Keyrock Delegate Platform

06/11/23 - 12/11/23

[AIP] Disable Stable Borrows

Reason: In light of the bug found by white-hats, we’re supportive on this emergency AIP.

Voted YAE


[ARFC] Chaos Labs - CRV Aave V3 Polygon - LT Reduction - 10.28.2023

Reason: We support the LT reduction recommended here.

Voted YAE


[ARFC] GHO - Increase Borrow Rate

Reason: We support the borrow rate increase as this will bring GHO closer to par with most stable coins.

Voted YAE


[AIP] Multichain Stable Debt Token Upgrades

Reason: We support this proposal.

Voted YAE


[ARFC] wMATIC Interest Rate Update

Reason: Supportive of the decrease in wMatic rates to align between LSTs and wMatic for looping.

Voted YAE


[ARFC] Aave Swap Upgrade

Reason: We support this contracting task as we believe this Aave Swap features is essential for trustless operations of the DAO treasury.

Voted YAE


[TEMP-CHECK] Create an Aave Financial Management Working Group

Reason**:** We are supportive of the framework outlined here. As one of the biggest and most active DAOs, there should be frameworks in place to find the most efficient outcome for the DAO while engaging with SPs.

Voted YAE


[ARFC] Increase Stablecoin Optimal Borrow Rates

Reason: We’re supportive of the adjustments for slope1 on stablecoins.

Voted YAE


[Temp Check] GHO Bounty for Integration Issue Detection

Reason: Security on Aave is of outmost importance and we’re supportive of Bounties that ensure this security.

Voted YAE


[ARFC] Treasury Management - vlAURA

Reason: We support this proposal.

Voted YAE


[ARFC] TokenLogic - Retrospective Funding Proposal

Reason: TokeLogic has been a great contributor to the DAO and has pushed through quite a few proposals. We’re supportive of this retrospective funding.

Voted YAE


[ARFC] Arbitrum USDC Migration

Reason: We support the plan outlined for the USDC migration on Arbitrum.

Voted YAE


[ARFC] Increase Uopt for Stablecoins on all V3 Deployments and RF on V2 Ethereum

Reason: We’re supportive of the outlined adjustments.

Voted YAE


[AIP] Chaos Labs Risk Management Renewal

Reason: Risk service providers are crucial for Aave and we’re supportive of Chaos Labs renewal.

Voted YAE


[AIP] Liquidations Grace Sentinel activation

Reason: We’re supportive of this activation.

Voted YAE


[AIP] Aave V2 Ethereum LT Reduction

Reason: We support the recommended LT reductions.

Voted YAE


[AIP] Activate Freezing Steward on v3 missing networks

Reason: We support this proposal.

Voted YAE


[AIP] Fixed REP price feed on AAVE v1

Reason: We support this proposal.

Voted YAE


[ARFC] CRVUSD Onboarding on Aave V3 Ethereum Pool

Reason: We support the listing of CRVUSD.

Voted YAE


[AIP] AmendSafetyModuleAAVEEmissions

Reason: We support this proposal.

Voted YAE


[AIP] Reserve Factor Updates - Polygon Aave v2

Reason: We support the RF updates on Polygon v2.

Voted YAE


[AIP] Upgrade Aave V3 ETH Poool wETH parameters

Reason: We support the updates to maintain effective looping strategies between wETH and LSTs.

Voted YAE

13/11/23 - 19/11/23

[AIP] Chaos Labs CRV Aave V3 Polygon LT Reduction

Reason: We support the recommended change in LT for CRV on Polygon v3.

Voted YAE


[AIP] wMATIC Interest Rate Update

Reason: We support this update as it makes effective looping possible.

Voted YAE


[ARFC] Treasury Management - auraBAL

Reason: While we did raise a concern regarding the actual need of this contract when considering that the GLC is quite actively managing the GHO liquidity incentives, we will support this proposal.

Voted YAE


[ARFC] Gauntlet Cap Recommendations for Polygon v3

Reason: We support the recommended increase of caps.

Voted YAE


[ARFC] Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2

Reason: We support Option 2 for stMatic and MaticX.

Voted Option 2


[AIP] Upgrade Aave V3 ETH Poool wETH parameters

Reason: This is a duplicate proposal that went up by mistake. It has been executed already.

Voted NAY


[ARFC] Chaos Labs Risk Parameter Updates - Increase MKR Debt Ceiling on V3 Ethereum - 11.07.2023

Reason**:** We support the debt ceiling increase on MKR

Voted YAE


[TEMP CHECK] Qualify the security incident 04-11-2023 as a shortfall event

Reason: No user funds were lost and thus, we’re against classifying the security incident as a shortfall event.

Voted NAY


[AIP] Add FXS to Ethereum V3

Reason: We support the listing of FXS on Ethereum V3.

Voted YAE

1 Like

20/11/23 - 26/11/23

[AIP] TokenLogic Funding

Reason: We support this retroactive funding for TokenLogic

Voted YAE


[AIP] Treasury Management - Add to rETH Holding

Reason: We support the conversion of ETH to rETH.

Voted YAE


[ARFC] Onboard Native USDC to Aave V3 Optimism Market

Reason: We’re supportive of native USDC listings.

Voted YAE


[TEMP CHECK] Onboarding sfrxETH to Aave V3 Ethereum Market

Reason: We support diversity of LSTs and sfrxETH is another LST that has shown resilience.

Voted YAE


[TEMP CHECK] Onboarding ETHx to Aave V3 Ethereum Market

Reason: Similar to sfrxETH, we’re supportive of listing ETHx.

Voted YAE


[ARFC] Onboarding wstETH to Aave V3 on Base Network

Reason: We’re supportive of the conservative parameters for listing wstETH on Base.

Voted YAE (Conservative)


[ARFC] Gauntlet Recommendation to re-enable CRV borrowing on v3 Ethereum/Polygon

Reason: We support CRV borrowing as long as it has conservative parameters.

Voted YAE


[AIP] Increase Stablecoin Optimal Borrow Rates

Reason: We’re supportive of the adjustment on stablecoin parameters.

Voted YAE


[AIP] MAI/MIMATIC deprecation, 2023.10.31

Reason: We support the deprecation of MAI/MIMATIC.

Voted YAE


[AIP] Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2

Reason: We support the LT adjustments on stMatic & MaticX

Voted YAE


[AIP] CRVUSD onboarding on Aave V3 Ethereum

Reason: We support the listing of CRVUSD.

Voted YAE


[AIP] Chaos Labs Risk Parameter Updates - Increase MKR Debt Ceiling on V3 Ethereum

Reason: We support the Debt ceiling increase on MKR.

Voted YAE


[AIP] Gauntlet Cap Recommendations for Polygon v3

Reason: Supportive of adding supply & borrow caps on agEUR and jEUR.

Voted YAE


[AIP] Increase GHO Borrow Rate

Reason: We support the increase of GHO borrow rate in order to bring it to par with other stablecoins.

Voted YAE


[AIP] Onboard Native USDC to Aave V3 Optimism

Reason: We support native USDC listings.

Voted YAE


[AIP] V2 Deprecation Plan, 2023.11.20

Reason: We’re supportive of continuing the V2 deprecation plan.

Voted YAE


[AIP] Increase GHO Borrow Rate

Reason: Repeat vote by mistake, thus we voted NAY.

Voted NAY


[AIP] AmendSafetyModuleAAVEEmissions

Reason: We support this proposal.

Voted YAE


26/11/23 - 03/12/23

[AIP] Allow Emergency Admin to freeze on Aave V2

Reason: We support this adjustment on Emergency Admins for V2.

Voted YAE


[ARFC] Update the Asset Onboarding Framework

Reason: We’re supportive of the asset onboarding framework.

Voted YAE


[TEMP CHECK] onboard osETH to Aave v3 on Ethereum pool

Reason: We’re supportive of LST diversity and thus osETH is another listing to be considered by the DAO.

Voted YAE


[TEMP CHECK] Financial Services Proposal: karpatkey & TokenLogic

Reason: We’re glad to see this collaboration between Karpatkey & TokenLogic. Karpatkey has a proven track record on treasury management. When combined with the knowledge of Aave from TokenLogic, we believe this will be a productive collaboration.

Voted YAE


[ARFC] Upgrade Safety Module with StkGHO

Reason: We’re supportive of adding stkGHO to the SM.

Voted YAE


Freeze price feeds on v3 Harmony following shutdown of Harmony services by Chainlink

Reason: We’re supportive of freezing price feeds.

Voted YAE


[ARFC] Gauntlet <> Aave Renewal 2023

Reason: We believe that risk providers are essential to a protocol such as Aave and Gauntlet has been a great contributor to the DAO.

Voted YAE


[TEMP CHECK] Add EURC to Avalanche Aave V3

Reason: As the proposers of this Temp Check, we would like to see more stablecoin diversity on Aave especially around EUR based stablecoins.

Voted YAE


4/12/23 - 10/12/23

[ARFC] Treasury Management - Deploy AURA to vlAURA

Reason: We support the deployment of AURA as it will yield auraBAL and improve the DAOs capital efficiency.

Voted YAE


[AIP] Update PriceOracleSentinel

Reason: We support this oracle update.

Voted YAE


[AIP] Aave Funding Updates

Reason: We’re supportive of the DAO treasury consolidation.

Voted YAE


[AIP] Reserve Factor Updates - Polygon Aave v2

Reason: We support the RF updates for Polygon V2.

Voted YAE


[AIP] Onboarding wstETH to Aave V3 on Base Network

Reason: We support the listing of wstETH on Base.

Voted YAE


[AIP] Aave Governance V3 Activation

Reason: We’re excited to see Aave Governance V3 activated.

Voted YAE


[ARFC] New Chain Deployment Framework

Reason: We’re supportive of establishing this chain deployment framework.

Voted YAE


[ARFC] Update GNO Risk Parameters on Aave V3 Gnosis Pool

Reason: We support enabling GNO borrowing outside of isolation mode.

Voted YAE


[TEMP CHECK] AAVE Treasury Proposal for RWA Allocation with Maple Finance

Reason: We’re supportive of RWA exposure and diversification.

Voted YAE


[ARFC] Onboarding ETHx to Aave V3 Ethereum Market

Reason: We’re supportive of listing ETHx.

Voted Aggressive Option

11/12/23 - 17/12/23

[AIP] Chaos Labs RF and IR Updates - Aave V2 Ethereum

Reason: We support the outlined updates.

Voted YAE


[AIP] Transfer AURA to GLC Safe

Reason: We support the transfer of AURA to the safe managed by the GLC

Voted YAE


[AIP] GHO update on Aave V3 Ethereum Pool for 13/11/2023 Report

Reason: We support this update.

Voted YAE


[AIP] Gauntlet recommendation to reactivate CRV borrowing on v3

Reason: We support brining back CRV borrowing under conservative parameters

Voted YAE


[ARFC] Onboarding sfrxETH to Aave V3 Ethereum Market

Reason: We support the aggressive option for listing sfrxETH.

