Thank you for your message and for kickstarting the discussion!
We are much looking forward to a constructive debate around how this deployment could best benefit both communities and also to address all questions from the Aave community.
About this part, the biggest immediate value we see is considerably increasing the revenue of the DAO.
If with the support of the community, this proposal is accepted we are forecasting that BNB Chain would become the second-highest TVL for AAVE by end of Q1 2023.
As we detailed in our intro our DeFi ecosystem is vibrant and 2nd largest by TVL, on the other hand, AAVE v3 would bring one of the highest capital efficiency for a lending protocol, strong security, isolated mode, etc. These are all features sought by our community!
Additionally, the BNB Chain foundation will also be strongly dedicated to making this partnership a mutual success.
Last but not least, one of the newest additions to the v3 is multichain portals. Through this partnership, the different Aave markets could access BNB liquidity, with a corresponding positive impact on the DAO. BNB has been one of the tokens that have remained fairly strong during the market downtrend, which makes it an interesting asset to be deposited as collateral. Aave would have access to this asset with an eventual deployment in BNB. We could also mention that our chain has a considerable volume of bridged assets that could (and will surely) be attracted by Aave.
Your concern is legit.
The way I would like to address it is while it is hard to foresee where and when the next big exploit will happen, the BNB Chain has remained secure, and even when an exploit occurs 100% of users founds remained safe. Based on that last comment, we could agree that BNB Chain would be one of the safest chains for AAVE users’.
You can be certain that reputational risk is at least as important for us as it is for you.
Regarding liquidity incentives, as we have described in the proposal, BNB Chain is willing to find – together with the Dao – the best way to encourage liquidity.
This indeed could be in the form of a liquidity mining package, but also by running specific campaigns or initiatives. We will also be supporting in finding multiple relevant synergies within our ecosystem.
About AAVE LM’s support it is not something critical for us either.
We are looking for a long and mutually fruitful partnership. For that reason, we are mostly looking for steady organic growth, not “mercenary capital” only attracted by temporary incentives.
This capital will later leave the chain and probably also Aave, which is not the outcome we are looking for.
To conclude, I hope that we manage to answer your question and we are definitely looking for the AAVE community support including yours.
It is always worth mentioning that while the risks of these partnerships are fairly limited, nothing will prevent the community to vote for a proposal to terminate this partnership shall the results disappoint.
But once again, you can be ensured that we will put all our might and power into making it a mutual success!