title: [ARFC] May 2025 - Funding update
author: @TokenLogic
created: 2025-04-28
Summary
This publication presents the May Funding Update, consisting of the following key activities:
- Bridge funds to Ethereum;
- Create 6M USD Allowance for AAVE buybacks; and,
- Acquire 4M GHO for Operations.
Motivation
This publication combines near term operational needs and migrating assets held on L2s and side chains in preparation for funding future incentive campaigns.
The below outlines the objectives of this publication:
- Consolidating funds to Ethereum; and,
- Support near term operational requirements;
Bridge Funds to Ethereum
Each month, the DAO will bridge its funds held on other networks back to Ethereum, where they will be allocated to support ongoing incentive and buyback programs. With the Umbrella upgrade pending, Horizon and AAVE buybacks already underway, consolidating assets on Ethereum ensures that sufficient capital is available and accessible when needed.
Acquire GHO
In the short term, we anticipate multiple initiatives will seek funding from the DAO. This proposal, once enacted, will secure a sufficient amount of GHO to support the DAO’s operations. This ensures the DAO remains consistently well-capitalized.
Upcoming anticipated expenses include:
- Renewal of Service Provider agreements;
- Merit and ALC distributions; and,
- Incentive campaign(s).
Acquire ETH
The Aave DAO continues its treasury rebalancing by converting a portion of its MATIC holdings into ETH. This action builds upon the funding update initiated in April, during which the first batch of Polygon-based assets was bridged back to Ethereum.
The ETH acquired through this reallocation will be directed toward the Frontier program, where it will support Ethereum decentralization efforts while simultaneously generating yield for the DAO.
Fund Merit + Ahab Programs
Merit is $12M per year at 3M per quarter or 1M per month.
Ahab is $8M per year with the amount of ETH being distributed subject to ETH price fluctuations. The previous 3 month period’s budget was 800 ETH and of this 800 ETH, not all has been consumed. As a result, the next budget period will receive only 800 ETH.
Specification
This proposal shall be submitted as several AIPs that align with operational readiness timelines and ease of review given the volume of funds being moved.
Bridge Assets to Ethereum
Bridge the following assets to Ethereum.
Transfer Assets
Transfer all AAVE to the Ecosystem Reserve.
Deposit Assets
Deposit 115 ETH held on the Treasury into the Core instance of Aave.
Ethereum - Swaps
Withdraw the following from Aave and swap them as outlined in the table below:
| Ethereum | Amount | Swap |
|---|---|---|
| USDT | 2.00M | GHO |
| USDC | 2.00M | GHO |
| DAI | All | USDS |
| LUSD | All | ETH |
| CVX | All | ETH |
| FRAX | All | ETH |
Create Allowances
Acquire ETH
Create a MATIC and stMATIC allowance for the Aave Finance Committee to then swap each asset to ETH and transfer to the Treasury.
- Asset: MATIC
0x7D1AfA7B718fb893dB30A3aBc0Cfc608AaCfeBB0 - Amount: 580,156.21
- Asset: stMATIC
0x9ee91F9f426fA633d227f7a9b000E28b9dfd8599(updated 13/06) - Amount: 24,796.49
- Spender: AFC
0x22740deBa78d5a0c24C58C740e3715ec29de1bFa - Method: approve() MATIC and stMATIC on the Aave Collector contract to the AFC address
AAVE Buybacks
Create a 3M aEthUSDT and 3M aEthUSDC allowance for the Aave Finance Committee to perform 6 weeks of AAVE buybacks.
- Asset: aEthUSDT
0x23878914EFE38d27C4D67Ab83ed1b93A74D4086a - Amount: 3M
- Asset: aEthUSDC
0x98C23E9d8f34FEFb1B7BD6a91B7FF122F4e16F5c - Amount: 3M
- Spender: AFC
0x22740deBa78d5a0c24C58C740e3715ec29de1bFa - Method: approve() aEthUSDT and aEthUSDC on the Aave Collector contract to the AFC address
Merit + Ahab Programs
Create allowances to the Merit and Ahab, 3M aEthLidoGHO and 800 aEthWETH from Aave v3 Prime and Core respectively on Ethereum:
- Asset: aEthLidoGHO:
0x18eFE565A5373f430e2F809b97De30335B3ad96A - Amount: 3M
- Asset: aEthWETH:
0x4d5F47FA6A74757f35C14fD3a6Ef8E3C9BC514E8 - Amount: 800
- Spender: Merit
0xdeadD8aB03075b7FBA81864202a2f59EE25B312b - Method: approve() aEthUSDT and aEthUSDC on the Aave Collector contract to the AFC address
Gnosis Liquidity Mining Rewards
- Asset: aGnoEURe:
0x3e652E97ff339B73421f824F5b03d75b62F1Fb51 - Amount: 25,000
- Spender: ACI
0xdef1FA4CEfe67365ba046a7C630D6B885298E210 - Method: approve() aGnoEURe on the Aave Collector contract to the ACI address
Reference: [ARFC] Set ACI as Emission Manager for Liquidity Mining Programs - #83 by ACI
Gas Reimbursement
Transfer 0.5847 ETH to ACI to reimburse expenses incurred.
This reimburses associated gas costs linked to AIP submissions and administering various incentive reward programs.
ACI Receiving Address: 0xdef1FA4CEfe67365ba046a7C630D6B885298E210
Disclosure
TokenLogic does not receive any payment for this proposal.
Next Steps
- Using the Direct-to-AIP process, submit AIP(s) for vote.
Copyright
Copyright and related rights waived via CC0.