[Discussion] Safety Module

Governance
9

Hi everyone :wave:

Thanks to everyone giving feedback on this post, it was very helpful :slight_smile:

Llama will now publish the full proposal, but split in six parts to facilitate the discussions.

Summary of the topics discussed:

  1. [TEMP CHECK] Safety Module Update Part I - Migrate AAVE/wETH Balancer v1 Pool to Balancer v2
  2. [TEMP CHECK] Safety Module Upgrade Part II - Asset Diversity, SM Categories & Slashing Updates
  3. [TEMP CHECK] Safety Module Upgrade Part III - Enable gauges on BPT in Safety Module (smBPT)
  4. [TEMP CHECK] Safety Module Upgrade Part IV - Incentives Management Upgrade
  5. [TEMP CHECK] Safety Module Upgrade Part V - veToken Holding Management Framework
  6. [TEMP CHECK] Safety Module Upgrade Part VI - Future considerations

This series of publications presents the community with an opportunity to reshape how AAVE incentives are distributed to significantly improve Aave’s economics and enhance the capital efficiency of the SM.

  • Increased Backstop Value
  • Decreased AAVE Spending
  • Increased Yield for depositors
  • Improved Profitability and Financial Sustainability

Upgrading the SM represents one of the highest impact challenges the community can address which will significantly improve Aave’s overall financial outlook.

Looking forward to presenting the full proposal and thank you in advance for taking the time to read all six publications.

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