[ARFC] Freeze G-UNI DAI/USDC and G-UNI USDC/USDT in Aave V2 AMM Market

Risk
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Author: Joint Recommendation - Gauntlet, BGD Labs, Chaos Labs, and Aave Companies
Date: 2023-03-31

Summary:

This ARFC proposes to make parameter changes on the Aave V2 AMM (Automated Market Maker) market, specifically to freeze G-UNI DAI/USDC and G-UNI USDC/USDT reserves, in order to balance risk.

Abstract:

The proposed parameter updates aim to freeze G-UNI DAI/USDC and G-UNI USDC/USDT reserves in the Aave V2 AMM market, given their low liquidity levels and limited activity.

Motivation:

This joint recommendation from Gauntlet, BGD Labs, Chaos Labs, and Aave Companies is motivated by the low usage and relatively low liquidity levels of G-UNI DAI/USDC and G-UNI USDC/USDT in the Aave V2 AMM market. The proposers note that the pool is not particularly active or highly utilized, and out of an abundance of caution, they recommend freezing these assets.

Specification:

This ARFC proposes the following actions for the Aave V2 AMM market:

  1. Freeze G-UNI DAI/USDC reserves
  2. Freeze G-UNI USDC/USDT reserves

Implementation:

Upon approval, the freezeReserve method will be called on the AMM Pool Configurator to freeze the specified reserves: G-UNI DAI/USDC and G-UNI USDC/USDT.

Disclaimer:

This proposal is a joint recommendation from Gauntlet, BGD Labs, Chaos Labs, and Aave Companies.

Copyright:

Copyright and related rights waived via CC0.

4 Likes
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As an update, we will publish a new AIP for this today.

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AIP below:

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This proposal has been passed and executed. We thank the community for their participation.

Given the low level of usage on the AMM V2 market, and the fact that the only unfrozen assets are now majors (DAI, USDC, USDT, WBTC, ETH) that are available on V2 ETH and V3 ETH, we recommend deprecating the AMM V2 market. This would set LTs to 0 for all Uni V2 assets on the AMM V2 market.

We aim to move forward with transparency and give ample time for users to adjust their positions. As such, we aim to conduct a Snapshot vote on 4/20/2023 and if this Snapshot passes, move forward with an AIP with advanced notice to users.