title: [ARFC] TokenLogic - Phase II
author: @TokenLogic
created: 2025-10-08
Summary
TokenLogic proposes a 12-month early renewal of our financial services partnership with the Aave DAO, commencing on November 1st, 2025. This renewal reflects the expanded scope of our collaboration, encompassing Treasury Management, GHO Growth and Analytics.
Under this renewed mandate, TokenLogic will continue to manage the DAO’s finances, drive GHO and sGHO adoption, and provide in-depth analytics across the Aave ecosystem. The early renewal will not affect the current engagement which remains in place until 15th December 2025.
Scope of Work
Treasury Management
TokenLogic focuses on ensuring the Aave DAO’s expenses and initiatives are funded efficiently. We support financial planning, budgeting, forecasting, risk management, and capital optimization to safeguard long-term stability. Our responsibilities span cash flow management, treasury operations, expense payments, and financial analysis, providing data-driven insights that guide strategic decision-making and business growth.
Core Functions
- Financial Planning & Analysis: Develop short-medium term financial strategies, create budgets, and forecast future financial performance;
- Cashflow Management: Manage cash flow to ensure the company has sufficient funds to operate, pay suppliers, and invest in growth;
- Budget Allocation: Allocate budgets to different initiatives (e.g. Ink, Plasma, X Layer) to ensure financial goals/commitments are met and resources are used efficiently;
- Funding and Capital Management: Determine the preferred way to manage the DAO funding needs by using a combination of cashflow and debt to support operations whilst maintaining exposure to underlying asset performance;
- Risk Management: Identify and manage financial risks, ensuring the company’s financial stability and long-term prospects;
- Incentive Management: Work with the ACI team to submit incentive grant requests on behalf of Aave, provide input into strategic initiatives tenders alongside ACI and Aave Labs, and continue to design how incentives are distributed across Aave Protocol; and,
- Umbrella/Safety Module: Monitor users interactions with Umbrella and the Safety Module, review the yield relative to the broader market and define emissions to optimise Aave DAO’s expenses.
Strategic Importance
As Aave continues to grow, we are witnessing an increase in the volume of strategic opportunities that requires thorough analysis and holistic oversight to determine which initiatives are to be pursued and how capital is allocated across initiatives often led by different Service Providers.
- Decision Support: Provide management with critical financial data and insights to support informed strategic and operational decisions;
- Profitability & Growth: Focus on improving profitability and generating cash, transforming the finance function into a valuable contributor to the business;
- Capital Management: Implement Buybacks, manage stkAAVE and stkABPT emissions, sGHO emissions, deploy assets to reduce incentive spend, utilise loans as needed to support Aave DAO’s investments and strategic interests;
- Liquidity Management: Subject to the availability of capital, reduce the cost of AAVE and GHO liquidity by providing direct liquidity provisions;
- Data Driven: Use analytic services and technology to gather, synthesize, and visualize financial data, enabling data-driven decision-making throughout the organization; and,
- Aave Protocol Configuration: Work with various teams to design the initial configuration of new instances of Aave v3 and v4 to strategically position Aave to maximise growth.
- Aave Savings Rate (ASR): Fund and maintain the ASR to ensure competitiveness in the broader market whilst balancing broader business revenue and expenses.
Asset Management Tooling
Continue to expand the Aave Finance Steward functionality and introduce new asset management tooling to optimise and expand how the DAO manages its capital. To streamline the DAO’s financial operations, TokenLogic shall provide the following functionality:
- Bridge Steward: Permitting Aave Finance Stewards to move funds between Treasury addresses without taking custody of funds.
- Swaps Steward: Permitting Aave Finance Stewards to swap funds held within the Treasury directly on their respective networks.
- Position Management: Actively manage collateral position(s) on Aave Protocol to avoid liquidation.
- Liquidity Provisioning: Provide liquidity for both AAVE and GHO in secondary markets.
- Yield Optimisation: Ability to allocate liquidity across different strategies to reduce the dependency on voting and liquidity incentives.
GHO Growth (Incl. sGHO)
After solidifying GHO strength and utility within the ecosystem, the next chapter of GHO’s growth will focus on continuing to unlock new use cases and improving the overall financial viability of GHO. TokenLogic will continue to introduce GHO to new networks, deepen integrations across CEXs and introduce GHO as a payment option with various wallet providers.
- DeFi Integrations: Focusing on growing liquidity and utility across networks where GHO is available;
- CEX Integrations: Continue onboarding GHO to CEXs and extending utility beyond Spot trading to Earn, Trading Accounts and other opportunities;
- Institutional Sales: Continue to work with large institutions seeking to access credit at reliable terms;
- sGHO Migration: Work with various partners to migrate integrations, wallets, protocol integrations, from the current version of sGHO to the newer ERC4626 sGHO when live.