Voted Aggressive Option


[ARFC] Continuous Security Proposal Aave <> Certora

Reason: We’re supportive of continuing the relationship with Certora.

Voted YAE


[TEMP CHECK] AAVE V3 Harmony Recovery ONE Proposal

Reason: We’re not supportive of this proposal.

Voted NAY


[ARFC] TokenLogic & karpatkey Service Provider Partnership

Reason: We’re supportive of the Tokenlogic & Karpatkey partnership.

Voted YAE


[AIP] Sync emergency admin on v2 AMM

Reason: We support this proposal.

Voted YAE


[AIP] Activate Proof of Reserve

Reason: We support the activation of the Proof of Reserve.

Voted YAE


[AIP] Treasury Management - Add to rETH Holding (resubmission)

Reason: We support the addition of rETH on Aave treasury.

Voted YAE


[AIP] Chaos Labs V2 Ethereum and Polygon LT Reductions

Reason: We support the continuing reductions of LTs on Aave V2.

Voted YAE


[AIP] Increase Polygon wstETH Supply Cap

Reason: We support the increase of wstETH caps.

Voted YAE


[AIP] Increase GHO Borrow Rate 100 bps to ~6.41% on Aave V3

Reason: We support the raise to 6.41% borrow rate for GHO as it aligns with other stablecoins

Voted YAE


[ARFC]. BGD. Security budget request - December 2023

Reason: We are supportive of the budget request from BGD.

Voted YAE

01/01/24 - 14/01/24

[ARFC] Gauntlet recommendation for MAI / MIMATIC deprecation phase 2

Reason: We support the deprecation of MAI/MIMATIC.

Voted YAE


[AIP] Aave Pool update

Reason: We support this technical fix on V3 pools.

Voted YAE


[AIP] Polygon V2 Reserve Factor Updates

Reason: We support this continuation of RF updates on Polygon v2.

Voted YAE


[AIP] Chaos Labs Risk Parameter Updates - WBTC.e on V2 and V3 Avalanche

Reason: We support the adjustments for WBTC.e markets.

Voted YAE


[AIP] Stablecoin IR Curves Updates

Reason: We support the Slope1 updates for stablecoins.

Voted YAE


[TEMP CHECK] Launch Aave V3 on Kava EVM

Reason: We support the deployment to Kava EVM as it meets the Chain deployment framework and seems to have some promising results.

Voted YAE


[TEMP CHECK] Add PYUSD to Aave v3 Ethereum Market

Reason: We support the listing of PYUSD as another stablecoin giving optionality and liquidity to users.

Voted NAY


[ARFC] Updated Aave Grants Continuation Proposal

Reason: We support the funding of the AGD.

Voted YAE


[TEMP CHECK] GHO Stability Module Launch

Reason: We support Option B as we believe that swap functionality should be enabled. We also agree with the 20bps fees.

Voted Option B


[TEMP CHECK] Further Aave v1 deprecation strategy

Reason: We support the deprecation of Aave V1

Voted For


[ARFC] Retroactive bug bounties proposal (pre-Immunefi)

Reason: While we believe security is of paramount importance, this specific proposal is quite confusing and we don’t seem have all the context needed to evaluate appropriately based on the forum comments. Thus, we abstained.

Voted Abstain


[ARFC] Harmonize USDT Risk Parameters on Aave V3 Markets

Reason: We support the outlined parameter changes for USDT.

Voted YAE

15/01/24 - 21/01/24

[TEMP CHECK] Onboard fdUSD to Aave v3 on BSC

Reason: We support the listing of fdUSD on BSC.

Voted YAE


[ARFC] Treasury Management - GSM Funding & RWA Strategy Preparations

Reason: We support the operations outlined in order to ensure proper funding in the correct chains for Aave

Voted YAE


[ARFC] Gauntlet recommendation for MAI / MIMATIC deprecation phase 2

Reason: We support the recommendations for MAI/MIMATIC

Voted YAE


[TEMP CHECK] Aave V3 MVP deployment on Neon EVM Mainnet

Reason: There was a quite intensive discussion in the forum around this deployment. As a temp check, we’re supportive and would love to see Aave deployed on NEON EVM. With later governance stages - there is a need for more due dilligence before deciding best steps forward.

Voted YAE


[ARFC] Update stETH and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum

Reason: We support the outlined risk parameters.

Voted YAE


[ARFC] Aave V3 Deployment on Scroll mainnet

Reason: We support the deployment of Aave V3 as Scroll is a promising & young ecosystem for Aave to establish a strong foot.

Voted YAE


[AIP] Aave v3 BNB Activation

Reason: We support the activation of Aave V3 on BNB

Voted YAE

1 Like

[ARFC] Add sFRAX on Ethereum V3

Reason: We are generally supportive of new assets being listed on Aave given they are in line with the recommendation of the risk teams. These asset listings ensure Aave stays up to date with market trends and remains a liquidity hub for high demand projects.

There is currently $49.5M Frax staked in sFRAX, with deposits indicating steady demand. Frax has already been listed on Aave and has high utilization rate of 91% and demonstrated peg stability.

image

Additionally sFRAX is accruing yield equivalent to the interest on reserve balances rate of the US federal reserve. This means the base rate and Slope1/Slope2 parameters can be set slightly higher than other stable pairs, which earns Aave additional revenue.

Voted YAE


[ARFC] Modify Retroactive bug bounties proposal (pre-Immunefi)

Reason: We believe the DAO should stick with the initial payout of $65k, which is in line with the original recommendation with BGD team. We believe this amount to be fair and believe the payout should not be arbitrarily changed.

Voted YAE: Option C


[AIP] Update ETH EMode and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum

Reason: The amount of Ethereum in Liquid staking protocols is consistently increasing, and LSTs are becoming increasingly integrated with Defi protocols.

Large amounts of ETH-lstETH liquidity exists in the form of concentrated liquidity pairs allowing extreme capital efficiency. Since these assets are so closely correlated, price fluctuations in the collateral assets are mirrored by the borrowed assets allowing LT ratios to stay constant. Due to this we believe its appropriate to update the LT from 90% to 93% for ETH EMode pools.

image

Voted YAE


[AIP] Request for Bounty Payout - January 2024

Reason: We support the payment of funds to white hats that help ensure the security of Aave Protocol. These payments are vital to incentivise white hacks to proactively look for potential security exploits.

Voted YAE


[AIP] Register a.DI Ethereum → Scroll adapter

Technical Proposal from BCG required to enable the passing of messages from Ethereum to Scroll via Aave Delivery Infrastructure.

Voted YAE


[TEMP CHECK] Onboard RSR to Aave v3

Reason: We abstain due to concerns about the potential supply and borrow demand of RSR due to its relatively low marketcap ($100m), and limited integrations into major Defi protocols. Currently on Aave v3 lower marketcap projects already show low utilization:

Protocol Marketcap Utilization Rate
1inch 460m 0.79%
BAL 220m 17.32%
ENS 400m 10.25%

We predict similar utilisation rates for RSR and believe If this asset were to be listed it would require low LTV ratios - limiting its effectiveness as collateral.

Voted ABSTAIN


[ARFC] Onboard fdUSD to Aave v3 on BSC

Reason: fdUSD is the 4th largest Stablecoin on BSC with 76.35m tokens circulating.
fdUSD is supported by Binance, and chosen to be the stable pair for many bluechip assets such as BTC-FdUSD pair which does the most volume of any BTC pair.

For this reason we believe fdUSD is appropriate to list on Aave v3 BSC Markets.

image

Voted YAE


[ARFC] Deprecate Aave V2 AMM Market Phase 2

Reason: We agree with the decision to increase the RF on Aave v2 markets. This incentivizes migrating liquidity from v2 to v3 and increases protocol revenue by increasing the RF.

Voted YAE


[TEMP CHECK] Add gmBTC on Arbitrum V3

Reason: GM tokens from GMX are token backed pools comprising of Long and Short tokens exposure. The gmBTC market has BTC backing trader long positions, and USDC tokens backing short positions. There is currently 136m of gmBTC minted which earns 21.23% APR from trading fees. The asset also demonstrates good liquidity with 1400 LP holders. We are interested in supporting this proposal to the ARFC stage so risk teams can comment further.

Voted YAE


[AIP] Aave V1 Deprecation

Reason: We agree with the plan to completely off board assets from Aave v1 and clear all debt.

There is still more than 10million on Aave v1 which has stagnated. We believe more aggressive measures are required to off-board collateral. 1% liquidation fee on healthy positions is not aggressive and fair towards Aave v1 lenders given the ample offboarding period.

image

Voted YAE


[AIP] AMPL Interest Rate Updates on V2 Ethereum

Reason: The AMPL situation is technically complicated due to the differences in aAMPL/total supplied liquidity/vAMPL supply values. Since the pool has 100% utilization, decreasing slope2 will decrease for borrowers who are frozen and not able to withdraw.

Voted YAE


[AIP] Harmonize USDT Risk Parameters on Aave V3 Markets

Reason: Harmonizing USDT risk parameters simplifies the borrowing process, and allows for the harmonisation of strategies across chains. USDT on Arbitrum, Optimism, and Polygon have become liquid enough to remove from Isolation mode.

Voted YAE


[AIP] Treasury Management - GSM Funding & RWA Strategy Preparations (Part 1), Frontier Staking as a Service

Reason: We support both the GHO Stability Module and the Real World Asset strategy proposals, therefore we support these steps to make funds available to be utilized for these proposals.

Voted YAE


[TEMP CHECK] Add gmETH on Arbitrum V3

Reason: gmETH is simlar to the gmBTC proposal which we supported. gmETH is backed by USDC and ETH for long and short positions on GMX. The tokens earns yields from traders meaning there is potential of increased revenue due to higher borrow rates.

Voted YAE


[AIP] Onboard fdUSD to Aave v3 on BNB chain

Reason: We voted YAE to [ARFC] Onboard fdUSD to Aave v3 on BSC

Voted YAE


[AIP] Freeze and set LTV to 0 for DPI, BAL, CRV, and SUSHI on Aave v3 Polygon, 2024.01.19

Reason: The assets have failed to attract enough demand to be listed as collateral on Aave. Setting LTV and freezing markets is the natural first step to offboaring the market.

Collateral Usage
BAL 69.7k
CRV 235.8k
SUSHI 97.8k

Voted YAE


[AIP] Gauntlet recommendation for MAI / MIMATIC deprecation phase 2

Reason: We agree with the decision to delist Mai following its depeg. Since April, Mai has failed to repeg. Additionally there is only one account which will face liquidations due to these parameter changes.

image

Voted YAE


[AIP] Aave v3 Scroll Activation

Reason: We voted Yes to ARFC.

