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

Update for the Week of February 26,2024

Aave Community delegate survey

The Aave Delegate Survey, conducted by Boardroom, seeks to understand the needs and preferences of Aave delegates to enhance governance practices and support Aave’s development in the DeFi space. The survey is open until March 10th and emphasizes the importance of delegate feedback in shaping Aave’s future and the broader DeFi ecosystem.

Aave Support Collective

The proposal aims to form an “Aave Support Collective” to decentralize support in the Aave ecosystem, enhancing service quality and community engagement by leveraging collective expertise. This initiative seeks to improve responsiveness and effectiveness across support channels, fostering a more involved and informed community. For a detailed overview, you can view the full proposal on the Aave governance forum.

Stablecoin Harmonization and Asset Parameters Optimization

The proposal focuses on optimizing Aave’s stablecoin strategy by primarily using USDT and USDC as collateral, setting LTV to zero for less popular stablecoins and assets to reduce risk and align with market demands. It suggests adjustments to reserve factors and proposes offboarding certain stablecoins and assets lacking traction. The aim is to enhance protocol revenue and security.

Aave Liquidity Committee Funding 3

The proposal seeks to fund the Aave Liquidity Committee with 500k GHO for three months to support GHO liquidity and DeFi integrations. This follows successful liquidity enhancements across various DEXes and efforts to maintain GHO’s peg. The initiative includes specific budget allocations for liquidity peg resilience and creating utility through DeFi integrations, with performance indicators to track progress.

Aave <> Bored Ghosts Phase 2 Recap

The post is a recap of the 6-month engagement between Aave and BGD Labs, focusing on technical services and improvements across the Aave ecosystem. It covers security enhancements, Aave v3 development, governance updates, and support for DeFi integrations, with a focus on ensuring stability, expanding network support, and improving governance mechanisms.

New Risk Steward Signer

Following Gauntlet’s departure from Aave, the community discusses appointing a new risk steward signer, considering either a temporary assignment or waiting for a permanent solution. The community aims to ensure continued guidance and risk management in the Aave ecosystem during this transition.

Update for the Week of March 4, 2024

Aave V3 deployment on Fraxtal Mainnet

The proposal discusses deploying Aave V3 on Fraxtal Mainnet, aiming to leverage Fraxtal’s Ethereum Layer 2 benefits for strategic positioning within its ecosystem. It emphasizes potential synergies, focusing on enhancing liquidity and user engagement through Frax Finance’s support mechanisms like Automated Market Operator allocations and Fraxtal points for liquidity mining. Next steps include escalating the proposal through Snapshot and ARFC stages based on community consensus. The discussion raises questions about competition, incentives, and strategic alignment for Aave within the Fraxtal ecosystem.

Aave Liquidity Committee Funding Proposal

This proposal outlines a request to allocate 500k GHO over three months to the Aave Liquidity Committee. The funding aims to enhance GHO liquidity and foster DeFi integrations, following successful liquidity boosts and GHO’s peg maintenance efforts. It includes budget specifics for liquidity management and DeFi integration utility, complemented by performance indicators for progress tracking. The proposal has passed a snapshot vote.

Funding Update

The proposal aims to streamline Aave DAO’s treasury management in anticipation of future expenses, including the launch of the Merit program and renewing DAO service provider contracts. It proposes consolidating DAO assets, migrating funds from Aave v2 to v3, and bridging funds from Polygon to Ethereum. Additionally, it seeks to enable direct-to-AIP submissions for similar actions, emphasizing efficiency and governance streamlining.

New Risk Steward Signer

Following Gauntlet’s departure from Aave, the community is discussing the selection of a new risk steward signer. Two options are proposed: appointing a temporary signer or waiting for a permanent appointment while maintaining standard governance processes for supply and borrow cap adjustments. The proposal emphasizes community guidance and ownership in the decision-making process, signaling a collaborative approach to navigating this transitional period. Chaos labs has been selected to be the sole risk stward. Additionally, community members have pitched Certora as the second signer.

