Governance Weekly Recap

Governance
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Hi all - duncand from Boardroom here :wave:

Part of Boardroom’s mission is to increase informed participation in governance. In partnership with Aave Grants DAO, we are providing here a weekly recap of recent governance activity in the Aave community. This is intended to be complementary to Aave News as well as to Messari’s Aave Weekly, even with some overlapping content. While Aave News is inclusive of broader protocol news, and Messari’s update largely focuses on metrics, this recap will focus exclusively on governance (much like our coverage of Optimism governance here). We believe this will be useful for delegates and voters due to the often rapid pace of governance news and updates. When appropriate we’ll also note a few specific areas for action on timely subjects.

Within our weekly recap, we’ll provide a look back at:

  • Proposals
  • Governance changes
  • Impactful operating suggestions, and
  • Critical governance-related discussions across Discourse, Twitter, and Discord

The first recap will be posted today. We’d love to hear your feedback and any suggestions you might have. Feel free to DM to set up a time to chat!

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Week of September 12, 2022

Summary

Aave planned carefully for The Merge, which — very happily — finalized without major turbulence. Below we list proposals that were recently executed, as well as those that are in discussion — which together indicate a return to normal functioning for the protocol.

Proposals

Aave Improvement Proposals (AIPs):

  • Re-enable ETH Borrowing (101). This proposal, initiated by Gauntlet, re-enables ETH borrowing on the Aave v2 Ethereum market post Merge. It follows from AIP-97, which paused borrowing ahead of the Merge. The proposal was executed on September 17 and returns the Aave market to normal conditions. As the proposer notes in an update, “So far, market conditions are trending towards a healthy state post-merge.”
  • Add MaticX to Aave v3 Polygon Pool (100). This proposal, submitted by Llama, adds MaticX to the above mentioned pool. “MaticX is an ERC20 receipt token which represents staked MATIC and a portion of the staking rewards”; adding it to the Polygon pool allows Aave DAO “to benefit from the first mover advantage and provide an alternative to Lido’s stMATIC.” The proposal was executed on September 17.

Vote now on Snapshot: Whitelist Balancer’s Liquidity Mining Claim (discussion here).

:speaking_head: Provide your feedback on these Aave Requests for Comment (ARCs):

In the Forums

Harmony Horizon bridge exploit. @bgdlabs updates its thread about the effects of the exploit on the Aave V3 community. The update includes “key aspects of a potential execution” being discussed by the Recovery ONE committee.

Fantom freeze. bgdlabs confirms that “the Aave Guardian has approved the transaction to freeze Aave v3 Fantom, allowing only for withdrawals, repayments, and liquidations” — following from the Snapshot vote on the related proposal in August.

Here’s a delegate platform thread in which FranklinDAO (previously @PennBlockchain) indicates how they’ve voted, and why, on each proposal.

See other delegate platforms from @fig (Flipside Crypto), Llama, and @lucasvo in this category.

Grants awarded by the Aave Grants DAO in August have been summarized. The summary includes “detail on how [grantees] plan to help expand the Aave ecosystem along with some statistics on AGD in general, and key metrics achieved.”

Here’s an important update from bgdlabs on “Aave Governance. Adjust Level 2 requirements (long-executor),” which passed a Snapshot vote in July.

On Twitter

Aave News: Subscribe to Aave Grants DAO’s Aave News, which provides a weekly recap via Mirror and Substack.

Community calls: Follow aavegrants to hear when the next call will take place on Spaces. Notes on the last call are here.

In Discord

How much Aave do you need to vote?

Keep up to date in the dedicated governance channel.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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thanks a lot for these recaps!

They’re very useful and easy to share with the community.

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Week of September 19, 2022

Summary

Welcome to Boardroom’s second weekly governance summary for the Aave community. See also Aave Grants DAO’s Aave News #67 and Messari’s Aave Weekly and quickly catch up on all that’s been happening.

Proposals

Risk Parameter Updates for Aave v2. This proposal, put forward by Gauntlet as part of their regular set of recommendations, seeks to adjust seven risk parameters in accordance with the “moderate risk level” and Risk Off Framework chosen by the Aave community in previous proposals. (Voting ends on September 27.)

Improve Governance Discussion and Voting Processes with Commonwealth. Blockchain at Berkeley partnered with Commonwealth to bring forward this proposal to move the Aave forums from Discourse to the Commonwealth platform, arguing that this change “will increase governance discussion, engagement, and transparency.” See discussion here. (Voting ends on September 27.)

Llama <> Aave. Llama has posted on updated proposal on Snapshot. Llama has a strong history of working with Aave on treasury management, partnerships, and analytics, among other things. These efforts were funded by Aave Grants DAO, which recommended that Llama move away from short-term funding to a more formal, longer-term relationship with Aave DAO. This proposal seeks to enact that idea, suggesting a twelve-month contract to provide services that focus on treasury management, analytics, and growth. The proposal states that Llama’s services will be complementary to the work of Bored Ghosts Developing (BGD) and Gauntlet, both of which also have existing relationships with Aave. The proposal includes a clause allowing Aave DAO to cancel the contract after six months if the community believes Llama’s performance to be sub-par. (Voting ends on September 28.)

Change Admin role of Optimism and Arbitrum V3 markets. This proposal, put forward by @MarcZeller, “intends to replace the community guardian [a 6/10 multisig of elected community members] in favor of Aave governance contracts for the administration of Arbitrum & Optimism V3 markets.” See discussion here. (Voting ends on September 30.)

:speaking_head: Vote now on Snapshot!

