[Direct-to-AIP] December 2025 - Funding Update

Governance
1

title: [Direct-to-AIP] December 2025 - Funding Update
author: @TokenLogic
created: 2025-12-16

Summary

This publication presents the December Funding Update, consisting of the following key activities:

  • Aquire GHO to support runway;
  • Expand AFC & Ahab SAFEs remit support GHO liquidity and,
  • Create Allowances to support Operations.

Motivation

This publication balances near term operational needs, consolidates assets holdings and renews Allowances to the MainnetSwapSteward for optimising the DAOs stablecoin holdings.

The December funding update includes a small GHO acquisition to maintain sufficient runway whilst ensuring there is potential budget to support the expansion to Mantle Network.

In preparation for providing protocol owned liquidity for GHO, the AAVE tokens that have been acquired using the Aave Swapper contract are to be transferred to the Aave Finance Committee (AFC). Similarly, the stkAAVE held by the DAO is to be un-staked from the Safety Module with the AAVE tokens to remain on the AFC SAFE.

As part of ongoing operations, currently expired Principle Tokens are to be redeemed for the underlying asset and swapped to GHO.

Specification

The below outlines the scope to be implemented via AIP.

Ongoing Initiatives

Runway

Using the MainnetSwapSteward and the already approved Allowances, acquire 2M of GHO to be deposited into Prime instance.

Operations

Create allowance for the following assets to be transferred from the Treasury to the AFC where stkAAVE will be redeemed for AAVE and held on the AFC SAFE.

  • Amount: All stkAAVE
  • Spender: AFC0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
  • Method: approve() stkAAVE on the Aave Collector contract to the AFC address

Supporting the transition to using the Aave Swapper for processing AAVE buybacks, create an Allowance enabling the AAVE acquired to be held on the AFC SAFE. The Allowance is larger than the current balance to facilitate future buybacks.

  • Amount: 20,000 AAVE
  • Spender: AFC0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
  • Method: approve() AAVE on the Aave Collector contract to the AFC address

Deposit idle ETH held on Ethereum Collector into the Prime instance of Aave v3.

  • Amount: 2,300 aEthLidoWETH
  • Spender: Ahab0xAA2461f0f0A3dE5fEAF3273eAe16DEF861cf594e
  • Method: approve() on the Aave Collector contract to the ahab address

Due to recent AAVE and GHO Buybacks, replenish the Allowances on the Aave Swapper.

  • Replenish Allowances on the MainnetSwapSteward after rebalancing the assets holdings has been performed as mentioned on this forum post.

Redeem expired Principle Tokens to the underlying and convert to GHO.

Merit Program

Create allowance for Merit, 3M aEthLidoGHO from Aave v3 Prime on Ethereum:

  • Asset: aEthLidoGHO: 0x18eFE565A5373f430e2F809b97De30335B3ad96A
  • Amount: 3M
  • Spender: Merit0xdeadD8aB03075b7FBA81864202a2f59EE25B312b
  • Method: approve() aEthLidoGHO on the Aave Collector contract to the Merit address

Expand Ahab Scope

To support ongoing DEX liquidity, launching GHO on Plasma and other networks, this publication grants the Aave Finance Committee (AFC) ability to provide DEX liquidity and reduce the reliance on incentive distribution. Assets held in the Ahab and AFC SAFEs are to be used as collateral.

Disclosure

TokenLogic does not receive any payment for this proposal.

Next Steps

  1. Using the Direct-to-AIP process, submit AIP(s) for vote.

Copyright

Copyright and related rights waived via CC0.

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