Karpatkey Delegate Platform

Delegate Address: governance.karpatkey.eth (0x8787FC2De4De95c53e5E3a4e5459247D9773ea52)
Email: governance@karpatkey.com
Website: https://karpatkey.com
Twitter: https://twitter.com/karpatkey

Introduction

Hello Aave Community! We’re excited to announce the karpatkey Delegate Platform and begin supporting Aave at our fullest capacity.

karpatkey is a DeFi-native organisation specialising in professional DAO finance through industry-leading research and tooling since 2020. We’ve been working with GnosisDAO, Balancer, ENS, CoW Protocol, and Lido on financial planning, operations, and strategy, diversifying their treasuries into sustainable portfolios of DeFi investments designed to support DAOs in executing their missions.

Motivation

It’s been more than three years since the implementation of a detailed financial/governance framework to formalise the path to the decentralisation and autonomy of the Aave Protocol, later being added voting and proposal power delegation through Governance v2.

We’ve been advocates of delegated voting in DAO governance as a viable solution to improve the legitimacy, inclusivity, and effectiveness of decision-making processes. However, the efficacy of this system is highly dependent on having domain experts actively involved as delegates. It fosters a symbiotic relationship between all stakeholders, optimising the quality of collective decisions and reinforcing the democratic underpinnings of DAOs.

Our past work has led us to develop internal infrastructure for automatic on-chain treasury execution and risk management, which ultimately generated objective knowledge across DeFi protocols and hands-on user experience.

We’ve contributed to the development of an Aave fork project and historically deployed, borrowed, and staked a combined $26.51M worth of LP positions in both Aave V2 and V3:

We now believe we can meaningfully contribute to solidifying Aave’s position as the leading DeFi lending protocol, not only through domain expertise but mostly through pushing positive-sum initiatives with the DAOs we work with.

Why us

karpatkey’s governance team taps our network of engineers, DeFi strategists, data/financial/quant analysts, and accountants for subject matter expertise. As DAO treasury developers and contributors to some of the most reputable DeFi protocols in our industry, we believe that our team has the knowledge, trust, and alignment to meaningfully contribute to Aave’s growth moving forward. Check out our values to understand a bit more about our guiding and decision-making principles.

We differentiate ourselves by being a hands-on delegate, actively leveraging our unique position in assembling a DeFi block of DAOs with similar values.

Here are some ideas for potential contributions to the Aave DAO:

  • Explore opportunities for new business, integrations, promoting the overall growth of Aave markets and revenue;
  • GHO adoption on Gnosis Pay and GHO Liquidity on Gnosis Chain;
  • Increase Aave TVL from other DAO treasuries like Gnosis, ENS, Balancer, and Lido;
  • Commit our existing resources from our Balancer Finance Core Unit to support Aave adoption and increased TVL including operations, gauges, and boosting pools on Balancer/Aura;
  • Collaborate on pushing partnerships with the DAOs we contribute to, particularly Lido-Aave and Balancer-Aave, which have a lot of shared ground;
  • Explore ideas on Lido v2:
    • Gnosis module bonded collateral deposited in Aave GC until liquidated;
    • A new staking module acting as a priority lane for Aave in case (w)stETH needs to be liquidated;
    • GHO as a bonding asset for new permissionless nodes;
    • Lido minting GHO with stETH in treasury reassurance of not being liquidated and providing liquidity.

Main Focus Areas

We’re seeking to focus our efforts on the three topics we can contribute the most, both with our experience and influence. There’s been extensive research on these subjects, and karpatkey wants to actively join the community discussions.

1. Aave DAO Treasury

There’s an opportunity cost and a large potential risk in having Aave DAO’s assets idle without active risk management. Deploying a portion of the DAO’s funds across a diversified risk-adjusted portfolio can earn additional yield while guaranteeing sufficient runway and optimised risk exposure.

2. GHO

GHO is a significant strategic move for Aave. It has the potential to increase the utility of the protocol, generate revenue for the DAO, expand the ecosystem, and support decentralised stablecoins’ diversity to provide alternatives, making the ecosystem both more resilient and attractive.

3. Aave Safety Module

Aave’s recent exposure to the CRV markets’ volatility in light of the Vyper zero-day exploit was a reminder of the importance of increasing asset diversity and capital efficiency of the funds deposited in the Safety Module. This initiative will reduce the insurance cost and AAVE’s dependence in case of a shortfall event, and increase the cover value as well as the yield for depositors.

Conflicts of Interest

We’re active delegates in GnosisDAO, Uniswap DAO, and Safe DAO (Boardroom), and hold multiple crypto assets in our treasury. Please check our treasury reports for more information.

We commit to abide by the Aave’s Delegate Code of Conduct.

16 Likes

Voting Actions: August 7th – 11th

Proposal: [TEMP CHECK] Aave V3 Deployment on Celo
Vote: Yae
Reasoning: We voted in favor of this temp check. We believe that the deployment of Celo would benefit Aave for the following reasons:

  • Celo is incentivising liquidity on Aave (with 0.5% of CELO supply), which increases the possibility of bootstrapping liquidity;
  • With this deployment, AAVE can become a leading lending protocol on Celo while also contributing to the diversity of protocols available on this chain; and
  • This deployment could be a stepping stone for a future GHO launch on Celo, as this chain has few choices for stablecoins.
2 Likes

Voting Actions: August 14th – 18th

Proposal: [ARFC] Chaos Labs Risk Parameter Updates - Aave V2 Ethereum
Vote: Yae - Aggressive
Reasoning: We align with Chaos Labs’ recommendation to use the aggressive set of parameters. The difference in value on the possible liquidations between suggestions is not a concern and may incentivise the users to close their positions and move to v3.


Proposal: Gauntlet Recommendation to Freeze CRV on Aave v2 Ethereum
Vote: Yae
Reasoning: We support this proposal. We’ve been witnessing a Health Factor arbitrage, where debt positions rebalance between lending markets, and risk flows to the most tolerant protocol. In essence, this implementation will have two main consequences:

  1. Increase the probability of a liquidation event: freezing any further CRV supply leaves just one option for the borrowers to increase the Health Factor, which is to repay the debt; and
  2. Limit Aave’s potential loss amount on a bad debt situation: despite having the potential to originate a spike in CRV supply before governance approval, as pointed out by @ChaosLabs, CRV emissions increase (almost) linearly until August 2024. One can assume that the amount potentially supplied until the execution of this proposal would always be inferior to the amount supplied in the future, and this would limit asset-loss exposure through an indirect ceiling to the borrowed amount.

In our opinion—the end justifies the means—it’s time for Aave to stop being the lender of last resort.


