Governance Weekly Recap [2024]

Weekly Governance Recaps by Boardroom

Boardroom, in collaboration with the AAVE Grants DAO, has provided a weekly recap on the Governance updates about Aave. Boardroom remains committed to increasing informed participation in governance.
Our weekly Governance updates are continuing on the Aave governance forum. Starting with the new year and the activation of Aave Governance V3, we are creating a new forum post for weekly updates in Aave.

Within our weekly recap, we’ll provide a look back at the following items for the past week:

  • Proposals
  • Critical Discussions
  • Governance Changes
  • Impactful Operating Suggestions

We’d love to hear your feedback and any suggestions you might have to improve the content.

The Governance Weekly Updates for 2023 can be viewed here

Governance Updates: Week of January 8, 2024

Key Topics

Aave V3 Deployment on Neon EVM Mainnet

The forum post discusses a proposal for deploying Aave V3 on Neon EVM Mainnet to expand into the Solana ecosystem. Neon EVM, built on Solana, allows Ethereum dApps to operate on Solana with high transaction speed and low fees. The move aims to leverage Solana’s growing DeFi ecosystem and integrate Aave’s lending protocol into it, potentially boosting user base, TVL, and revenue. It suggests limited asset deployment with conservative risk parameters for safety. Concerns are raised regarding Neon EVM’s TVL and infrastructure readiness, with a suggestion to observe Neon’s progress before committing.

Launch Aave V3 on Kava EVM

The Snapshot vote for launching Aave on Kava EVM has successfully passed. It highlights Kava’s EVM compatibility and liquidity, proposing a potential expansion for Aave. The discussion includes the Kava Rise program and potential liquidity mining rewards. The integration would allow Aave to access Cosmos assets, potentially impacting its market position. Supported by the Kava Foundation, the proposal is currently at the snapshot voting stage, indicating active community engagement.

Aave V3 Deployment on Scroll mainnet

The proposal discusses deploying Aave V3 on Scroll mainnet, a zk-rollup platform enhancing Ethereum’s scalability. It plans limited asset onboarding and conservative risk parameters for early strategic presence in Scroll’s ecosystem. The deployment includes collaterals like WETH, USDC, wstETH, and borrowing assets. It’s supported by $500,000 USD in $AAVE liquidity, ensuring security and minimized risk. The initiative aims to leverage Scroll’s robust security, audits, and decentralized network, potentially expanding Aave’s influence in new markets.

Updated Aave Grants Continuation Proposal

The proposal for Aave Grants DAO (AGD) aims for a six-month continuation, adjusting its treasury and increasing GHO allowance to $328,000. AGD plans $500,000 quarterly developer grants to foster Aave culture and GHO adoption, aligning with current market conditions. The proposal includes enhanced accountability, new grant initiatives, and effective treasury management, reflecting AGD’s commitment to community engagement and development support. The snapshot by the proposal received majority abstain votes.

Service Provider and Partner Updates

Updates from Aave Service providers and partners:

@bgdlabs

@Chaoslabs

@Gauntlet

Delegate Platforms

Updates and communications from the Aave delegates:

2 Likes

Governance Updates: Week of January 15, 2024

For the third week of 2024, there were significant movements in direction of new chains and assets. Below we have given a short description of the movements.

New Chains

NEON EVM: A Snapshot temp check recently ended with a majority support for deploying Aave V3 on NEON EVM. Neon is the Layer 2 blockchain built on top of Solana, offering an EVM Compatible option to the users of the Solana ecosystem. Snapshot Forum

Scroll: A Snapshot ARFC for deploying Aave V3 on Scroll mainnet passed hours before of writing this report. The vote resulted in majority support for the proposal. The initiative aims to leverage Scroll’s robust security, audits, and decentralized network, potentially expanding Aave’s influence in new markets. Snapshot Forum

Kava EVM: We have covered Kava proposal in the last week’s updates. But for the better understanding of the users, we have also listed its details here. Snapshot Forum

Assets

Key Updates

GHO Cross-Chain Strategy

The Aave community proposes the “ARFC GHO Cross-Chain Strategy” to integrate the GHO stablecoin across multiple blockchains via Chainlink’s CCIP. This strategy will enhance GHO’s liquidity, accessibility, and interoperability, addressing its limitation to the Ethereum mainnet and secondary markets. The proposal involves a lock/release and mint/burn model for cross-chain GHO transfers, controlled by Aave Governance. This move aims to make GHO more versatile and user-friendly, facilitating efficient transactions across various networks.

GSM Funding & RWA Strategy Preparations

Aave’s “ARFC Treasury Management - GSM Funding & RWA Strategy Preparations” proposal aims to prepare for the GHO Stability Module (GSM) launch and a $1M RWA strategy with Centrifuge. It outlines the need for more USDC and USDT on Ethereum v3 to support these initiatives. The proposal includes withdrawing and transferring stablecoins from Polygon to Ethereum, revoking legacy allowances, and swapping DAI and USDC to USDT to meet the required balances for GSM and RWA commitments.