Voted YAE


[TEMP CHECK] Merit - A New Aave-Alignment User Reward System

Reason: Incentive programs are well established methods to promote positive user behaviour. Aave DAO is extremely profitable with $50m profit a year, utilizing a part of this to create stickiness and attract users from other protocols is a strategic decision which can benifit Aave in the long run.

Voted YAE


[ARFC] BGD. Correlated-asset price oracle (CAPO)

Reason: CAPO will provide upper price protection on pegged assets, ensuring they stay within 1.05x maximum range of their underlying collateral. With this protection, the CAPO model will improve the safety of Stablecoins and Liquid Staking Tokens by protecting them against oracle manipulation.

Voted : YAE


[ARFC] MaticX Supply Cap Increase in Polygon V3

Reason: The MaticX supply cap utilization on Polygon V3 is currently at 96%, 70% of these positions borrowing Matic and looping, which lowers the risk of liquidation as these asset prices are extremely correlated. Agree to increase the caps as this asset is demanded and safe.

image

Source: Chaos Labs Platform

Voted YAE


[ARFC] Establishing the Aave Protocol Embassy (APE)

Reason: We support the creation of the Aave Protocol Embassy to represent Aave on other protocol DAOs.

Aave is a delegate with 2.7m Arb delegated, we expect Aave to receive more delegations for various projects in the future, additionally we supported the proposed multisig members

Voted YAE


[ARFC] Set Liquidity Observation Labs as Emission manager for wstETH on V3 markets

Reason: Setting Lido as the Lido emissions wallet will enable them to fund emissions which will attract more deposits

Voted YAE


[ARFC] Add Contango Protocol, Cian Protocol and Index Coop to flashBorrowers on Aave V3

Reason: By waiving fees for the following protocols:

Contago - Perpetual Futures powered by flashloans on money markets
Cian Protocol - Delta neutral automation strategies
Index Coop - Converts complex Defi Strategies into ERC20 tokens

Aave will allow for fee sensitive strategies to be conducted, this will increase borrow volume and therefore revenue for Aave.

Voted YAE


[ARFC] GHO Stewards

Reason: stkGHO has drastically increased the attractiveness of GHO due to its attractive APR when staked in the Aave safety module. Allowing a GHO steward group control over borrow cap and borrow rates helps the protocol in two ways:

  1. Borrow Rate: Adjust Borrow rates to keep GHO in $0.995/$1.005 range
  2. Borrow Cap: Increase Borrow cap so users can mint GHO to arbitrage if the price is above $1.005 range

Voted YAE


[AIP] stkABPT Balancer V2 migration

Reason: The current AAVE/WETH pool for the safety module has $100m+ which is being staked to secure the Aave protocol. As Balancer has implemented a V2 version of these pools we feel it is necessary to migrate liquidity to the updated pools.

Voted YAE


[AIP] Migration of remaining Gov v2 permissions & DAO’s Paraswap positive slippage

Reason: This is a standard technical maintenance proposal from BGD, and allow Aave to collect $100k fees from Paraswap.

Voted YAE


[AIP] V2 Ethereum LT Reductions

Reason: We agree with the proposal to lower LT for frozen Aave v2 markets. Aave v2 markets are being gradually depreciated, and continual incremental changes are required.

Voted YAE


[AIP] Reserve Factor Updates (Jan 31, 2024))

Reason: This AIP is a continuation of continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.

Voted YAE


[TEMP CHECK] Enable Metis as Collateral on Metis Chain

Reason: We agree with the decision to onboard METIS as collateral, as it is the native token on the Metis Chain. Metis is the most liquid token on the chain.

image

Voted YAE


[AIP] Add PYUSD to Aave v3 Ethereum Pool

Reason: We voted Yes to the ARFC

Voted YAE


[TEMP CHECK] Onboarding weETH to Aave V3 Ethereum

Reason: weETH is one of the largest LRTs with 1.3m ETH locked and almost 50,000 Holders. WeETH has deep liquidity on Ethereum via Uniswap and L2s via Thruster.

We support this proposal as it improves the diversity of ETH LST supply and allows Aave to remain a central liquidity hub for LRTs.

image

image

Voted YAE


[ARFC] Set Aave Chan Initiative as Emission Manager for fdUSD on BNB Chain Aave V3

Reason: Setting Aave Chain as Emmission manager will allow them to control incentives from ecosystem partner for BNB markets.

Voted YAE


[ARFC] Orbit Program Renewal

Reason: We are happy to support Aave delegators for the hard work that they do.

Voted YAE


[AIP] Deprecate Aave V2 AMM Market - Step 2

Reason: This is inline with our recommendations to depreciate Aave v2 markets and migrate liquidity towards Aave v3.

Voted YAE


[TEMP CHECK] Integrate Oval for the BAL & SNX Ethereum V3 Markets

Reason: To ensure that under-collateralized positions are effectively liquidated, Aave auctions at risk users´ collateral at a discount. This discount depends on the liquidation bonus, ranging from 4.5% for stable assets like USDC to 10% for volatile assets like UNI. In total Aave has liquidated $1.2b of collateral, and paid $62m in liquidation bonuses.

image

image

Liquidations occur when a users collateral reaches the Liquidation Threshold (LT). In this case any account can call the liquidationCall() function, and purchase the users collateral for a discount. This clears bad debt for Aave by outsourcing liquidations to third parties, incentivized by the LB. MEV searchers scan the mempool for chainlink oracle updates that cause liquidations, then create a bundle to insert a backrun transaction immediately after the update transaction. In order to have their block chosen, MEV searchers must tip the validator up to 99.9% of the revenue they would receive from liquidations. This is because liquidations are a simple but highly competitive strategy.

  1. Theoretical Liquidation Process: The Liquidator the debt (2.5 ETH of DAI) and receives the collateral 2.5 ETH + the liquidation bonus .125 (5%). The protocol earns 10% of the fee
  2. Actual Liquidation Process: MEV searchers simulate the liquidation will net them .125 ETH profit, and tip the validator .12 ETH to be chosen to perform the liquidation. Liquidator gets .005, Validator get .12, Aave get 0.
  3. Oval Proposed Liquidation Process: OVAL wraps the oracle price and MEV searchers bid to use the price. MEV searcher bids .12 to win the auction, this .12 goes to Aave. The MEV searcher with the winning bid is allowed to use the chainlink price updates, liquidates and receives the .125 bonus.

The proposal by UMA was to run a tightly scoped pilot program of OVAL for the Aave Pools BAL and SNX. BAL has a $3.6m market size and SNX has a $12m market size. Additionally both BAL and SNX pools are isolated markets. Due to the tight scope of the proposal we are happy to support the pilot to see how it goes.

Voted YAE


[ARFC] Set ARB Emission Admin to Gauntlet

Reason: Setting Gauntlet as the emission manager allows the Arbitrum incentives to be distributed

Voted YAE


[ARFC] Set osETH & SWISE Emission Admin to StakeWise

Reason: This proposal enables StakeWise to distribute osETH and/or SWISE rewards across Aave v3 on Ethereum.

Voted YAE


[AIP] Retroactive Bug Bounty Pre-Immunefi

Reason: We voted YAE to the ARFC

Voted YAE


[AIP] Chaos Labs Risk Parameter Updates - Increase Debt Ceiling for SNX and MKR on V3 Ethereum - 01.31.2024

Reason: Both SNX and MKR markets have seen extremely high utilization rates ( 95% for SNX and 99% for MKR). These coins are well established in the Defi ecosystem and have a large user base and high liquidity.

This allows us to safely increase the caps to allow for more utilization, especially since these assets are in isolation mode.

image

Voted YAE


[AIP] Set Aave Chan Initiative as Emission Manager for fdUSD on BNB Chain Aave V3

Reason: We voted yes to the ARFC

Voted YAE


[ARFC] Set OP Emission Admin

Reason: This proposal enables a SAFE with signers from KarpatKey, ACI and ChaosLabs to distribute USDC rewards across Aave v3 on Optimism.

Voted YAE


[ARFC] Set ETHx and SD Emission Admin to Stader Labs

Reason: This proposal enables Stader Labs to distribute ETHx and/or SD rewards across Aave v3 on Ethereum.

Voted YAE


[ARFC] Amend Safety Module Emissions

Reason: While GHO is currently in the peg range (.995-1.005), there is $5.2m GHO in the cooldown qeue which could increase sell pressure. Increasing Aave emissions from 50 → 100 Aave / day, doubles the rewards for stkGHO which strengthens the peg.

Voted YAE


[ARFC] Merit - A New Aave-Alignment User Reward System

Reason: The merit program will incentivize positive behaviour that benefits the DAO.

Voted YAE


[AIP] Reserve Factor Updates (February 15, 2024)

Reason: This is in line with our recommendation to make incremental changes to the Reserve factor to incentivise liquidity migration towards Aave v3.


[AIP] MaticX Supply Cap Increase In Polygon V3

Reason: We voted yes for the ARFC

Voted YAE


[AIP] Orbit Program

Reason: We voted yes for the ARFC. We believe its important to cover the cost of voting by delegates as their work is valuable to the DAO.

Voted YAE


[AIP] Aave Protocol Embassy

Reason: We voted yes for the ARFC.

Voted YAE


[ARFC] Enable Metis as Collateral on Metis Chain

Reason: We votes yes for the ARFC. The parameters proposed by chaos lab are conservative with low LTV ratios and a debt ceiling of $1m.

Voted YAE


[ARFC] Stable Rate Deprecation

Reason: As the bug regarding the stable rate depreciation is listed as a critical severity bug we agree with the decision to decision to change all users to stable borrow rate.

Voted YAE


[ARFC] Chaos Labs - Update WETH IR on V3 Arbitrum and Optimism - 02.16.2024

Reason: Increasing Interest rates will make borrowing more attractive and based on the analysis by Chaos labs will increase the yearly revenue of Aave on Arbitrum and Optimism by around $50k.

Voted YAE


[AIP] Treasury Management - GSM Funding & RWA Strategy Preparations (Part 2)

Reason**:** We are supportive of GSM Funding and the RWA strategy, this is a necessary step to make funds available for the strategy.

Voted YAE


[AIP] Stable rate Bug Bounty

Reason: We support the payment as the exploit has a critical vulnerability.

Voted YAE


[ARFC] Funding Update

Reason: Consolidating the funds makes things more clear, and allows for the DAO funds to be tracked in a more transparant way. Consolidating stablecoins into GHO makes sense as GHO is the stablecoin of Aave.

Voted YAE


[AIP] Aave V1 Deprecation Phase 2

Reason: Aave v1 still containt debt despite consistent changes to offboard collateral. Increasing Liqudation bonus to 3% will lead to more postions being closed.

  • With a bonus of 3%, positions > 1 ETH should be profitable to liquidate at current market conditions, which would account for 114 ETH of debt being liquidated.

This helps clear Aave v1 Liquidity.

Voted YAE


[TEMP CHECK] Add rsETH to Aave V3 Ethereum](Snapshot)

Reason: We believe that it’s premature to list rsETH considering the manner price feeds are calcualted.

