The conversation is moving in a few different directions, so we wanted to address the point about our deliverables. Below are the deliverables we committed to in our initial proposal as @benhoneill suggested. We highlighted what is already completed (most work) and what will be finished in the next 8 weeks. We believe it is valuable to complete several items that we have spent months working on, including (but not limited to) the StrategicAssetManager and Curator contracts.
If the issue is that the amount streamed for the next two months is high, we could request a lower amount for the next two months as @Hazbobo suggested but we think it is vital to complete the work originally planned.
It is a strange precedent to set for a DAO that if the work is completed ahead of time, the contract can be cancelled earlier. Teams will be incentivized to wait till their last payment to complete outstanding work.
Treasury Management and Analytics
| Task | Actions |
|---|---|
| Strategic Partnerships Work with other communities to determine if they are a good match for the Aave community and Aave’s vision/future intentions. Coordinate and deploy all on-chain proposals across necessary platforms. |
* 100k BAL acquisition via bonding curve * Whitelist Balancer’s Liquidity Mining Claim * Proposed and executed AIP-130 (Set LDO, stMATIC, MaticX and SD Emission_Admin for Polygon v3 Liquidity Pool). * Maintained continuous dialog with external DAOs and organizations including Polygon Foundation, Stader Labs, Lido DAO, and Optimism to facilitate liquidity mining rewards and asset listings * AIP-267: Treasury Management - Acquire B-80BAL-20WETH |
| Earning Yield Deploy a portion of the DAO’s funds across diversified strategies of varying risk profiles to earn yield across many networks while maintaining sufficient stablecoin runway and optimizing risk exposure. |
* AIP-144: Ethereum v2 Collector Contract Consolidation * AIP-261: Treasury Management - Acquire wstETH & rETH * Published plans for the Curator and shared code with BGD for review. Once finished, the Curator will enable MEV- and price-impact-protected ability to swap assets, acquire yield-generating tokens, and transfer assets from the treasury. * Strategic Asset Manager: dedicated contract for managing Aave DAO’s assets. |
| Grow Aave’s Revenue Position Aave’s assets to bolster revenue growth. Utilize assets from the Reserve Factor to unlock and promote the growth of Aave markets and revenue. |
* Proposed and executed AIP-131 (Aave v2 ETH Interest Rate Curve Update) * Supported CIAN as they built a MaticX / wMATIC strategy for Aave V3 (Polygon) * AIP-150: Aave v3 Polygon wMATIC Interest Rate Upgrade * AIP-151: BAL Interest Rate Curve Upgrades * AIP-157: LDO - Reward Controller Access Request * AIP-158: Ethereum v2 - wETH Interest Rate Curve Upgrade * AIP-163: Add wstETH to Arbitrum Aave v3 * AIP-167: MaticX Risk Parameter & Interest Rate Upgrade * AIP-168: Add CRV to Ethereum v3 * AIP-172: SupplyCap Increase Polygon v3 * AIP-175: CRV Interest Rate Curve Upgrade * AIP-182: MaticX Supply Cap Increase Polygon v3 * AIP-183: OP Emission_Admin for Optimism v3 Liquidity Pool * AIP-197: Add UNI, MKR, SNX & BAL to Ethereum V3 * AIP-199: Increase wMATIC Supply Cap and BAL Borrow Cap * AIP-201: Add LDO to Ethereum Aave v3 * AIP-209: Increase SupplyCap stMATIC Polygon & wETH Arbitrum * AIP-210: Add wstETH to Polygon Aave V3 * AIP-211: BAL Interest Rate Upgrade * AIP-225: LST Supply Cap Increase Polygon & Arbitrum * AIP-229: MaticX Supply Cap Increase Polygon v3 * AIP-231: wMATIC Supply & Borrow Cap Increase Polygon v3 * AIP-241: Polygon Supply Cap Update * AIP-242: Add rETH to Arbitrum v3 * AIP-243: Add LUSD to Arbitrum Aave V3 * AIP-250: Polygon v2 - Parameter Update * AIP-257: Optimism - Create ETH eMode Category |
| Hedging Explore and implement ways to provide downside protection to the Ecosystem Reserve. |
Aave’s token price and crypto markets generally have been down significantly. It does not make sense to hedge during a bear market as much as it does during a bull market. |
| Claim Revenue to Treasury for Aave V3 Make periodic calls to claim Aave V3 revenue to Aave’s treasury. |
Set up off-chain infrastructure to automatically and dynamically claim all revenue to the treasury for Aave V3 on Polygon, Optimism, Arbitrum and Avalanche on a weekly basis (i.e every Thursday). Some example transactions across the different networks: 1. Polygon 2. Optimism 3. Arbitrum 4. Avalanche |
