[ARFC] Deploy stataUSDC and stataUSDT GSMs on Ethereum
Vote Result: YES
Rationale
Enabling the DAO to accrue yield from stataUSDC and stataUSDC is a net positive - almost $600K in estimated annual revenue is significant. The stataToken GSMs have been audited by Certora as well. Therefore, we will vote YES in favour of this proposal.
[ARFC] wstETH Borrow Rate Update
Vote Result: YES
Rationale
Reducing the wstETH borrow rate across Arbitrum, Base, Scroll, and ZKsync to increase adoption of the LRT/LST looping strategy and extend the duration of upcoming incentive programs is sensible, since it will bind users to Aave for longer periods and therefore increase utilisation and revenue. The proposal is supported by LlamaRisk from a risk perspective. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Onboard pufETH to Aave V3 Core Instance
Vote Result: YES
Rationale
pufETH has quite a lot of TVL within its ecosystem, and has established significant TVL across other platforms as well. The incentives outlined seem fair, although we think a standard should be established across assets looking to list on Aave; we think they could be higher but would like other delegates to comment on this. The underlying stats seem good enough to take this forward to the ARFC stage where we’d like to see opinions from @TokenLogic and the risk providers on the suitability of this proposal. Therefore, we will vote YES in favour of this proposal.
Prime Instance - wstETH Borrow Rate + rsETH Supply Cap Update
Vote Result: YES
Rationale
This is the onchain vote for this Snapshot ARFC that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
sUSDe and USDe Price Feed Update
Vote Result: YES
Rationale
This was an extremely difficult decision to make and we are still wary of hardcoding the USDT price to sUSDe and USDe’s price feeds. The two key reasons we decided to vote in favour of this proposal is because (1) USDe’s value is systemically correlated with USDT, with 84% of mints and redemptions of USDe via USDT and 76% of its hedging relying on USDT-denominated perpetuals and (2) a 5% drop in USDe’s secondary market price could cause significant liquidations which would likely cause Aave to incur bad debt, which could, in the worst cases, be avoided by hardcoding with USDT. From our angle, USDe is already tightly linked with USDT, and hardcoding the price to avoid liquidations and reflect the market dynamics is an acceptable trade-off.
However, we do see the counterpoints - USDe is explicitly not a stablecoin and hardcoding its price feed to that of USDT assumes that stability, which is not correct. We also think that other solutions, especially the hybrid oracle with a buffer mentioned by @stani, is the better solution in the medium term and this should be taken up by BGD Labs and Chainlink to develop.
All in all, this is a tricky proposal that we’ve voted YES for with reservations.
[ARFC] Supply and Borrow Cap Risk Oracle Activation
Vote Result: YES
Rationale
There is significant operational overhead associated with making borrow and supply cap updates frequently; as delegates, we are consistently exposed to this overhead, and it is beneficial to verify decisions independently. However, it makes sense to streamline a significant portion of updates and we think having the likes of LlamaRisk as an observer is critical to the success of Edge and automation. We would ask @LlamaRisk to flag any updates that do not match up with their recommendations and analysis for delegates to assess, serving as a manual checkpoint to this new system. We also like the initial conservative nature of the updates of 30% and the delay.
Therefore, we will vote YES in favour of this proposal.
[ARFC] Adjust Risk Parameters for Aave V2 and V3 on Polygon
Vote Result: NO
Rationale
Our rationale on the Joint Incentive Program proposal stated that we would vote NO against any proposal to remove Aave from Polygon as a result of the pre-PIP issues, especially given that these issues have, in our opinion, been resolved.
There has been no material change since that rationale, and while we do agree that it is prudent for Aave to assess its presence on Polygon given dwindling activity, setting LTV to 0 across all markets is too drastic a move in our opinion. A more measured approach with accompanying data would make more sense to us.
The protocol revenue coming from Polygon is indeed low, but we are not comfortable with alienating such a large user base, even though setting LTV to 0 will not affect existing borrowers. A gradual offboarding, if necessary, would be a better middle ground. Moreover, a lot of the discussion around the pre-PIP did not involve Aave users on Polygon, and we do not think they should be impacted because of bad blood between the communities.
Therefore, we will vote NO against this proposal.
Collector Upgrade
Vote Result: YES
Rationale
This is a technical proposal mitigating technical debt on the Collector contracts. Therefore, we will vote YES in favour of this proposal.
GHO Base Launch
Vote Result: YES
Rationale
This is the onchain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
Sunset stMATIC on Polygon Instance
Vote Result: YES
Rationale
This is the onchain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
Update USDS & GHO Borrow Rate
Vote Result: YES
Rationale
Aligning the GHO borrow rate with the SSR is sensible and aligns with previous votes on this topic. Therefore, we will vote YES in favour of this proposal.
Allow Balancer To Claim Mining Rewards
Vote Result: YES
Rationale
This is the onchain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
wstETH Borrow Rate Update
Vote Result: YES
Rationale
This is the onchain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
Aave v3 Linea Activation
Vote Result: YES
Rationale
This is the onchain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
February Funding Update (Part 1)
Vote Result: YES
Rationale
This is an operational Aave Finance proposal and we will vote YES in favour of it.
Decrease Slope1 Parameter for Stablecoins on Aave V3
Vote Result: YES
Rationale
Given decreasing utilization of stablecoins across Aave instances, we think it makes sense to reduce the borrow rate to 9.5%. The borrow rate may need to be adjusted further downwards, which we would also be in favour of even though revenue for Aave may reduce; this needs to be carefully balanced. Therefore, we will vote YES in favour of this proposal.
[ARFC] Deploy stataUSDC GSM on Base
Vote Result: YES
Rationale
Deploying the stataUSDC GSM on Base will enhance GHO’s price stability, especially given the various yield opportunities on the chain that could drive the price above $1. Both risk providers and Aave Labs are in favour of the proposal. Therefore, we will vote YES in favour of this proposal.
[ARFC] Prime Instance - Restore ETH LTV
Vote Result: YES
Rationale
Reducing ETH’s LTV on Aave v3 Prime prevented new ETH collateral positions from being opened and led to a low amount of the supply cap being filled. All borrowing was driven to e-mode, which is not ideal. Now, due to the change in incentive structure to a periodic Merkl distribution and the elimination of the looping strategy (seen by the low amount of WETH borrowed using WETH), restoring ETH’s LTV to 82% is safe and will re-enable borrowing outside e-mode, bringing more revenue to Aave. Moreover, both risk providers also support this proposal. Therefore, we will vote YES in favour of this proposal.
Request for Bounty Payout - Feb 2025
Vote Result: YES
Rationale
Releasing the bounty payments is a no-brainer and we will vote YES in favour of this proposal.
[TEMP CHECK] Add bCSPX to Aave V3 Gnosis Instance
Vote Result: YES
Rationale
Onboarding RWAs into Aave (in a safe, regulated manner) is something we would love to see explored further in the ARFC stage, especially through LlamaRisk’s regulatory analysis. The business potential is currently not significant, but we believe onboarding assets such as bCSPX is the first step towards changing this paradigm. Therefore, we will vote YES in favour of this proposal.