Voted NAY


[TEMP CHECK] GHO Cross-Chain Strategy Launch with CCIP

Reason: Following its launch on Jul 17th 2023, GHO has seen good adoption metrics. Since Nov 18th 2023, the supply cap has been reached (35m until a recent passed proposal to increase to 40m by Chaos Labs). Following the passed vote to utilize ChainLink CCIP on the 10+ chains on which Aave operates, an action plan to launch GHO crosschain is necessary.

image

We believe that allowing networks to present their proposals is an efficient strategy to aggregate quality information. We support this proposal and look forward to engaging in the discussion and evaluation phase.

Voted YAE


[TEMP CHECK] Aave V3 Deployment on Fraxtal Mainnet

Reason: We believe it is a good opportunity for Aave to launch on fraxtal due to the mainnet being in its infancy and allows for a first mover advantage.

Voted YAE


[AIP] Set Liquidity Observation Labs as Emission manager for wstETH on V3 Markets

Reason: This will enable the Lido Liquidity Observation Labs to define and fund incentive programs for all wstETH markets, promoting growth and expanding the user base of Aave.

Voted YAE


[AIP] Reserve Factor Updates (February 29, 2024)

Reason: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.

Voted YAE


[AIP] GHO Borrow Rate Increase 2024-02-29

Reason: GHO is outside of the peg 0,995<>1,005 price. Increasing the GHO borrow rates will incentivize borrowing and help protect the peg.

Voted YAE


[ARFC] Ethereum v2 Reserve Factor Adjustment

Reason**:** This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.

Voted YAE


[ARFC] Add gmBTC on Arbitrum V3

Reason: We voted yes to the temp check. chaos labs confirms safety.

Voted YAE


[ARFC] Onboard weETH to Aave v3 on Ethereum

Reason: We voted yes to the temp check, chaos labs confirms safety.

Voted YAE


[AIP] Assign Emission Admin - Ethereum, Arbitrum and Optimism

Reason: This will allow the following rewards to be distributed:

  • ETHx & SD rewards by Stader Labs
  • osETH & SWISE by Stakewise DAO
  • OP reward via an Aave Community SAFE
  • ARB rewards via Gauntlet

Voted YAE


[ARFC] Stablecoin Harmonization and Asset Parameters Optimization

Reason: We voted Yes to the Temp check.

Voted YAE


[ARFC] Aave Liquidity Committee Funding

Reason: We support this proposal to give Aave Liquidity funding to ensure the stability of GHO. The $500k GHO can be used in tightly ranged pools to provide extremely capital efficient Liquidity pairs such as the GHO-USDC maverick pool with .1% width. This will add another layer of security to GHO and the Aave ecoystem.

image

Voted YAE


[ARFC] Set Liquidity Observation Labs as Emission manager for wstETH on Scroll

Reason: This will enable Liquidity Observation Labs to define and fund incentive programs for all wstETH markets, including Scroll, promoting growth and expanding the user base of Aave.

Voted YAE


[TEMP CHECK] Onboard sUSDe to Aave V3 on Ethereum

Voted: YAE

Reasoning: sUSDe is a synthetic staked stablecoin by Ethena which is backed by Delta neutral ethereum positions. The stablecoin earns from Liquid Staked Eth yield and funding rates as Ethena is short the ETH perpetual on centralized exchanges to remain delta neutral.

Due to its high yield (20%+), sUSDe has seen widespread adoption in DeFi with close to 500m supply. The asset is also safe to list as it is fully collateralised, and deep liquidity on Curve. We believe this asset has high demand and will improve stablecoin diversity.

image

image


[ARFC] TUSD and BUSD Aave V2 Rate Amendments

Voted: YAE

reasoning: TUSD and BUSD markets have extremely aggressive, with uOptimal set at 1% resulting in borrowing APY of 230%. As ChaosLabs mentions there are almost $200k of at risk positions in these markets, and the interest rates are so aggressive. Decreasing Slope 1 and Slope 2 to 0% with a base rate of 10% ensures a more incremental and less risky ofboarding process.


[ARFC] BGD <> Aave Phase 3 (2 scopes)

Voted: YAE
reasoning: BGD labs has done a great job with Aave technical maintenance, improvements, security coordination and tech advisory to the DAO. We are supportive of this proposal and happy to continue BGD labs relationship with Aave.


[TEMP CHECK] Onboard Catapulta as Aave V3 Deployment Service Provider
Voted: YAE

Reasoning: Catapulta is a good candiate to assist with technical deployments of Aave on new chains. The payment of $15k / deployment is also considered fair.


[TEMP CHECK] Onboard LlamaRisk as Aave Risk Service Provider

Voted : YAE

reasoning: LlamaRisk was established in 2021, as a service providing analysis on tokens listed by Curve DAO. In 2023 they partnered with Prisma, and now offer generalised risk strategies. Their proposed scope is:

  1. On demand risk assets
  2. Collaboration with Chaos Labs
  3. Active involvement in DAO governance
  4. Legal regulatory and policy work.

We believe LlamaRisks previous work for crvUSD helps since we need help with GHO stability.


[ARFC] Reset Aave v3 Deployment Pipeline

Voted: YAE
Reasoning: The following Mainnets are currenty in the ARFC stage:

  • Celo : 123m total value locked
  • Kava EVM : $192.71m TVL
  • Neon EVM : $1m TVL
  • StarkNet: $237.27m TVL
  • zkSync: $155m TVL

We agree the DAO needs to be more strategic and selective with deploying on new chains. Each new deployment costs Aave, adds operational work for the DAO. Being selective allows the DAO to concentrate our efforts on chains which are profitable and sensible to deploy on.


[ARFC] Avalanche v2 Reserve Factor Adjustment

Voted: YAE

Reason: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.


Ethereum v2 Reserve Factor Adjustment

Voted: YAE

Reason: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.


Remove ARB from Isolation Mode on Arbitrum

Voted: YAE
Reasoning: Arbitrum was included as Isolated collateral in 2023 as there were concerns about liquidity depth in the case of liquidation cascades. Based on current analysis Arb has deep liquidity on Uniswap for both ARB-ETH and ARB-USDC.e pairs.

Based on the maximum LTV of 50% and liquidation threshold of 60% with large liquidation bonus, we believe that this decision is safe.

image


Aave BGD Phase 3

Voted: YAE

Reasoning: We have voted yes for the ARFC.


Contango FlashBorrower

Voted: YAE

Reasoning: We voted yes to the flashborrower proposal, this proposal is a natural extension as Contago is live on Arbitrum.


ReserveFactorUpdates

Voted: YAE
Reasoning: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.


StablecoinIRUpdates

Voted: YAE

Reasoning: Due to demand for leverage, Stablecoin supply and borrowing has drastically increased on Aave (Total Stablecoin supply on Aave v3 of 115.33m Jan 1st vs 256m April 8th). Additionally, Utilisation is above Uoptimal (90%). Increasing interest rates will make rates more competitive and drastically increase Aaves revenue.


Upgrade AMPL implementation

Voted: YAE

Reasoning: Following the vote [ARFC] aAMPL interim distribution, an interm solution of 300,000 USD stablecoin distribution to aAmpl suppliers on Aave was approved. Freezing Ampl ensures that an accurate snapshot of the current Ampl positions on Aave can be taken.


Native bridge adapters update

Voted: YAE

Reasoning: This is a standard small improvement by BGDlabs


Generalized LT/LTV Reduction on Aave

Voted: YAE

Reasoning: These adjustments to liquidation thresholds improve the security of Aave. Following the winding down of the at risk wallet (0x6cd4471480e2969b3d696fbd17530e85112f3ff6), the liquidation risks have greatly decreased.

Risk Parameters for DAI Update

Vote : YAE

Reasoning: Maker’s D3M model allows MakerDAO to extend a direct credit line to various lending protocols with the goal of controlling the maximum variable interest rate for borrowing DAI.

Maker has used this to extend a $300 million credit line of DAI to Morphos’ vaults, with proposals to increase the credit line up to $600 million. This Morpho vault strategy borrows USDe against Maker-supplied DAI — accruing yield from USDe’s delta-neutral funding rate strategy. The DAI deposited in this strategy is grouped into various tranches of risk, ranging from 77% to 94.5% LLTV debt positions.

Source: https://dune.com/allez_labs/allez-labs-maker-ethena

As Morpho vaults utilize Aave, a liquidation event in Maker’s D3M Morpho strategy could lead to second-order effects on the Aave protocol.

To mitigate this risk, two options for DAI collateral parameters were suggested:

  1. Update DAI LTV to 0%, freezing the borrowing power of DAI.
  2. Update DAI LTV to 63% and incrementally lower it based on DAI strategy allocation.

Some considerations:

  • There is approximately $350 million in DAI on Aave. Completely freezing these markets as collateral is a very drastic measure.
  • On Morpho, USDe is hardcoded to $1, which prevents large liquidation cascades even if the oracle price of USDe depegs. According to ChaosLabs analysis, the lowest funding rate ever recorded would give the 94.5% LLTV pools 9 days to repay debt before falling below liquidation values.
  • Maker is incrementally extending the credit line by $100 million with input from their risk teams.

We support the conservative measure, as these parameter changes will increase the safety of the DAI Morpho vaults while still maintaining DAI’s utility on Aave.


Risk Parameter Updates GNO on v3 Gnosis

Vote: YAE

Reasoning: GNO is an isolated pool on Aave v3 Gnosis. Currently, there is one large position with 18k GNO collateral that has borrowed $840k of stablecoins (Health factor 2.5).

Given that the pool is isolated and the borrow ceiling of $1m has been reached, we recommend raising the borrow caps to $2m and slightly adjusting the LTV ratios.

image


Onboard Llamarisk as a Risk Provider:

Vote: YAE

Reasoning: LlamaRisk was established in 2021 as a service providing analysis for Curve. In 2023 they partnered with Prisma, and now offer generalised risk strategies to various platforms.

Their proposal encompasses the following scope:

  1. On-demand risk assets.
  2. Collaboration with Chaos Labs.
  3. Active involvement in DAO governance.
  4. Legal, regulatory, and policy work.

Their unique expertise lies in deep knowledge of stablecoin design, particularly having worked with crvUSD.

Requested Compensation: $250,000

We voted for LlamaRisk based on their previous experience. Additionally, we believe that their expertise with crvUSD contributes to growth and maintenance of GHO. We were also impressed with their analysis in the DAI parameter discussion here.


Reserve Factor Update:

Vote: YAE

Reasoning: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.


Update weETH Risk Parameters:

Vote: YAE

WeETH is a Liquid Restaking Token provided by Ether.fi. EtherFi currently has 1.25 million ETH staked (valued at $3.91 billion USD) as weETH. In addition to having withdrawals enabled, weETH boasts large liquidity pools, including $21 million on Thruster and $58 million on Uniswap.