:speaking_head: Provide your feedback on these Aave Requests for Comment (ARCs):

  • Price manipulation implications for Aave v2. @pauljlei notes that “Recent price manipulation on exchanges, including GMX, may have market risk implications for Aave,” and asks for thoughts from the community.
  • Further comments on Chaos Labs’ “Risk Simulation & Platform Proposal.”
  • Add TRYB to Aave V3 on Avalanche Network, Isolation Mode. Discussion continues.
  • Robust frameworks for future deployments of Aave: This thread (which dates back to March), is updated by Gauntlet, which suggests a “governance process specifically for updating risk parameters on Avalanche.”

In the Forums

Harmony Bridge Exploit. Here’s an update on the recovery plan, posted by @HarmonyVillains.

Creation of Aave Africa Community. This is a funding request to support the AAVEA’s six-part mission, which includes increasing “awareness of AAVE blockchain and its use case in solving problems currently affecting Africa as a whole.”

New deployment of Aave v3 on Ethereum? @bgdlabs opens this discussion on the upgrade plan, noting tradeoffs.

The correction of an error in carrying out part of Aave v3 retroactive funding is noted by @AaveLabs.

Confirmation: bgdlabs announces that “the Aave Guardian has executed the listing of BTC.b on Aave v3 Avalanche,” as previously approved by governance.

Here’s an analytics dashboard for the Aave community, created by Gauntlet.

Delegate platforms: Llama and FranklinDAO update their threads, explaining most recent votes.

Continuous formal verification: @MCERFSR posts Certora’s report for August.

On Twitter

19 Aave community members helped Certora with the Formal verification of Aave v3 token.

Set a reminder for Aave Grants’ AMA Twitter Space with iGain Finance, September 27 at 1PM GMT.

In Discord

The Harmony Recovery One team have put up a community proposal to “address the bridge incident.”

Is voting for a proposal on chain or off, and do we have to pay fees?

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of September 26, 2022

Summary

There’s a critical proposal coming up concerning the Aave Level 2 “long executor” (which exclusively involves changes to Aave governance). Many believe the thresholds for proposing and passing Level 2 proposals are too high, and @bgdlabs has come up with a multi-stage plan (involving both a Level 1 and a Level 2 proposal) to make changes to Level 2 requirements.

:speaking_head: If you’re not already familiar, please read the full thread — and participate if you can.

And, as always, check out Aave News and Aave Weekly.

Proposals

Aave Improvement Proposals (AIPs):

  • Risk Parameter Updates for Aave V2 (2022-09-22). This proposal passed with nearly 100% voting “YAE” and was executed on October 1.
  • Ethereum v2 Reserve Factor - aFEI Holding Update. This AIP only barely failed to meet quorum despite almost 100% voting “YAE.” There is support for a “second push.”

On Snapshot:

  • Chaos Labs <> Aave. This is an updated proposal from Chaos, following feedback on their previous proposal. The entire discussion thread is worth reading as there’s a serious and important exchange between @omergoldberg and @tarun (among others) about risk assessments and the role of service providers for DAOs.
  • Increase supply cap for BTC.b on Avalanche V3 (Fast-track). This proposal, which follows a previously established fast-track process for increasing borrow and supply caps, asked for the supply cap of BTC.b to be increased 100% to 5,800. It passed on October 2 with nearly 100% voting “yes.”

:speaking_head: Provide your feedback on these new Aave Requests for Comment (ARCs):

  • Add Goldfinch FIDU as collateral to Aave V2. FIDU is a token that represents a liquidity provider’s position in Goldfinch Protocol’s “Senior Pool” — a “diversified basket of real world loans.” The proposal asks that FIDU be added as a collateral asset on Aave V2’s Ethereum market.
  • Improving wMATIC Parameters on Aave v3 Polygon. Since the inclusion of stMATIC and MATICx as collateral, the “borrowing demand of wMATIC will potentially increase.” @YJN58, who is a member of the Polygon team, argues that it is now “critical to optimize the current interest model of wMATIC” — for a number of reasons detailed in the post.

Ongoing requests for comment:

In the Forums

@HelloShreyas sheds light on his involvement with Aave Grants DAO and addresses how potential conflicts of interest for/with Llama are handled.

A depeg coverage pool? InsureDAO contemplates a grant proposal.

StakeWise is going permissionless.

Add New Zealand Dollar Stable coin NZDS to Aave?

Insolvency refund. @inkyamze explains what this is and how would work for Gauntlet.

On Twitter

rAAVE Bogatá is on October 12.

Community call on October 24, 4PM GMT, featuring Stani, bgdlabs, Gauntlet, Llama, and more.

In Discord

Here’s a helpful collection of Aave treasury and governance resources.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Hey! These are great. I’d love to chat. It would be awesome to incorporate these reports directly into Aave News.

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Yes – happy to talk! Let me know the best way to connect.

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Doesn’t look like you can dm on here any more. Can you pls reach out on Twitter @AaveGrants?

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Goldfinch is such an important part of the crypto ecosystem. Crypto’s promise to “bank the unbanked” is rarely even mentioned anymore. Yet Goldfinch has facilitated more than $100m of loans to SMEs regions with little banking coverage. Kudos to their team and fully supportive of this application, within the necessary risk parameters.

Concerns here are secondary market liquidity, which is currently often below $100k per 24hrs.

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Week of October 3, 2022

Summary

The critical Autonomous Proposal accumulated enough (320K AAVE) proposition power to execute, which meant that two proposals were initiated: The “vote boost” proposal (which succeeded), and the proposal to adjust Level 2 requirements (which is active). Read all about the process and its importance to Aave governance here.