Emission Manager Framework Update

The proposal suggests updating Aave’s framework for adding emission managers to pool reserves, currently seen as overly complex and lengthy. It aims to streamline the process by incorporating emission admins into the “Direct-to-AIP” framework, allowing for faster escalation to the AIP stage after forum publication. The proposal seeks to make the onboarding of emission managers more efficient, reducing the minimum timeframe from two weeks to a more expedited process, and is now seeking community feedback.

Adding 3 Dapps as flash borrowers to Aave V3

The proposal seeks to whitelist Contango Protocol, Cian Protocol, and Index Coop as Flashborrowers on Aave V3 across Ethereum, Arbitrum, and Optimism pools. It aims to waive flashloan fees for these entities to boost Aave’s competitiveness and borrow volume. Despite potential lost revenue from fees, the proposal argues for increased protocol usage and DAO revenue through strategic fee waivers for specific, high-leverage use cases.

1 Like

Week of March 11, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for Aave Weekly Update: Boardroom

:ballot_box: Recent Proposals

  • Aave Liquidity Commitee Funding
    • Summary:

      The proposal suggests funding the Aave Liquidity Committee with 500k GHO for the next 3 months to support GHO liquidity and DeFi integrations. It outlines past successes in maintaining GHO’s liquidity and peg to the USD, leveraging tools like Uniswap and Maverick, and aims to further deepen liquidity and reduce volatility. The budget is divided into liquidity peg resilience and utility creation for DeFi integrations, totaling 500k GHO.

    • Proposer: Karpatkey_tokenlogic

    • Status: Passed

  • Activation of A-C Prime Foundation
    • Summary:

      The Aave Treasury RWA Allocation proposal aims to collaborate with Centrifuge for investing $1M from Aave’s treasury into a US T-Bill fund as a real-world asset (RWA) proof of concept. This move seeks to earn yield on stablecoins, develop RWA infrastructure, and gain RWA industry expertise, with the expectation of recouping the investment within 6-12 months and generating yield within the first 3.

    • Proposer: Centrifuge protocol

    • Status: Defeated

:writing_hand: Forum Highlights

  • AGD 2024 - Recent work updates

    The AGD 2024 update outlines recent work including introducing six new grantees, summarizing the LFGHO hackathon, and announcing an upcoming Gitcoin round for Aave builders. It shares comprehensive statistics on grant applications, approvals, and disbursements across various categories since May 2021.

  • Recognise ZeroLend as a friendly fork of Aave.

    The proposal suggests recognizing ZeroLend as a friendly fork of Aave, offering Aave stakers 1% of ZeroLend’s governance token supply and sharing 10% of ZeroLend’s generated revenue with the Aave treasury for one year. It aims to contribute positively to the Aave ecosystem and set a standard for future forks.

:newspaper: Stakeholder News

:date: Upcoming Events

  • Chainlink <> Aave Fireside chat : Monday 18 March, UTC. Link

:crystal_ball: Upcoming Votes

Week of March 18, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • Stablecoin Harmonization
    • Summary:

      The proposal advocates for harmonizing stablecoin collateral usage by focusing on USDT and USDC, setting LTV to zero for less utilized stablecoins and assets to minimize risk and optimize revenue. It suggests adjusting asset parameters and offboarding certain stablecoins and assets with low demand to align with user trends and improve protocol security and efficiency. For further details, visit the proposal here.

    • Proposer: Aave Chan Initiative

    • Status: In Progress

  • V3 Periphery Maintenance
    • Summary:

      This proposal focuses on minor improvements for Aave v3, specifically updating the Sequencer Uptime Feed (price oracle sentinel) and addressing issues with stataTokens. It aims to enhance security and functionality, including fixing a maxMint function issue and upgrading to a more secure ECDSA library for static aTokens. The changes involve updating contracts for better operational security and efficiency. For more details, you can read the full proposal here.

    • Proposer: BGD Labs

    • Status: Passed

  • Onboard Catapulta as Aave V3 Deployment Service Provider
    • Summary

      The proposal seeks to onboard Catapulta as the Development Service Provider for Aave V3 deployments on EVM networks. Founded by former Aave Solidity Developer David Racero, Catapulta aims to automate and streamline deployment processes. If approved, Catapulta will handle new Aave V3 instance deployments, including testnet and production, subject to Aave DAO’s Snapshot approval. The proposal outlines a six-month service duration with a flat fee of $15,000 USD per production deployment. For more information, you can check the proposal here.

