[ARFC] Deploy Ethereum Collector Contract

Governance
5

Hi Everyone,

Please see Part 2 of 3.

[ARFC] Migrate Holdings from v2 to v3 and acquire wstETH and rETH

title: [ARFC] Migrate Holdings from v2 to v3 and acquire wstETH and rETH
author: @llamaxyz - @TokenLogic
created: 2023-05-13

Summary

This publication proposes migrating assets from Aave v2 to v3 on Ethereum and acquiring wstETH and rETH.

Abstract

After ensuring there is sufficient aUSDC to fund Service Providers, this publication Part 2 of 3, involves redeeming v2 aTokens and depositing the underlying assets in Aave v3.

In addition, ETH & wETH is to be used for acquiring wstETH and rETH. This is intended to boost the productivity of Aave’s assets and provide potential flexibility for potential GHO liquidity positions.

Motivation

The following considerations have been accommodated:

  • v2 aUSDT required for Signma Prime’s and ACI’s streaming contracts.
  • v2 aUSDC required for Service Providers streaming contracts.
  • wETH required for B-80BAL-20WETH (326.3 wETH).
  • BAL required for B-80BAL-20WETH.
  • CRV required for sdCRV.
  • Exclude Assets not listed on Aave v3.
  • Exclude wETH to be converted to wstETH (800 wETH).
  • Exclude wETH to be converted to rETH (800 wETH).

Swapping wETH or ETH to wstETH incurs minimal slippage at the proposed size via Cowswap. However, when wETH is swapped to rETH slippage is >1% at size.

Llama will optimise for maximising Aave return. In doing so swaps and direct deposits into the respective protocol, Lido and/or Rocket Pool, will be considered.

Given the amount of time that has passed since the original proposal, Aave’s ETH nominated asset holding has grown. Aave v2 generates around 30 wETH per week from the v2 deployment alone. Aave holds around 158.2 wETH in Aave v3.

This publication will deposit aroud 140.23. wETH in Aave v3, retain 326.3 wETH in Aave v2 to be used for B-80BAL-20WETH and will acquire 800 wETH/ETH worth of wstETH and rETH.

Specification

The following asset holdings are to be redeemed and then deposited into Aave v3:

Network Instance Token Quantity Value (USD)
Ethereum Aave V2 aWETH 140.23 $253,583.97
Ethereum Aave V2 aUSDT 3,118,628.205732 $3,118,628.21
Ethereum Aave V2 aDAI 2,886,990.54471515 $2,886,990.54
Ethereum Paraswap Fee Claimer Permissionless Claimer WBTC 0.13643753 $3,783.76
Ethereum Aave V2 aSNX 102,463.44 $211,924.58
Ethereum Aave V2 aWBTC 6.96 $187,803.46
Ethereum Aave V2 aLINK 13,530.76 $89,885.42
Ethereum Paraswap Fee Claimer Short Executor WBTC 0.49 $13,041.90
Ethereum Aave V1 DAI 12,291.12 $12,321.30
Ethereum Paraswap Fee Claimer Short Executor DAI 4,942.75 $4,943.42
Ethereum Paraswap Fee Claimer Permissionless Claimer DAI 2971.111547 $2,971.11
Ethereum Paraswap Fee Claimer Short Executor LINK 358.54 $2,376.46
Ethereum Aave V1 WBTC 0.09 $2,373.55
Ethereum Paraswap Fee Claimer Permissionless Claimer LINK 194.2036084 $1,279.04
Ethereum Aave V1 LINK 142.02 $943.41
Ethereum Paraswap Fee Claimer Permissionless Claimer USDT 772.506631 $773.27
Ethereum Paraswap Fee Claimer Short Executor USDT 134.79 $134.88
Ethereum Paraswap Fee Claimer Permissionless Claimer SNX 23.66422798 $50.96
Ethereum Aave V1 SNX 22.17 $45.85
Ethereum Paraswap Fee Claimer Short Executor SNX 19.84 $41.22
$6,793,896.30

Approximately 140.23 wETH, is to be deposited into Aave v3 for aethWETH.

800wETH is to be converted to wstETH.
800 wETH is to be converted to rETH.

Network Instance Token Quantity Value (USD)
Ethereum Aave V2 aWETH 1,098.55 $1,986,550.08
Ethereum Aave V2 ETH 418.18 $756,215.10
Ethereum Aave V1 WETH 41.25 $74,592.80
Ethereum Paraswap Fee Claimer Short Executor WETH 31.21 $56,441.38
Ethereum Paraswap Fee Claimer Permissionless Claimer WETH 10.81 $19,999.24

Detailed execution details will be provided in the comments prior to submitting the AIP. This will enable Llama and Bored Ghost Developing to optimise the execution methodology.

Copyright

Copyright and related rights waived via CC0.

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