:speaking_head: The second proposal needs to meet high quorum and differential thresholds. So go vote.

Process note: The most recent, always excellent Aave News is out. Going forward, we at Boardroom will be contributing to the governance news covered there. (We’ll still post here, just to make sure all bases are covered.)

Proposals

:speaking_head: Active Aave Improvement Proposals (AIPs):

  • Adjust Aave Governance Level 2 requirements (106).

Recently active Aave Improvement Proposals:

  • Use AAVE Ecosystem Reserve to vote YES on proposal to adjust Level 2 Governance requirements (107). This passed with nearly 100% voting “YAE.”
  • Ethereum v2 Reserve Factor - aFEI Holding Update (105) passed and was executed on October 9.
  • Llama <> Aave (104) passed and was executed on October 9.

On Snapshot:

:speaking_head: Provide your feedback on these new Aave Requests for Comment (ARC):

  • Security and Agility of Aave Smart Contracts via Continuous Formal Verification. @shelly from Certora extends this proposal from a previous one, requesting a year-long commitment from Aave DAO at $2.7m, with an additional $400k suggested for fellowships and community grants for security engineers from the Aave community.

Ongoing requests for comment:

In the Forums

Aave Grants DAO has posted its September update, with details about budget, grantees, and events provided by @0xmigi.

Delegate platforms: See updates and voting rationales from Franklin DAO (@PennBlockchain).

On Twitter

Delegation at Aave: Everything you need to know, brought to you by @AaveGrants.

Real-time monitoring of Aave, thanks to Forta.

rAAVE in Bogatá.

Community call on October 24, 4PM GMT, featuring Stani, bgdlabs, Gauntlet, Llama, and more.

In Discord

Who manages the Aave treasury?

Do delegates get paid?

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of October 10, 2022

Summary

The proposal to Adjust Aave Governance Level 2 requirements passed — with just enough votes to meet quorum. Great work by @bgdlabs to figure this one out and help get it through. They remind us not to remove proposition power from the autonomous contract until the proposal is executed (~six days from now).

Here are the latest metrics from Messari, and be sure to check out Aave News this week.

Proposals

Aave Improvement Proposals (AIPs):

  • Whitelist Balancer’s Liquidity Mining Claim (109). “Balancer DAO seeks to retrieve around 1,500 stkAAVE from several Linear Pools.”

Recently active Aave Improvement Proposals:

  • Adjust Aave Governance Level 2 requirements (106). :fireworks: Succeeded with nearly 100% voting “for,” and is queued for execution in ~six days.
  • Risk Parameter Updates for Aave V2 ETH (108) succeeded with nearly 100% voting “for,” and was executed on October 14.

:speaking_head: Now on Snapshot:

:speaking_head: Provide your feedback on these new Aave Requests for Comment (ARCs):

  • Aave V3 Ethereum Deployment: Assets and Configurations. Following the community-approved decision to deploy a new Aave V3 Ethereum market (rather than upgrade V2), it’s “time for the community to make important choices around how to design V3 ETH’s initial market structure.”
  • Risk Parameter Updates for Aave V3 Avalanche: 2022-10-15. Here’s Gauntlet’s guidance, which is to adjust five parameters “to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.”
  • Aave v3 Polygon wMATIC Interest Rate Update. Llama proposes to update “wMATIC interest rate parameters on the Aave Polygon v3 Liquidity Pool.”

Requests for comment active this week:

In the Forums

LFGHO! An update on GHO from @AaveLabs, including a technical paper.

Financial Report, Q3 2022 from @Llamaxyz.

Mango Markets and liquidity attack risk. @pauljlei says Gauntlet is analyzing risk to Aave v2 and v3 assets.

New delegate platform, from @lbsblockchain, a “student and professional society at the London Business School.” Check it out.

FEI security report. BGD Labs observed a problem when the FEI reserve factor was set to 100% (through a recent proposal, as part of the planned deprecation of the FEI market). Proposed solution included.

Network evaluation. BGD Labs provides a clear framework for the technical evaluation of networks seeking a deployment of Aave v3.

Karma forum plugin. @mmurthy explains how the Discourse plugin could help “streamline” delegate activity.

On Twitter

Llama Twitter Spaces on their work with Aave. Join the next one on October 19.

Gauntlet presents a case study: “Impact Measurement: Aave.”

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of October 17, 2022

Summary

Lots of action with proposals — see below.

:speaking_head: There’s an Aave community call today, October 24 at 4PM GMT on Twitter Spaces.

Here are the latest metrics from Messari, and be sure to check out Aave News this week.

Proposals

Aave Improvement Proposals (AIPs):

  • Risk Parameter Updates for Aave Polygon Markets (2022-10-21) (112). This proposal to “take precautionary measures on the Aave Polygon markets” succeeded with nearly 100% voting “YAE.” This proposal (and the one just below) arose out this discussion on the forum. (A similar discussion was had on the Compound forums, leading to a proposal.)
  • Risk Parameter Updates for Aave V2 ETH (2022-10-21) (111). This proposal to “take precautionary measures on the Aave V2 Ethereum market, including parameter changes on six (6) assets on Aave V2” succeeded with nearly 100% voting “YAE.”