Proposal: [ARFC] CRV V2 Ethereum Deprecation Plan
Vote: Yae
Reasoning: We support this proposal. In light of recent events and considering the concurrently active discussion around the freezing of CRV on v2, this deprecation plan is a metered approach that will slowly push the migration of users onto v3 while also addressing the concentration risks on v2.


Proposal: [ARFC] - Chaos Labs Scope and Compensation Amendment
Vote: Yae
Reasoning: We agree with this expansion in the scope of work from V3 to include V2 and GHO. The feedback on Chaos Labs’ performance thus far has been positive. We also agree that the diversification of risk management service providers is an added benefit.


Proposal: [ARFC] Sigma Prime audit budget extension
Vote: For
Reasoning: We agree with this budget extension. The work is necessary, and the performance record of Sigma Prime raises no concerns.

2 Likes

Voting Actions: August 14 – 18th

Proposal: [ARFC] wGHO Aave V3 Onboarding
Vote: Abstain
Reasoning: Although we acknowledge the potential of allowing wGHO as collateral to enable arbitrage and leveraged positions in under-pegged GHO scenarios, it may also open the door for unintended consequences.

As @Gauntlet clearly demonstrated, including wGHO could heighten the risk of liquidity-based attacks and amplify recursive borrowing dangers—without significantly enhancing GHO peg stability—particularly in the presence of the soon-to-be-launched GSM.


Proposal: [ARFC] sDAI Aave V3 Onboarding
Vote: Yae
Reasoning: This proposal opens an avenue for strategic initiatives with the MakerDAO community by increasing sDAI’s utility. Listing sDAI as collateral in the Aave V3 Ethereum pool allows users to earn DSR interest while using their assets as collateral for composable strategies.

For GHO, this means having a productive stablecoin with a higher yield than the GHO borrowing rate, which might put pressure on the GHO peg due to short positions capturing the spread. However, it should improve in the future with the decrease of Maker’s EDSR rate, the launch of the GSM, and better secondary market liquidity…


Proposal: stataToken operational update
Vote: Yae
Reasoning: We agree with this transfer of ownership to the Balancer governance as they are the primary user of the stataTokens.


Proposal: Aave v3 Base Activation
Vote: Yae
Reasoning: We support the deployment of Aave v3 to Base. As a product of Coinbase, there is potential for significant exposure for Aave on this chain. Additionally, we agree that the conservative supply and borrow caps are appropriate now.


Proposal: Supply Cap Update - stMATIC Polygon v3
Vote: Yae
Reasoning: We support this proposal to raise the supply cap. stMATIC is an LST that can be redeemed for the underlying asset in a 3-day window. The risk of increasing the Supply Cap is low, and this aligns with the community preference as previously discussed and voted on.


Proposal: [ARFC] Increase MaticX supply cap
Vote: Yae
Reasoning: We support this proposal to raise the supply cap of MaticX. Our rationale for support parallels the concurrently active stMATIC proposal.


Proposal: Swap assets to aUSDC
Vote: Yae
Reasoning: We agree with swapping these long-tail assets into aUSDC. This further executes the plan established with AIP 282 and helps to sustain a DAO runway in stables.

3 Likes

Voting Actions: August 21 – 26th

Proposal: [TEMP CHECK] Aave Treasury Proposal for RWA Allocation
Vote: Nae
Reasoning: While RWA is a topic the AAVE treasury should be interested in, some other steps need to be taken into account before we delve into it. The legal framework should be the first focus, as it is from it that several constraints arise. Another point we agree on in the discussion is that Aave should use its stablecoin holdings to support runway and that GHO is the ideal candidate for the RWA initiative.

However, the main point here is that this doesn’t seem to be the lowest-hanging fruit when thinking about treasury management strategy—we should start with the lowest risk profiles and then ramp up to more complex strategies. For example, other established DAO treasuries, like ENS, are only beginning to think about RWAs.


Proposal: [ARFC] Aave <> Bored Ghosts Developing (BGD) Phase 2
Vote: Yae
Reasoning: BGD is a valued partner of Aave, and they have been a consistent contributor throughout their Phase 1 commitment. As technical reviewers for all parameter change proposals, they helped sustain the protocol’s stability. The proposal is sound, and the deliverables are reasonable for the six months.


Proposal: Treasury Management - Polygon v2 to v3 Migration
Vote: Yae
Reasoning: We support this migration. The effort to consolidate and migrate treasury assets on Polygon will result in better productivity for the treasury, and we recognise that this effort has been ongoing since March.


Proposal: Chaos Labs Scope and Compensation Amendment
Vote: Yae
Reasoning: We support increasing Chaos Lab’s compensation by $400k for the remaining period of their service contract. The work they have performed has been well-received, and it is essential. However, the community should migrate to a more structured RFP model for new service agreements to better assess the DAO’s needs. Our position on this is explained, here.


Proposal: CRV Aave V2 Ethereum - LT Reduction
Vote: Yae
Reasoning: This follows the Curve v2 deprecation plan which received significant community support. Both risk management providers agreed to follow a more conservative approach, targeting a 2% reduction.


Proposal: sDAI Onboarding
Vote: Yae
Reasoning: We have previously supported this proposal in the ARFC stage and have no change of opinion. Our initial reasoning for support can be found here.


Proposal: [TEMP CHECK] Aave V3 “MVP” Deployment on GnosisChain
Vote: Yae
Reasoning: AAVE on the Gnosis Chain is a strategic movement to set the foundation for deeper synergies. It will strengthen the GC DeFi ecosystem, as it is an important addition to Balancer, Backed, Aura, and many other protocols. We agree that the current parameters are aligned with this “MVP,” and we look forward to an expedited GHO deployment at Gnosis Chain.


Proposal: [ARFC] Chaos Labs Risk Parameter Updates - Aave V3 Optimism - 2023.08.13
Vote: Yae
Reasoning: We trust Chaos Labs’ risk simulation, and the proposal is for potential changes that improve capital efficiency without any substantial risk associated.

2 Likes

Voting Actions: August 28th – September 1st

Proposal: GHO update on Aave V3 Ethereum Pool
Vote: Yae
Reasoning: As we have previously approved the action put forward by Aave Companies for the GHO pause and Unfreezing, we also support this fix. We recognise the support and quick response provided by BGD Labs on the vGHO improvement payload to correct this technical issue. The introduction of a borrowing limit is also reasonable as it is coupled with closer monitoring.


Proposal: [ARFC] Treasury Management - Avalanche v2 to v3 Migration
Vote: Yae
Reasoning: We support these v3 migrations unless an underlying, chain-specific issue needs addressing. We have no concerns about migrating from Aave v2 to v3 on Avalanche.


Proposal: [ARFC] Return OP to Aave Grants DAO Safe
Vote: Yae
Reasoning: This proposal corrects an erroneous transaction that should not have happened. We support moving the OP back to the Aave Grants DAO Safe.


