# \[Direct-to-AIP\] February 2026 - Funding Update
**URL:** https://governance.aave.com/t/direct-to-aip-february-2026-funding-update/24030
**Category:** Finance
**Created:** [February 8, 2026, 4:07pm UTC](https://governance.aave.com/t/direct-to-aip-february-2026-funding-update/24030 "2026-02-08T16:07:25Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@TokenLogic](https://governance.aave.com/u/TokenLogic)
#### Post date: [February 8, 2026, 4:07pm UTC](https://governance.aave.com/t/direct-to-aip-february-2026-funding-update/24030/1 "2026-02-08T16:07:25Z")
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title: [Direct-to-AIP] February 2026 - Funding Update
author: @TokenLogic
created: 2026-02-08
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# Summary
This publication presents the February Funding Update, consisting of the following key activities:
- Acquire GHO to support runway;
- Expand Ahab & AFC SAFEs remit support GHO liquidity; and,
- Create Allowances to support Operations.
# Motivation
This publication addresses near-term operational requirements, consolidates asset holdings, and renews allowances to the MainnetSwapSteward to optimise the DAO’s stablecoin management.
The MainnetSwapSteward will continue executing a rolling GHO acquisition strategy to maintain adequate runway and support AAVE buybacks, while preserving sufficient budget to fund ongoing growth initiatives.
Additionally, this publication initiates a process to reduce DEX and CEX GHO liquidity expenses by providing liquidity directly and indirectly across multiple pools.
### GHO DEX Liquidity
Maintaining deep liquidity across secondary markets remains one of the most significant ongoing costs associated with supporting GHO’s growth. This proposal initiates a structured reduction in DEX liquidity costs by introducing protocol-owned liquidity.
This publication proposes authorising the Aave Finance Committee (AFC) to deploy capital across neutral GHO liquidity pools. Alongside AAVE accumulated through the buyback programme, BTC-correlated assets will be allocated to the AFC to serve as collateral supporting GHO DEX liquidity and to participate in carry strategies on the Aave Protocol, improving capital efficiency while generating incremental economic returns under controlled risk parameters.
To support the establishment of protocol-owned GHO liquidity, BTC-correlated assets and AAVE acquired via the Aave Swapper contract will be transferred to the AFC. The inclusion of BTC-correlated collateral strengthens the overall collateral base, enhances stability, and reduces the volatility profile of positions backing GHO, contributing to a more resilient and capital-efficient liquidity framework.
### GHO CEX Liquidity
In preparation for the planned GHO listing on Bybit following the Mantle deployment, this publication proposes that the Aave DAO, via TokenLogic, allocate working capital inventory to approved market maker(s) for the sole purpose of supporting GHO liquidity on Bybit and other Tier 1 centralised exchanges, including OKX.
By supplementing market-maker inventory with DAO-owned capital, the proposal aims to expand spot-trading liquidity while reducing reliance on externally sourced capital, thereby lowering the overall cost of liquidity provisioning.
TokenLogic will enter into formal legal agreements with the appointed market maker(s), structured as secured and purpose-bound capital loans. These agreements will include defined usage restrictions, reporting obligations, recall mechanisms, and risk controls to ensure DAO capital is deployed exclusively to support GHO liquidity across Bybit and OKX. Market maker(s) will be expected to contribute additional inventory to maintain sufficient liquidity coverage across Gate, Bybit, OKX, and Bitget.
The initial funding request is intended to support the GHO spot listing on Bybit. In parallel, a remoteGSM instance will be deployed on Mantle, which Bybit may integrate to facilitate USDT0–GHO conversion flows and improve overall market liquidity.
Future funding proposals may be introduced as GHO expands into additional Tier 1 centralised exchanges, to support sustainable growth and adoption while progressively reducing liquidity-related costs through prudent risk management.
### Extend AAVE/wETH Liquidity
Upon approval through an AIP, this proposal authorises the AFC to deploy AAVE and wETH liquidity across Balancer, Uniswap, and Aerodrome, with the primary objective of strengthening AAVE liquidity on Ethereum and improving overall market resilience.
In coordination with Risk Service Providers, the AFC will provision DEX liquidity calibrated to withstand projected AAVE liquidation volumes under stressed market conditions. Risk assessments will guide liquidity parameters, deployment sizing, and pool selection to ensure capital efficiency while maintaining sufficient depth to support orderly liquidations and minimise market disruption.
Following the establishment of adequate and durable liquidity depth, a subsequent proposal will be introduced to reduce stkABPT emissions in a measured, transparent, and risk-controlled manner, aligning incentives with the evolving liquidity framework and reducing ongoing incentive expenditure.
**Expected Outcomes and Impact**
This initiative is expected to strengthen secondary market liquidity for AAVE, improve liquidation efficiency during periods of market stress, and enhance overall protocol stability. By transitioning to more capital-efficient, risk-calibrated liquidity provisioning, the proposal aims to reduce long-term incentive costs, improve market depth and execution quality, and support the sustainable growth of the Aave ecosystem.
### Reimburse Audit Costs
Reimburse TokenLogic for costs incurred facilitating the audit of two PRs intended to upgrade the GHO ecosystem on Ethereum and deploy the first remoteGSM on Plasma.