Recently active Aave Improvement Proposals:

  • FEI Reserve Factor Update (110). As part of the planned deprecation of FEI as a collateral asset, the Reserve Factor had been set to 100% in a previous proposal. Since then @bgdlabs has noticed that no variable borrow debt is being accrued and the fees for the Reserve Factor are not being directed to the Collector smart contract as they should be. BGD Labs is here proposing a temporary fix — setting the Reserve Factor to 99% — until the protocol itself can be updated to handle resetting to 100%. The proposal passed with nearly 100% voting “YAE” and was executed on October 23.
  • Whitelist Balancer’s Liquidity Mining Claim (109). “Balancer DAO seeks to retrieve around 1,500 stkAAVE from several Linear Pools.” This proposal passed with nearly 100% voting “YAE” and was executed on October 21.

:speaking_head: Now on Snapshot:

  • Risk Parameter Updates for Aave V3 Avalanche: 2022-10-15. Here’s Gauntlet’s guidance, which is to adjust five parameters “to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.”
  • Aave v3 Polygon wMATIC Interest Rate Update. Llama proposes to update “wMATIC interest rate parameters on the Aave Polygon v3 Liquidity Pool.”
  • Add TRYB to Aave V3 on Avalanche Network, Isolation Mode.

Requests for comment active this week:

In the Forums

Delegate platform udpates: From @Kene_StableLab, @fig, @lbsblockchain, FranklinDAO, and @Llamaxyz.

Continuous formal verification report for September, provided by @MCERFSR for Certora.

“$GHST is a potential risk factor for Aave’s v3 Polygon deployment,” says @nonstopTheo on behalf of Risk DAO.

Aave v2 on zkSync 2.0 Testnet. @SA_Matterlabs proposes deployment.

On Twitter

Reminder: Community Call on Monday, October 24, 4PM GMT, with all the folks listed here.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Thanks for all the updates. We will definitely try to follow summaries here :+1:

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Week of October 24, 2022

Summary

Happy halloween! :ghost:

Here are the latest metrics from Messari, and be sure to check out Aave News this week.

Proposals

:speaking_head:Now on Snapshot:

  • Deploy Aave V3 to zkSync 2.0 Testnet. FranklinDAO and Matter Labs jointly propose deployment of Aave V3 to zkSync 2.0’s testnet, saying that it would support “Aave’s multichain mission and expand cross-chain experiences.” The move could bring new users to Aave, and may increase activity on Aave as well since transaction costs are significantly lower on the rollup. When mainnet deployment becomes possible (and certain other criteria are met), another Snapshot will be posted. Forum discussion can be found here.
  • Security and Agility of Aave Smart Contracts via Continuous Formal Verification. Certora extends this proposal from a previous one, requesting a year-long commitment from Aave DAO at $2.7m. The additional $400k suggested for fellowships and community grants for security engineers has been pulled from the request. See the full discussion here.

Recently on Snapshot

  • Add Login With Unstoppable as an option to the wallet connect dialog of the Aave app. Unstoppable Domains, which issues human-readable blockchain domains, here proposes to add an Unstoppable login to the Aave app — suggesting that this will bring more users to the protocol. Just over 55% voted “Nay.”

:speaking_head: Provide your feedback on these Aave Requests for Comment (ARCs):

  • [ARC] Add Support for cbETH. This proposal seeks to add cbETH (Coinbase Wrapped Staked ETH) to Aave on Ethereum. It presents cases for deployment on V2 (LTV 0%) or V3 (parameters tbd), with the community to decide via Snapshot.
  • ARC: Staked ATokens, A New Aave Primitive Exploring Vote-Escrow Economies. @AaveLabs seeks community feedback on creating this new primitive: Adopting it, “Aave DAO Treasury could generate revenue from staking rewards…[and] allow the Aave DAO Treasury to participate in the veToken economy and attract additional users.”
  • [ARC] - ERC4626 Strategies as Productive Collateral. This proposal, from @Llamaxyz and @MatthewGraham, is similar (and complementary?) to the one from AaveCompanies above: The proposal involves “the introduction of a new productive collateral type that allows users to earn the rewards of other protocols by depositing into Aave v3 Reserves,” while generating additional revenue for the Aave DAO.
  • [ARC] - Add support for BADGER on Aave V3. This proposal requests that the BADGER token be onboarded onto Aave V3 Ethereum. Badger DAO is “focused on building the products and infrastructure necessary to accelerate the growth of Bitcoin in Decentralized Finance across multiple blockchains.”
  • [ARC] - Integrate Coin98 Wallet into the Aave App. A proposal to integrate with this non-custodial wallet, making Aave available on the Coin98 mobile app.

In the Forums

Aave <> Starknet Phase 1 project has been completed, says @eboado, who gives a full recap of what has been done.

Envoy proposal alerter. @lbsblockchain has created a tool to track proposals.

Karma forum plugin. Is the community interested in this open source plugin to “streamline delegate activity” and surface governance info?

Discursive health of DAOs. Here’s a brief research survey to complete, about governance.

Interest rate parameters. Gauntlet is preparing to support interest rate parameters, and initiates discussion of curve mechanics in this thread.

GHO development cost. MatthewGraham asks AaveCompanies if they are planning to request retroactive payment for developing GHO — so that a proper analysis of the DAOs runway can be conducted. In future, he asks the team to detail “scope of work, timeline and KPIs” for major projects.

Messari now covers Aave in their Governor product, as announced by @raho.

On Twitter

There was a community call on Twitter Spaces last week, which was great — here’s the full summary from @0xmigi.

In Discord

“How do you think anon forums would impact the quality of forum discussions?”

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of October 31, 2022

Summary

It’s been especially busy with requests for comment — lots of ideas being put forward. See below.