On Aave, on-chain data indicates that the majority of these positions are employing looping strategies, supplying weETH and borrowing ETH. These positions carry lower risk as the assets are highly correlated, meaning that changes in collateral value are mirrored by the debt value.

image

WeETH is redeemable for ETH at a 1:1 ratio, which limits the risk of liquidation for looping accounts. Additionally, the recommended borrow cap remains small compared to the supply cap (48k vs. 3200). For these reasons, we agree with updating the weETH parameters.


Add AERO to Base v3

Vote: YAE

Reasoning: Aero is the leading native DEX on base with a market cap of $460m and total value locked of $700m. AERO has extremely deep liquidity ($80m), and is listed on Tier 1 exchanges such as Coinbase and Kucoin.

Based on AEROs liquidity levels and dominance in Base Defi, we believe AERO can be successfully added to Aave v3 Base markets.

image


Hyperlane bridge adapter update to V3

Vote: YAE
Reasoning: Standard Technical Proposal from BCG


stkGHO Incentive

Vote: YAE

Reasoning: GHO staked in the safety module offers several benefits:

  1. It serves as a protocol buffer in case of a shortfall event.
  2. It contributes to the stability of GHO through a 20-day lockup period, potentially leading to revenue after the Aave FASTPASS proposal.
  3. It generates demand for GHO as a yield-accruing Stablecoin.

image

Increasing emissions from 50 to 100 stAAVE per day will make rewards more attractive and incentivize more deposits for the GSM. Based on our calculations, these incentives result in a 15.7% APR, which is competitive for stable rates.


Hyperlane bridge adapter update to V3

Vote: YAE
Reasoning: Standard Technical update by BCG Labs.


aAMPL Second Distribution
Vote: YAE
Reasoning:
The aAMPL problem has been extensively discussed on Aave’s governance forum. While $300k has already been allocated as an interim solution, this second payment of $758k will serve as the final contribution from Aave. Following this, aAMPL will compensate 40% of the total, ensuring full reimbursement for aAMPL holders.


StablecoinIRUpdates

Vote: YAE
Reasoning: We voted Yes to the Snapshot vote.


Updating weETH Risk Parameters
Vote: YAE
Reasoning:
We voted Yes to the ARFC.


Polygon V2 Reserve Factor Updates & Interest Rate Increases:

Vote: YAE

Reasoning: This is a continuation of incremental updates to offboard collateral from V2 Markets.


[ARFC]. BGD. Aave v3.1 Cantina competition
Vote: YAE
Reasoning:
Security is the backbone of Aave, and with the launch of Aave 3.1, all security procedures need to be emphasized. We encourage competitions for white hat hackers - payments will only be made if security errors are found, in which case the payment is well worth it.


[TEMP CHECK] Onboard tBTC to Aave v3 on Ethereum, Arbitrum and Optimism
Vote: YAE
Reasoning:
tBTC is a pegged ERC20 token redeemable 1:1 for Bitcoin on the BTC network via the Threshold permissionless bridge. tBTC serves as a decentralized alternative to wrapped Bitcoin. While the underlying BTC of wBTC is held by a centralized group of custodians, tBTC is held by a decentralized network of nodes.

Currently with a market cap of $191.6 million, tBTC has liquidity pools against WBTC and stablecoins on Curve and Uniswap. Aave listing tBTC will enable tBTC holders to earn yield on their Bitcoin, thereby enhancing asset diversity on Aave and providing users with alternatives to centralized wBTC, which holds a significant market share (wBTC has a market size of $2.03 billion on Aave v3 Ethereum Mainnet).


[ARFC] ACI Phase III - “Ad Astra”
Vote: YAE
Reasoning:
We echo the communities opinion and support extending Aaves’ collaboration with ACI for an additional year. ACI has contributed strongly to Aave through their initiatives of Skyward and Dolce Vita. Skyward has streamlined the governance process from the ARFC to the AIP stage, and “Dolce Vita” manages essential operational processes for the DAO.

We are excited for ACI to expand their services through the “Ad Astra” growth phase. Given ACIs’ effort and commitment to the DAO, we are supportive of this proposal.

[ARFC] Deprecation of Small-cap Stablecoins on V2 Ethereum

Vote: YAE

Reasoning: On April 18th, the price of USDP spiked on several exchanges, reaching a high of $1.2 according to Chainlink’s oracle price. Since USDP is not available as collateral, the risks were limited (i.e., preventing users from taking out loans against inflated USDP collateral). Despite this, the increase led to liquidations of users who had borrowed USDP, resulting in bad debt.

Based on these events, we believe it is justified to take measures to protect against the recurrence of a similar event by depreciating small-cap stablecoins on V2 with low liquidity.


Polygon V2 Reserve Factor Updates & Interest Rate Increases

Vote: YAE

Reasoning: This AIP is a continuation of incremental changes to gradually increase the Risk factor and increase interest rates to off-board collateral from Aave v2 markets on polygon.


Aave v3.1 Cantina competition

Vote: YAE

Reasoning: We voted yes to the ARFC


[ARFC] Onboard ggAVAX to Aave V3 on Avalanche

Vote: YAE

Reasoning: We voted yes on the Temp Check Proposal and are confident after reviewing the input from ACI and Chaos Labs:

  • Relative to its size, ggAVAX has the most liquidity of any AVAX LST (80k AVAX), and ggAVAX is redeemable for its underlying AVAX.
  • ggAVAX market creates demand to borrow AVAX, which is currently underutilized (43% utilization rate).
  • Conservative risk parameters (30% LTV and 40% LT).

image

Therefore we voted yes to the ARFC.


[ARFC] Renewal of Aave Guardian - 2024

Vote: YAE

Reasoning: The Aave Guardians perform crucial tasks for Aave in case of emergency situations that require fast responses.


[ARFC] LT/LTV Reductions on Aave V2 Stablecoins

Vote: Conservative

Reasoning: These are a series of reductions to decrease LT/LTV ratios to deprecate Aave v2 markets. An aggressive option would result in over $200k of liquidations occurring; therefore, we have chosen the conservative option.


[ARFC] Safety Module stkGHO - Rewards Adjustment

Vote: YAE

Reasoning: With GHO revenue of $6.13 million per year, the GHOs’ revenue stream is sufficient to sustain the stkGHO rewards without requiring stAAVE emissions. Currently, stkGHO rewards are 100 stAAVE per day. Switching these to GHO will extend the Aave emission runway, increase GHO yield to 20%, and enhance the stability of yield for stGHO deposited in the Aave safety module.

We are in support of this proposal.


Aave V1 Deprecation Phase 3

Vote: YAE

Reasoning: We are supportive of the deprecation plan to offboard liquidity from Aave v1.


[TEMP CHECK] Add rsETH to Aave V3 Ethereum

Vote: YAE

Reasoning: We voted against this [TEMP CHECK] previously due to concerns about the rsETH price feed calculation. As of May 3rd, withdrawals for rsETH have been enabled, and users can claim underlying ETHx, stETH, and stfxETH.

The ability to redeem for underlying assets allows for arbitrage opportunities if rsETH deviates from its underlying fair value of 1 ETH. This makes rsETH much more robust; therefore, we support this proposal.

image


[TEMP CHECK] Add AERO to Base V3 *Reproposal

Vote: YAE

Reasoning: This is a re-proposal to a previous vote that had high support percentage but did not garner enough votes to reach quorum, to which we had voted yes.


Reserve Factor Upgrades:

Vote: Yes

Reasoning: This AIP is a continuation of the series of incremental increases to the Reserve factor to migrate liquidity from Aave v2 to Aave v3.


April Finance Update:

Vote: YAE

Reasoning: These are necessary payments for the DAO.


osETH Onboarding:

Vote: YAE

Reasoning: We voted yes for the TEMP CHECK and ARFC. osETH is overcollateralized and improves LST diversity for Aave.

[ARFC] Fund USDC & USDT GSM

Vote: YAE
Reasoning: There is $7.7M GHO in the exit queue waiting to be withdrawn by large stkGHO holders. To mitigate the effect of selling this GHO on DEXes, the GHO safety committee can use funds to bolster GHO liquidity.


[ARFC] Aave V3 Deployment on Celo

Vote: YAE
Reasoning
: We voted Yes to deploy Aave v3 on Celo.

  • The Celo blockchain focuses on real-world use cases.
  • Celo currently has only an Aave v2 fork as the leading platform.
  • Celo has incentive programs and will cover the initial deployment costs.

[ARFC-Addendum] Update Merit for Round 4

Vote: YAE
Reasoning:
Merit has been successful in both growing Aave’s market share and contributing to the success of GHO (through incentivization of stkGHO in the GHO safety module). Currently, Aave merit gives 29.5% APR for stkGHO.

We agree with the initiative to depreciate the WETH incentives. Due to the high amount of TVL, we believe the GHO rewards are not high enough to incentivize actions (current merit APR for WETH is 0.29%).


[ARFC] Aave Finance Steward
Vote: YAE
Reasoning:
The Aave Finance stewards will be able to execute pre-approved budgeting operations. This reduces operational overhead.


Chaos Labs Ethereum V2 LT Reductions

Vote: YAE
Reasoning: Standard proposal to reduce liquidation thresholds for Aave v2 on frozen assets LINK and ZRX. We support this proposal as we agree with offboarding capital from v2 markets, and it causes minimal liquidations.


Deprecation of Small-cap Stablecoins on V2 Ethereum

Vote: YAE
Reasoning:
We voted yes to the ARFC


[ARFC Addendum] Increase Supply and Borrow Caps for weETH

Vote: Conservative
Reasoning:
The WeETH-ETH liquidity pair is the deepest of all LRT tokens, with $110M on the Ethereum mainnet Uniswap v3 pool. Additionally, WeETH is redeemable, making it one of the safest LRTs.
image

Demand for WeETH on Aave is extremely high from ETH-correlated e-mode, and when supply caps are increased, they are filled almost instantly.

We support increasing supply caps for WeETH due to its revenue and demand. We believe an increase to 500k WeETH is sufficiently aggressive (representing a 2.5x increase). However, if the DAO is comfortable with increasing supply caps to 1M, we support that as well.
image


[ARFC] GHO Cross-Chain Launch

Vote: YAE
Reasoning:
GHO has been a huge success on Aave Ethereum v3 mainnet, reaching close to $60M supply. GHO has long-term strategic importance as outlined in Aave’s 2030 vision, providing significant revenue to the DAO.

Arbitrum is a logical next step as it is Ethereum-aligned and has a top 5 TVL among all chains, with Aave being its number one protocol. Like many others, we are excited about this new chapter for GHO.

image


Chaos Labs Ethereum V2 LT Reductions

Vote: YAE
Reasoning:
We support incremental changes to off-board liquidity from Aave v2.


Deprecation of Small-cap Stablecoins on V2 Ethereum

Vote: YAE
Reasoning:
We voted Yes to the ARFC due to concerns about manipulation and the security of low liquidity stablecoins on the v2 markets.


