[ARFC] Treasury Management - Acquire AURA

Governance
1

title: [ARFC] Treasury Management - Acquire AURA
author: @TokenLogic & @MarcZeller (ACI)
created: 2023-08-29

Summary

This publication proposes Aave DAO acquire 443,674 AURA from Olympus DAO for 420,159.28 units of DAI.

Motivation

Over the next few months the veBAL and vlAURA being used to support GHO pools will reduce as voters shift there focus away from GHO. The initial commit from the Aura Finance team was 400,000 units of vlAURA for an initial 3 month duration.

This proposal seeks to replace the support from Aura Finance by acquiring 443,674 units of AURA from Olympus DAO. Olympus DAO is reducing there AURA exposure due to change in the Olympus DAO roadmap which is detailed here and her.

Based upon the research presented in this Update Balancer Ecosystem Holdings, which details impact AIP-42 by Aura Finance, the most efficient way for Aave DAO to bootstrap GHO is via vlAURA relative to veBAL.

Olympus DAO seeks payment in DAI, at an exchange rate of 0.9470 DAI per unit of AURA. The amount of AURA is 443,674 with a total cost to Aave DAO of 420,159.28 units of DAI. Aave DAO currently holds 2.873M units of aDAI on Aave v2.

**Olympus DAO is conducting an open forum auction over 3 day period, bids are placed relative to the spot price derived from the AURA/wETH pool on Balancer v2.

The USD price will be updated within this proposal progressively over the bidding period. Do note, Aave DAO’s governance process duration exceeds that of Olympus DAO’s which means Aave DAO’s voting occurs afterwards and ultimately determines if/when the OTC swap will occur**

Specification

This proposal will achieve the following:

  • Redeem 420,159.28 units aDAI from Aave v2
  • Exchange 420,159.28 units of DAI for 443,674 units of AURA with Olympus DAO

For reference, Olympus DAO AURA Holding Address: 0x245cc372C84B3645Bf0Ffe6538620B04a217988B

The contract shall be developed in collaboration with @MarcZeller and deployed by the ACI team.

Disclaimer

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

Copyright and related rights waived via CC0.

7 Likes
2

Supportive of this initiative, i think Aura/Balancer are the right place to bootstrap GHO.
Just a quick question, why are we replacing the support from Aura? And not simply adding the 400k from Aura to the one the DAO is going to acquire from Olympus?
Or was the main deal to buy 400k from Aura directly?

1 Like
3

Hi @EzR3aL,

We amended the proposal to remove the B-80BAL-20wETH reference to avoid confusion here. Initially we proposed swapping the B-80BAL-20wETH to AURA, but instead decided to separate this into two proposals. The above is the first proposal, acquire AURA with DAI. The second involves swapping B-80BAL-20wETH to USDC.

Details on veBAL versus vlAURA can be found here. This is the best place to discuss veBAL versus vlAURA.

More generally, no other bids on AURA have emerged on the Olympus DAO governance forum. However, these things can get interesting in the final few hours.

4

Hi Everyone,

The Aave DAO spot price offer for 443,674 AURA has been successful.

The spot price is 94.70 cents per unit of AURA at the time the bidding window closed.

If Aave DAO proceeds with this OTC swap, the swap terms are, 420,159.278 DAI for 443,674 AURA.

The Olympus DAO Snapshot vote is underway and can be found here:

https://snapshot.org/#/olympusdao.eth/proposal/0xab8327d80a1782ee61e443c290cfafc507d954bb7d63aa3de18c01422297e77f

The Aave Snapshot will be created tomorrow ready for voting on Monday.

1 Like
5

Hi Everyone,

The Snapshot vote has been created:

https://snapshot.org/#/aave.eth/proposal/0xeb88691a23f3b1f9dfb4d2fb575fa19e75050a67b80b23eff91c0d430a177bd1

The Olympus DAO Snapshot vote is ongoing . We would like to highlight, here is a risk that the proposal requires reworking and resubmission.

https://snapshot.org/#/olympusdao.eth/proposal/0xab8327d80a1782ee61e443c290cfafc507d954bb7d63aa3de18c01422297e77f

6

proposal escalated to AIP stage,

voting starts tomorrow.

7

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