And: the latest metrics from Messari, and last week’s Aave News (new one coming up).

Proposals

Aave Improvement Proposals:

  • Chaos Labs Risk Platform Proposal (113). Passed with nearly 100% voting “YAE,” and is queued for execution.

:speaking_head: Now on Snapshot:

  • ERC4626 Strategies as Productive Collateral. Llama here proposes the introduction of new collateral type that will allow “users to earn the rewards of other protocols by depositing into Aave v3 Reserves.”

Recently on Snapshot:

  • Staked ATokens, A New Aave Primitive Exploring Vote-Escrow Economies was approved by nearly 100% of voters on November 5.
  • Deploy Aave V3 to zkSync 2.0 Testnet was approved by nearly 100% of voters on November 2.
  • Security and Agility of Aave Smart Contracts via Continuous Formal Verification was approved by nearly 100% of voters on November 3.

:speaking_head: Provide your feedback on these active Aave Requests for Comment (ARCs):

  • Gauntlet <> Aave Renewal. A proposal to renew the twelve-month engagement, which expires in December.
  • Risk Parameter Updates for Aave V2 ETH and Aave Arc (Fireblocks) 2022-11-03. Gauntlet recommends no parameter changes this week.
  • ETH Interest Rate Curve Update. A proposal “to amend ETH interest rate parameters on the Aave Ethereum v2 and Ethereum v3 (when deployed) Liquidity Pools.”
  • LDO Emission_Admin for Polygon V3 Liquidity Pool. @llamaxyz “proposes amending the Emission_Admin address to enable the distribution of LDO rewards.”
  • BAL Interest Rate Curve Update. Llama proposes “to amend BAL interest rate parameters and enable borrowing of BAL on the Aave Ethereum v2 Liquidity Pool.” Be sure to follow the discussion as the proposal evolves.
  • Add OP as Collateral to Aave V3. Gauntlet is analyzing.
  • Add Support for BADGER on Aave V3. Discussion continues.
  • Aave V3 Delployment: Assets and Configurations. A new comment about Index Coop’s DeFi Pulse Index, by @funkmasterflex.
  • Add Support for cbETH. Some more comments in the discussion.
  • Harmony One. Should Aave participate in the recovery process?

In the Forums

Aave Grants DAO presents the October update, courtesy of @0xmigi.

Gauntlet analyzes market risks of listing LP tokens as collateral (see here and here).

Here’s the update for month one, from Llama.

Delegate updates from @Kene_StableLab, @PennBlockchain, and @lbsblockchain, explaining votes.

Should we deploy Aave V3 on BNB chain?

For discussion, from @monet-supply: adjust stablecoin rate parameters on Aave V2 Ethereum.

On Twitter

Aave News recap in a thread.

J.P. Morgan used a “modified version of Aave” to execute its first live trade in DeFi.

Voting block delay. A reminder from @bgdlabs that voting opens 7200 blocks after proposal creation. (This from the changes coming from proposal # 106.)

In Discord

Where should I have AAVE to participate in governance?

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of November 7, 2022

Summary

Another long recap this week — which seems somehow appropriate, given everything.

Here’s last week’s Aave News (new one coming up soon) and metrics from Messari.

Proposals

Aave Improvement Proposals (AIPs):

  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-13)(119). This proposal freezes the BAL market on Aave V2 ETH in light of recent market volatility, as recommended by Gauntlet “out of an abundance of caution.”
  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-13) (118).This proposal freezes the CVX market on Aave V2 ETH in light of recent market volatility, as recommended by Gauntlet “out of an abundance of caution.”
  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-12) (117). This proposal freezes the REN market on Aave V2 ETH in light of recent market volatility, as recommended by Gauntlet “out of an abundance of caution.”
  • Add OP as Collateral to Aave V3 (116). As the title indicates, this proposal seeks to add OP as a collateral asset on Aave V3 Optimism — following a Snapshot vote in August in which almost 100% voted “YAE.” Risk parameters are noted in the proposal (though they are changed from the Snapshot proposal), and the Optimism Foundation offers to “seed incentives” to help build the liquidity pool. This would present a powerful use case for OP outside of governance. However, the proposal was put forward before Gauntlet was able to provide its risk analysis, which many say is especially important at this time.
  • Strategic Partnership with Balancer DAO Part 2 - 100k BAL Acquisition (115). This proposal is intended to complete the second part of Aave’s plan to acquire 300k BAL, which goes toward a strategic partnership long in the works. (Part 1 was accomplished through a token swap in July.) The ultimate goal is to support the growth of the Aave ecosystem, and veBAL presents “numerous opportunities” — including those put forward in two recent proposals (here and here). This proposal will allow for the on-market acquisition of 100k BAL by deploying a Bonding Curve contract. The proposal passed with 100% voting “YAE” and was executed on November 13.
  • Certora Continuous Formal Verification (114). This is the on-chain implementation of a recently passed Snapshot proposal in which Certora proposed to “improve the security of smart contracts built on top of Aave using a combination of formal verification and manual code review,” something which it has already been contracted to do for the DAO over the past six months. This proposal lays out the details of what Certora has accomplished and what it intends to do, offering to extend their previously established relationship by requesting a year-long commitment from Aave DAO at $2.7m. The proposal passed with 100% voting “YAE” and was executed on November 13.

Recently on Snapshot:

  • ERC4626 Strategies as Productive Collateral. Llama here proposes the introduction of a new collateral type that will allow “users to earn the rewards of other protocols by depositing into Aave v3 Reserves.” The proposal passed with 76.22% voting “YAE.”