[ARFC] Onboard USDe to Aave V3 on Ethereum

Vote: YAE
Reasoning:
USDe is Ethena’s algorithmic stablecoin, collateralized by delta-neutral positions of Bitcoin and Ethereum, that earns the funding rates.

We voted Yes to the TEMP Check based on USDe’s viability as collateral and its revenue potential for the DAO. We support the ARFC because the on-chain liquidity depth allows for an 80M supply without much risk.

image


[TEMP CHECK] Safety Module - Create GHO/USDC E-CLP Category

Vote: YAE
Reasoning:
GHO/USDC E-LCP will create highly concentrated liquidity between $0.996-$1.001, further defending the GHO peg. While GHO supply has continued to increase, liquidity depth has decreased, therefore we support incentivising this pool.

image


[ARFC] Orbit Program Renewal May 2024

Vote: YAE
Reasoning:
Governance is a core part of Aaves success and delegate work must be incentivised - We thank all the delegates for their hard work.


SUSD risk parameters update

Vote: YAE
Reasoning:
Since Susd has depegged - We believe it is important to update sUSDs collateral status and put positions in a close only mode while we monitor the situation.

image


[ARFC] Onboard tBTC to Aave v3 on Ethereum

Vote: YAE
Reasoning:
We voted yes to the temp check


LT/LTV Reductions on Aave V2 Stablecoins

Vote: YAE
Reasoning:
Series of Adjustments to offboard v2 collateral.


[ARFC] Expansion of “Frontier”

Vote: YAE
Reasoning:
Frontier is a initiative which allows ETH to be utilized by Aave by creating validator nodes to actively validate the network rather than using only LST protocols. We feel the pilot phase was a success (99% validator uptime), and therefore support continuation of this project.


[TEMP CHECK] Deploy Aave V3 on Mode

Vote: NAE
Reasoning:
Mode Network has 570m Total Value locked - primarily in Lending platforms Ionic and LayerBank (233m and 222m).

image

The majority of this TVL comes from points farmers which deposit ETH as LRTs and idly supply them on Lending platform to maximize points. For example ezETH on Ionic earns 2x Ionic points, Turtle ionic points, 2x Mode points, Turtle points, 2x Renzo, turtle renzo points, Eigenlayer points. This results in $65m Supply with $29k borrowed, leading to low utilization rates and low revenue.

image

Based on this emphasis on points and incentives we feel more commitment is required from Mode on their alignment to ensure Aave would remain competitive and be able to siphon liquidity from other Platforms.


[ARFC] Chaos Labs Parameter Recommendations - sUSD on V3 Optimism - 05.23.2024

Vote: YAE
Reasoning:
We voted yes to limit sUSD as collateral on Optimism following its depeg. Since then the price has regained peg and is trading at $1 as intended.

Since sUSD is a valuable collateral - we support opening up its use as collateral again. The proposed re-onboarding method is logical, as the supply and borrow caps will be adjusted before unfreezing the collateral.

image


[ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 - 05.24.2024

Vote: YAE
Reasoning:
The analysis done by Chaos Labs is thorough and detailed, we feel these LTV improvements make Aave a safer and more efficient platform.


[ARFC] Increase Bridged USDC Reserve Factor Across All Deployments

Vote: YAE
Reasoning:
Bridge Hacks have accounted for $2.8b in funds lost and represent 40% of the total value hacked in DEFI - additionally they increase complexity as each bridge token requires different liquidity pools.

Since native USDC is available on Arbitrum, Optimism, Polygon, and Base it makes sense to increase RF for non-native pairs to favour native USDC.


[ARFC] Safety Module - Create GHO/USDC E-CLP Category

Vote: YAE
Reasoning:
We voted Yes to the temperature check - highlighting GHOs need for deep liquidity, and believe creating a GHO/USDC E-CLP safety module pool will strengthen the peg by incentivising external liquidity providers.

image


Migrate Robots to Chainlink Automation v2

Vote: YAE
Reasoning: Logical to upgrade automation tools as chainlink automation has upgraded to automation v2.1. These robots help automation of rewards and governance.


weETH Aave V3 Base Onboarding

Vote: YAE
Reasoning:
WeETH is one of the most liquid and popular LRTs on Ethereum mainnet, and has been onboared on Arbitrum Mainnet. Given its robust design and populatity in defi we support its onboarding on base markets.


Reserve Factor Upgrades

Vote: YAE
Reasoning:
Series of incremental changes to periodically increase RF to offboard collateral from Aave v2 Markets.


Orbit Program Renewal

Vote: YAE
Reasoning:
Voted Yes to the ARFC


Onboard USDe Aave V3 Ethereum

Vote: YAE
Reasoning:
We voted yes to the Snapshot and ARFC


Chaos Labs Parameter Recommendations sUSD on V3 Optimism

Vote: YAE
Reasoning:
Voted Yes to the ARFC

[ARFC] Adjusting Interest Rate Curve for weETH on Arbitrum and Base

Vote: YAE

Reasoning: Proposed changes to weETH parameters make weETH lending more attractive and ensure interest rate stability.


[TEMP CHECK] Activate and Deploy GHO Safety Module on Arbitrum

Vote: YAE

Reasoning: The GHO Safety Module is core infrastructure for Aave, providing stability for the GHO peg. The interest rates for GHO staking provide incentives for staking and locking GHO, promoting GHOs stability. Spending the LTIPP to incentivize GHO and markets will help bootstrap initial liquidity for the Safety Module.


[ARFC] Onboard BNBx to Aave V3 BNB Chain

Vote: YAE

Reasoning: Llama Risk and Chaos Lab shared an in-depth analysis regarding the safety and parameters of xBNB. As support the Temp check, given their analysis we vote in favor of this proposal. Generally, we are supportive of productive assets as they allow for higher interest rates.


Onboard USDe Aave V3 Ethereum

Vote: YAE

Reasoning: We voted yes to the ARFC and Temperature Check.


Chaos Labs Parameter Recommendations sUSD on V3 Optimism

Vote: YAE

Reasoning: We voted yes to the ARFC.


April Finance Update Part B

Vote: YAE

Reasoning: We agree with this proposal as it efficiently manages the DAO’s treasury by swapping DAI to GHO, creating allowances for ALC safes, and depositing balances into Aave V3 Ethereum. This increases the DAO’s use of GHO and strengthens the treasury.


GHO Steward Update

Vote: YAE

Reasoning: The GHO peg has shown significant strength, and we believe the GHO stewards are doing a good job in monitoring the peg. These changes enhance liquidity and growth, adapting better to dynamic market conditions.


Adjusting Interest Rate Curve for weETH on Arbitrum

Vote: YAE

Reasoning: We voted YAE for the ARFC.


[ARFC] Optimize ETH-correlated asset parameters

Vote: YAE

Reasoning: Leveraged Emode Looping with ETH is extremely popular and represents a large amount of Aave’s TVL. As the majority of farmers are looping wstETH, ensuring the ETH borrow cost is less than the StETH yield is essential to support this dynamic.


[TEMP CHECK] AL Service Provider Proposal

Vote: YAE

Reasoning: The updated proposal provides more clarity about the year 1 deliverables, and the ask amount is fair considering the scope and ambition of the project.


Chaos Labs Risk Parameter Updates AaveV3

Vote: YAE

Reasoning: Standard incremental improvements to LTV and LT parameters, which we appropriate after reading the forum post by Chaos Labs.


[ARFC Addendum] Update Asset Onboarding Framework

Vote: YAE

Reasoning: This makes the process of onboarding new markets more frictionless as the publisher already provides an initial small deposit, used to initially seed the market.


[ARFC] Set ACI as Emission Manager for Liquidity Mining Programs

Vote: YAE

Reasoning: This improves the distribution of incentive programming by allowing ACI to manage incentives.


[ARFC] Deployment of Aave on zkSync

Vote: YAE

Reasoning: zkSync is an exciting chain and we see large potential in deploying there. The on-chain landscape is still in its early stages, and zksync still lacks a large lending market that dominates the landscape (The largest lending platform is ZeroLend with >$20m TVL). With zkSync being ETH-aligned and Aave having success on optimistic L2s, we are excited to launch on a zkSync.

Total Value Locked


[TEMP CHECK] Deploy Whitelabel Aave V3 Market - Reental

Vote: YAE

Reasoning: We believe this to be a positive fork for the following reasons:

  1. Reental fully subsidises deployment costs.
  2. Positive revenue for Aave due to 20% fee sharing.
  3. Represents an interesting initiative of launching forks that generate revenue for the DAO.

Additionally, we it aligns with Aaves RWA plan. We are interested in seeing the lending/borrowing of tokenized properties.


[ARFC] Aave Liquidity Committee Funding Phase III

Vote: YAE

Reasoning: These improvements will increase liquidity depth and stability for GHO on Ethereum and Arbitrum.


[ARFC] AL Service Provider Proposal

Vote: YAE

Reasoning: We Voted Yes to the Temp check.

[ARFC] Onboard USDC.e to Aave V3 Gnosis Chain
Vote: YAE
Reason: USDC.e follows the Bridge Token standard and is a new version of USDC on the Gnosis chain allowing deeper integrations and flexibility. Therefore we support onboarding this asset as collateral for Gnosis chain Aave markets.


[TEMP CHECK] Deploy a Lido Aave v3 Instance
Vote: YAE
Reason: The Lido instance intends to create a Aave deployment optimised for Looping wstETH Strategies. The proposal suggests incremental improvements to parameters (slope1 decrease, lowered RF, Merit boost) for wstETH over the Aave V3 ETH deployment - incentivising the use of the Lido instance for these borrowing behaviours. wstETH is a large part of Aave it makes sense to silo it into a seperate instance.


[ARFC] Aave Liquidity Committee Funding Phase III
Vote: YAE
Reason: Following GHOs first cross chain deployment on Arbitrum - ensuring deep liquidity for GHO is crucial. This proposal ensures the Aave Liquidity Comittee has funds required to continue operations to bolster GHO DEX Lps on both chains, with a focus on Arbitrum. According to DefiLlama there is only one GHO pool on Arbitrum with 10k TVL compared with $55m of GHO LPs on ETH mainnet. While we believe the KPIs set by the ALC are ambitious, they are well worth aiming for.

image


[ARFC] AL Service Provider Proposal
Vote: YAE
Reason: We are big supporters of Aaves 2030 vision. Following the amendments from Aave Labs with a one year engagement, we are aligned on both the scope and terms.


[ARFC] Reduce Reserve Factor on wstETH
Vote: YAE
Reason: Due to looping strategies there is a large amount of wstETH available to borrow with low utilization. Reducing the reserve factor on wstETH will make the asset more attractive to lenders and aligns the RF on all chains.


[ARFC] Onboard artMETIS to Aave V3 on Metis Market
Vote: NAE
Reason: We are against this proposal following the risk assessment from LlamaRisk. Due to no withdrawals, artMetis trades at a 4% discount to Peg. This discount can become amplified as high Incentive APR for artMetis is primarily driven by airdrop rewards.


