Governance Weekly Recap [2024]

Week of April 1, 2024

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: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

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