:speaking_head: Provide your feedback on these active Aave Requests for Comment (ARCs):

  • Aave V3 Deployment: Assets and Configurations. Gauntlet presents a table of options, and may soon initiate a Snapshot vote.
  • [ARC] Implementing a GHO Backstop for Aave. “B.Protocol would like to propose Aave DAO add a user-based backstop for GHO that will enable safer and more robust liquidation mechanics that can ensure peg stability also for less liquid collaterals as well as during radical market conditions.”
  • [ARC] stMATIC Emission_Admin for Polygon v3 Liquidity Pool. @llamaxyz proposes “assigning the stMATIC Emission_Admin role on the Aave v3 Polygon Liquidity Pool to a Gnosis Safe controlled by the Polygon Foundation.”
  • [ARC] LDO Emission_Admin for Polygon v3 Liquidity Pool. Llama proposes “amending the Emission_Admin address to enable the distribution of LDO rewards.”

In the Forums

Market downturn: @pauljlei from Gauntlet presents an analysis — followed by three AIPs for REN, CVX, and BAL (see above).

Financial report for October 2022, from Llama.

Delegate platform updates from FranklinDAO and @lbsblockchain.

Messari Governor Note re staked aTokens. Check out the write-up by @tnorm.

Harmony recovery. Discussion continues.

Alternative UI for non-DeFi users. @Sejal from DAOLens requests feedback on some ideas.

New governance UI? @D3Portillo from Radish makes a proposal.

Roadmap update from @OriN of Chaos Labs, following their successful governance proposal.

On Twitter

What crypto needs: Community governance, and more ungovernance, says @StaniKulechov

Aave IPFS UI: Improving state Management.

In Discord

Looking for feedback: @nonstopTheo requests some thoughts about how “we get standardized trade volume stats for asset onboarding + risk mgmt.” (See forum post here.)

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of November 14, 2022

Summary

Here’s Aave News #75 and Messari’s weekly report.

Proposals

Aave Improvement Proposals (AIPs):

  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-13)(119). This proposal passed with 100% voting “YAE” and was executed on November 18.
  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-13) (118). This proposal passed with 100% voting “YAE” and was executed on November 18.
  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-12) (117). This proposal passed with 100% voting “YAE” and was executed on November 17.
  • Add OP as Collateral to Aave V3 (116). This proposal received 74% “NAY” votes and failed on November 14. (See discussion here for why.)

:speaking_head: Now on Snapshot:

  • Gauntlet <> Aave Renewal. A proposal to renew the twelve-month engagement, which expires in December.
  • [ARC] ETH Interest Rate Curve Update. @Llamaxyz here proposes to “amend” the interest rate curves on Aave V2 Ethereum and Aave V3 Etheerum (which will soon be deployed).
  • [ARC] SD Emission_Admin for Polygon v3 Liquidity Pool. Llama proposes “assigning the SD Emission_Admin role on the Aave v3 Polygon Liquidity Pool to a Gnosis Safe controlled by the Stader Labs.”
  • [ARC] LDO Emission_Admin for Polygon v3 Liquidity Pool. Llama proposes “amending the Emission_Admin address to enable the distribution of LDO rewards.”
  • Strategy on sunset of Aave v1. Since Aave V2 and V3 are already in existence, BGD Labs here asks for community feedback on how best to sunset Aave V1 (Ethereum and AMM).
  • Aave V3 Deployment: Assets and Configurations. Gauntlet presents a table of options.

Recently on Snapshot:

  • [ARC] Risk Parameter Updates for Aave V2 ETH 2022-11-17. This proposal sought to adjust two parameters (liquidation threshold, loan to value) of REN. It passed on November 21 with 99% voting “YAE.”

:speaking_head: Provide your feedback on these active Aave Requests for Comment (ARCs):

  • [ARC] Integrate Coinbase Pay into the Aave app. This proposal from @AndrewA of Coinbase Cloud would “allow Aave users to utilize their saved Coinbase payment methods and crypto balances to quickly add crypto to their self custody wallets linked to Aave.”
  • [ARC] Uniswap V3 NFT as Collateral for minting GHO. This is a proposal from @harshpandey for “a GHO Facilitator which accepts Uniswap V3 NFT (LP positions) as collateral and permits minting and burning GHO tokens when borrowing/repaying and getting liquidated.”
  • [ARC] Discussion: V2 → V3 Migration & V2 Deprecation Plan. This proposal from @oneski22 “presents the community with the opportunity to accelerate the migration of capital from several of the legacy V2 markets to the newer, more secure V3 markets.”
  • [ARC] Implementing a GHO Backstop for Aave. Discussion continues.

In the Forums

Delegate platform updates from FranklinDAO and @lbsblockchain.

Certora post continuous formal verification report for October.

On Twitter

Claim your Aave Grants DAO NFT.

The actual Aave treasury and reserve amounts.

A Twitter list of Aave Grants grantees.

DAOLens receives a grant to create a new governance UI for Aave.

In Discord

Ever surprised by proposals popping up at unexpected times? Get notifications from the #governance channel bot, which tracks both proposal submissions and governance posts in the forum.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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18

Week of November 21, 2022

Summary

An especially turbulent week for Aave, but one which reveals the strength of DeFi and the advantages of DAOs. There’s one forum thread in particular that captures a wide range of strategies, approaches, and attitudes among those participating in the DAO — and it spawned a host of governance proposals (see below).

Check out Aave News #76, and Messari’s Aave Weekly Report.

