[ARFC] Enhancements in Aave v3 Gnosis Chain Instance
Vote Result: YES
Rationale
Given that both risk providers are in favour and have recommended changes (that have been implemented in the proposal), we will vote YES in favour of this proposal.
GSMs Migration to stataGSM4626
Vote Result: YES
Rationale
This is the onchain vote 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.
Recreate wrstETH eMode on Base
Vote Result: YES
Rationale
This is a technical proposal that fixes issues with AIPs 263 and 264. Therefore, we will vote YES in favour of this proposal.
Aave V3.3 Celo Activation
Vote Result: YES
Rationale
This is the onchain vote 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.
[TEMP CHECK] Deploy Aave v3 on Plasma
Vote Result: ABSTAIN
Rationale
While we think that the POL and incentives offered by Plasma are great, there is not a lot of information provided about Plasma yet. As we said in our comment, while the commitments made by the Plasma Foundation are great, weād like more information before we vote in favour. Therefore, we will ABSTAIN on this proposal.
[ARFC] Risk Steward Parameter Updates Phase 3
Vote Result: YES
Rationale
We think the proposed parameter changes make sense, especially with the feedback from TokenLogic around recent developments in funding rates; making it easier for Aave service providers to respond to market conditions is always positive. Therefore, we will vote YES in favour of this proposal.
[ARFC-ADDENDUM] Aave DAO & Chainlink Smart Value Recapture (SVR)
Vote Result: YES
Rationale
SVR has been extensively discussed and voted on, and these were the terms in the original proposal which make sense to us. Therefore, we will vote YES in favour of this proposal.
Clinic Steward Activation
Vote Result: YES
Rationale
This is the onchain vote 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.
[ARFC] Aavenomics Implementation: Part One
Vote Result: YES
Rationale
Weāre very much looking forward to the Aavenomics update and the activation of Umbrella.
The AAVE buyback plan especially with real protocol revenue is a compelling one. However, we would like to address @Blockworks.Advisoryās comment and other analysis weāve read on buybacks and their relative lack of success. We think it is critical for extremely close monitoring of how the buybacks are performing over the first 2-3 months and the strength for the DAO to acknowledge if the program is not working. This was very good analysis and demonstrated clearly that buybacks, especially in crypto, are not fool-proof.
Overall, we will vote YES in favour of this proposal.
Stablecoins Interest Rate Curve Update
Vote Result: YES
Rationale
Setting the borrow rate in line with recent market conditions - increasing utilisation through lower rates, especially with the broader market having gone down - makes sense.
More generally, with the discussion in the thread, there is a trade-off here between āawkwardā rate changes that occur frequently and may be uncomfortable for borrowers, causing adverse impacts, vs. speed and reactivity, which allows Aave to always be competitive in the market and move quickly.
Weāre more inclined towards interest rate risk oracles with limits on the size of the movement. However, we think TokenLogicās point regarding the refinancing effect and impact on revenue is valuable. Historical data such as this may be useful inputs into the risk oracle and its recommendations, and over time, it could become āsmarterā and evolve from solely being based on the Lido staking rewards minus the buffer.
Overall, we will vote YES in favour of this proposal.
[ARFC] Launch GHO on Sonic & Set ACI as Emissions Manager for Rewards
Vote Result: YES
Rationale
As per our comment, given the DeFi activity on Sonic and the liquidity that can be achieved on Beethoven, expanding GHO into Sonic is a good move. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Onboard lisUSD to Aave V3 BNB Instance
Vote Result: YES
Rationale
The incentives outlined and the raw figures for lisUSD are compelling. However, the collateral base of lisUSD is concerning to us as well and may pose undue risk to the Aave protocol. At this point, weāre curious to hear the risk providersā analysis and therefore will tentatively vote YES in favour of this proposal.
Gov v3 VotingMachine / VotingPortal Maintenance
Vote Result: YES
Rationale
This is a technical proposal to upgrade the v3 Voting Portal to the latest standards. Therefore, we will vote YES in favour of this proposal.
[ARFC] wstETH and weETH E-Modes and LT/LTV Adjustments on Ethereum, Arbitrum, Base
Vote Result: YES
Rationale
The analysis done to establish the liquid e-modes for weETH/wETH and wstETH/wETH is comprehensive and makes sense to us. Moreover, aligning LTV/LT across instances and enhancing capital efficiency is sensible. LlamaRisk is also in support of these changes. Therefore, we will vote YES in favour of this proposal.
[ARFC] Aave Finance Steward Modules Deployment
Vote Result: YES
Rationale
Streamlining Aave governance further via the Finance Steward, especially with guardrails implemented, is positive for operational management of the DAO. Therefore, we will vote YES in favour of this proposal.
Enable SVR V1 on Aave V3 Ethereum
Vote Result: YES
Rationale
This is the onchain vote 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.
[ARFC] GHO Gas Token Framework
Vote Result: YES
Rationale
This is the ARFC vote for this Snapshot TEMP CHECK that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
[ARFC] Launch GHO on Gnosis Chain
Vote Result: YES
Rationale
Gnosis Chain is focused on payments and RWAs, which are great use cases to expand GHO with, and both risk providers are in favour of the proposal. GHO will become one of the two primary stablecoins in this market, and moreover, the current market is mature with chain TVL at $270M and Aave representing 1/4th of the chain TVL. As we said in our comment, weād love to see an integration with Gnosis Pay and bCSPX explored, and forex-related use cases. This could significantly expand the potential of GHO and demonstrate further use cases to the market. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Proposal to Rename GHO to USDA for Enhanced Clarity and Adoption
Vote Result: NO
Rationale
As per our comments, we will vote NO against this proposal because:
- The proposal is very subjective and in our opinion, GHO is very recognisable and does not get ālostā amongst all the other USD denominated stablecoins. Thereās a lot that can be done, and already has, with the GHO brand to distinguish it.
- Over the long term as adoption increases, it isnāt inconceivable to think of other platforms just presenting GHO and other stables as āUSDā to simplify interactions with users.
- If thereās an idea of a group that should identify benefits of a rebrand, it isnāt clear who would do this and how they would be compensated, and in the minimum case, the proposer should do this analysis.
- Funding such an initiative from the DAO without a clear plan on how to go forward and parties who would partake doesnāt seem practical at the moment, especially when the focus of a lot of service providers and contributors to Aave right now is on growing the protocol and capitalising on the market-leading position the DAO currently is in.
[TEMP CHECK] Aave Decentralized Acqui-Hire Framework
Vote Result: NO
Rationale
Our rationale for voting NO against this proposal was outlined in our comment. Namely:
- Thereās a lot of sell pressure that can be induced through this strategy if thereās backlash from holders - thatās not ideal for the AAVE token. Moreover, the optics are worse if a significant portion of the new supply is sold. That could have negative secondary effects in the market.
- The hypothesis is interesting but itās entirely untested. Attracting skilled teams sounds like a good idea on paper, but what are practical examples of teams here? As you pointed out yourself, the incentive for many of these teams to partake is not clear.
- We also agree with the points made by @MrKris - thereās still a lot of depth missing in the proposal, and while itās a good and interesting idea, weāre not convinced of it at the moment.