Governance Weekly Recap [2024]

Week of April 22, 2024

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: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