Proposals

Aave Improvement Proposals (AIPs):

  • Risk Parameter Updates for Aave v2 Polygon (126). Llama and Chaos Labs here jointly propose to make parameter changes to the Aave V2 Polygon Liquidity Pool, “[i]n response to recent market events and the resulting discussion on the Aave governance forum.”
  • Risk Parameter Updates for Aave v2 Ethereum Liquidty Pool (125). As above, Llama and Chaos Labs here propose parameter changes “in response to recent market events.” It is presented as an alternative to AIP-121 (see below), and also results from discussions in the forum.
  • Risk Parameter Updates for Aave V2 Polygon (124). This proposal passed with 100% voting “YAE” and is queued for execution.
  • Pause UNI Borrowing (123). This proposal passed with 100% voting “YAE” and was executed on November 27.
  • Pause LINK Borrowing (122). This proposal passed with 100% voting “YAE” and was executed on November 27.
  • Risk Parameter Updates for Aave V2 ETH Market (2022-11-22) (121). This proposal passed with 100% voting “YAE” and was executed on November 27.
  • Risk Parameter Updates for Aave V2 (2022-11-17) (120). This proposal passed with 100% voting “YAE” and was executed on November 26.

On Snapshot:

  • Activation of a ParaSwap fee claimer contract. BGD Labs proposes “to deploy a smart contract to automate fee collection from the Aave <> ParaSwap features.”
  • Risk Parameter Updates for Aave V3 AVAX 2022-11-23. This proposal “to set borrow caps on FRAX, MAI, and LINK on Aave V3 AVAX” passed on November 25 with 100% voting “YAE.”
  • [ARC] V3 Supply Cap Recommendations for Uncapped Assets (Fast-track). This fast-track proposal recommends supply caps for currently uncapped V3 assets. It passed on November 25 with nearly 100% voting “YAE.”

:speaking_head: Provide your feedback on these Aave Requests for Comment (ARCs):

  • [ARFC] Aave DAO Policy Change: Halt Listings on all Aave v1 & v2 Non Permissioned Deployments. A request “to adopt a policy of halting listings.”
  • [ARC] Repay excess debt in CRV market for Aave V2 ETH. Llama and Gauntlet propose to cover the bad debt from the recent exploit with Gauntlet’s insolvency refund and the DAO treasury.
  • ARC: Onboard Gamma Strategies’ USDC/GHO Uni v3 Collateral to Mint GHO. This proposal is to use “Gamma Strategies’ GHO-USDC LP position on Uniswap v3 as collateral, utilizing Gamma’s infrastructure.”
  • [ARC] Uniswap V3 NFT as Collateral for minting GHO. Discussion continues.

In the Forums

Reducing long tail asset risk. A discussion initiated by @monet-supply.

Delegate platforms. Updates from @Kene_StableLab and @lbsblockchain.

Pricing mechanisms. BGD Labs provides some “visibility” about the pricing mechanisms of assets (like WBTC) in Aave.

Support for cbETH. Certora provides formal verification of the token’s code.

Improve permissions management. @bgdlabs opens a discussion about the “idea of having faster levers…to change non-invasive risk configurations, in order to react swiftly under urgent circumstances.”

On Twitter

Running thread on the series of Aave proposals, by @AaveGrants

The community can choose its path forward, @Matthew_Graham_ reminds us.

What does it mean to freeze an asset? by @lemiscate.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of November 28, 2022

Summary

Lots of risk-related actions and discussions over the past week, and several important risk-related discussions and decisions ahead.

Proposals

Aave Improvement Proposals (AIPs):

  • Aave StarkNet Phase I - Aave <> StarkNet Bridge deployment/activation by Aave governance (127). Aave hopes to expand to StarkNet, a “validity” or “ZK” rollup, and this proposal presents the first step in doing so, beginning with creating “a bridge of Aave v2 Ethereum aTokens from/to StarkNet.” The proposal passed with almost 100% voting “YAE” and is queued for execution.
  • Risk Parameter Updates for Aave v2 Polygon (126). This proposal failed on November 30 because it did not reach quorum.
  • Risk Parameter Updates for Aave v2 Ethereum Liquidty Pool (125). This proposal succeeded with almost 100% voting “YAE” and was executed on November 30.

On Snapshot:

  • [ARFC] Aave DAO Policy Change: Halt Listings on all Aave v1 & v2 Non Permissioned Deployments. The crux of this proposal is that it “advocates only enabling future asset listings to occur on Aave v3 deployments”; if the proposal were to pass, no new assets could be added to Aave v2. This would effectively begin the transition from v2 to v3. The sunsetting of Aave v1 has been actively discussed on the Aave forums since late August, while discussions of the migration from Aave v2 to v3 (and the subsequent deprecation of v2) have been active since mid November of this year. Several key players in the Aave DAO are now urging the community to find ways begin to close off the v1 and v2 markets so that usage of the much less risk prone Aave v3 will increase.
  • Activation of a ParaSwap fee claimer contract. This proposal passed on November 29 with over 99% voting to approve.

:speaking_head: Provide your feedback on these Aave Requests for Comment (ARCs):

  • [ARC] Interest Rate Curve Changes for Aave v2 ETH. Gauntlet proposes to change interest rate parameters and reserve factors for USDT and TUSD. “Many interest rate curves on Aave have not changed for a long time and, in the case of some assets, have never been updated for the lifetime of the asset listing.”
  • [ARFC] Ethereum v2 Collector Contract Consolidation. A proposal from @llamaxyz to consolidate “the Aave v2 Collector Contract holdings by swapping a portion of the long tail assets to USDC and redeeming assets from the Aave AMM deployment.”
  • [ARC] Risk Parameter Updates for Aave v2 Ethereum - LT and LTV (2022.12.01). Chaos Labs proposes to “adjust 4 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV), for USDC and DAI markets.”
  • [ARC] Repay excess debt in CRV market for Aave V2 ETH. Discussion continues.