    • Proposer: Kartojal & ACI (Aave Chan Initiative)

    • Status: Snapshot passed

:writing_hand: Forum Highlights

  • AGD Grantee: Alphaday

    Alphaday, an Aave grantee, introduces a customizable dashboard for the Aave community, simplifying crypto management across devices. It offers features like portfolio tracking, real-time market updates, and personalized news, enhancing investment strategies with a user-friendly interface. The platform aims to consolidate various sources into one accessible location, promoting efficiency and informed decision-making in the crypto space.

  • Roll-out plan for cross chain GHO

    The proposal initiates a transparent process to integrate GHO stablecoin across multiple networks, employing Chainlink’s CCIP for cross-chain strategy. It involves a phased rollout, starting with network proposals submission and evaluation, fostering community engagement and informed decision-making. The goal is to enrich ecosystems by integrating GHO, highlighting potential liquidity and synergies. A snapshot vote will finalize the selection of the suitable network for GHO’s expansion.

  • Onboard LlamaRisk as Aave Risk Service Provider

    The proposal seeks to onboard LlamaRisk as Aave’s risk service provider to enhance protocol resiliency and user assurances. With a history of transparent risk analysis and recommendations, LlamaRisk aims to complement Chaos Labs’ services, focusing on assets related to the GHO stablecoin and regulatory guidance. The initial engagement is for 6 months, with a budget of $250,000, aiming to improve Aave’s risk management and governance involvement.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

2 Likes

Week of March 25, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • GHO Stewards
    • Summary:

      The proposal outlines adjustments to GHO’s borrow rate and Stewards’ capabilities, reacting to market changes and Maker DAO’s actions. It aims to increase the GHO borrow rate from 7.49% to 13.00%, grant Stewards the flexibility to manage volatility by adjusting the borrow cap and rate more dynamically. These measures seek to maintain GHO’s market stability and growth by aligning with current stablecoin rates and reducing arbitrage opportunities. For more, see the proposal here.

    • Proposer: Karpatkey_TokenLogic

    • Status: AIP Passed

  • Aave BGD Phase 3
    • Summary:

      The proposal introduces Phase 3 of the collaboration between Aave and BGD Labs, focusing on Aave’s technical maintenance, improvements, security coordination, and technical advisory. It outlines two scopes: ongoing technical support and a new project to enhance the Aave Safety Module. The proposal includes budget details, aims for decentralization by engaging new contributors, and emphasizes BGD Labs’ commitment to Aave’s innovation and security. For further details, read the full proposal here.

    • Proposer: BGD Labs

    • Status: AIP Executed

  • LlamaRisk as Aave Risk service Provider
    • Summary

      The proposal aims to onboard LlamaRisk as Aave’s risk service provider to enhance protocol safety and risk management. LlamaRisk would focus on asset risk, particularly related to GHO and regulatory guidance, complementing existing services by Chaos Labs. The engagement, set for 6 months at a $250,000 budget, seeks to bolster Aave’s risk analysis and governance involvement. For further details, read the full proposal here.

    • Proposer: LlamaRisk

    • Status: Snapshot passed

:writing_hand: Forum Highlights

  • Onboard OpenBlock as Aave Risk Service Provider

    OpenBlock proposes a 6-month engagement as Aave’s risk service provider, leveraging their experience in economic modeling and risk analysis from working with top protocols. Their team, composed of experts from prestigious backgrounds, aims to use advanced models and simulations to assess and manage risks, focusing on new asset listings and market dynamics. The proposal includes a budget of $420,000, covering data science, quantitative research, and platform access fees. For more details, read the proposal here.