- RemoteGSM: Develop and deploy the RemoteGSM to support the launch/growth on GHO in collaboration with other service providers;
- Facilitators: Develop and deploy facilitators to support the issuance of GHO to new networks, remoteGSMs, upgraded GSMs and service institutional demand via customised Aave v4 markets in collaboration with other service providers;
- Payment Integrations: Work with wallet providers to promote the integration of GHO as both a savings vehicle via sGHO and as payment token;
- Aave v4: Design how GHO will be integrated into v4 to create a yield curve that supports both facilitator Minting and Supplying into the hubs whilst also presenting users with attractive savings opportunities; and,
- Line-of-Credit: Support teams seeking a line of credit via customised Spokes on v4;
After the successful launch of sGHO earlier this year by reconfiguring stkGHO’s parameters, sGHO has attracted over 180M in user deposits representing ~53% of GHO’s circulating supply. When the new sGHO is live, TokenLogic will lead efforts to migrate current sGHO users with support from ACI and bootstrap the adoption of sGHO across DeFi and CeFi.
Liquidity
TokenLogic will continue to lead the Aave Liquidity Committee (ALC), performing the operational lift of calibrating votes and administrating incentives across various platforms to direct incentives towards GHO liquidity pools.
Our key responsibilities include:
- DEX Liquidity: Strategically determine pool type, asset pairing, amount of liquidity and the target yield required to achieve the desired amount of DEX liquidity;
- Operations: Claiming rewards, performing swaps and creating quests to receive votes;
- Optimise Liquidity Incentives: Monitoring, model and calculate the amount of incentives required to achieve robust market depth; and,
- Optimise Vote Incentives: Optimizing the deployment of the DAO’s strategic voting assets, re-locking assets, acquiring boost to optimize the impact of strategic assets.
Gho Risk Stewards
As GHO Stewards, TokenLogic will oversee the holistic up-keep of critical parameter configurations, including the Borrow Rate, GSM Caps and Fees, ensuring optimal functionality and sustainability.
- Parameter Optimisation: Strategic focus will be placed on managing the borrow rate and peg relationship to maintain the resilience of the peg by retaining funds within the GSMs, whilst promoting the ongoing use of GHO within evolving market dynamics.;
- Synchronised Growth: Position GHO within the broader market to grow sustainably, whilst maintaining the peg and encouraging user growth via different instances of Aave Protocol; and,
- Peg Stability: Continuously monitor and maintain GHO’s peg across CEXs and DEXs by analyzing liquidity, trading volumes, incentive effects, and broader market conditions.
The TokenLogic team will collaborate closely with other service providers to create balanced, effective solutions that benefit the protocol as a whole.
Analytics and Performance Metrics
Whilst continuously developing new analysis and expanding the offering throughout the year, TokenLogic provides a comprehensive overview of GHO and Aave DAO’s finances via the Aave Portal. The transparency and granularity provides access to key metrics on protocol performance, health, GHO dynamics, and market analysis.
During Phase II, TokenLogic will continue to expand the data analysis offering and introduce the following new features:
- User Portal: A Service Provider portal enabling competitor performance tracking and monitoring of strategic partnerships, easily accessible and shareable across teams. Eg : Track incentives, revenues, and rebates offered by the DAO to external partners.
- API Service: Provide users access to TokenLogic’s data via both downloadable CSV file and also import data via an API Endpoint;
- Performance Metrics: A deeper dive into the operational efficiency of the business enabling conventional valuation models to be applied;
- Revenue Generation: Detailed insights highlighting which collaterals types and use-cases are primarily responsible for creating protocol revenue.
- User Retention: After attracting new users, or post incentive campaign, assess user retention in terms of duration, revenue generation and acquisition cost to support the refinement of future growth initiatives.
The Aave Portal will serve as an important tool for informed decision-making and in-depth analysis of the Aave ecosystem. To further engage and educate the community, this initiative will be complemented by detailed threads/articles released throughout the mandate, promoting awareness and understanding of the platform’s developments.
Specification
Early Renewal Summary
This proposal creates a new and separate engagement stream, that operates in parallel with the current engagement, which remains active through December 15, 2025.
Renewal Term: November 1st, 2025 – October 31st, 2026
Duration: 12 Months
Annual Contract Value: $2,500,000 USD
Amount: 2,500,000 aEthLidoGHO
Payment Method: Linear Stream from Treasury
Recipient Address: 0xAA088dfF3dcF619664094945028d44E779F19894
Disclosure
This ARFC is submitted by the TokenLogic independently and without third-party compensation or sponsorship.
Next Steps
- Gather feedback from the community.
- If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
- If Snapshot outcome is YAE, escalate this proposal to the AIP stage.
Copyright
Copyright and related rights waived via CC0.