[ARFC] Deploy whitelabel Aave V3 Market - Reental
Vote: YAE
Reason: We voted YAE to the Temperature Check


[TEMP CHECK] Onboard dlcBTC to Aave v3 on Ethereum and Arbitrum
Vote: NAE
Reason: According to the Chainlink dlcBTC proof of reserve, there are only 19.3 dlcBTC minted. Based on this, we believe the demand does not justify adding a dlcBTC market on Aave.

image


[ARFC] Deploy a Lido Aave v3 Instance
Vote: YAE
Reason: Voted YAE to the Temperature Check


[TEMP CHECK] Onboard slisBNB to Aave V3 BNB chain
Vote: YAE
Reason: We are generally supportive of listing LST assets as they present a usecase for Looping, creating demand both for the native token and generating revenue for the DAO. slisBNB is the largest LST on BNB chain and Lista DAO is providing incentives to bootstrap liquidity.


[ARFC-Addendum] Update Boosters for Merit Round 6
Vote: YAE
Reason: The following updates for the Merit Program are aligned with the Lido deployment and Arbitrum GHO expansion

  • Removal of weETH because there is already so much demand for LRT products
  • Removal of OG as they already had 4 rounds of boost
  • Addition wETH Maxi boost on Lido markets to incentivize them

Onboarding ETHx to Aave V3 Ethereum
Vote: YAE
Reason: We voted yes to the Temperature Check and ARFC for ETHx as we feel improving LST diversity is important for the DAO.


GHO Cross-Chain - Part 1
Vote: YAE
Reason: We are in support of GHO launching cross chain.


Set ACI as Emission Manager for Aave Liquidity Mining programs
Vote: YAE
Reason: Allowing the ALC committee to become the emission manager is required to efficiently manage their liquidity mining programs


Onboard sUSDe to Aave V3 on Ethereum
Vote: YAE
Reason: We voted Yes to the the Temp check and ARFC


GHO Cross-Chain - Part 2
Vote: YAE
Reason: We voted Yes to the ARFC and are excited to see GHO launch on Arbitrum


AL Service Provider Proposal
Vote: YAE
Reason: We voted Yes to the ARFC


Request for Bounty Payout - June 2024
Vote: YAE
Reason: We support paying out bounties for whitehat hackers. This ensures whitehacks are incentivised to stress test Aaves code for potential rewards.

1 Like

[TEMP CHECK] Aave Events & Sponsorship Grant 2024

Vote: YAE
Reasoning:
Considering the diverse range of initiatives planned—hackathons, Open Finance Day, merchandise, and RAAVE—we find the $650,000 budget request to be reasonable. As a market leader, Aave’s continued prominence is essential, and investing in brand awareness is crucial to maintaining that position. This one-time budget allocation will support key events and initiatives for the remainder of 2024.


[TEMP CHECK] Deploy an Etherfi/Stablecoin Aave v3 Instance

Vote: YAE
Reasoning
: The majority of weETH is currently being used in leverage loop strategies, and as a result, supply caps for weETH are consistently maxed out, which restricts regular borrowing activities. This new Aave instance will alleviate this issue by allowing more natural lending behaviors. By restricting borrowing to only stablecoins, This instance ensures that leverage looping is not possible, and allows for users to deposite WeETH to borrow stablecoins without supply cap restrictions. This also improves collateral management, as non eMode users couldnt top up collateral to restore their health factor, due to supply caps being reached.

Screenshot 2024-09-13 at 14.40.08


[TEMP CHECK] Aave V3 Deployment on Aptos Mainnet

Vote: YAE

Reasoning: “We believe that a non-EVM deployment presents a significant opportunity, and Aptos is the right chain for Aave to deploy on. Aptos not only has the infrastructure required to enable safe and efficient lending but also has a rapidly growing on-chain landscape that is well-suited for DeFi. The incentive structure provided by the Aptos Foundation will allow Aave to attract substantial liquidity and capture significant market share and revenue.”

This explanation is taken from our analysis here.


[ARFC-Addendum] Update in Renewal of Aave Guardian 2024

Vote: YAE
Reasoning:
Supportive of renewing this crucial function


[TEMP CHECK] Deploy an Ethena Aave v3 Instance

Vote: YAE
Reasoning:
Due to the APR that sUSDe and USDe holders earn from delta-neutral funding strategies, these assets have become popular for leverage looping. Ethena’s new instance will create an isolated market with eMode, allowing for efficient utilization and high LTV ratios. This setup enhances the efficiency of borrowing activities while isolating the associated risk to the specific instance.


[ARFC] TokenLogic + karpatkey Financial Service Providers - Phase II

Vote: YAE
Reasoning:
This proposal ensures continued financial management by extending successful partnerships with TokenLogic and Karpatkey. We believe they have already done a good job with treasury management, and with the next phase of safety module changes and GHO expansion these services extremely important.


[ARFC] GHO Parameter Adjustment - Governance Process Amendment

Vote: YAE
Reasoning:
Allowing Direct-to-AIP for GHO parameter changes allows us to be more efficient when reacting to and implementing various GHO parameter changes in reaction to market changes.


[ARFC] Deploy USDC and USDT GSM On Arbitrum

Vote: YAE
Reasoning:
The USDC and USDT GHO safety modules enable users to mint and redeem GHO at a fixed $1 rate, preventing arbitrage opportunities which result in suboptimal execution for users. The issue stems from the relatively thin liquidity on Arbitrum compared to Ethereum mainnet, where most liquidity pools are deployed. Implementing these safety modules will enhance the stability and accessibility of GHO on Arbitrum, providing a more reliable and user-friendly experience on the network.


[ARFC] - Chaos Labs Risk Parameter Updates - sAVAX on Aave V3 Avalanche - 07.16.2024

Vote: YAE
Reasoning
: Most of the current positions are leveraged looped sAVAX/AVAX which reduce liquidation risks, and in addition there appears to be sufficient liquidity depth to create efficient liquidations. Therefore, based on the analysis of Chaos Labs it appears safe to increase LT, especially after considering other user positions.


[ARFC] Aave Events & Sponsorship Proposal 2024

Vote: YAE
Reasoning:
We voted Yes to the Temperature Check, as we believe the requested budget is justified given the number of planned events, and it is important that Aave continues to maintain its brand awareness as the biggest lending protocol and Defi Giant.


[ARFC-Addendum] Update Boosters for Merit Round 7

Vote: YAE
Reasoning:
The Merit program is beneficial for Aaves growth, and we support expanding it for round 7.


[ARFC] Onboarding weETH to Aave V3 on Scroll

Vote: YAE
Reasoning:
weETH is one of the most popular yield bearing assets on ETH and adds significant usecases to the scroll market.


[ARFC] Chaos Labs Risk Parameter Updates - Increase USDe Debt Ceiling on V3 Ethereum - 07.22.2024

Vote: YAE
Reasoning:
Since the current debt limit of $40,000,000 has been reached, we agree with the recommendations of Chaos lab. The limit is in accordance with the isolated asset risk framework, and since initially adding USDe the liquidity has grown a lot.


[TEMP CHECK] AAVEnomics update

Vote: YAE
Reasoning:
Proposed Aavenomics reduce risk of bad debt by creating an insurance for each market via umbrella staking. See our extended rationale here


[ARFC] Onboard slisBNB to Aave V3 on BNB Chain

Vote: YAE
Reasoning:
Vote yes to listing this asset with conservative parameters due to the yield bearing nature of the asset which will increase protocol revenue, and also due to the liquidity commitment put forward by Lista.


[TEMP CHECK] Onboard osGNO to Aave v3 Gnosis

Vote: YAE
Reasoning:
Since oETH has seen good adoption we expect similar results when allowing this LST to be listed on Gnosis. OsGNO has a staking reward APY of 8.72%, which will give it significant utility.


[ARFC] Merit Base Incentives and Superfest Matching
Vote: YAE

Reasoning: Base has seen significant DeFi growth and traction, and with that there are a lot of Lending platforms competing to have the highest TVL among competitor projects. We believe Superfest incentives for wETH suppliers will attract more deposites vs competitor lending platforms. Since these are matched incentives we further believe this is a good idea.

Screenshot 2024-09-13 at 14.49.05


[ARFC-Addendum] Update GHO Dynamics and StkGHO Fast Exit Mechanism

Vote : YAE

Reasoning: This solution allows users to exit their stkGHO position due to a stkGHO/GHO Liquidity pair position with a buy wall at 99c. This allows for users to exit while providiing a 100bps gain for LPs buying discounted GHO.


[TEMP CHECK] Onboard steakLRT to Aave v3 Lido Instance
Vote: YAE

Reasoning: We are supportive of this proposal as we are supportive of increased LST diversity and options. We would await more comments from the risk team.


Stablecoin IR Curve Amendment

Vote: YAE

Reasoning: Reducing slope1 parameters on stablecoins decreases interest rates to make them more aligned with the broader market.


Increase CCIP Facilitator Capacity

Vote: YAE

Reasoning: As the supply of GHO continues to increase, it makes sense to increase the amount of GHO which can be minted direct-to-AIP from 1m to 2.5m.


Aave v3.1 upgrade

Vote: YAE

Reasoning: This is a technical improvement by BGDlabs which makes incremental improvements to Aaves codebase in terms of efficiency and safety.


Lido Ethereum Instance Activation

Vote: YAE

Reasoning: Voted in accordance with our temp check and ARFC rationales


Treasury Tooling Payment

Vote: YAE

Reasoning: Payment for a crosschain bridge required by Aave to move assets connecting Arbitrum, Optimism, and Avalanche to Ethereum.


Events Grant 2024

Vote: YAE

Reasoning: We voted in accordance with our rational for the Temperature Check and the ARFC


wETH LTV0 Aave V3 Lido Instance

Vote: YAE

Reasoning: Decreasing the LTV from 82% to 0% for ethereum ensures that wETH is not used as collateral to borrow other assets, this ensures the LIDO instance remains only for leveraged looped positions.


Risk Parameter Updates - sAVAX on Aave V3 Avalanche

Vote: YAE

Reasoning: Voted in line with our rational for the TEMP CHECK and the ARFC.


Onboard USDC.e on Gnosis

Vote: YAE

Reasoning: Aligned with the parameters


Onboarding weETH to Aave V3 on Scroll

Vote: YAE

Reasoning: weETH is the most popular LST on ETH mainnet.


GHO Arbitrum Parameter Adjustments

Vote: YAE

Reasoning: In alignment with our rational for the Temp Check and ARFC


TokenLogic + karpatkey - Phase II

Vote: YAE

Reasoning: In alignment with our rational for the Temp Check and ARFC


ADI Shuffle Update

Vote: YAE

Reasoning: The proposed Shuffle mechanism for a.DI v1.1 offers significant improvements in cost efficiency and scalability by optimizing bridge usage, only utilizing the necessary number of bridges to reach consensus rather than always using all available ones.


