Areta Delegate Platform

[ARFC] Stablecoin Harmonization and Asset Parameters Optimization

Vote Result: YES

Rationale

This analysis done by ACI is top-quality - it behooves Aave DAO to de-risk the protocol if the data supports it, and in this case, there is no point of using alternative stables and long-tail assets as collateral if it does not add outsize revenue to the protocol. If market demand for alternate stablecoins is not sensitive to high borrow rates, this poses a higher risk for the protocol and requires mitigation. The ACI’s strategy is logical; a staged LT reduction has been implemented before in the DAO and has been shown to work. Increasing the RF will drive revenue to Aave (even if the amount is insubstantial) while incentivising holders to move away from these stablecoins as collateral. Therefore, we will vote YES in favour of this proposal.