Proposal: [ARFC] Increase GHO Borrow Rate
Vote: Yae
Reasoning: We have voted “yae,” but would like to recognise that this is a short-term action to incentivise borrowers to repay their position (improving the peg). There is no guarantee that it will succeed. Whilst it doesn’t add any operational risk, as @gauntlet_xyz mentioned, LPing minters will likely not change their position. This dune dashboard shows 36.7% of the current supply is on DEXes as LP.


Proposal: Chaos Labs Risk Parameter Updates - Aave V3 Optimism
Vote: Yae
Reasoning: We continue supporting this proposal as expressed in the ARFC phase. See our prior reasoning here.


Proposal: Funding Aave Robot for Governance V2 Automation
Vote: Yae
Reasoning: Following the recent testing led by BGD labs, we agree that the Robots should be topped up with LINK to pay gas expenses and remain operational. We also agree that BGD labs should be reimbursed for their LINK expenses on the Aave Robot.


Proposal: Aave BGD Phase 2
Vote: Yae
Reasoning: BGD is a valued partner of Aave, and they have been a consistent contributor throughout their Phase 1 commitment. We continue to support this in the executable phase. See our prior reasoning See our prior reasoning here.


Proposal: [ARFC] Enabling USDT as collateral on Aave v3 AVAX Market
Vote: Yae
Reasoning: We support this proposal to enable USDT as normal collateral. The parameters are fine, and it is a good practice to be conservative and have a lower supply to check the change and update it if there is demand.


Proposal: [ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 Ethereum - 2023.08.25
Vote: Yae
Reasoning: We support these changes, and they increase the capital available for borrowing without increasing the risk significantly, as the major changes will align LSTs parameters with WETH.

1 Like

Voting Actions: September 4th – 8th

Proposal: [ARFC] Treasury Management - Replace AGD’s DAI Allowance with GHO Allowance
Vote: Yae
Reasoning: We support this proposal. As Aave Grants DAO’s (AGD) budget is significant and it is disbursed to a large number of grantees, we feel this is a great way to support GHO use from inside the Aave ecosystem.


Proposal: Reserve Factor Updates - Polygon Aave v2
Vote: Yae
Reasoning: We support this AIP as it continues AIP 284, which aims to promote the funds’ migration from Aave v2 to Aave v3. It increases the Reserve Factor (RF) for assets on Polygon v2 by 5%, up to a maximum of 99.99%, lowering the attractiveness of those markets.


Proposal: Sigma Prime Audit Budget Extension
Vote: Yae
Reasoning: We support this proposal following the same reasoning presented on the Temp Check, which can be found here

Voting Actions: September 11th – 15th

Proposal: [ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 Avalanche - 2023.09.06
Vote: Yae
Reasoning: We support these updates and have no concerns with the parameters presented by Chaos Labs.


Proposal: Gauntlet recommendation to set MAI/MIMATIC isolated debt ceiling to 0 for Arbitrum, Avalanche, Polygon, Optimism v3
Vote: Yae
Reasoning: We should seek to mitigate the build-up of potential risk with MAI/MIMATIC trading outside of its peg. This proposal does not affect current positions.

Voting Actions: September 18th – 22nd

Proposal: [ARFC] wGHO Aave V3 Onboarding
Vote: Yae
Reasoning: We support this renewed proposal with the lower supply cap (1M) and e-mode disabled. It is important to have wGHO on the platform to increase GHO use cases and to see how the market reacts.The current set of parameters is reasonable.


Proposal: [ARFC] OP Risk Parameters Update for Aave V3 Optimism Pool
Vote: Yae
Reasoning: We support the proposal, as the OP removal from isolation mode enables new borrowing opportunities for the asset. As OP is the native asset of Optimism L2, this can drive more volume to Aave Market v3 there.


Proposal: [ARFC] Safety Module - Polygon & Avalanche Coverage Update
Vote: Yae
Reasoning: This change discourages users from remaining in the v2 markets on Avalanche and Polygon. We support this proposal as one of Aave’s overall goals is to migrate all liquidity to v3 markets.


Proposal: Aave V3 Ethereum MKR Debt Ceiling Update
Vote: Yae
Reasoning: We support this proposal. It came from a request from a community member and prompted a review of the borrow cap from 2.5M to 6M. There is no perceived risk of borrow concentration, and both risk teams suggested a higher value than the original ask (4M).


Proposal: GHO Borrow Rate Update
Vote: Yae
Reasoning: We support this proposal as it can effectively improve GHO’s peg. However, we would like a more structured proposal for Aave Governance to discuss a rate adjustment plan when/if this situation occurs again.


Proposal: [ARFC] Expansion of “Orbit” - A DAO Funded Delegate Platform Initiative
Vote: Yae
Reasoning: Active delegates are crucial for the Aave DAO. We support incentivising and rewarding delegate activities with projects such as the Orbit and are happy to see the funding taken on by the Aave DAO itself.


Proposal: [TEMP CHECK] Treasury Management - Swap B-80BAL-20wETH to GHO
Vote: Yae
Reasoning: This proposal replenishes the DAO’s stablecoin holding in GHO, which can be used to fulfil payments for operational expenses. We support this action as it prioritised GHO as the Aave DAO’s stablecoin of choice.


Proposal: [TEMP CHECK] Treasury Management - Create and Fund GHO Liquidity Committee
Vote: Yae
Reasoning: This proposal is worth supporting as a short-term mandate to assist in establishing GHO. If the committee can achieve and sustain even the lower bounds of the performance measures of 98.5 cents during the three-month mandate, this would be a marked improvement in price stabilisation.


Proposal: [ARFC] Treasury Management - GHO Liquidity Strategy Update
Vote: Yae
Reasoning: We agree with this strategy to deepen the liquidity and further stabilise these pools that have organically arisen.


Proposal: Rescue Mission Phase 2, 3
Vote: Yae
Reasoning: This is a good-faith effort to help users recover lost tokens. We support this rescue mission.

2 Likes

Voting Actions: September 25th – 29th

Proposal: [ARFC] Aave V3 Deployment on zkEVM L2
Vote: Yae
Reasoning: We support the deployment of Aave V3 on the zkEVM network. The proliferation of Aave on new chains with lower costs could bring more users, protocol revenue and build brand awareness. We support the deployment as an MVP with USDC, Matic and WETH and have no issues with the risk parameters at this early stage.


Proposal: [ARFC] Treasury Management - GHO Funding
Vote: Yae
Reasoning: GHO is the obvious choice of stablecoin payment for Aave DAO’s expenses; therefore, we support this proposal and the swapping assets listed in the proposal into GHO to support DAO’s funding needs.