  • Allez Labs risk provider proposal to Aave DAO

    Allez Labs proposes a 6-month partnership with Aave DAO, leveraging their deep risk management experience to enhance Aave V3 and GHO’s stability and growth. Comprising experts with significant Aave involvement, they aim to provide comprehensive asset listing support, new deployment risk assessments, and ad-hoc parameter recommendations, with a focus on transparency, community engagement, and open-source development. The budget requested is $400,000. For more details, read the proposal here.

  • Rollout plan for Cross-Chain GHO

    This proposal outlines a transparent process for integrating the GHO stablecoin across multiple networks, starting with a submission phase for networks to propose their integration plans, followed by a community discussion and evaluation phase. The goal is to expand GHO’s utility and accessibility, leveraging Chainlink’s CCIP for secure cross-chain operations. A snapshot vote will finalize the network selection, aiming to enrich the stablecoin ecosystem and Aave’s presence in new environments. For more details, you can view the proposal here.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

  • No proposals queued

Week of April 1, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: https://paragraph.xyz/@boardroom

:ballot_box: Recent Proposals

  • Contango Flashborrower
    • Summary: The proposal aims to add Contango Protocol, Cian Protocol, and Index Coop as whitelisted flash borrowers on Aave V3 across Ethereum, Arbitrum, and Optimism. It seeks to waive flash loan fees for these protocols, enhancing competitiveness and borrow volume for Aave. This strategic move is expected to offset lost fee revenue with increased borrowing activity, leveraging unique strategies like EMODE for greater efficiency and profit. For implementation details and more, view the proposal here.
    • Proposer: Contango
    • Status: AIP Executed
  • EURe Emissions Manager
    • *Summary:*The proposal aims to appoint the Aave Chan Initiative (ACI) as the emissions manager for the EURe token on Aave V3 Gnosis Market for 6 months. This role allows ACI to coordinate emissions from various stakeholders to the ACI multisig, distributing incentives to drive growth and user base expansion for Aave on the Gnosis Network. The initiative seeks community feedback before moving to the AIP voting stage. For further details, you can read the proposal here.
    • Proposer: ACI
    • Status: AIP Passed
  • OpenBlock as Aave Risk service Provider
    • Summary: OpenBlock’s proposal seeks a 6-month term as Aave’s risk service provider to leverage their expertise in economic modeling and quantitative analysis for risk management. With a team from diverse, high-caliber backgrounds, OpenBlock plans to employ advanced simulations to evaluate and mitigate risks, focusing on new asset listings and overall market dynamics, requesting a $420,000 budget for their comprehensive services. For more information, you can visit the proposal here.
    • Proposer: OpenBlock Labs
    • Status: Snapshot Passed
  • AllezLabs as Aave Risk service Provider
    • Summary: Allez Labs proposes partnering with Aave DAO for 6 months to apply their expertise in risk management and growth support for Aave V3 and GHO. They bring a strong background with prior contributions to Aave and aim to offer detailed support for asset listings, risk assessments for new deployments, and parameter recommendations, emphasizing transparency and community involvement. Their budget request is $400,000 to cover comprehensive risk management services. For more details, visit the proposal here.
    • Proposer: AllezLabs
    • Status: Snapshot Passed

:writing_hand: Forum Highlights

  • Onboard sUSDe to Aave V3 on Ethereum

    The proposal discusses adding sUSDe, a yield-earning synthetic dollar from Ethena, to Aave V3 on Ethereum, following positive community feedback. It emphasizes sUSDe’s potential for strong borrow demand due to its yield mechanism. Chaos Labs supports the listing, suggesting parameters for its integration while considering market risks and liquidity. The initiative aims to enhance Aave’s asset diversity and user base, pending community and snapshot approval for further action. For a detailed overview, you can read the full proposal here.

  • Risk Parameters for DAI Update

    This proposal by the Aave Chan Initiative aims to update DAI’s risk parameters across all Aave versions and networks by setting its Loan to Value (LTV) ratio to 0%. Prompted by MakerDAO’s rapid expansion of the D3M credit line for DAI, the proposal seeks to mitigate potential risks from these liquidity injections and governance decisions. It’s a preventive measure considering the low utilization of DAI as collateral and the availability of alternatives like USDC or USDT for Aave users. For more details, read the proposal here.

