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.
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.
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.