Proposal: [ARFC] Aave V3 Deployment on GnosisChain
Vote: Yae
Reasoning: We support the current values set for wETH, wstETH, GNO, USDC, wxDAI, and EURe on Aave V3 GnosisChain, as it is an MVP with a conservative approach.

We want to revisit the GNO parameters after some time, as we believe it is an asset that should be out of isolation mode, with the risk associated with it mitigated using other parameters.


Proposal: CRV Aave V2 Ethereum LT Reduction
Vote: Yae
Reasoning: We support this proposal, as this is another part of the execution of the CRV V2 Ethereum Deprecation Plan approved by the community. The current reduction (2%) does not make any account eligible for liquidation.


Proposal: [TEMP CHECK] Updated Aave Grants Continuation Proposal
Vote: Yae
Reasoning: Aave grants have played an important part in fostering the Aave Ecosystem, and we support this proposal. It is interesting to see more focused lines of funding (400,000 for ARB projects, for example) and the declared objective to kickstart the growth of teams building on top GHO.


Proposal: [ARFC] Aave V2 Markets Deprecation Plan
Vote: Yae
Reasoning: This proposal lays down a good structure to conduct the depreciation of v2 Markets, and we support it. Regarding the suggested approaches, the conservative one is our preference, as it does not imply any liquidation.


Proposal: [ARFC] Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3
Vote: Option 1
Reasoning: We support a smaller reduction, giving time for borrowers to adjust their positions accordingly. Therefore, we choose option 1, which currently has the lower liquidation impact.


Proposal: Gauntlet Interest Rate Recommendation for WETH Base Rate
Vote: Option 1
Reasoning: We support the change for the base rate to be set as 0, as it will lower the borrowing rate at the Uopt (Optimal Utilisation), enabling a looping strategy for LSTs and opening the way for increasing the current utilisation.


Proposal: Gauntlet recommendation to set WETH slope 1 to 3.3% on v3 markets, excluding Ethereum v3
Vote: Yae
Reasoning: We support this proposal as it improves the attractiveness of an LST strategy and can increase the WETH utilisation of these markets closer to the Uopt.


Proposal: Reserve Factor Updates - Polygon Aave v2
Vote: Yae
Reasoning: These reserve factor updates will further incentivise migrating from v2 to v3.


Proposal: [ARFC] Treasury Manage - GHO Liquidity Committee
Vote: Yae
Reasoning: We continue our support of this proposal. Our supporting reasoning can be found, here.


Proposal: [ARFC] Treasury Management - Amend Safety Module AAVE Emissions
Vote: Yae
Reasoning: We support this proposal to reduce the emissions while the future composition of the SM is still to be decided. It is important to have a balanced distribution between all assets that will be part of it, and we are available to participate in this discussion.


Proposal: [ARFC] Treasury Management - Update Balancer Ecosystem Holdings
Vote: Yae (Option 3)
Reasoning: We support this position for the reasons stated here. It is well-balanced and promotes a win-win situation for all parties involved


Proposal: Aave treasury RWA Allocation Part I
Vote: Yae
Reasoning: After productive conversations with the Centrifuge team, we support this proposal (Part I) to create the legal setup, as we understand that the complete proposal comprises the framework needed to have this class of assets introduced safely into Aave.


Proposal: Expansion of Orbit
Vote: Yae
Reasoning: Active delegates are crucial for the Aave DAO. We support incentivising and rewarding delegate activities with projects such as the Orbit and are happy to see the funding taken on by the Aave DAO itself.

1 Like

Voting Actions - October 2nd – 6th

Proposal: [ARFC] KNC onboarding on AaveV3 Ethereum market
Vote: Yae
Reasoning: This proposal expands AAVE’s token offering. Having KNC in isolation mode as collateral helps to get a better sense of how its holders will behave, and the 1M debt ceiling, coupled with the LTV of 35% and the LF of 40%, are conservative and reasonable values for this first step. Enabling KNC as a borrowable asset with a 600,000 borrow cap is also reasonable to gauge the market interest in the asset.


Proposal: [ARFC] STG onboarding on AaveV3 Ethereum Market
Vote: Yae
Reasoning: This proposal expands AAVE’s token offering. Starting with STG in isolation mode is standard to verify the market dynamics, and the Debt ceiling, LTV and LF are conservative. Enabling STG as a borrowable asset with a 5.5M borrow cap is reasonable to gauge the market interest in the asset.


Proposal: Treasury Management - Create AGD GHO Allowance
Vote: Yae
Reasoning: This increases GHO utility and capillarity in the market, as AGD will distribute it to contributors and grantees over a long period. Given the current market conditions, we support buying GHO OTM, which helps improve the peg and is a better alternative than minting new GHO.


Proposal: Reserve Factor Updates - Polygon Aave v2
Vote: Yae
Reasoning: This a part of the v2 to v3 migration strategy. Increasing the v2 Reserve Factor on these assets makes supply less attractive, as a larger part of the interest the borrowers pay goes to AAVE’s treasury. This update will incentivise lenders to go to the Polygon v3 market, reducing the liquidity on v2 and attracting the borrowers to v3.


Proposal: Treasury Management - Polygon v2 to v3 Migration
Vote: Yae
Reasoning: We support the Aave DAO’s assets migration from Polygon’s v2 to v3, aligned with the v2 deprecation strategy started with the AIP-284.


Proposal: [TEMP CHECK] Aave Events & Sponsorship Budget
Vote: Yae
Reasoning: We support this budget proposal from Aave Companies for the remainder of 2023, but more detailed reporting in the future is essential for further support of these requests. At a minimum, we would like to see high-level spending reports accompany the next request.


Proposal: [TEMP CHECK] Add FXS to Ethereum V3
Vote: Yae
Reasoning: Adding FXS to the Ethereum v3 Liquidity Pool increases potential revenues and diversifies options for GHO collateral. We agree with the initial risk parameters recommended by Gauntlet.


Proposal: TUSD Offboarding Plan Part II
Vote: Yae
Reasoning: This continuation of the TUSD offboading plan incentivises migrating from v2 to v3. We should continue to encourage the migration to v3 slowly.


Proposal: OP Risk Parameters Update
Vote: Yae
Reasoning: Updating the OP risk parameters is appropriate, given the L2 has matured since onboarding as a collateral asset in January.

2 Likes

Voting Actions - October 9th – 13th

Proposal: [ARFC] TokenLogic Hohmann Transfer
Vote: Yae
Reasoning: TokenLogic’s active and significant participation in the Aave ecosystem is recognised, and we support their inclusion in the Orbit program.


Proposal: [ARFC] Transfer Assets From Polygon To Ethereum Treasury
Vote: Yae
Reasoning: Recent activities of the Aave DAO, such as the creation of the GHO Liquidity Committee, an AURA token swap with Olympus, and a potential token swap with Aura Finance, have either already utilised or are projected to use stable coins held in the Ethereum Treasury.