Service Provider & Partner updates

@Gauntlet

@bgdlabs

Delegate Forum Post Link
@wintermute Link
@lbsblockchain Link
@saucyblock Link
@stablelab Link
@tokenlogic Link
@event_horizon Link
@karpatkey Link
3 Likes

Governance Updates: Week of January 22, 2024

The 4th week of January was marked by some exciting new initiatives from the community in the Aave Governance Platform. We have highlighted them in brief

Key Updates

USDC.e on Optimism: A Snapshot was recently put up for increasing supply and borrow caps of USDC.e on Aave V3 Optimism. The Community has rejected the idea of promoting legacy USDC and has favoured the promotion of Native USDC which is deemed less risky. The Snapshot can be found here

PAXG on Aave: An old conversation to include Pax Gold as a collateral on Aave markets has seen some rejuvenation in interest. PAXG, is an RWA based on gold. The proposal indicates PAX Gold is the largest market cap tokenized gold coin - each PAXG token represents and is backed by one troy ounce of gold. Community members can read more about this proposal here

Adding RSR to Aave:

The proposal from the Reserve Protocol Core Team and ACI recommends integrating Reserve Rights (RSR) into AAVE V3 on Ethereum. RSR’s role in governance and collateralization is emphasized, aiming to enhance Reserve Protocol’s development and increase AAVE’s Total Value Locked. The proposal is currently in the TEMP CHECK voting stage for community decision. For a detailed overview, you can read the full proposal here.

Service Provider Updates

Gauntlet

BGD Labs

1 Like

Governance Updates: Week of January 29, 2024

The final week of January saw discussions about new assets. We have listed these in details below.

New Assets:

gmBTC on Arbitrum

The proposal aims to add gmBTC, a BTC-USD liquidity token from GMX V2, as a collateral asset in Aave V3 on Arbitrum. It highlights gmBTC’s potential to attract new demand for borrowable assets, leveraging GMX Protocol’s features to minimize risks like front-running. The integration could enhance Aave’s offerings, supported by Chainlink oracles for reliable asset pricing

gmETH on Arbitrum V3

The proposal introduces gmETH, a ETH-USD liquidity token from GMX V2, to Aave V3 on Arbitrum as a collateral asset. It aims to leverage GMX Protocol’s enhancements and Chainlink Data Stream integration to reduce risks and attract new borrowable asset demand. The proposal outlines steps for community feedback, potential risk parameter discussions, and progression through governance stages.

weETH to Aave V3 Ethereum

The proposal discusses the integration of Ether.fi’s Liquid Restaking Token (weETH) into Aave V3 Ethereum, aiming to diversify assets and boost liquidity. Ether.fi emphasizes decentralization and a non-custodial protocol, with ambitions to enhance Ethereum’s efficiency and offer additional rewards through partnerships and native restaking on EigenLayer. The next steps include progressing through consensus stages towards final confirmation. For a detailed overview, please visit the proposal page.

Other Key Updates

Aave-Alignment User Reward System

The “Merit” proposal suggests a new rewards system for Aave, focusing on user actions that align with Aave’s objectives. It introduces merkle-tree-based airdrops to reward users for deposits, borrowing, governance participation, and other beneficial behaviors, aiming to improve protocol engagement and discourage actions favoring competing protocols. This initiative seeks community feedback for refinement.

Full deprecation of stable rate

The proposal addresses the full deprecation of the stable rate option in Aave v2 and v3, transitioning all user positions to variable rates. This decision follows a critical bug report related to stable borrow rates, leading to halting new stable rate borrowings. The proposal also includes a bug bounty payment for the critical bug report, aiming for a transparent resolution and ensuring protocol security. Further steps involve community feedback, an ARFC Snapshot for pre-approval, and potential Aave DAO automation for user transitions.

Service Provider Updates

Gauntlet

BGD Labs

ChaosLabs

3 Likes

Governance Updates: Week of February 5, 2024

Key Updates

Establishing the Aave Protocol Embassy (APE)

The Aave Chan Initiative proposes creating the Aave Protocol Embassy (APE) to represent Aave DAO in the governance of other protocols. APE aims to utilize Aave’s voting power in DAOs, especially for Long-Term Incentive Plans on networks like Arbitrum, using a 3/4 Gnosis SAFE multisig structure. This initiative seeks to address the current limitations in Aave’s structure that hinder direct governance participation, thereby enhancing its meta-governance capabilities.

Orbit Program Renewal

The proposal discusses renewing the Orbit program to compensate recognized delegates with GHO and ETH for governance activities. It introduces gasless voting and maintains targeted gas rebates for proposal creation and payload deployment, leveraging open-source scripts for transparent gas expenditure tracking. The proposal includes eligibility criteria for Orbit renewal, emphasizing delegate participation rate and impact, with a budget of 80,000 GHO and 4.6755 ETH for the covered period.

Setting Emission Admins/Managers

Several community members and contributors have proposed roles as emission managers for incentives related to the Aave pools and Chains. We have listed out all such proposals for the readers.

