[ARFC-Addendum] Update Boosters for Merit Round 6
Author: ACI (Aave Chan Initiative)
2024-07-03
Simple Summary
We propose updating Merit parameters and rewarded actions to increase program efficiency and to reflect latest narratives to continue to boost Aave DAO and Merit for Round 6.
Motivation
The Aave protocol maintained and developed its market share in DeFi in a highly competitive landscape thanks to the Merit program. Latest rounds of Merit have been a success.
Merit aims to maximize efficiency while being conscious of the budget weight of this program, therefore it needs to be updated and adapted when narratives change and new strategies can be applied for future rounds.
wETH supply is key for growth, as it is the biggest revenue source for Aave DAO. wETH is essential for the Aave DAO due to its role in enhancing liquidity, providing collateral, facilitating integrations, and driving user adoption, significantly increasing Aave’s revenue through interest income, fees from liquidations, and increased platform usage.
With [ARFC] Deploy a Lido Aave v3 Instance being at Snapshot stage, deploying an Aave v3 instance focused on the Lido ecosystem, aiming to support leveraged staking of stETH and wETH, benefiting both Aave and Lido users, it makes sense to align with Merit.
Finally, with GHO being launched on Arbitrum yesterday, it’s a strategic move to expand into Merit Program rewards for StkGHO to Arbitrum Safety Module if Governance approve its deployment. So for future Merit 6 Round, staking GHO to Arbitrum SM will be a reward action under Merit.
Specification
Boosters Update
- Removal of weETH in the “Diversity supporter” LST boost.
- Removal of OG DAO participant (Booster for early DAO voters or delegates). This boost was meant to support early adopters, after 5 rounds of boost, it’s time to make all users, old and new on equal footing
- Introducing wETH supplier “Eth Maxi” Boost: this will be a Boost for Ethereum and a pre-approval for wETH Arbitrum and Aave Lido markets, in order to incentivize them.
In order to be elegible for the Eth Maxi Boost, a user would need to either supply wETH (have awETH balance) and borrow GHO or stake GHO in order to have aStkGHO balance. this boost also apply to wETH suppliers on Arbitrum market
- Introducing Ahab program to wETH suppliers to the Aave Lido Instance to initiate a Liquidity Mining Program.
- Potentially expand Merit StkGHO to Arbitrum Safety Module if Governance approve its deployment.
Activation of ACI as Emission manager for wETH on Mainnet, Arbitrum & if approved by governance on Aave lido market to implement Liquidity mining programs.
Next Steps
- Gather community consensus on this [ARFC Addendum].
- If there is agreement, escalate this [ARFC-Addendum] proposal to a Snapshot vote for formal approval.
- If [ARFC Addendum] is approved in Snapshot phase, apply changes to Merit Round 6.
Disclamer
The Aave Chan Initiative independently proposes “Merit” without external compensation.
Copyright
Copyright and related rights waived under Creative Commons Zero (CC0).