Therefore, we support this proposal request to transfer 1.5M DAI from Polygon to Ethereum to replenish its stablecoin reserves and align Aave DAO’s BAL and CRV holdings with the DAO’s broader strategy for managing these assets.


Proposal: Add DebtSwapAdapter as FlashBorrower
Vote: Yae
Reasoning: We support this proposal, which suggests granting the FlashBorrower role to the Aave DebtSwapAdapter contracts across all networks. This move is intended to benefit Aave borrowers by exempting them from the flash loan fee when they execute any debt swap flows, making the process more efficient and cost-effective for the Aave community.


Proposal:[ARFC] Enhancing Aave DAO’s Liquidity Incentive Strategy on Balancer
Vote: Yae
Reasoning: This proposal was initiated by karpatkey and aims to optimise Aave DAO’s voting incentives while maximising its emission power. See the proposal text for complete motivation.


Proposal:[ARFC] Further increase GHO Borrow Rate
Vote: Yae
Reasoning: Our vote is continued support from the Temp Check phase. We welcome the inclusion of a rule that presents a more structured approach to determine the parameters for further increases.


Proposal: Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3
Vote: Yae
Reasoning: There is a risk that if the non-emode borrowing power for LST isn’t sufficiently reduced, users might shift their collateral from WMATIC to stMATIC or MaticX for stablecoin borrowing.

This adjustment is beneficial because the WMATIC supply is important for the sustainability of Polygon v3, especially as a lending source for LST-WMATIC recursive strategies.


Proposal: Gauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v3
Vote: Yae
Reasoning: The Aave community had previously voted favour option one from Gauntlet’s earlier snapshot, which reduced the slope 1 for WETH on all v3 platforms to 3.3%. However, there needed to be more clarity in the language of the snapshot, leading to the base rate for WETH not being specified to be lowered to 0. This new proposal, therefore, seeks to clarify and specifically reduce the base rate to 0 for WETH on both Arbitrum and Optimism v3 platforms.

We support this proposal as implementing this change paves the way to drive additional revenue for Aave and make it less dependent on on-chain liquidity, which has decreased over recent months.


Proposal: v2 Deprecation Plan, 2023.10.03
Vote: Yae
Reasoning: This proposal is another round of LT and LTV reductions following the v2 deprecation plan that we fully support.


Proposal: STG onboarding on AaveV3 Ethereum Market
Vote: Yeah
Reasoning: This is continued support from the Temp Check phase. We agree on the onboarding of STG and the parameters proposed.


Proposal: Fund GHO Liquidity Committee
Vote: Yae
Reasoning: This is continues support from the Temp Check phase. We have athe underlying motivation of the committee to improve the GHO peg and grow GHO liquidity.


Proposal: KNC onboarding on AaveV3 Ethereum market
Vote: Yeah
Reasoning: This is continued support from the Temp Check phase. We agree with the onboarding of KNC and the parameters proposed.

Voting Actions - October 16th – 20th

Proposal: [TEMP CHECK] stEUR Onboarding on Aave V3 Ethereum Pool
Vote: Yae
Reasoning: We support this proposal for adding stEUR as a collateral-only asset in the Aave V3 Ethereum Pool. The parameters are reasonable, and it is a good addition to the protocol’s collateral portfolio.


Proposal: [TEMP CHECK] CRVUSD Onboarding on Aave V3 Ethereum Pool
Vote: Yae
Reasoning: Integrating CRVUSD into AAVE’s Ethereum V3 is beneficial, as it adds another decentralised stablecoin option and brings revenue to the protocol. We support this proposal.


Proposal: [ARFC] Aave Events & Sponsorship Budget
Vote: Yae
Reasoning: Aave Companies is seeking a budget of $550,000 for the rest of the year, paid in GHO, to support marketing initiatives. These will serve various purposes, such as sponsoring hackathons to motivate developers to build on the Aave Protocol, hosting side events to boost community awareness, and developing the GHO Pass to promote GHO adoption. The proposal asserts that this budget allocation will enrich the Aave ecosystem and encourage innovation, inclusivity, and recognition. The excess, if any, will be carried forward to Q1 2024 events.

We support the proposal but would like a more detailed budget in the proposal phase and a spending report after the Q4 is finished.


Proposal: [ARFC] Add FXS to Ethereum V3
Vote: Yae (LTV: 35%; LT: 45%) Gauntlet
Reasoning: We support the “YAE (LTV: 35%; LT: 45%) Gauntlet” option, as it starts with more conservative values. This allows testing the market with a lower associated risk.


Proposal: [ARFC] Gauntlet recommendation for MAI / MIMATIC deprecation
Vote: Yae Option 2: Aggressive LT Reduction
Reasoning: We support the “Yea Option 2: Aggressive LT Reduction” as a step in pursuing the deprecation of MAI/MIMATIC, given that the liquidation amount is not too high.


Proposal: TokenLogic Hohmann Transfer
Vote: Yae
Reasoning: We supported this proposal on temp check, and the reasoning can be found here


Proposal: GHO Funding
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and the reasoning can be found here


Proposal: Enable borrow of OP token
Vote: Yae
Reasoning: This is the execution of the AIP-337, enabling the borrowing of OP. We supported the previous AIP and also supported the current proposal.


Proposal: Futher Increase GHO Borrow Rate
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and the reasoning can be found here


Proposal: [ARFC] Upgrade Aave V3 ETH pool wETH parameters
Vote: Slope 1 → 2.8%, Uopt → 0.8
Reasoning: The proposed change will make the WETH attractive for looping strategies for LSTs (stETH and eETH)and disincentivise their usage as a substitute for WETH on stablecoins borrowing.

We support the aggressive option, as it puts the borrowing rate below both yields, allowing Aave’s users to choose the one that suits their needs and increasing the utilisation of this market.


Proposal: [ARFC] sDAI Onboarding on Aave V3 Gnosis Pool
Vote: Yae
Reasoning: We support this proposal as sDAI is a valuable asset to be onboarded as collateral on AAVE v3 on Gnosis Chain. The parameters are reasonable as we take into account that it is a deployment into a new chain, but we expect that the current Supply Cap will be reached in a short time, so we want to see a higher value.


Proposal: [ARFC] Treasury Management - Add to rETH Holding
Vote: Yae
Reasoning: We support this proposal to change the composition of the Aave DAO’s treasury, especially with the reduction of the interest rate on WETH market that will come in place with this proposal.

We also believe in the ethos of decentralisation, and as the financial gains of holding stETH are not a game changer in the current scenario, choosing an option that enhances diversification is justified.