The first PR completes the full migration from existing GSM contracts to new RemoteGSM contracts on Ethereum:
- Deploys new Gho Reserve and remoteGSM;
- Deploy updated GHO facilitator/reserve components;
- Register new automation keepers;
- Update interfaces while transferring all liquidity; and,
- Update configurations of the upgraded system.
The second PR launches GHO on the Plasma network through a coordinated multi-step bridge deployment, which includes:
- Configuring CCIP rate limiters;
- Deploy GHO as a lending asset on Aave Protocol;
- Establish new GSM and eMode setup; and,
- Assign governance roles for the new cross-chain GHO ecosystem.
# Specification
### Runway
Using the [MainnetSwapSteward](https://governance.aave.com/t/arfc-steward-deployment-mainnetswapsteward-and-rewardssteward/23070) and a portion of the ETH received from recent liquidation volume to acquire 2M of GHO to be deposited into the Prime instance.
### Operations
Create Allowances for the following assets to be transferred from the Treasury to the AFC.
- Amount: 100,000 [AAVE](https://etherscan.io/token/0x455e53CBB86018Ac2B8092FdCd39d8444aFFC3F6?a=0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c)
- Spender: AFC’0x22740deBa78d5a0c24C58C740e3715ec29de1bFa`
- Method: approve() AAVE on the Aave Collector contract to the AFC address
This Allowance enables the AAVE acquired via BuyBacks to be held on the AFC SAFE. The Allowance is larger than the current balance to facilitate future buybacks and minimise governance overhead.
### Idle ETH
Deposit [idle ETH](https://etherscan.io/address/0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c) held on Ethereum Collector into the Core instance of Aave v3.
A portion of this ETH will be withdrawn to acquire GHO and other stablecoins to support the runway and also to acquire AAVE as part of the broader Buyback program.
### mainnetSwapSteward Allowances
To support continued AAVE and GHO Buybacks, replenish Allowances on the `MainnetSwapSteward`.
| Token | Budget |
| --- | --- |
| ETH | 3k |
| USDC | 5M |
| USDT | 5M |
| USDe | 5M |
| USDS | 2M |
| DAI | 2M |
Reference: [MainnetSwapSteward](https://governance.aave.com/t/arfc-steward-deployment-mainnetswapsteward-and-rewardssteward/23070) forum post.
### Extend AAVE/wETH Liquidity
Create allowances for a new Aave Liquidity SAFE for the equivalent of 40k AAVE and 1,500 units of aEthWETH from the Aave Ecosystem Reserve and the Aave Core instance, respectively.
Asset: AAVE `0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9`
Amount: 40,000
Asset: aEthWETH: `0x4d5F47FA6A74757f35C14fD3a6Ef8E3C9BC514E8`
Amount: 1,500
Spender: Aave Finance Committee `0xAAA973Fe8A6202947e21D0a3a43d8E83ABE35C23`
Method: approve() AAVE and aEthWETH on the Ecosystem Reserve and Aave Collector contract to the new Aave Liquidity SAFE.
### GHO CEX Liquidity
Create a USDe Allowance to provide inventory for supporting USDT/GHO liquidity across centralised exchanges.
Asset: USDe `0x4c9EDD5852cd905f086C759E8383e09bff1E68B3`
Amount: 6M
Spender: CEX Earn `0xAA12BAd4a501d45A5b771e49C2Fd415BA8BFc79d`
Method: approve() USDe on the Aave Collector contract to the new CEX Earn SAFE.
### Extend Ahab Capacity
To support upcoming business initiatives and recent asset price changes, the capital allocated to Ahab will be increased.
Asset: aEthWETH: `0x4d5F47FA6A74757f35C14fD3a6Ef8E3C9BC514E8`
Amount: 4,000
Asset: aEthwstETH: `0x0B925eD163218f6662a35e0f0371Ac234f9E9371`
Amount: 1,100
Spender: Ahab `0xAA2461f0f0A3dE5fEAF3273eAe16DEF861cf594e`
Method: approve() aEthWETH on the Aave Collector contract to the Ahab SAFE.
This proposal grants the AFC, signatories to the Ahba SAFE, the authority to optimise the composition of assets held on the SAFE to benefit from carry trades on Aave and improve the yield generated by various collateral types.
### Reimbursements
Reimburse 1.470836210916653291 ETH to ACI for expenses incurred whilst supporting Aave DAO governance and incentive campaigns.
Asset: aEthWETH: `0x4d5F47FA6A74757f35C14fD3a6Ef8E3C9BC514E8`
Amount: 1.470836210916653291
Spender: ACI `0xac140648435d03f784879cd789130F22Ef588Fcd`
Reimburse 26,000 GHO to TokenLogic for audit expenses incurred.
Asset: aEthLidoGHO: `0x18eFE565A5373f430e2F809b97De30335B3ad96A`
Amount: 26,000
Spender: TokenLogic `0xAA088dfF3dcF619664094945028d44E779F19894`
# 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](https://creativecommons.org/publicdomain/zero/1.0/).
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### Author:  [@system](https://governance.aave.com/u/system)
#### Post date: [March 10, 2026, 4:07pm UTC](https://governance.aave.com/t/direct-to-aip-february-2026-funding-update/24030/2 "2026-03-10T16:07:26Z")
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