The current proposal intends to terminate any operations related to Lend and the Migrator Contract, realloacting all unspent budgets, assets, and any remaining token/emission into the Ecosystem Reserve, while ensuring minimal disruption to users and/or integrations.
Motivation
This proposal is following up on promises made in Aavenomics Part 1, freeing almost $100 million worth of AAVE to be used for further ecosystem growth and partnerships.
As announced multiple times over the past years and half a decade after opening the LEND to AAVE migration contract, it’s time to close the LEND chapter and focus on AAVE.
This proposal will remove all remaining AAVE—305k tokens at the time of writing—from the migration contract and redirect them to the ecosystem reserve.
Given that the community has had multiple years of notice, we consider it fair to close down the migration process. Additional communication and clear timeline for ending migration window is outlined below.
Specification
If the proposal pass the effective timeline of final possible migration to be December 31, 2025.
Relevant service providers will engage in final communication campaign with the final migration date.
Migration contract should be turned for shut down on December 31, 2025. All remaining AAVE tokens within migration contract should be redistributed back to the Aave DAO treasury.
Further ARFC can then be proposed for relevant distribution of AAVE tokens for growth and ecosystem incentives.
Useful Links:
Discloure
ACI is publishing this proposal independently, and did not receive any type of compensation for its creation.
Next Steps
Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
If the ARFC snapshot outcome is YAE, work with relevant service providers to communicate and implement the timeline proposed in this ARFC.
initially I was against doing this, as there has and still is activity from people migrating from LEND to AAVE.
But I was looking into the data and checking the average amount that is being migrated.
If we consider this pace will be the same for a year, there will likely not even be 3-5k token migrated. Which would mean that still 300k token would be there sitting, unused.
Also given that the contract is soon 5 years old, we can assume everyone who wanted to migrate has done so. The rest could be lost, people not having access to their wallets anymore, or dead dapps that have the token trapped inside them.
These currently worth 90m$ worth of Aave can be used for so many other great initiatives, that it would be stupid not claiming these.
Thats why I am supportive.
Anyone reading this and still holding LEND token, I urge you all to migrate asap!
Supportive of this proposal given also how much time there has been between now and the start of the migration. The contract itself is already owned by the DAO so its simply a measure of accounting and technical execution.
We support returning the ~305k AAVE tokens from the LEND Migration contract to the Ecosystem Reserve. At a spot price of $300 per AAVE, this represents over $91 million in value, an important and welcomed addition to the DAO’s Treasury.
For those reviewing our Treasury Dashboard, note that the Migration contract balance was previously omitted. With its inclusion, the DAO’s total treasury value approaches $400 million, with over $260 million held in AAVE.
The accompanying chart illustrates AAVE balances across key addresses since 2023, highlighting the distinction between Migration contract holdings and Ecosystem Reserve outflows. Presently, the DAO distributes more AAVE than it acquires on the open market, leaving a runway of roughly ~995 days for AAVE-specific expenditures (including unclaimed tokens). Incorporating the Migration contract holdings extends that runway to about ~1,788 days.
2025 marks a pivotal transition year for Aave DAO:
Buybacks commence;
Safety Module emissions continue to decline;
Risk-free stkAAVE yield is introduced; and,
The migration window expires.
Following the next scheduled reduction in Safety Module emissions, the DAO is projected to become a net daily accumulator of AAVE, reinforcing the long-term sustainability of the ecosystem.