1 Like

Voting Actions - October 23rd – 27th

Proposal: Events Funding
Vote: Yae
Reasoning: We support this proposal for funding for various events and initiatives to foster community engagement, increase brand recognition, and promote the adoption of Aave’s Protocol, GHO, and the broader Aave ecosystem.

While it is a much-needed initiative, it is important to present proper accountability, especially at the end of 2023, to verify which funds will be carried over the next year, as we mentioned on our reasoning for the ARFC vote.


Proposal: Prices operational update. Unify disabled fallback oracles
Vote: Yae
Reasoning: This proposal makes Aave v3 consistent with the previous versions by having the fallback oracles disabled, as the main source is Chainlink oracles. We support this proposal as it makes all instances have the same configuration, and it is fully reversible if needed.


Proposal: Enhancing Aave DAO’s Liquidity Incentive Strategy on Balancer
Vote: Yae
Reasoning: This proposal was initiated by karpatkey and aims to optimise Aave DAO’s voting incentives while maximising its emission power. See the proposal text for complete motivation.


Proposal: Reserve Factor Update October 2023
Vote: Yae
Reasoning: This AIP is a continuation of AIP 284 and increases the Reserve Factor (RF) for assets on Polygon v2 by 5%, up to a maximum of 99.99%.

We supported this proposal on ARFC, and the reasoning can be found here


Proposal: Transfer Assets From Polygon To Ethereum Treasury
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and the reasoning can be found here


Proposal: Governance v2.5 Activation
Vote: Yae
Reasoning: We support the partial migration to the Governance v2.5 interim version while further audits are done on the voting components for the full deployment of v3.


Proposal: [ARFC] ACI Phase II
Vote: Yae
Reasoning: The proposal aims to extend Aave’s collaboration with the Aave-chan Initiative (ACI) for another 180 days, backed by a budget of 375k GHO.

We support it, as ACI delivered substantial contributions to Aave’s ecosystem, particularly in governance (Skyward), continuous protocol improvement (Growth), and both internal and external representation.

Voting Actions - October 30th – November 3rd

Proposal: [ARFC] Aave Funding Update
Vote: Yae
Reasoning: We support this proposal, as it outlines a comprehensive budget that includes allocations for security, risk management, financial services, marketing, and liquidity, among others. It is an important step towards an annual budget for Aave DAO and helps the community to stay updated on the current expenses for the next months.

It is important to note that the [ARFC] AAVE Financial Management Working Group will likely introduce a different expenditure amount, so the current proposal will need to be amended to reflect that.


Proposal: [ARFC] Treasury Management - Tooling Upgrade
Vote: Yes
Reasoning: The funding amount requested is reasonable, and the delivery schedule is well-defined, with the added assurance of a review by @BGDLabs to ensure the quality and security of the deliverables.


Proposal: [ARFC] Chaos Labs <> Aave Risk Management - Renewal
Vote: Yae
Reasoning: We support this proposal to renew the engagement with the Aave DAO, as Chaos Lab consistently delivers risk management and parameter optimization recommendations aligned with Aave DAO’s best interests.

We look forward to the next year of this commitment, especially on the v2 deprecation execution and the GHO support.


Proposal: [ARFC] Chaos Labs - CRV Aave V3 Polygon - LT Reduction - 10.28.2023
Vote: Yae
Reasoning: We support this proposal to protect the Aave ecosystem from potential market volatility from an asset with diminishing liquidity. Reducing the liquidation threshold (LT) lowers the available borrowing power, reducing exposure to the asset.


Proposal: AIP - ACI Phase II
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.


Proposal: AIP - Aave v3 Gnosis Activation
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here

Voting Actions - November 5th – November 10th

Proposal: [ARFC] GHO - Increase Borrow Rate
Vote: Yae
Reasoning: We support this proposal, as it aims to reduce the borrowing discount of GHO relative to other stablecoins to disincentivise users from minting GHO to swap it for other stablecoins.


Proposal: [ARFC] wMATIC Interest Rate Update
Vote: Yae - 5.00%
Reasoning: Reducing Slope 1 will set the conditions to drive the adoption of looping strategies (for LSTs) and increase the utilisation ratio of the wMATIC market.


Proposal: [ARFC] Aave Swap Upgrade
Vote: Yae
Reasoning: We support this proposal to enhance the Aave Swap Contract by incorporating Limit Orders and Time-Weighted Average Price (TWAP) swap functionality. Integrating these features will lead to more efficient and flexible trading strategies, benefiting the Aave community.


Proposal: [TEMP-CHECK] Create an Aave Financial Management Working Group
Vote: Abstain
Reasoning: We abstained because, although important, there was not enough conviction about the current proposed format.


Proposal: [ARFC] Increase Stablecoin Optimal Borrow Rates
Vote: Yae
Reasoning: We support this proposal as it addresses the mismatch between Aave’s current stablecoin rate models and the broader market, which led to the current rate being too low. It also will help to reduce inefficiencies and negative user experience impacts due to greater rate volatility.


Proposal: [Temp Check] GHO Bounty for Integration Issue Detection
Vote: Yae
Reasoning: We support the proposal to award this community member a bounty of 50,000 GHO. Playing a crucial role in identifying and reporting an incident that led to the precautionary pausing of the GHO market, this individual’s proactive approach and keen observation were important in uncovering an underlying issue.


Proposal: [ARFC] Treasury Management - vlAURA
Vote: Yae
Reasoning: We support this proposal, as it covers the operational part of transforming Aura into vlAura to introduce Aave DAO into Balancer’s voting system.


Proposal: [ARFC] TokenLogic - Retrospective Funding Proposal
Vote: Yae
Reasoning: We recognize Tokenlogic’s contributions to Aave DAO in the past six month and fully support this retroactive funding proposal.


Proposal: [ARFC] Arbitrum USDC Migration
Vote: Yae
Reasoning: It is important to plan the transition from USDC.e to USDC in advance for it to happen as smoothly as possible for Aave users. We support this proposal as the initial step towards this migration on Aave: To freeze the asset, we want to deprecate (USDC.e) and raise the borrow and supply caps of USDC, increasing this pool capacity.


Proposal: [ARFC] Increase Uopt for Stablecoins on all V3 Deployments and RF on V2 Ethereum
Vote: Yae
Reasoning: This incentivises the migration from v2 to v3 (raising the Reserve Factor on v2) and increases each stablecoin supply by moving the Uopt from 80% to 90%, allowing a bigger market share capture.


Proposal: [ARFC] Authorizing Use of Grace Sentinel
Vote: Yae
Reasoning: This is part of a series that handles the effects of the actions to mitigate the risk presented by the threat identified in the Aave bug bounty program on November 4th, 2023. By enabling programmatically a grace period for those affected to take action (if they choose to) to avoid liquidation, we ensure a procedure that can be followed if a similar situation arises.


