Following feedback here’s some proposed updates to current ARFC, if community find consensus on it the ARFC will be updated:
Rewarded Actions
Actions have been simplified for proposal decreased complexity, technical implementation & reward calculation purposes.
Borrowing specific assets are the eligible actions. Those assets are the leading revenue providers for the DAO and strategic markets for our vertical
| Action |
|---|
| Borrow wETH |
| Borrow GHO |
Merit boosters
Merit boosters have been simplified; First-degree user have been removed, all aave users except non-aligned protocol one will get the same base reward, but Second-degree user of aligned protocol is maintained.
Currently, zero second-degree protocols are eligible for this booster. The DAO welcomes any alignment proposal from protocols willing to put Aave first in their integrations, resulting in boosted yield for their users and creating competitive advantages.
Governance/staking-related boosters have been grouped at the end; they’re intended to reward aligned behaviour; some of these boosts overlap and are cumulative. as such someone staking Aave and delegating since a long time will get holdoor, stakoor, staker & active in governance bonus at the same time. We’re completely supportive of having the most aligned of our members having the most boost.
| Behavior | Multiplier description |
|---|---|
| Second-degree user of aligned protocol | booster for users coming from aligned protocols that favor Aave over other protocols. |
| Migrator | Incentive for moving positions to Aave from others protocols |
| Diversity Supporter | Rewards for using minority LSTs |
| OG DAO Participant | Booster for early DAO voters or delegates |
| Holdooor | Booster for ≥100-day AAVE holders in the past year |
| Stakoor | Booster for ≥100-day StkAAVE holders in the past year |
| Staker | Bonus for staking AAVE, StkGHO |
| Active in Governance | Rewards for voting or delegating to an Aave DAO-recognized delegate platform |
Merit Diluters
Diluters have been cleaned up, dumpoor was designed for an early version of Merit distributing AAVE.
Freerider has been removed, we heard loud and clear feedback to focus on the reward part, therefore, users participating in governance will get a boost, others will get base reward.
the user of the non-aligned protocol has been clarified. These users will be zeroed out of Merit and removed from the reward pool, allowing aligned users larger rewards.
| Behavior | Dilution Description/Effect |
|---|---|
| User of Non-Aligned Protocol | -100% |
This current proposal update does not discriminate collateral but only boosts some (LST minority assets). This will make many more users eligible but have a dilution effect on reward/$ borrowed. Should we consider collaterals less strategic in the diluters category or remain neutral?
The ACI has no strong feelings on this part of the proposal and welcome community feedback.