  • Chaos Labs Risk Oracles

    Chaos Labs proposes integrating Risk Oracles into Aave’s infrastructure to automate and optimize risk management processes across its network. This innovation aims to streamline updating on-chain risk parameters, reducing the manual workload by translating governance-approved adjustments into real-time, actionable updates. The pilot phase focuses on low-risk parameters to validate the system’s efficacy, promising enhanced efficiency and security for Aave’s ecosystem without necessitating additional governance actions for implementation. For a comprehensive overview, you can read the proposal here.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

1 Like

Week of April 8, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • weETH Onboarding
    • Summary: The proposal aims to integrate weETH, a Liquid Restaking Token, into Aave v3 on Ethereum, enhancing asset diversity and liquidity. This follows positive community feedback and detailed risk analysis. The proposal includes specific risk parameters and seeks further validation through a Snapshot vote before becoming an AIP.
    • Proposer: ACI
    • Status: AIP Passed
  • Native Bridge Adapters Update
    • Summary: The proposal seeks to enhance Native bridge adapters on the a.DI platform by adding additional naming metadata and refining gas limit settings for different network providers. This update is aimed at improving the functionality and interoperability of cross-network connections, supporting better infrastructure integration and customization for specific needs of bridge providers.
    • Proposer: BGD Labs
    • Status: AIP Passed
  • Onboard wbETH to Aave v3 BNB Chain
    • Summary: The proposal discusses onboarding wbETH, a Binance Liquid Staked ETH token, to Aave v3 on the BNB Chain to increase liquidity and asset variety. This step is expected to bolster Liquid Staked Tokens, which are key collateral types in Aave and significant drivers of ETH borrowing demand on the BNB Chain.
    • Proposer: ACI
    • Status: Snapshot Passed
  • Onboard sUSDe to Aave V3 on Ethereum
    • Summary: The proposal for onboarding sUSDe to Aave V3 on Ethereum, aimed at leveraging the stablecoin’s yield features, has passed the Snapshot vote. This move will now proceed to the next stages of approval, potentially increasing borrowing demand and adding robustness to Aave’s suite of assets on Ethereum. Further implementation will adhere to Aave’s stringent risk and stability protocols.
    • Proposer: ACI
    • Status: Snapshot Passed

:writing_hand: Forum Highlights

  • Chaos Labs Risk Oracles

    The proposal introduces Chaos Labs Risk Oracles to automate and optimize risk management in Aave’s network. This will allow for scalable, near-real-time adjustments of critical financial parameters such as supply and borrow caps and liquidation thresholds. The implementation involves off-chain analytics and on-chain updates, aiming to streamline operations and reduce manual interventions across Aave’s deployments.

  • “Merit is Forever” Reward System Program Extension

    The proposal seeks to extend the “Merit is Forever” reward system in Aave, allocating $20 million annually for the next 12 months to enhance Ethereum’s market share and support the GHO stablecoin. Building on positive outcomes from initial rounds, the system aims for increased engagement and benefits for participants, without changes to existing boosters or diluters, subject to ongoing DAO review.

  • Chaos Labs Market Alert - High Price Volatility and Liquidations

    The Chaos Labs Market Alert highlights extreme price volatility and high liquidation activity on April 13, 2024, particularly affecting Aave V2 and V3 deployments. Over the past 48 hours, significant price drops in major cryptocurrencies, including ETH and BTC, triggered widespread liquidations exceeding $65 million. The alert emphasizes the need for continued monitoring and potential adjustments to Aave’s risk management strategies in response to these market conditions.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