Proposal: [ARFC] CRVUSD Onboarding on Aave V3 Ethereum Pool
Vote: Yae
Reasoning: We support the proposal to onboard CRVUSD stablecoin into the Aave V3 Ethereum pool, which enhances the user experience by offering a wider array of stablecoin options. CRVUSD is showing a robust peg and a growing market presence, and the potential future incorporation of CRVUSD as a collateral asset opens up new avenues for growth and utility within Aave’s platform.


Proposal: Chaos Labs Risk Management Renewal
Vote: Yae
Reasoning: We support this AIP, and the reasoning is the same from the ARFC


Proposal: Disable Stable Borrows
Vote: Yae
Reasoning: We support this AIP as it is an action to address an issue reported by a white hacker. It disables the stable borrow rate for all assets across all pools in all networks. In addition, it unfreezes assets that the freeze steward previously froze.


Proposal: Liquidations Grace Sentinel activation
Vote: Yae
Reasoning: We support this proposal that activates a new Aave v2 feature, the Liquidations Grace Sentinel, an emergency mechanism allowing controlled unpause by the Aave Guardian whenever a pause was enabled. This AIP is an action to address an issue reported by a white hacker.


Proposal: Aave V2 Ethereum LT Reduction
Vote: Yae
Reasoning: We support this proposal that reduces the Liquidation Threshold (LT) on Aave V2 Ethereum in accordance with the v2 deprecation framework.


Proposal: Activate Freezing Steward on v3 missing networks
Vote: Yae
Reasoning: We support this proposal to add the Freezing Steward on all chains missing this component.


Proposal: Fixed REP price feed on AAVE v1
Vote: Yae
Reasoning: We support this proposal of changing the Chainlink price feed with one fixed-value price adapter, as this is a legacy token on the v1 market with a supply of less than $100.


Proposal: GHO - Increase Borrow Rate
Vote: Yae
Reasoning: We support this AIP, as it aims to reduce the borrowing discount of GHO relative to other stablecoins to disincentivise users from minting GHO to swap it for other stablecoins. Now that this new level is set (reducing the supply), we can monitor the situation closely to check if the other initiatives can restore the peg.


Proposal: AmendSafetyModuleAAVEEmissions
Vote: Yae
Reasoning: We support this proposal, and the reasoning remains the same from the ARFC that you can find here


Proposal: Reserve Factor Updates - Polygon Aave v2
Vote: Yae
Reasoning: We support this proposal, and the reasoning remains the same from the ARFC that you can find here


Proposal: Upgrade Aave V3 ETH Pool wETH parameters
Vote: Yae
Reasoning: We support this proposal, and the reasoning remains the same from the ARFC that you can find here

Voting Actions - November 12th – November 17th

Proposal: [ARFC] Treasury Management - auraBAL
Vote: Yae
Reasoning: We support this proposal as it builds infrastructure to make it easier the management of the positions on the Balancer/Aura Ecosystem, paving the way for more active participation incentivising the GHO liquidity on Balancer pools.


Proposal: [ARFC] Gauntlet Cap Recommendations for Polygon v3
Vote: Yae
Reasoning: We support this proposal set values on supply and borrow caps for both assets. agEUR borrowing was suspended following the Euler hack through this proposal, and jEUR is frozen after the Midas hack by this proposal.


Proposal: [ARFC] Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2
Vote: Yae - Option 2
Reasoning: We support option 2 as it is less aggressive and give more time for users to adapt to the direction proposed (to lower the LT on both LSTs to promote higher utilisation on wMATIC.)


Proposal: Chaos Labs CRV Aave V3 Polygon LT Reduction
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.


Proposal: wMATIC Interest Rate Update
Vote: Yae
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.


Proposal: [ARFC] Chaos Labs Risk Parameter Updates - Increase MKR Debt Ceiling on V3 Ethereum - 11.07.2023
Vote: Yae
Reasoning: We agree with the risk assessment done by Chaos Labs and believe that there is room to increase the Debt Ceiling.


Proposal: [TEMP CHECK] Qualify the security incident 04-11-2023 as a shortfall event
Vote: No
Reasoning: In this particular situation, no funds were lost due to the vulnerability, and despite the markets being frozen/paused, with the grace period after restarting the protocol again, all users could manage their positions accordingly. As pausing/freezing is a protocol feature to be used when necessary, its use to prevent an incident can’t be considered a shortfall event.


Proposal: Add FXS to Ethereum V3
Vote: Yes
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.


Proposal: TokenLogic Funding
Vote: Yes
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.


Proposal: Treasury Management - Add to rETH Holding
Vote: Yes
Reasoning: We supported this proposal on the ARFC, and you can find the reasoning here.

Voting Actions - November 19th – November 24th

Proposal: [ARFC] Onboard Native USDC to Aave V3 Optimism Market
Vote: Yae
Reasoning: We support the integration of native USDC into all Aave V3 markets, so the protocol transition to this token is done at a reasonable pace. The current proposal starts this process by incentivizing the users to remove liquidity from the USDC.e pool by raising the reserve factor from 10% to 20% and lowering the supply cap to 20m, values we agree on.


Proposal: [TEMP CHECK] Onboarding sfrxETH to Aave V3 Ethereum Market
Vote: Yae
Reasoning: We support this proposal to add sfrxETH. The increase of LST diversity on Aave V3 is important for the protocol, and sfrxETH is one of the main players there.


Proposal: [TEMP CHECK] Onboarding ETHx to Aave V3 Ethereum Market
Vote: Yae
Reasoning: Stader’s ETHx has an 89m TVL right now. We support this temp check as a general rule of expanding the LST offering inside AAVE, and will check the risk parametrization on the ARFC phase.


Proposal: [ARFC] Onboarding wstETH to Aave V3 on Base Network
Vote: Yae (Aggressive)
Reasoning: We support this proposal as wstETH is the LST leader, and AAVE must support it on all our deployments. We chose the aggressive option as we believed the 100 wstETH cap was too low and would be reached relatively quickly.


Proposal: [ARFC] Gauntlet Recommendation to re-enable CRV borrowing on v3 Ethereum/Polygon
Vote: Yae
Reasoning: We support the changes on both CRV pools. Lowering the supply and borrow caps will reduce the risk, even if the acute phase is already behind us, and the borrowing composition is healthier now on Ethereum and Polygon.


Proposal: Increase Stablecoin Optimal Borrow Rates
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC.


Proposal: MAI/MIMATIC deprecation, 2023.10.31
Vote: Yae
Reasoning: Given the token’s inability to restore its peg, we support this proposal. It will push the borrowers to clear their debts and lenders to reduce the supply, as the Reserve factor (RF) will be set to 95% of the interest.


