ARC - Strategic Partnership with Balancer Part #1

Balancer & Aave Partnership Agreement

Authors: @MatthewGraham (Llama) & @LuukDAO (Balancer)

Between BalancerDAO & Aave DAO

This partnership agreement comes into effect on the th of April 2022, by and between:

BalancerDAO, a DAO governing the Balancer Protocol, automated portfolio manager, and trading platform, governed through the Balancer Snapshot following the Balancer Governance Process.


Aave, a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers, governed through the Aave Governance following the Aave governance framework.

Partnership Purpose

The partnership aims to align the interest of the parties to intensify the collaboration between both organizations.

Background on the Partnership

BalancerDAO & Aave have a long collaboration history.

Some of the most noteworthy collaborations include

  • The AAVE risk module using BPT tokens instead of plain AAVE
  • Balancer Boosted pools using linear pools with aTokens (aUSDC, aDAI, aUSDT)

Commitment of the Organizations

Both parties agreed that they intend to contribute the following towards this partnership:


To ensure both entities will profit from each other’s reach and marketing or sales activities, we will do co-branded communication & services where useful.

  1. Token Transaction

To align governance interests, a Token Swap between the two organizations is initiated as part of this agreement.

200,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of AAVE in equal proportions from DAO Treasury, using the 90-day moving average price when the votes pass on both sides.

Source: Calculation

Management of the Partnership

Partnership Term

The Partnership is open-ended and does not have an expiry date.

Partnership Governance

The partnership is supported by representatives of the organizations directed by the respective governance processes of the organizations. The representatives are just to participate in coordination events, but do not carry any legal power or responsibility regarding the DAOs.

Exit Clause

Both organizations can at any moment terminate the agreement through their respective governance systems.

Communications around the Partnership

  • A Partnership announcement blog will be published within a few days of when the AIP is implemented and the token swap occurs. .

  • To ensure operational effectiveness, a monthly call will be set up with at least one representative of each entity

Both DAOs acknowledge that DAO agreements are inherently unpredictable and irreversible and agree to this initial partnership agreement.