1 Like

Week of April 15, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • Interim aAMPL distribution
    • Summary: The proposal addresses an AMPL reserve issue on Aave v2 Ethereum, proposing an interim distribution of 300,000 USD in stablecoins to aAMPL suppliers for partial withdrawals. This measure, coupled with technical updates, aims to resolve accounting discrepancies caused by unexpected inflation in AMPL-related balances and supply. The proposal details next steps including a Snapshot vote and subsequent technical actions, pending community approval. For a complete overview, you can read the proposal here.
    • Proposer: BGD Labs
    • Status: AIP Passed
  • “Merit is Forever” Reward System Program Extension
    • Summary: The “Merit is Forever” reward program proposes extending its operation for 12 months with a $20M annual budget to enhance Aave’s market share and support the GHO stablecoin. Success from prior rounds shows significant user participation and financial growth, encouraging continued investment in this incentive program. The Aave Chan Initiative (ACI) seeks approval for long-term adoption through a DAO snapshot vote. For a comprehensive overview, you can read the proposal here.
    • Proposer: ACI
    • Status: Snapshot Passed
  • Onboard New Risk Service Provider
    • Summary: The proposal focuses on choosing a new risk service provider for Aave alongside Chaos Labs, with options between LlamaRisk, OpenBlock, and Allez Labs, each having passed preliminary checks. Aave community members are encouraged to vote in a ranked choice format to select the most suitable candidate based on detailed comparative analysis provided in the forum. The selected provider will enhance risk analysis and management for Aave, supporting the protocol’s security and efficiency. For detailed proposal information, visit here.
    • Proposer: ACI
    • Status: LlamaRisk wins the bid among 3 proposers

:writing_hand: Forum Highlights

  • Update Aave Liquidity Committee SAFE

    The proposal aims to update the Aave Liquidity Committee (ALC) SAFE’s signer requirement from 4 of 6 to 3 of 5 members due to operational challenges and time zone differences among current members. This adjustment is intended to streamline decision-making processes, particularly as one member steps down. The community is invited to provide feedback, and following consensus, the proposal will advance to the Snapshot voting stage. For more details, you can read the full proposal here.

  • “FastPass” - A Safety Module Update

    The “FastPass” proposal suggests introducing a feature allowing certain Aave Safety Module stakers to bypass the 20-day cooldown period for a fee, enhancing liquidity and flexibility. This feature, initially for StkGHO, aims to balance additional revenue for the DAO with maintaining adequate coverage during shortfall events, by setting limits on daily withdrawals. The proposal includes risk mitigation strategies to ensure protocol safety and stability. For more details, visit the full proposal here.

  • Aave & GHO Ecosystem Advancement Quadratic Funding Round by Gitcoin

    Aave and Gitcoin are launching a quadratic funding round to boost growth in the Aave and GHO ecosystem. With $50,000 funded equally by Gitcoin and Aave Grants DAO, the initiative will support projects that enhance the ecosystem, with a focus on past grantees and new contributors. The application period spans from April 23 to May 7, 2023, followed by a donation period from May 14 to May 28, 2023. For more details, visit the full proposal here.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

Week of April 22, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • Onboard Llamarisk as a Risk Provider
    • Summary: The Aave Chan Initiative proposes onboarding LlamaRisk as Aave’s second Risk Service Provider, setting up a payment stream of 250,000 GHO over 6 months. LlamaRisk will offer risk assessments, collaborate with Chaos Labs, engage in DAO governance, provide legal advisory, and employ advanced risk management techniques for DeFi protocols.
    • Proposer: ACI
    • Status: AIP Passing
  • stkGHO Incentives
    • Summary: The proposal aims to amend the distribution of AAVE emissions within the Safety Module to enhance the stability of the GHO token. It proposes an increase in emissions for stkGHO holders while decreasing emissions for stkAAVE and stkBPT holders, maintaining the overall AAVE emitted per day constant. The objective is to better support the GHO peg and facilitate the expansion of its supply.
    • Proposer: Karpatkey_Tokenlogic
    • Status: AIP Passed
  • LayerZero bridge adapter update to V2
    • Summary: The proposal seeks to update the LayerZero bridge adapters used by a.DI to connect various blockchains like Ethereum, Polygon, Avalanche, Binance, and Gnosis to the new LayerZero V2 version. This update aims to replace the current a.DI LayerZero adapter with V2 to enhance cross-chain communication following infrastructure improvements by LayerZero. Additionally, it includes adding an adapter name metadata to the smart contracts for better off-chain tracking.
    • Proposer: BGD Labs
    • Status: AIP Passed
  • Aave v3.1 Activation
    • Summary: The proposal is to activate Aave v3.1 across all active Aave v3 networks to enhance security and operational efficiency. The upgrade includes features like virtual accounting, stateful interest rate strategies, and improved emergency measures. This update, thoroughly tested and reviewed by multiple security firms, aims to optimize Aave by reducing operational overhead and increasing security robustness.
    • Proposer: BGD Labs
    • Status: Snapshot Passed

