Governance Weekly Recap [2024]

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’s Liquid Restaking Token (weETH) into Aave V3 Ethereum, aiming to diversify assets and boost liquidity. 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


BGD Labs