Thank you kpk, for putting forward this proposal.
Within the context of this proposal, we would like to learn how kpk intends avoid a repeat of Gnosis’s EURe/sDAI position happening to Aave’s GHO/EURe position. This report Balancer sDAI/EURe incident report - NolanV indicates LPs, one being Gnosis DAO whos funds are managed by kpk, incurred a total 700k USD loss pre-fees and slippage collected by the pool.
kpk’s engagement officially ended on June 21st 2025. During the 6 month term, neither sGHO nor GHO on Gnosis was achieved. sGHO is not yet at audit stage and the Aave DAO has paid the full 250k amount to kpk.
2 months into kpk’s term, there was no visible progress on sGHO and as a direct result, TokenLogic delivered one of kpk’s key deliverables, the TEMP CHECK introduced the Aave Savings Rate and outlined sGHO.
When the Umbrella upgrade was implemented, 5th June 2025, users were meant to have the choice of migrating to either sGHO or the new post Umbrella stkGHO. Due to sGHO not being ready, users could not migrate to the the new sGHO. Instead, the pre-Umbrella stkGHO was rebranded with great success to sGHO with weekly emissions via Merkl as an interim solution. Several service providers were involved in the discussion and the Aave DAO benefited from a significant cost saving that has had minimal impact on GHO’s growth.
However, Aave DAO is currently sustaining a temporary solution (stkGHO with no Cooldown or Slashing) at a cost of $250k per week, whilst we await the delivery of sGHO. kpk’s service provider term finished 3 weeks ago and we still not yet received delivery of sGHO.
Given the lack of delivery from the kpk to date, we do not support allocating capital to kpk for active management. Instead, we propose assigning this role to the Aave Liquidity Committee from which the liquidity pool(s) can be funded and vlAURA votes can be managed seemlessly.
TokenLogic does not support this proposal being implemented by kpk and we also, do not support renewing kpk as a service provider.
We appreciate the community’s time reviewing this perspective and remain available for further discussion on alternative pathways for GHO liquidity expansion.