In the Forums

Add OP as collateral to Aave v3. @pauljlei provides the market risk assessment.

Oracle analysis. @OriN from Chaos Labs looks at BTC vs. WBTC as part of a longer discussion about pricing mechanisms.

Llama month 2. Updates from the team.

All the Q4 risk-off measures, summarized by Gauntlet.

Improve permissions management. This discussion continues with several new contributions.

More on real-world assets. @Puniaviision notes that Goldfinch will hold a Twitter Space on the subject on December 14.

Delegate platform updates from @lbsblockchain, Flipside Crypto, and the Aave Chan Initiative.

On Twitter

Aave v3. A bit of history and appreciation from Stani.

All the recent risk-off measures. @gauntletnetwork compiles them.

Aave News #77 dropped.

Vitalik on governance rights and token value.

Happy birthday beacon chain!

In Discord

What’s the difference between a Snapshot vote and an AIP?

Who carries out the changes decided by governance?

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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Week of December 5, 2022

Summary

Lots of proposals before the Aave community of late. Two very recent ones failed to reach quorum despite apparent support. Is it the weekend?

Proposals

Aave Improvement Proposals (AIPs):

  • Freeze Aave V1 (129). This proposal failed to reach quorum on December 11.
  • Set LDO, stMATIC, MaticX and SD Emission_Admin for Polygon v3 Liquidity Pool (128). This proposal failed to reach quorum on December 10.
  • Aave StarkNet Phase I - Aave <> StarkNet Bridge deployment/activation by Aave governance (127). This proposal passed with nearly 100% voting “YAE.”

:speaking_head: On Snapshot:

  • [ARFC] Receipt of Gauntlet Insolvency Fund. @llamaxyz proposes that “Gauntlet’s Insolvency Fund be transferred to the Aave Ecosystem Reserve in the form of AAVE tokens.”
  • [ARFC] Ethereum v2 Collector Contract Consolidation. Llama proposes to consolidate “the Aave v2 Collector Contract holdings by swapping a portion of the long tail assets to USDC and redeeming assets from the Aave AMM deployment.”
  • [ARFC] Repay Excess CRV Debt on Ethereum v2. Llama proposes “sourcing CRV for the purpose of repaying the excess debt in the CRV Reserve on the Ethereum v2 liquidity pool.”
  • Risk Parameter Updates for Aave v2 Ethereum - LTs and LTVs for Long Tail Assets. This proposal passed on December 11 with nearly 100% voting “YAE.”
  • Risk Parameter Updates for Aave v2 Ethereum (DAI LT and LTV). This proposal passed on December 10 with nearly 100% voting for “300bps LT decreases & LTV 75%.”
  • Risk Parameter Updates for Aave v2 Ethereum (USDC LT and LTV). This proposal passed on December 10 with nearly 100% voting for “150bps LT decrease & LTV 80%.”
  • V3 Borrow Cap Recommendations (Fast track). This proposal passed on December 8 with nearly 100% voting “YAE.”
  • [ARFC] Aave DAO Policy Change: Halt Listings on all Aave v1 & v2 Non Permissioned Deployments. This proposal passed on December 9 with nearly 100% voting “YAE.”

:speaking_head: Provide your feedback on these Aave Requests for Comment:

  • [ARFC] Aave v3 on Ethereum - Create eMode Categories. Llama proposes deploying Aave v3 on Ethereum “with two initial eMode Categories”: stabelcoin correlated, and Ethereum correlated.
  • [ARC] Add wstETH to Aave v3 on Optimism. A proposal from the Lido DAO to “add wstETH to the Optimism V3 Liquidity Pool.”
  • [ARC] Integrate Trust Wallet into the Aave App. This proposal hopes “to get the Trust Wallet connection point in the default connection modal” on both mobile and desktop.
  • [ARC] Aave v3 Polygon wMATIC Interest Rate Update. Llama picks up the discussion again.
  • [ARC] Freeze RENFIL for Aave V2 ETH Market. Discussion continues.

In the Forums

Aave <> Chainlink proof or reserve. BGD Labs lays out their “phase 1 release candidate.”

Governance framework for alternative chain proposals. This discussion is revived “one last time” before going to Snapshot.

Risk council discussions continue, with specific members / entities suggested.

Delegate platform updates from @lbsblockchain, FranklinDAO, and @MarcZeller

ARC or ARFC. Which one is it?

Redeem, consolidate, redeploy. Llama wants to discuss “Aave’s assets held within the Polygon v2 Collector Contract and v3 Treasury addresses.”

Gauntlet <> Aave. Intensive discussion continues after the contract renewal Snapshot failed.

ThunderCore. Here’s a proposal to deploy Aave on the EVM compatible chain.

On Twitter

Aave Grants applauded by Gitcoin for exemplifying best practices.

Aave News #77 in all its forms. #78 is out too.

In Discord

:speaking_head: Remember you can follow the #governance bot channel in Discord to be alerted when new Snapshot votes and governance forum threads are posted.

Quick Gov Links: Governance FAQ | Governance Docs | Discord Governance Channel | Snapshot | AIPs | Aave on Boardroom

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