[ARFC] Cancel Llama Service Provider Stream

Governance
9

The Aave Chan Initiative (ACI) has evaluated the remaining funds in the Llama stream, which amount to approximately $240k (~$188k in USDC and ~$50k worth of AAVE).

This is not about “only 2 months left”, but rather, “could the DAO allocate a quarter of a million dollars better than with Llama?” We firmly believe the answer is yes.

We simply consider Llama’s service to be unfit for the Aave DAO. The quality of services provided is considered insufficient.

Here’s a small curation of @Llamaxyz’s achievements:

  • Preferred to enjoy Christmas holidays instead of executing the much-needed CRV AIP, costing the DAO an additional ~$1m due to increased CRV valuation.
  • Charged for consulting to third-parties around Aave, for example teams looking for asset listings while being paid by the DAO 1.5m$. This is the reason a “disclaimer” section exists in the TEMP CHECK & ARFC framework to put an end to this practice.
  • As treasury managers, they failed to ensure the collector contract had sufficient aUSDC balance, resulting in multiple service providers being unpaid for weeks. This has damaged the DAO’s brand and reputation. (They’re the reason the ACI asked to be paid in aUSDT, as we rightfully didn’t trust Llama.)

Any of these examples should be considered as a reasonable motivation for immediate termination.

We respectfully disagree with this perspective. In the off-chain world, it’s common practice to replace service providers that overcharge and underdeliver. This is seen as a sign of healthy and good management.

Working for the Aave DAO is a privilege, not a right. Service providers are not government employees with guaranteed tenure.

We believe this ARFC sets a positive precedent for the DAO. It sends a clear message to all current and future service providers: Governance will assess and potentially reconsider agreements if they are deemed unfit. This ensures that the DAO’s resources are used efficiently and effectively.

To borrow a concept from the world of investing, “the best time to end the Llama stream was six months ago, the second best time is now.” It’s never too late to correct a course that isn’t serving the DAO’s best interests.

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