:writing_hand: Forum Highlights

  • Aave 3.1 Cantina competition

    The proposal involves hosting a “Cantina competition” as part of the security measures for Aave v3.1, with a total budget of $195,000, allocated as $150,000 for prizes and $45,000 for platform and judging fees. This open security contest aims to ensure Aave v3.1’s robustness by encouraging bug discoveries and improvements through public participation, enhancing pre-production security.

  • Deprecation of Small-cap Stablecoins on V2 Ethereum

    The proposal outlines the deprecation of small-cap stablecoins USDP, GUSD, LUSD, FRAX, and sUSD on Aave V2 due to their limited liquidity and vulnerability to price manipulation. It suggests adjusting financial parameters like Reserve Factor and Base Rate to discourage borrowing and encourage loan repayment, while also planning to keep these coins frozen to prevent new supplies and borrowings.

  • aAMPL Second Distribution

    The proposal recommends a second distribution of 758,000 stablecoins to allow aAMPL suppliers on Aave v2 Ethereum to fully withdraw their funds. This follows an initial distribution addressing an inflation issue with AMPL balances. The proposal aims for full compensation using claimable stablecoins, ensuring equitable treatment for affected users, with the distribution to be managed via the Merkle platform.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

Week of April 29, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: Boardroom

:ballot_box: Recent Proposals

  • Onboard Llamarisk as a Risk Provider
    • Summary: This Aave Improvement Proposal (AIP) seeks to formally appoint LlamaRisk as Aave’s second Risk Service Provider, setting up a payment stream of 250,000 GHO over a six-month period. This move supports Aave’s dual risk provider model and acknowledges the community’s choice in a recent vote favoring LlamaRisk. This partnership aims to enhance the DAO’s risk management capabilities by providing on-demand risk assessments, especially for assets linked to the GHO stablecoin, in collaboration with Chaos Labs. LlamaRisk will also offer regulatory guidance and actively participate in DAO governance, contributing to the strategic risk management and compliance of the Aave protocol.
    • Proposer: ACI
    • Status: AIP Passed
  • ACI Ad Astra
    • Summary: This proposal seeks to renew the Aave-chan Initiative (ACI) collaboration for another year with a 1M GHO budget. ACI has expanded to an 8-person team, enhancing Aave DAO through various services including governance, operational efficiency, and growth initiatives. This phase, “Ad Astra,” emphasizes continuous development in governance and business, aiming to keep Aave at the forefront of the DeFi sector.
    • Proposer: ACI
    • Status: Vote in Progress
  • Hyperlane bridge adapter update to V3
    • Summary: This proposal seeks to update Hyperlane bridge adapters on the a.DI platform to Version 3 for Ethereum, Polygon, Avalanche, Binance, and Gnosis. It also plans to remove outdated native bridges on Optimism, Base, Arbitrum, Scroll, and Metis, ensuring all network connections are upgraded to the latest, more efficient version. This will streamline cross-network interactions by integrating the most current technology for enhanced operational efficiency and tracking.
    • Proposer: BGD Labs
    • Status: AIP Passed
  • Renewal of Aave Guardian - 2024
    • Summary: This proposal focuses on renewing the Aave Guardian for 2024, adjusting member composition to reflect current community stakeholders and enhancing the guardians’ capabilities in emergency situations and governance oversight. It outlines the roles of two types of guardians - Protocol and Governance emergency Guardians - each tasked with specific, crucial functions within the Aave ecosystem.
    • Proposer: ACI
    • Status: Vote in Progress

:writing_hand: Forum Highlights

  • Aave Finance Steward

    This proposal introduces the Finance Steward role to manage Aave DAO’s funds more efficiently. It includes creating a smart contract to handle pre-approved financial operations, aiming to streamline governance and reduce administrative overhead. The contract will allow designated guardians to manage asset transfers and swaps within predefined budgets, enhancing operational efficiency and financial oversight.

