title: [ARFC] September Funding Update
author: @karpatkey_TokenLogic
created: 2024-23-09
Summary
The publication proposes deploying GHO into Aave v3 on Arbitrum, migrating assets from v2 to v3 and rescue funds from Paraswap.
Motivation
As part of our ongoing Treasury asset rebalancing, this proposal when implemented will continue the migration of assets from v2 instances of Aave to v3.
Instead of acquiring GHO to sustain the runway, minor holdings are to be swapped to ETH and deposited into the main instance of Aave v3 on Ethereum to support future Ahab funding requirements.
In response to recent events, funds currently locked in the Paraswap adapter contracts will be send to the DAOs Treasury. Due to size of these holding, this will only be performed on Polygon, Optimism, Ethereum and Arbitrum where this proposal is already intending updating the DAOs holdings.
To improve the capital efficiency of the GHO holding, 5M GHO will be transferred to Arbitrum and deposited into Aave v3. The ARB rewards are expected shifted from GHO deposits, to GHO debt side before this proposal is implemented.
Specification
Part A
Migrate funds from Aave v2 to v3
Migrate the following assets from Aave v2 to v3.
| Polygon |
|---|
| amUSDT (All-1.0x10^-18) |
| amDAI (All-1.0x10^-18) |
| amWMATIC (All-1.0x10^-18) |
| amWETH (All-1.0x10^-18) |
| amWBTC (All-1.0x10^-18) |
| amLINK (All-1.0x10^-18) |
Withdraw and transfer funds to Ethereum
Transfer the following assets to Ethereum.
| Polygon | Arbitrum | Optimism |
|---|---|---|
| amUSDC.e (All-1.0x10^-6) | aArbUSDC (All-1.0x10^-6) | aOptUSDC (All-1.0x10^-6) |
| aPolUSDC (All-1.0x10^-6) | aArbLUSD (All-1.0x10^-18) | aOptLUSD (All-1.0x10^-18) |
Rescue Paraswap Funds
Rescue funds held in the Paraswap adapter contracts and send back to Treasury in line with this PR 454 on Polygon, Arbitrum, Optimism and Ethereum.
Gas Rebate
Transfer 0.264 ETH to 0x818C277dBE886b934e60aa047250A73529E26A99 (karpatkey) reimbursing for the funding of Guardian signers.
Swap funds to GHO
| Ethereum |
|---|
| aUSDC (1.25M) |
| aUSDT (1.25M) |
| DAI (All) |
| aDAI (All-1.0x10^-18) |
| aEthDAI (0.5M) |
| aLUSD (All-1.0x10^-18) |
| LUSD (All) |
| FRAX (All) |
| aFRAX (All-1.0x10^-18) |
Merit + Ahab Programs
Create allowances to the Merit and Ahab, 3M GHO and 800 aEthWETH from Aave v3 Ethereum:
SAFE: 0xdeadD8aB03075b7FBA81864202a2f59EE25B312b
Merit is $12M per year at 3M per quarter or 1M per month.
Ahab is $8M per year and is subject to ETH price fluctuations. Previous quarters received a budget of 645 ETH. With ETH trading sub 2,500 USD, the revised budge is 800 ETH for the coming quarter. The ETH is typically withdrawn from the Main market and deposited into Lido instance before being distributed to users.
Part B
Transfer GHO from Ethereum to Arbitrum v3
Transfer 5M GHO via Chainlink’s CCIP bridge and deposit the GHO into Aave v3 on Arbitrum.
Swap funds to ETH and deposit Aave v3 (Main Market)
Swap the following assets to ETH and deposit into the Aave v3 main market on Ethereum.
| Ethereum |
|---|
| a1INCH (All-1) |
| aMANA (All-1) |
| aENJ (All-1) |
| aBAT (All-1) |
| aCVX (All-1) |
| aZRX (All-1) |
| aRAI (All -1) |
Deposit in Aave v3 Ethereum
| Ethereum |
|---|
| USDC |
And the funds retrieved from the Paraswap contract in Part A of this proposal.
Disclosure
TokenLogic and karpatkey receive no payment for this proposal. TokenLogic and karpatkey are both delegates within the Aave community.
Next Steps
- Using the Direct-to-AIP process, submit a proposal for vote.
Copyright
Copyright and related rights waived via CC0.