Proposal: Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC.


Proposal: CRVUSD onboarding on Aave V3 Ethereum
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC.


Proposal: Chaos Labs Risk Parameter Updates - Increase MKR Debt Ceiling on V3 Ethereum
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC


Proposal: Gauntlet Cap Recommendations for Polygon v3
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC.


Proposal: Increase GHO Borrow Rate
Vote: Yae
Reasoning: We support this proposal to increase the interest rate as a mechanism to restore the peg, reducing the profitability of strategies that mint GHO and dump it for a different stablecoin. As a note, it is important to pay attention to the discount given to stkAAVE holders, as this rate can still fuel this type of strategy.


Proposal: Onboard Native USDC to Aave V3 Optimism
Vote: Yae
Reasoning: The reasoning remains the same from the ARFC.


Proposal: V2 Deprecation Plan, 2023.11.20
Vote: Yae
Reasoning: We support this proposal, as it is another part of executing the ongoing strategy that incentivises users to move from v2 to v3, reducing the Liquidation Threshold in several pools.


Proposal: Increase GHO Borrow Rate
Vote: Nay
Reasoning: Erroneously duplicated [proposal].(/ipns/app.aave.com/governance/proposal/).


Proposal: AmendSafetyModuleAAVEEmissions
Vote: Yae
Reasoning: We support the reduction proposed, which aims to prepare the field for more balanced risk coverage and the introduction of new assets in the Safety Module.

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Voting Actions - November 27th – December 1st

Proposal: [ARFC] Update the Asset Onboarding Framework
Note: Yae
Reasoning: We support this framework as it proposes a faster onboarding process without giving up proper risk assessment of this listing in a new market.


Proposal: [TEMP CHECK] onboard osETH to Aave v3 on Ethereum pool
Vote: Yae
Reasoning: osETH has an interesting value proposition, as the brand-new StakeWise V3 allows solo stakers to mint osETH against their own nodes. We support this temp check as this is a new type of LST that AAVE can benefit from.


Proposal: [TEMP CHECK] Add EURC to Avalanche Aave V3
Vote: Nay
Reasoning: There is only 2.6m EURC on Avalanche, and the asset doesn’t have much use on ETH Mainnet. It is too soon to list it on Aave.


Proposal: [TEMP CHECK] Financial Services Proposal: karpatkey & TokenLogic
Vote: Abstain
Reasoning: We are a co-author of this proposal and have abstained from casting a vote.


Proposal: [ARFC] Upgrade Safety Module with StkGHO
Vote: Yae
Reasoning: Having GHO as an asset in the Safety Module is a natural move. It adds extra utility for the token and shows Aave DAO’s commitment to the asset. We assume that the 9M cap proposed takes into account that new minting will resume after the peg is restored, as it is too large for the current 34M market cap. For that reason, we echo the requests for close monitoring.


Proposal: Freeze price feeds on v3 Harmony following shutdown of Harmony services by Chainlink
Vote: Yae
Reasoning: We support this proposal. As the Chainlink oracle service will be deprecated, this is a reasonable solution that was successfully implemented on other assets.


Proposal: [ARFC] Gauntlet <> Aave Renewal 2023
Vote: Yae
Reasoning: Having two risk management service providers is an approach that we believe is valuable and would like to see continued forward. We recognize Gauntlet’s contributions since 2021 and support this renewal and roadmap.


Proposal: [ARFC] - Chaos Labs RF and IR Updates - Aave V2 Ethereum - 2023.11.24
Vote: Aggressive
Reasoning: We support the Aggressive option in this proposal as it removes all incentives from lenders to keep their assets on these v2 pools by upgrading the reserve factor to 99.9% while adding pressure on the borrowers to repay their loans by raising the base interest rate.


Proposal: Allow Emergency Admin to freeze on Aave V2
Vote: Yae
Reasoning: We support this proposal to mirror on Aave v2 the same configurations that emergencyAdmin role has on v3: to freeze reserves on Aave V2 pools - including Aave V2 AMM, Aave V2 Ethereum, Polygon, and Avalanche.


Proposal: Aave Funding Updates
Vote: Yae
Reasoning: The reasoning remains the same of the ARFC phase


Proposal: GHO_Incident_Report
Vote: Yae
Reasoning: The reasoning remains the same of the ARFC phase

Voting Actions - December 4th – December 8th

Proposal: [ARFC] Treasury Management - Deploy AURA to vlAURA
Vote: Yae
Reasoning: We support this in alignment with the motivation outlined in the body of the proposal. This proposal was jointly proposed by karpatkey and Token Logic.


Proposal: [ARFC] New Chain Deployment Framework
Vote: Yae
Reasoning: We welcome this proposal to set a framework to onboard new chains, as it makes the timeline of all steps explicit, giving predictability to the whole process.


Proposal: [ARFC] Update GNO Risk Parameters on Aave V3 Gnosis Pool
Vote: Yae
Reasoning: We support this proposal, as it is another step to increase the GNO utility within the Gnosis Chain.


Proposal: [TEMP CHECK] AAVE Treasury Proposal for RWA Allocation with Maple Finance
Vote: Nay
Reasoning: Our reasoning is written on this comment on the governance forum post.


Proposal: [ARFC] Onboarding ETHx to Aave V3 Ethereum Market
Vote: Aggressive Option
Reasoning: LST diversification is a smart move for Aave, as each additional brings more capital and revenue for the protocol. We supported this proposal and voted on the aggressive option to give it the same conditions (risk parameters) as the other LST assets.


Proposal: Update PriceOracleSentinel
Vote: Yae
Reasoning: We support this proposal, as it standardizes the behaviour of the PriceOracleSentinel on both chains (Arbitrum and Optmism).


Proposal: Aave Funding Updates
Vote: Yae
Reasoning: We support this proposal as it aligns with the framework we envision for maintaining the financial health and capitalization of the DAO.


Proposal: Reserve Factor Updates - Polygon Aave v2
Vote: Yae
Reasoning: We support this proposal as it encourages some users (lenders) to migrate from Polygon v2 to v3 as it becomes less financially attractive. We recommend a unified strategy (a universal deprecation framework) for all v2 markets that addresses market actors (lenders and borrowers) so all Aave users know the next steps.


Proposal: Onboarding wstETH to Aave V3 on Base Network
Vote: Yae
Reasoning: We support the initiative to onboard wstETH on Base, as it enhances the variety of assets available on Aave’s deployment on that chain and adds another LST to the platform deployment there.


Proposal: Aave Governance V3 Activation
Vote: Yae
Reasoning: We support this upgrade, as it introduces important tooling to the governance process and adds a new asset with voting power (aAAVE on Ethereum), making the governance even more democratic.

1 Like