[ARFC] Merit - A New Aave-Alignment User Reward System

Governance
63

As we’re closing round 2 the community might be interested in some stats and conclusions on Merit so far:

Merit was designed for two things:

  1. stop the negative influence of the Morpho optimizer product hurting the Aave DAO Revenue:
    Merit round 1 has seen ~165k ETH leave Morpho optimizer to return to Aave, their product is now permanently imbalanced (52k ETH capacity before matching) and will never be able to provide additional yield on top of Aave, mission accomplished.

In general, Aave attracted >200k ETH and grew its market share during Merit round 1.

  1. Support the GHO stablecoin peg, allowing supply & revenue to grow & create a stablecoin-base part of the safety module:

As a result:

StkGho supply grew by 45%
GHO supply grew by 40%
GHO Borrow rate was increased to 13.8%
GHO peg remained in target rate 97% of the time
GHO protocol revenue grew by ~125% to 6.5m$/year currently

For more GHO-related data, feel free to check https://aave.tokenlogic.com.au by @TokenLogic.

Merit round 2 has seen 1367 eligible users,

Staker & Strakoor is the largest booster in terms of users (>100), indicating that Aave users trust the protocol & are happy to participate in the Safety module for yield & discount on their GHO borrowings.

The ACI is keeping a record of all data and will open-source merit scripts & data when the merit program ends as announced.

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