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 of the Aave V4 Reinvestment Controller. The audits performed by Trail of Bits and ChainSecurity cost 25,000 and 44,939.27, respectively, for a total of 69,939.27; an aEthLidoGHO is to be created to reimburse both audit costs.
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.
Aave Liquidity Committee
The Aave Liquidity Committee has operated for the past twelve months on the Phase VII budget of 2,500,000 GHO approved in September 2025. The preceding Phase VI budget of 3,500,000 GHO covered five months. Extending the useful life of a smaller budget was a stated objective of Phase VII and has been delivered.
Measured liquidity incentive spend is now approximately $125,000 per thirty day period, or approximately $1.5M annualised. This represents roughly 18% of GHO’s total cost base, with the savings rate paid to sGHO holders accounting for the balance. Two structural changes explain the reduction. First, the savings product has consolidated onto sGHO and the legacy stkGHO Merit rewards were sunset, removing that line from the cost base entirely. GHO demand is now anchored by a governance set savings rate paid directly to holders, no longer purchased through liquidity mining paid to pool depositors. Second, onchain liquidity has concentrated into a smaller number of deep venues, alongside the Stability Modules, which reduces the incentive required to maintain equivalent depth and peg behaviour.
The ALC expects this trend to continue. Accordingly, this publication renews the ALC budget over a six month period, sized to the current measured run rate and not to the prior headline figure.
The proposed budget is a 70% reduction against the Phase VII headline and an 82% reduction in monthly spend against Phase VI. It is set at the trailing thirty day spend with no headroom for expansion. Should a new deployment warrant a larger commitment, the ALC will return to governance instead of holding unused allowance.
Growth Initiatives
Several Aave V4 instances are approved or in preparation. Each requires a bootstrap window during which supply side liquidity and time limited incentives establish functioning markets before organic flow takes over. Sourcing each allowance separately has historically meant launch windows close before funds are in position.
This publication creates the allowances needed to support the next instance launches. The allocation is funded from a combination of Collector Allowances, USDC already held on the Aave Finance Committee Safe, and limited borrowing against assets held on the Ahab Safe. Blending the three preserves the Collector’s stablecoin buffer and avoids converting other Collector assets into USDC. Funds remain protocol capital throughout: liquidity supplied to a new instance is a lending position held for the DAO and remains withdrawable, and incentive budgets are drawn only against live campaigns. TokenLogic will report deployed positions and incentive spend through its ongoing governance reporting.
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 | 2M | 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.
Aave Liquidity Committee
Create an Allowance enabling the ALC to withdraw 750,000 aEthLidoGHO from the Prime instance, covering a six-month period.
Network: Ethereum
Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
Amount: 750,000
Spender: ALC 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
Growth Allowances
Create the following Allowances to support forthcoming Aave V4 instance launches.
Network: Ethereum
Asset: aEthUSDC 0x98C23E9d8f34FEFb1B7BD6a91B7FF122F4e16F5c
Amount: 1,500,000
Spender: Aave Finance Committee 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
Network: Base
Asset: aBasUSDC 0x4e65fE4DbA92790696d040ac24Aa414708F5c0AB
Amount: 443,000
Spender: Aave Finance Committee 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
Network: Ethereum
Asset: aEthUSDC 0x98C23E9d8f34FEFb1B7BD6a91B7FF122F4e16F5c
Amount: 850,000
Spender: Incentive Budget Safe 0x66Ac7223048037826e12cef9a848199e31AEFabE
The AFC will combine the Allowances above with the USDC already held on the AFC Safe and up to 2,000,000 USDC borrowed against assets held on the Ahab Safe, for a total supply-side allocation of up to 5,250,000 USDC.
Borrowing on the Ahab Safe follows the same approach as the Asset-Backed Private Credit allocation set out above: every unit is borrowed against assets already held on the Safe, so GHO’s backing is not impacted. Liquidity supplied to a new instance remains a withdrawable lending position held for the DAO.
TokenLogic will manage the combined debt drawn on the Ahab Safe across this allocation and the Asset Backed Private Credit pilot, adjusting collateral or repaying debt as conditions require. TokenLogic will report deployed positions, the open loan, and incentive spend through its ongoing governance reporting.
Monad and Plasma
The PoolExposureSteward has been deployed on Monad and Plasma, with the DAO as the owner of the contracts and the following SAFE acting as the guardian 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa.
The SAFE is configured as a 2-of-3 multi-sig, and the signers for the SAFE are the following:
| Signer | Address |
|---|---|
| Aave Labs | 0x4b752551fC6345A7de82F76fd7a5015CA16d1a74 |
| LlamaRisk | 0xb291232F480F41c75802C4a60F1D2AC03404Afef |
| TokenLogic | 0x9DE1d45e2786b03498289959203F25b29B4D1193 |
To be able to access funds from the Collector, this publication gives the `FUNDS_ADMIN` role to the PoolExposureSteward on each network, granting it permission to facilitate the following routine operational tasks:
- Deposit idle Collector funds into Aave V3.
- Withdraw funds from Aave V3 into the Collector.
Network: Monad
Steward: 0x72EAfbD4331dD482f5c8135fF0452d97da6F77B0
Network: Plasma
Steward: 0xB5c5D35553826d681F3f3CC5Bae6cfA0446dE706
Reimbursements
Reimburse 25,000 plus 44,939.27 aEthLidoGHO to TokenLogic for the second GHO ↔ sGHO two-way swap layer and Aave V4 Reinvestment Controller audit expenses incurred.
Network: Ethereum Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
Amount: 69939.27
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.