  • Rivus Guard – Automated Supply and Borrow Caps

    The “Rivus Guard” proposal introduces automated supply and borrow cap controls for Aave, aiming to reduce governance overhead and enhance protocol security. It outlines a system where caps can be adjusted daily, offering a flexible response to market conditions while limiting potential risks from abrupt capital flow changes. The automation also aims to streamline the operational efficiency of cap management within the Aave ecosystem.

  • Fund USDC & USDT GSM

    This proposal seeks to fund USDC and USDT GHO Stability Modules (GSM) with 1 million each from Aave v3, enhancing the stability of the GHO peg. The Aave Liquidity Committee will manage the funds, deploying them under favorable market conditions to support GHO’s price stability.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes

1 Like

Week of May 6, 2024

Prefer to receive this recap as an email? Subscribe here and check the box for “Aave Weekly Update”: https://paragraph.xyz/@boardroom

:ballot_box: Recent Proposals

  • ACI Ad Astra
    • Summary: The ARFC Phase III “Ad Astra” proposal for Aave seeks to extend the Aave-chan Initiative (ACI) collaboration for another year, with a budget of 1M GHO. This proposal aims to continue enhancing Aave’s operations and growth through existing services like Skywards and Dolce Vita, and further expand their business development initiatives. The ACI team has shown significant value to the Aave ecosystem, contributing to its profitability and operational efficiency (Aave).
    • Proposer: ACI
    • Status: AIP Passed
  • Aave V1 Deprecation Phase 3
    • Summary: The proposal seeks to complete Aave v1’s off-boarding to reduce costs and complexity by discontinuing updates except for crucial ones. It aims to simplify operations by stopping all actions except for liquidation, repayments, and withdrawals, adjusting contract settings, and replacing oracles for consistency with Aave v2.
    • Proposer: BGD Labs
    • Status: AIP Passed
  • Renewal of Aave Guardian - 2024
    • Summary: The proposal renews the Aave Guardian, updating its membership to reflect active Aave DAO contributors. It details two Guardian roles: one for protocol emergencies and another for governance emergencies, each with specific member configurations and responsibilities (Aave).
    • Proposer: ACI
    • Status: Snapshot Passed
  • Add rsETH to Aave V3 Ethereum
    • Summary: The proposal seeks to introduce rsETH, a liquid restaking token by Kelp DAO, to Aave V3 on Ethereum. Adding rsETH aims to diversify the assets available on Aave and offer additional rewards for depositors. It includes introducing new liquidity mechanisms and improving access to staking rewards through DeFi strategies with rsETH (Aave).
    • Proposer: Kelp DAO and ACI
    • Status: Snapshot Passed

:writing_hand: Forum Highlights

  • Aave Visual Identity

    The proposal aims to update and standardize Aave’s visual identity, introducing a new logo and design system that maintains the iconic “ghost” but with a modernized look. This change is intended to enhance brand consistency across Aave’s platforms and initiatives, making it stand out in both the crypto space and alongside major financial brands (Aave).

logomark

  • GHO Cross-Chain Launch

    The proposal outlines the launch of GHO stablecoin across multiple blockchain networks, starting with Arbitrum, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This strategy aims to enhance GHO’s accessibility and utility in the DeFi landscape by ensuring secure, cross-chain transactions of GHO tokens while maintaining all liquidity on Ethereum to minimize security risks.

  • Aave 2030

    The Aave 2030 Temp Check proposes a series of strategic developments aimed at enhancing Aave’s technology and market position over the next decade. Key proposals include the development of Aave V4, a cross-chain liquidity layer, the incorporation of real-world assets, and a new network hub for Aave and GHO. These innovations are designed to expand Aave’s functionality and accessibility, thereby increasing its adoption and maintaining its leadership in the DeFi space.

:newspaper: Stakeholder News

:crystal_ball: Upcoming Votes