[ARFC] Safety Module - Polygon & Avalanche Coverage Update

title: [ARFC] Safety Module - Polygon & Avalanche Coverage Update
author: @TokenLogic
created: 2023-09-03


This publication proposes updating the Safety Module (SM) coverage across the various iterations of Aave Protocol on Polygon and Avalanche networks.

SM coverage is to be removed from Polygon v2 and Avalanche v2 deployments and extended to Avalanche v3.


With the continued migration of users from v2 to v3, this publication seeks to further encourage users to migrate by removing the SM coverage for Aave v2 deployments on the Polygon and Avalanche networks.

During 2023, the total market size on Avalanche and Polygon Aave v2 Protocol deployments has been trending lower. At the time of writing the total market size of Aave v2 on Avalanche and Polygon is $36.2M and $134.7M respectively. For comparison, the Aave v3 deployment on each network is $199.8M and $229.9M respectively.

By removing SM coverage for Avalanche and Polygon v2 deployments, Aave DAO will no longer be providing coverage for the outdated iterations of Aave Protocol with exception of the Aave ARC deployment. By removing the SM coverage, users are further encouraged to migrate to v3.

The Polygon Aave v3 deployment is already covered by the SM whilst the Avalanche v3 deployment is not cover by the SM. This publication seeks to extend the SM coverage to include Avalanche v3. Therefore both v3 iterations are covered by the SM and v2 iterations are not covered on Polygon and Avalanche.

For reference, at the time of writing, the following Aave Protocol deployments are covered by the SM:


It is important to note based upon the current implementation of the SM, an adhoc AIP is required to implement a Shortfall Event.

The following Snapshot votes will be created to enable granular voting:

  • Extend SM Coverage to Avalanche v3
  • Remove SM Coverage for Polygon v2
  • Remove SM Coverage for Avalanche v2

Upon conclusion of the Snapshot vote, if approved, SM coverage will be removed/extended to the respective market.

There is no need for an AIP to implement this upgrade.


TokenLogic receives no payment from Aave DAO or any external source for the creation of this proposal. TokenLogic is a delegate within the Aave ecosystem. TokenLogic seeks to become an Aave DAO Service Provider.


Copyright and related rights waived via CC0.


Thanks for this proposal @TokenLogic.

We are supportive of this implementation as it’s another step towards pushing the V2 to V3 transition.


It is an excellent time to re-think the need to have Ethereum v2 as part of the SM coverage. If we want to keep incentivizing the migration of v2 to v3, we must re-evaluate this sensitive topic.

I think as of now, v2 is still bigger than v3 and needs to be covered.
But i am also in favour to encourage people to move to v3 step by step, by adjusting parameter on v2.
As soon as v3 on Ethereum becomes bigger than v2, its time to stop v2 coverage.

Hi @EzR3aL,

We agree, that it is still to soon to remove the Safety Module coverage for the Ethereum v2 deployment. this proposal removes only the SM coverage for v2 Polygon and v2 Avalanche whilst also extending the SM to include Avalanche v3.

More generally, it is our intention is to create a Snapshot in a few days times when the 5 day discussion period has passed.

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