| Improve Capital Efficiency of the Safety Module (SM) Create various optimizations for the SM to ensure that it functions with Aave’s increased TVL. |
* [Discussion] Safety Module * [TEMP CHECK] SM upgrades * Snapshots for SM upgrades: 1, 2, 3, 4, 5 |
| Safety Module Performance Provide detailed analysis of the SM’s historical and current performance relative to TVL, market conditions, and market volatility. |
* Published Safety Module dashboard at community.llama.xyz/aave/safety-module |
| Shortfall Event Analysis Model the effect of a shortfall event on the SM’s backstop and AAVE token price. |
* In progress, with dashboard expected soon |
| Runway Analysis Provide analysis that will shape investment, amongst other, decisions across the DAO. |
* November ‘22 Aave runway analysis * Created a live runway dashboard at community.llama.xyz/aave/runway |
| Develop a Data Warehouse for Aave Develop a live, customized, and transparent financial reporting backend solution for Aave. |
Developed a data warehouse that combines and transforms on-chain data from numerous networks with off-chain data sources to provide a comprehensive base layer of Aave blockchain data that can be used to build real-time analytics dashboards. Used this warehouse to power community.llama.xyz/aave |
| Accounting Reports Publish financial reporting statements enabled by the data warehouse. |
* October 2022 financials * November 2022 financials * Q4 2022 financials * January 2023 financials * February 2023 financials * Q1 2023 financials * April 2023 financials * May 2023 financials * June 2023 financials |
| Investment Performance Reporting Provide visibility into each investment strategy, its performance, and associated risks. |
* In progress, with dashboard expected soon |
| Risk Modeling for DAO Investments Model various risk scenarios to ensure the DAO has exit strategies during periods of market turbulence. |
* In progress, with dashboard expected soon |
Growth
| Task | Actions |
|---|---|
| ARC Market Liquidity Mining Module Upgrade the Aave ARC market to include a liquidity mining module. |
No longer relevant as Aave ARC has become insignificant over the past year; it has <$100k in TVL currently. |
| New Collateral Types Work with Balancer to bring a new type of productive collateral to Aave markets and subsequently roll it out across the various Aave V3 deployments. |
Conducted research & published ARC for ERC-4626 collateral-type, followed up with a Snapshot vote. Aave Companies and BGD worked together to implement the collateral type proposal. |
| DeFi Integrations Bolster the adoption of Aave’s tokens across DeFi by supporting initiatives that build on top of Aave markets or integrations that create TVL for Aave markets. |
* Created proposal on Sturdy Finance to onboard the new boosted Aave V3 BB-A-USD as collateral. * Llama has proposed the following gauges on Balancer, among others: * wstETH/bb-a-wETH (Ethereum, Arbitrum, Polygon) * cbETH/bb-a-wETH (Ethereum) * stMATIC/bb-a-wMATIC (Polygon) * MaticX/bb-a-wMATIC (Polygon) * rETH/bb-a-wETH (Arbitrum) |
| Metagovernance Enable AAVE and stkAAVE holders to participate in metagovernance by voting on proposals within other communities in which Aave DAO holds tokens. |
* Shared plans for StrategicAssetManager and shared code with BGD for review, which will enable Aave DAO to utilize veBAL and other strategic holdings. |
| Asset Listing Risk Assessments Support asset listings by providing a qualitative risk analysis report on the forum that details the initial risk parameters. Adopt any risk parameters suggested by Gauntlet, provided borrowing is enabled at launch |
* Qualitative risk assessment for BADGER * Proposal to list rETH, including qualitative risk assessment |
| Other Tasks | * Ethereum v2 Reserve Factor - aFEI Holding Update * Executed multiple swaps of aFEI to aDAI in the Aave V2 Collector through the swapper contract that was set up as part of AIP-105 * Co-authored an ARC with Gauntlet to propose a path forward for covering $1.6m in excess debt from CRV markets. * Worked with Chaos Labs to propose AIP-125, which allows users to deposit assets across the majority of reserves rather than freezing pools as outlined in AIP-121. * Published ARC along with Gauntlet, Chaos Labs, 3SE Holdings, and @ItsFreeRealEstate to halt listings on Aave V1 and Aave V2 markets. * AIP-145: Renew Aave Grants DAO. * AIP-146: Repay Excess CRV Debt on Ethereum v2. * Created an Aave Grants dashboard * Extended Safety Module coverage to Polygon V3 |