Since the original proposal was published, markets experienced significant volatility (10th October 2025) and asset prices trended downward before levelling out in late November. During this period, the chart below shows the performance of holding AAVE and ETH passively relative to providing liquidity in the reCLAMM pool.
Source: Aave Analytics | TokenLogic
When market sentiment improved, as shown above by a reversal in Impermanent Loss, on the 11th December, $194,662.69 USD (497.5 AAVE and 35.06 ETH) was deployed into the Balancer reCLAMM pool. Liquidity was active for 6 days to validate the expectation of improved pool performance, with funds withdrawn on the 17th December.
During this time, the following occurred:
- Trading volume meaningfully increased;
- reCLAMM liquidity utilisation increased;
- reCLAMM utilisation outperformed 80/20 weighted pool;
- Asset prices decreased, resulting in 7 rebalances; and,
- Providing liquidity outperformed holding idle assets by $195.29 USD.
Source: Balancer
Upon discussions with Balancer, we elected to reconfigure the pool’s parameters to increase the liquidity range and reduce the rebalancing frequency. To avoid losses during the reconfiguration phase, the liquidity was withdrawn from the pool.
The new configuration reduces the rebalancing frequency whilst offering deep liquidity to facilitate swaps with minimal price impact for the vast majority of historical swap volume. The chart below shows the distribution of AAVE swap sizes.
Source: https://dune.com/queries/6340394/10090110
The new pool configuration and the resulting price impact for swaps are shown below:
| Pool Configuration | Price Impact |
|---|---|
| Price Ratio: 4 Margin: 10% Price Shift: 0.1% Swap Fee: 0.25% |  Source: Balancer Team.Assumes price is near the middle of the range. |
Based upon the pool parameter and swap volume analysis, we estimate 72.7% of AAVE swap volume will occur at 55bps or less when routed directly via Balancer. Swap aggregators will be able to offer lower price impact on swaps by routing trading volume through other liquidity venues. For comparison, the Swap Fee on Uniswap is 0.30%, relative to 0.25% on Balancer, and as a result, we expect a greater portion of swap volume to route via Balancer.
Updating the pool configuration parameters was completed on 19th December. Beginning the week commencing 22 December, we plan to deploy liquidity gradually, and we expect to have it fully deployed by the end of January 2026, contingent on Balancer implementing the Hypernative Pause Module.
Based on the data above and the timeline outlined below, we intend to implement the remaining portion of the ARFC proposal and reduce stkABPT emissions from 130 AAVE/day to 40 AAVE/day.
As part of the January funding update, we anticipate requesting additional AAVE and ETH to extend liquidity provisioning to approximately $12M. We will then propose reducing stkABPT Emissions from 40 to 0 via a dedicated ARFC.
The Hypernative Pause Module is expected to be deployed during January 2026 and will cover the AAVE/ETH liquidity pool. The module recently completed the audit, and the implementation governance process is expected to start in the second week of January 2026.