title: [Direct-to-AIP] August/September 2026 - Funding Update
author: @TokenLogic
created: 2026-09-01
Summary
This publication presents the August Funding Update, consisting of the following key activities:
- Acquire GHO to support the runway;
- Create Allowances to support Operations; and
- Fund initial Asset Backed Private Credit trial deployments.
Motivation
This publication addresses near-term operational requirements, consolidates asset holdings, and refreshes the MainnetSwapSteward’s Allowances to support operations and future growth opportunities.
The MainnetSwapSteward and Aave Finance Committee (AFC) will continue executing a rolling GHO acquisition strategy to maintain adequate runway and preserve sufficient budget to fund ongoing growth initiatives.
Reimburse Audit Costs
Reimburse TokenLogic for costs incurred in facilitating a second audit of the GHO ↔ sGHO two-way swap layer. The value of the Audit performed by Trail of Bits was 25,000 aEthLidoGHO.
Reimburse Aave Labs for Aave V4 and Aave App audit costs, along with legal costs related to handling the Kelp and LayerZero bridge exploit. The combined value of the associated costs is 1,818,102 aAvaDAI on the Avalanche Network.
Asset Backed Private Credit
Asset-backed private credit represents a potential growth opportunity for GHO and the Aave ecosystem. Short-duration receivables financing may provide an additional revenue stream and connect GHO to productive real-world economic activity.
TokenLogic will support the assessment, implementation, monitoring and reporting of these arrangements, in coordination with Aave Labs and within the authority and parameters established through the applicable governance process. Specialist third parties will originate and service the underlying assets. TokenLogic does not originate those assets, finance them from its own balance sheet or guarantee their performance.
TokenLogic has undertaken preparatory work covering credit-assessment criteria, verification of relevant on-chain counterparty activity and monitoring design. TokenLogic will publish an assessment of the material risks identified through this review before the arrangement is materially scaled.
Specification
Ethereum
Runway
Deposit idle ETH on the Collector into the Aave v3 Core instance on Ethereum.
Use the MainnetSwapSteward to acquire 4M of GHO to be deposited into the Prime instance.
Refresh mainnetSwapSteward Allowances
To support the acquisition of GHO, wETH and AAVE replenish token budgets on the MainnetSwapSteward to the absolute values listed in the table below if lower at the time of execution.
| Token | Budget | Acquirable Asset |
|---|---|---|
| ETH | 5k | GHO, AAVE |
| USDC | 10M | GHO, AAVE, wETH |
| USDT | 10M | GHO, AAVE, wETH |
| USDe | 1M | GHO, AAVE, wETH |
| USDS | 0.2M | GHO, AAVE, wETH |
| DAI | 0.2M | GHO, AAVE, wETH |
| rlUSD | 0.2M | GHO, AAVE, wETH |
| pyUSD | 0.2M | GHO, AAVE, wETH |
Upon implementation, the budgets for each token will be as shown above; any higher budgets will be marked lower, and any lower budgets will be increased to reflect the values presented in the table.
Asset Backed Private Credit
To prepare for creating an asset backed Private Credit Investment Mandate, this publication enables the Aave Finance Committee (AFC) to allocate funds to initial pilot-stage deployments.
The AFC will use the existing wETH allowance in the Ahab Safe and assets held on the AFC or Ahab Safe(s) to source the liquidity supporting the initial allocations. This approach ensures GHO’s backing is not impacted, and any GHO minted is fully collateralised, as every unit is borrowed against the assets held on the respective Safes. The initial phase is expected to result in between $5M and $10M allocated to pilot-stage deployments of asset-backed private credit products.
TokenLogic will manage the collateral position throughout, monitoring its health factor and adjusting collateral or repaying debt as conditions require. A follow up with a complete risk analysis of each product will be published by TokenLogic prior to any allocation beyond the initial pilot deployments. TokenLogic will request successive growth stages following a successful trial. Deployments will be staged, and TokenLogic will report on deployed positions and the open loan through its ongoing governance reporting.
Reimbursements
Reimburse 25,000 aEthLidoGHO to TokenLogic for the second GHO ↔ sGHO two-way swap layer audit expenses incurred.
Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
Amount: 25,000
Spender: TokenLogic 0xAA088dfF3dcF619664094945028d44E779F19894
Reimburse 1,818,102 to Aave Labs for the Aave V4 audit, Aave App audit and rsETH related legal expenses. To complete this reimbursement, the Aave Finance Committee will transfer DAI to the Aave Labs controlled address listed below.
Network: Avalanche From Safe: Aave Finance Committee 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
Amount: 1,818,102
To Safe: Aave Labs 0x4aD8bF8e4FBaf415d51Eb394a2e097fF150353c2
Cancel/Remove the following Allowance:
Network: Ethereum
Asset: aEthLidoWETH 0xfa1fdbbd71b0aa16162d76914d69cd8cb3ef92da
Spender: Ahab 0xAA2461f0f0A3dE5fEAF3273eAe16DEF861cf594e
Disclosure
TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100086 and the KPI as outlined in this publication. The scope of this engagement is available via this forum proposal.
TokenLogic supports and maintains an independent delegate voting platform within the Aave community.
TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission.
Next Steps
- Using the Direct-to-AIP process, submit AIP for vote.
Copyright
Copyright and related rights waived via CC0.