[ARFC] Chaos Labs - Incremental Reserve Factor Updates - Aave V2 Ethereum

Simple Summary

A proposal for a series of Reserve Factor (RF) increases across all V2 Ethereum assets.


In line with our V2 to V3 migration plan, we propose a series of RF increases on Aave V2 Ethereum.

By progressively increasing the reserve factors, the interest rate for supplying these assets on V2 will be increasingly less attractive, thus encouraging suppliers to transition positions to V3.

This proposal intends to incrementally increase the reserve factors by 5% at each step. After implementing each increment, we’ll assess user elasticity and the impact of the updates before moving forward with additional increases. We will ensure a minimum gap of 2 weeks between each subsequent update.

Please note that a separate proposal will be made for frozen assets on V2.


Asset Current RF Recommended RF
DAI 10% 15%
FRAX 20% 25%
GUSD 10% 15%
LUSD 10% 15%
sUSD 20% 25%
TUSD 5% 25%
USDC 10% 15%
USDP 10% 15%
USDT 10% 15%
1INCH 20% 25%
CRV 20% 25%
ENS 20% 25%
LINK 20% 25%
MKR 20% 25%
SNX 35% 40%
UNI 20% 25%
WBTC 20% 25%
ETH 15% 20%

Next Steps

  1. Following community feedback, submit the ARFC for a snapshot vote for final approval.
  2. If consensus is reached, submit the first Aave Improvement Proposal (AIP) to implement the proposed updates.
  3. Subsequent increments will be done directly through an AIP to reduce the governance overhead.


Copyright and related rights waived via CC0.


The ACI is in favor of this slow and relatively painless way to incentive user migration to V3

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We have published a Snapshot for the community to vote on.

Start Date: Tuesday, Jun 27, 2023, 11:54 AM (GMT)
End Date: Friday, Jun 30, 2023, 11:54 AM (GMT)

Thank you in advance for your participation in the vote.

1 Like

AIP-266 has been published and voting starts in 24h.

Thank you in advance for your participation in the vote.

Please note that we have addressed a typo in the original post - the TUSD “Current RF” was incorrectly stated as 20% instead of 5% which has now been corrected. The recommended RF for TUSD in this proposal remains the same and is consistent with other stablecoins.

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