  • Set Aave Chan Initiative as Emission Manager for fdUSD on BNB Chain Aave V3

    The post discusses a proposal to appoint the Aave Chan Initiative (ACI) as the emission manager for the fdUSD token on BNB Chain Aave V3. This role involves managing incentive programs funded by ecosystem partners to promote growth and expand the user base on the BNB Chain. As the emission manager, ACI would oversee the distribution of incentives to stimulate activity and attract more users to the pool, aligning with the broader goals of the Aave community.

  • Set ARB Emission Admin to Gauntlet

    The proposal by Tokenlogic_Karpatkey suggests assigning Gauntlet as the ARB Emission Admin on Aave v3 for Arbitrum, tasked with distributing ARB rewards to facilitate the transition from USDC.e to USDC, aiming to use 15.59M USDC.e. This move is intended to encourage the migration to native USDC with ARB incentives.

  • Set Liquidity Observation Labs as Emission manager for wstETH on V3 markets

    The proposal seeks to appoint Lido Liquidity Observation Labs as the emission manager for wstETH on Aave V3 markets across Ethereum, Base, Arbitrum, Optimism, Polygon, and Gnosis. This role would enable them to define and fund incentive programs to promote wstETH market growth and expand Aave’s user base.

  • Set ETHx and SD Emission Admin to Stader Labs

    The proposal recommends designating Stader Labs as the Emission Administrator for both ETHx and SD tokens on Aave V3 on the Ethereum network. Stader Labs would be responsible for handling the emissions, meaning they would manage and distribute rewards associated with these tokens. This strategic move aims to encourage the utilization and liquidity of ETHx within the Aave ecosystem, aligning with broader objectives to enhance platform engagement and token utility.

Service Provider Communications

Gauntlet

Chaos Labs

BGD Labs

Governance Updates: Week of February 12, 2024

Orbit Program Renewal

The Orbit program renewal proposal has passed the Temp Check on Aave Snapshot. In last week’s post, we have described the Orbit proposal, to refresh the memory of our readers- It focuses on maintaining gas rebates for specific proposal actions, leveraging open-source scripts for transparent gas expenditure tracking. Eligibility for Orbit renewal emphasizes delegate participation rate and impact, with a budget allocation of 80,000 GHO and 4.6755 ETH

Merit - A New Aave-Alignment User Reward System

The “Merit” proposal introduces a rewards system using merkle-tree airdrops to incentivize Aave-aligned behaviors, aiming to boost protocol engagement and competitiveness. It rewards deposits and borrows aligned with Aave’s goals, employing boosters/diluters to refine rewards based on users’ protocol support. Funded with a $5M budget for 90 days, it targets direct protocol interaction, enhancing Aave’s appeal and strategic positioning.

Emission Admins

A number of proposals concerning emissions for markets and chains were escalated to Snapshot stage. We have listed all such proposals here, a few of the emissions proposals were also mentioned in last week’s update.

Set OP Emission Admin

The proposal suggests creating a SAFE managed by @karpatkey_TokenLogic, @ACI, and @ChaosLabs to distribute USDC rewards on Aave v3 Optimism. It aims to support migration from USDC.e to native USDC on Optimism, leveraging OP rewards to encourage this transition. The SAFE structure involves a 3 of 3 multisig with a nested 1 of 2 SAFE, ensuring secure management of OP token distribution for incentivizing liquidity shifts within the Aave ecosystem.

Set ARB Emission Admin to Gauntlet

The proposal appoints Gauntlet as the ARB Emission Admin for Aave v3 on Arbitrum, tasked with distributing ARB rewards. This initiative aims to facilitate the migration from USDC.e to native USDC, in alignment with the Arbitrum Foundation’s incentive strategy for a smoother liquidity transition on the platform. The proposal has received majority votes in snapshot temp-check

Set osETH & SWISE Emission Admin to StakeWise

The proposal seeks to empower StakeWise to manage osETH and SWISE rewards on Aave v3 Ethereum. It aims to support osETH’s growth and adoption by enabling StakeWise to distribute these rewards. This move requires assigning the Emission_Admin role to StakeWise for osETH and SWISE, allowing for flexible reward distribution across the Aave v3 Ethereum Liquidity Pool. The proposal emphasizes transparency and community engagement, with no payment to the proposers, aiming for a collaborative approach to enhance liquidity and user engagement. The proposal also has majority votes on Snapshot.

Set ETHx and SD Emission Admin to Stader Labs

The proposal aims to grant Stader Labs the role of Emission Admin for ETHx and SD tokens on Aave v3 Ethereum, facilitating the distribution of rewards. Stader Labs will use this role to support ETHx’s growth and adoption. The proposal specifies the SAFE addresses for reward distribution and outlines the steps for setting the Emission_Admin permission, emphasizing community engagement and transparent management without any payment to the proposers. Voting will begin soon for the proposal.

Service Provider Updates

Gauntlet

Chaos Labs

BGD Labs