Recursive behavior
Is the recursive behavior actually bad for the protocol? I don’t do it myself, as I prefer to use the protocol in a different manner, but is it actually hurting anything? I don’t claim to have as deep an understanding of this as you, so please take this with a grain of salt, but if I deposit x funds, and borrow y funds, and remove y from the protocol to use elsewhere, it seems ostensibly worse than if I deposit x, borrow y, and deposit y, as the funds never actually leave AAVE.
Incentivizing borrowing
Isn’t borrowing good for AAVE? I’d think that many people come to the protocol specifically for the incentivized borrowing.
Executive committee controlling 50% of LM rewards
Respectfully, I think a significant portion of the community (myself included) would be very opposed to the idea of an executive committee controlling 50% of the LM budget. It feels like centralization.
Incentivized stkAAVE holding
I really like this idea. Would it be possible to work that into the individual rewards rates? For instance, let’s say my WBTC LM reward rate is 1.25%, could it be changed to 1% + a .25% bonus done as an airdrop after x months/1 year? For those who removed their stkAAVE earlier, they aren’t so much getting a penalty as wasting potential, and the uncollected rewards from these people could be returned to the safety module.