Risk Parameter Updates - Increase USDe Debt Ceiling on V3 Ethereum

Vote: YAE

Reasoning: In accordance with our vote on the Temperature Check and ARFC


Reduce Reserve Factor on wstETH

Vote: YAE

Reasoning: Reducing wstETH’s reserve factor to 5% strengthens the benefit of the Lido alliance. This change makes the Lido instance the optimal place to borrow wstETH, in addition to being ideal for leverage loop strategies.


May Funding Update

Vote: YAE

Reasoning: Important Updates that achieve the following:

  • Swap stablecoins to GHO which increases GHOs runway
  • Migrates holdings from Aave v2 → Aave v3

Reserve Factor Updates Mid July

Vote: YAE

Reasoning: Increasing the reserve factor on bridged stablecoins has a dual purpose by decreasing the reliance of stablecoins, promoting offboarding, while also increasing the revenue of the DAO. Slope 1 will increase the base interest rate, and increasing the RF increases the proportion of interest rate which goes to the DAO (ranging from 30-70%).


a.DI ZkSync path activation

Vote: YAE

Reasoning: This proposal is a technical prerequisite for activating Aave v3 on ZKSync, and mirrors the activation process for similar networks such as Scroll.


Update PoR Executor V3 Robot

Vote: YAE

Reasoning: Technical proposal from BGDLabs.


Merit Base Incentives and Superfest Matching

Vote: YAE

Reasoning: This proposal strategically strengthens Aave’s position on Base through matched incentives for wETH suppliers. It leverages the Merit program and matches Optimism Foundation incentives, allowing Aave to have better rates than competitor lending platforms. The plan aligns with future GHO deployment and Umbrella coverage on Base, setting the stage for Aave’s expanded ecosystem presence and increased market share in this growing network.


[ARFC] Remove Frax from Isolation Mode and onboard sFRAX to Aave v3 Mainnet

Vote: YAE
Reasoning:
Removing FRAX from isolation mode and onboarding sFRAX to Aave v3 Mainnet builds on existing synergies like sfrxETH and GHO on Fraxlend, enhancing collaboration with the Frax team. FRAX has demonstrated consistent stability, while sFRAX offers instant redeemability. This proposal has also had prior approval before the CAPO feeds were introduced.


[ARFC] Add rsETH to Aave V3 Ethereum

Vote: YAE
Reasoning:
Integrating rETH into Aave V3 Ethereum diversifies collateral options and improves LST diversity. With over $55 million in liquidity and an average daily trading volume of $10 million+, rETH is liquid enough to be listed with the following parameters. The proposed parameters, including a 75% Loan-to-Value (LTV) and an 80% Liquidation Threshold, are well-suited to rETH’s Liquidity and should ensure minimal risk of bad debt listing this asset.


[ARFC] Onboard ezETH to Aave V3 Lido Instance

Vote: YAE
Reasoning:
Onboarding ezETH to Aave V3 Lido Instance aligns with Aave’s objective of expanding its LST/LRT offerings. ezETH’s TVL of 500K ETH and daily trading volume of $83.4 million indicate a strong market presence and low risk. The proposed Loan-to-Value (LTV) of 72% and Liquidation Threshold of 75% are fitting, as the price has depegged from ETH previously this year.


[ARFC Addendum] Updated Framework for ARFC and TEMP CHECK Proposals

Vote: YAE
Reasoning:
The updated framework for ARFC and TEMP CHECK proposals enhances clarity and structure in Aave’s governance process. Including formal risk provider recommendations ensures comprehensive impact analysis before voting, improving decision quality. Extending the ARFC duration to at least 5 days allows for more thorough assessments, especially for proposals involving external input.


[ARFC] Increase Community Preference For Supply Cap Limits

Vote: YAE
Reasoning:
This proposal to increase community preference for supply cap limits enhances the safety and adaptability of Aave’s protocol. By allowing a more dynamic approach to setting supply caps, it aligns with market demands while maintaining risk management. This flexibility is crucial for Aave’s growth.


[ARFC] Deploy an Etherfi/Stablecoin Aave v3 Instance

Vote: YAE
Reasoning:
We are supportive of an EtherFi Stablecoin instance as it adds a option for users to utilize weETH to borrow stable coin collateral.


[TEMP CHECK] Onboard STONE to Aave V3 on Scroll

Vote: YAE
Reasoning:
STONE has over 180,000 ETH staked with a history of nearly $1 billion in inflows and outflows. StakeStone plans to bootstrap liquidity on Aave through partnerships, liquidity mining incentives, and a yield-boost campaign. The team aims for an initial supply of 5,000 STONE, gradually increasing over time. Onboarding STONE aligns with Aave’s goal to enhance its asset diversity and leverage active community engagement for increased liquidity.


[TEMP CHECK] Onboard USDS and sUSDS to Aave v3

Vote: YAE
Reasoning:
USDS and sUSDS are the rebranded iterations of DAI and sDAI introduced by MakerDAO (Sky). DAI has been a key asset in Aave, with a proven track record and wide adoption across various versions of the protocol.


[TEMP CHECK] Onboard cbBTC to Aave v3 on Base

Vote: YAE
Reasoning:
cbBTC is a new Bitcoin wrapper by Coinbase, offering a secure and centralized option for wrapped Bitcoin. Onboarding cbBTC to Aave V3 on Base will diversify the asset options for Bitcoin holders in DeFi activities, enhancing Aave’s ecosystem with a reliable, widely recognized asset, and provide an alternative to WBTC.


[TEMP CHECK] Superlend Profit Share Proposal, Deploying a Friendly Fork of Aave V3 on Etherlink (Stage 2 EVM Rollup) and Arbitrum

Vote: YAE
Reasoning:
The proposal includes a revenue-sharing model where 15% of profits from the forked Aave V3 markets will be shared with the Aave DAO, provided quarterly revenue exceeds $200,000. This offers Aave a direct financial benefit while supporting the ecosystem’s expansion, creating a mutually advantageous relationship.


[TEMP CHECK] BUIDL GSM

Vote: YAE
Reasoning:
The proposed GSM enables fixed-ratio swaps between USDC and GHO, using USDC surplus to mint BUIDL tokens. This module will support reserve allocation and management, facilitating integration into the BlackRock BUIDL infrastructure. Swap fees are collected in GHO, with dividends distributed monthly in BUIDL. This setup allows for efficient reserve management and increased revenue generation.


[ARFC] Onboard STONE to Aave V3 on Scroll

Vote: YAE
Reasoning:
We supported the Asset in the temperature Check and we are aligned with the parameters suggested by the risk team.


[ARFC] Onboard cbBTC to Aave v3 on Base and Mainnet

Vote: YAE
Reasoning:
We supported the Asset in the temperature Check and we are aligned with the parameters suggested by the risk team.


[TEMP CHECK]: Onboarding swBTC to Aave V3 Ethereum

Vote: YAE
Reasoning:
Onboarding swBTC to Aave V3 on Ethereum offers a new decentralized Bitcoin wrapper option.


[ARFC] Remove Community Preference For Supply Cap Limits

Vote: YAE
Reasoning:
The proposal suggests removing the community preference for supply cap limits, allowing for a more flexible and adaptable approach to managing asset caps. This change can enhance Aave’s ability to respond to market conditions and user demand more dynamically, potentially leading to more efficient protocol operations and improved liquidity management


[ARFC] Chaos Labs Risk Parameter Updates - sAVAX LT/LTV Adjustment

Vote: YAE
Reasoning:
This proposal adjusts the risk parameters for sAVAX by updating the liquidation threshold (LT) and loan-to-value (LTV) ratios to reflect current market conditions. We believe even increasing the parameters from 45% to 55% LT is still conservative.


[ARFC] Chaos Labs Risk Parameter Updates - LTV and LT Alignment

Vote: YAE
Reasoning:
Supportive of reccomendations by Chaos labs as parameters should be updated frequently to mirror market dynamics.


GHO Borrow Rate Update

Vote: YAE
Reasoning:
This proposal aims to adjust the GHO borrow rate to 4.5% based on current market dynamics, making GHO cheaper to borrow and therefore increasing demand.


Enable Metis as Collateral on Metis Chain

Vote: YAE
Reasoning:
We are generally supportive of allowing a chains native token to be utilized as collateral - especially if its in Isolation mode.


Aave v3 zkSync Activation

Vote: YAE
Reasoning:
Supportive of zkSync Activation.


Reserve Factor Updates August

Vote: YAE
Reasoning:
Standard offboarding procedures for stablecoins on V2 markets by increasing reserve factors and interest rate parameters.


Increase WETH Optimal Ratio

Vote: YAE
Reasoning:
This proposal increases the optimal WETH ratio to 90% across all Aave markets to improve liquidity utilization.


July Funding Update

Vote: YAE
Reasoning:
The July funding requests funds for ACI Merit Program and to swap stablecoins for GHO.


Aave v3 EtherFi Ethereum Activation

Vote: YAE
Reasoning:
Supportive in alignment with our reasoning for the Temperature Check.


Gho Borrow Rate Update August 2024

Vote: YAE
Reasoning:
Further decreases to GHO borrow rate to make GHO more attractive to borrow.


Stablecoin IR Curve Amendment

Vote: YAE
Reasoning:
Reducing borrow rates to align with the broader market.


Reserve Factor Updates Late August

Vote: YAE
Reasoning:
Standard offboarding procedures for V2 markets by increasing reserve factors and interest rate parameters.


Chaos Labs Risk Parameter Updates - Decrease Supply and Borrow Caps on Aave V3

Vote: YAE
Reasoning:
This proposal to remove the community preference for supply cap limits addresses the low utilization rates of certain assets. crvUSD on Ethereum has a current supply utilization of only 0.85%, with spikes up to 4% in the past six months. Similarly, LUSD on Optimism shows low utilization at just 7.83%. Ethena sUSDe peaked at 4% during its listing and later stabilized around 1%. Maintaining high supply caps for these assets exposes the protocol to unnecessary risk.


Orbit Program Renewal - Q3 2024

Vote: YAE
Reasoning:
We support the Orbit Program.


Harmonize weETH Parameters

Vote: YAE
Reasoning:
This proposal aims to harmonize weETH parameters across all supported networks by setting the base variable borrow rate to 1%, adjusting the Reserve Factor (RF) to 45%, and establishing an optimal utilization ratio of 30%. These changes are intended to increase revenue for the Aave DAO through a higher Reserve Factor, improve external liquidity for weETH, and create consistency across networks


wstETH Borrow Cap Reduction

Vote: YAE
Reasoning:
This proposal aims to reduce the wstETH borrow cap from 12,000 to 100 in preparation for the implementation of wstETH deposit liquidity mining rewards. The reduction is necessary to prevent looping of wstETH deposits, which could occur if users attempt to farm rewards by repeatedly borrowing and depositing wstETH.