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
USDC	aUSDC	0xbcca60bb61934080951369a648fb03df4f96263c	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1	2783066.72	2783066.72	0%	1	2783066.72	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
DAI	aDAI	0x028171bca77440897b824ca71d1c56cac55b68a3	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1	1637098.07	1637098.07	0%	1	1637098.07	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
USDT	aUSDT	0x3ed3b47dd13ec9a98b44e6204a523e766b225811	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1	1036828.78	1036828.78	0%	1	1036828.78	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WMATIC	amWMATIC	0x8dF3aad3a84da6b69A4DA8aeC3eA40d9091B2Ac4	0x7734280A4337F37Fbf4651073Db7c28C80B339e9	Polygon	Aave: Collector V2	0.858032437	850000.00	729327.5718	10%	0.772229194	656394.8146	On-chain	0x48B9e6E865eBff2B76d9a85c10b7FA6772607F0b
CRV	aCRV	0x8dae6cb04688c62d939ed9b68d32bc62e49970b1	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1.132318243	509732.68	577179.6124	10%	1.019086418	519461.6511	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WETH	aWETH	0x030ba81f1c18d280636f32af80b9aad02cf0854e	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1563.069796	350.00	547074.4287	10%	1406.762817	492366.9859	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
SUSD	aSUSD	0x6c5024cd4f8a59110119c56f8933403a539555eb	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.998205608	463358.33	462526.8825	0%	0.998205608	462526.8825	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WAVAX	avWAVAX	0xDFE521292EcE2A4f44242efBcD66Bc594CA9714B	0x467b92af281d14cb6809913ad016a607b5ba8a36	Avalanche	Aave: Collector V2	19.06490125	19415.70	370158.3681	10%	17.15841112	333142.5313	Manual	0xa8F8E9c54e099c4fADB797f5196E07ce484824aF
WBTC	amWBTC	0x5c2ed810328349100A66B82b78a1791B101C9D61	0x7734280A4337F37Fbf4651073Db7c28C80B339e9	Polygon	Aave: Collector V2	19984.92868	16.66	332870.7781	10%	17986.43581	299583.7003	On-chain	0x48B9e6E865eBff2B76d9a85c10b7FA6772607F0b
TUSD	aTUSD	0x101cc05f4a51c0319f570d5e146a8c625198e636	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.99563	292839.52	291559.8099	0%	0.99563	291559.8099	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
SNX	aSNX	0x35f6b052c598d933d69a4eec4d04c73a191fe6c2	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	2.964211424	96251.92	285311.0409	10%	2.667790282	256779.9368	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WAVAX	aAvaWAVAX	0x6d80113e533a2C0fe82EaBD35f1875DcEA89Ea97	0x5ba7fd868c40c16f7aDfAe6CF87121E13FC2F7a0	Avalanche	Aave: Treasury V3	19.06490125	9584.30	182723.768	10%	17.15841112	164451.3912	Manual	0xa8F8E9c54e099c4fADB797f5196E07ce484824aF
FRAX	aFRAX	0xd4937682df3c8aef4fe912a96a74121c0829e664	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.98605	154992.10	152829.9602	0%	0.98605	152829.9602	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
BUSD	aBUSD	0xa361718326c15715591c299427c62086f69923d9	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.99536	130399.26	129794.2045	0%	0.99536	129794.2045	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
GUSD	aGUSD	0xd37ee7e4f452c6638c96536e68090de8cbcdb583	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.9861	86354.30	85153.97523	0%	0.9861	85153.97523	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
LINK	aLINK	0xa06bc25b5805d5f8d82847d191cb4af5a3e873e0	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	6.740178811	12053.48	81242.6105	10%	6.06616093	73118.34945	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
MANA	aMANA	0xa685a61171bb30d4072b338c80cb7b2c865c873e	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.770717202	103234.63	79564.70516	10%	0.693645482	71608.23464	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WBTC	aWBTC	0x9ff58f4fFB29fA2266Ab25e75e2A8b3503311656	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	19984.92868	3.39	67719.94705	10%	17986.43581	60947.95235	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
YFI	aYFI	0x5165d24277cd063f5ac44efd447b27025e888f37	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	9083.603781	7.08	64311.91477	10%	8175.243403	57880.72329	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WBTC	avWBTC	0x686bEF2417b6Dc32C50a3cBfbCC3bb60E1e9a15D	0x467b92af281d14cb6809913ad016a607b5ba8a36	Avalanche	Aave: Collector V2	19984.92868	1.81	36115.69031	10%	17986.43581	32504.12128	Manual	0xa8F8E9c54e099c4fADB797f5196E07ce484824aF
