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[ARFC] Deploy aCRV & CRV to veCRV

Vote Result: veCRV

Rationale

Looking at the above options, we would recommend the veCRV option due to the following reasons:

  • No counterparty or smart contract risk from holding sdCRV or yCRV.
  • No depeg risk of sdCRV.
  • No dependency on third parties (even trusted ones like ACI) to delegate to Aave.
  • If governance is the focus for Aave’s CRV deployment, veCRV is the cleanest form of achieving that governance influence.
  • There is no uncertainty after Year 1 about finding new delegators for sdCRV or about earning and deploying SDT.
  • Most of the yield displayed on StakeDAO is generated from vote incentives sold for SDT; therefore, if Aave DAO votes for a GHO pool without vote incentives, the overall yield will be lower, and if there are votes incentives paid in AAVE for example, it will create a selling pressure as this will be sold for SDT.

We recognise the main challenge of illiquidity and a lack of flexibility, since Aave would be committed to a 4-year lock-and-hold with no secondary market to attain liquidity. However, if we are long-term aligned to participate in Curve governance and optimise for security compared to the veCRV derivatives, then veCRV makes the most sense.

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