[ARFC] Treasury Management - Tooling Upgrade

Governance
1

title: [ARFC] Treasury Management - Tooling Upgrade
author: @TokenLogic - @MatthewGraham, @defiJesus & @efecarranza
created: 2023-10-23

Summary

The publication suggests that the Aave DAO contracts @TokenLogic to develop various smart contracts aimed at assisting in the management of the DAO’s Treasury.

Motivation

At present, the Aave DAO has a mechanism for bridging funds between Polygon and Ethereum using the Aave Polygon-Mainnet ERC20Bridge via the shortExecutor. This contract was created by @efecarranza during their tenure at Llama.

To ensure the Aave DAO’s financial stability and the ability to transfer assets across different networks through the shortExecutor, it is crucial to establish equivalent contracts for other networks. One such scenario involves moving USDC from Avalanche to Ethereum, effectively extending the DAO’s stable coin runway.

This publication recommends the development of the following tooling contracts:

  1. Avalanche to Ethereum
  2. Optimism to Ethereum
  3. Arbitrum to Ethereum

Upon the creation of these contracts, they will become public goods within the Aave ecosystem. This means that anyone will have the capability to draft a payload for transferring the DAO’s funds between various networks with minimal effort.

Once the Avalanche to Ethereum bridge contract is completed, TokenLogic intends to propose a fund migration to the Ethereum Treasury to support the ongoing financial stability of the DAO.

Specification

TokenLogic is to create the following contracts:

  1. Avalanche Bridge to Ethereum
  2. Arbitrum Bridge to Ethereum
  3. Optimism Bridge to Ethereum
  4. Transfer Funds Avalanche to Ethereum

@BGDLabs is to review and approve these contracts.

Funding

To facilitate the development and implementation of the previously mentioned contracts, this publication seeks the following funding:

Funding Amount: $12,430.00, to be paid in GHO.
Delivery Schedule: The estimated timeframe for completion is approximately 5 weeks, which includes the review by @BGDLabs (an estimated 2 weeks).

The deliverables will undergo approval by @bgdlabs to ensure their completeness. The Avalanche bridge contract will play a pivotal role in moving funds from Avalanche to Ethereum, thereby providing support for the DAO’s financial stability.

The transfer of funds as per the approved amount will occur upon the successful delivery of the contracts. The Aave DAO is encouraged to vote on one of the following three options:

  1. YAE
  2. NAE
  3. ABSTAIN

Next Steps

  1. If consensus on ARFC stage is reached, escalate to ARFC snapshot stage.
  2. If ARFC snapshot stage outcome is YAE, TokenLogic will commence building the contracts.

The DAO is expected to uphold outcome of the Snapshot vote.

Copyright

Copyright and related rights waived via CC0.

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Hi Everyone,

This proposal has been progressed to Snapshot, link here.

Start date Oct 31, 2023, 3:29 PM
End date Nov 3, 2023, 3:29 PM

Thank you in advance to those that participate in the vote.

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In support of this initiative. Small scopes of contribution that give value and don’t overlap with others are something the community should probably promote.

A layer of internal assets’ bridging infrastructure is really important for non-technical treasury management scopes and something that should have been completely delivered by the previously engaged entity in treasury (and was only partial).
It is also a good example of which decentralization should be pursued: if well planned via governance proposals, rebalancing of DAO’s capital between networks doesn’t require any added centralization.

It is important to highlight that, apart from the smart contracts development described, this effort should also include proper documentation and procedural flows for other entities of the Aave community to be able to use it in the future, especially non-technical ones.

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This topic was automatically closed 30 days after the last reply. New replies are no longer allowed.

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Hi Everyone,

We are glad to share an update, the following internal assets’ bridging infrastructure has now been delivered:

Due to technical limitations on the Avalanche bridge and the expected bridge upgrade not going ahead, we were unable to complete this bridge. As a result, we substituted the Avalanche Bridge with Plasma Bridge. And we transferred wMATIC from Polygon to Ethereum as part of the April Funding Update.

The Arbitrum and Optimism bridge are being used as part of the May Funding update to migrate USDC.e to Ethereum.

With the above scope of work drawing to a conclusion, we have prepared PR 375 for review and intend to submit to AIP when the review cycle has been complete.

The difference in timing between what was proposed and when the bridging contracts were merged is a reflection of competing priorities. The Aave DAO has a lot of moving parts and across the DAO, this scope was deprioritised to allow more immediate work scopes to advance.

At @tokenlogic we are proud and take great pride for the ability to help the Aave DAO manage its finances in a very decentralised manner.

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