USDP	aPAX	0x2e8F4bdbE3d47d7d7DE490437AeA9915D930F1A3	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.98916	26871.32	26580.03489	0%	0.98916	26580.03489	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
CVX	aCVX	0x952749e07d7157bb9644a894dfaf3bad5ef6d918	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	5.090221056	5137.26	26149.78902	10%	4.58119895	23534.81012	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
MKR	aMKR	0xc713e5e149d5d0715dcd1c156a020976e7e56b88	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	753.6358851	30.36	22880.38547	10%	678.2722966	20592.34692	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WBTC	aAvaWBTC	0x078f358208685046a11C85e8ad32895DED33A249	0x5ba7fd868c40c16f7aDfAe6CF87121E13FC2F7a0	Avalanche	Aave: Treasury V3	19984.92868	1.08	21529.26824	10%	17986.43581	19376.34141	Manual	0xa8F8E9c54e099c4fADB797f5196E07ce484824aF
KNC	aKNC	0x39c6b3e42d6a679d7d776778fe880bc9487c2eda	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1.743572014	11236.27	19591.24528	10%	1.569214813	17632.12075	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
UNI	aUNI	0xb9d7cb55f463405cdfbe4e90a6d2df01c2b92bf1	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	6.192716415	1681.27	10411.60038	10%	5.573444774	9370.440344	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
WBTC	WBTC	0x2260fac5e5542a773aa44fbcfedf7c193bc2c599	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	19984.92868	0.45	8908.684454	10%	17986.43581	8017.816009	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
RAI	aRAI	0xc9bc48c72154ef3e5425641a3c747242112a46af	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.132370212	66094.61	8748.957544	10%	0.119133191	7874.06179	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
ENJ	aENJ	0xac6df26a590f08dcc95d5a4705ae8abbc88509ef	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.512301258	7242.48	3710.331613	10%	0.461071132	3339.298452	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
xSUSHI	aXSUSHI	0xf256cc7847e919fac9b808cc216cac87ccf2f47a	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1.392954953	2331.22	3247.278885	10%	1.253659458	2922.550996	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
BAT	aBAT	0x05ec93c0365baaeabf7aeffb0972ea7ecdd39cf1	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.33492553	6395.16	2141.902354	10%	0.301432977	1927.712119	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
REN	aREN	0xcc12abe4ff81c9378d670de1b57f8e0dd228d77a	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.121321645	15300.17	1856.241786	10%	0.10918948	1670.617608	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
KNC	KNC	0xdd974d5c2e2928dea5f71b9825b8b646686bd200	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	1.743572014	795.22	1386.523968	10%	1.569214813	1247.871571	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
BUSD	BUSD	0x4fabb145d64652a948d72533023f6e7a623c7c53	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.99536	350.36	348.7372133	0%	0.99536	348.7372133	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
TUSD	TUSD	0x0000000000085d4780B73119b644AE5ecd22b376	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	0.99563	88.14	87.75622103	0%	0.99563	87.75622103	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd
UNI	UNI	0x1f9840a85d5af5bf1d1762f925bdaddc4201f984	0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c	ETH	Aave: Aave Collector V2	6.192716415	4.39	27.21397049	10%	5.573444774	24.49257344	On-chain	0x1c037b3C22240048807cC9d7111be5d455F640bd

[AaveLabs]

We thank the Aave community for your supportive votes on the retroactive funding proposal. We want to inform the DAO that the transfers were executed on 9/9/22.

Upon full examination and due diligence related to each transfer, we identified an error that occurred when calculating the pay-out price of RAI.

Instead of pricing RAI at $2.63 , it was priced at $0.13. This resulted in an overpayment for the 66,094.61 aRAI.

We executed a full return of all 66,094.61 aRAI to the DAO on 23/9/22.

Transaction Link: Ethereum Transaction Hash (Txhash) Details | Etherscan