[ARFC] sDAI Aave V3 Onboarding
Vote Result: NO
Rationale
While sDAI on Ethereum v3 allows users to earn DSR yield while utilising their assets as collateral, it may have a negative impact on GHO’s peg, which is not good at all. Increasing DAI RF from 10% to 20% on v3 may lower DAI supply rate below the current DSR, which may incentivize DAI supply withdrawal. This will decrease available liquidity when liquidations occur. The need to change Slope1 for wETH is also not clear.
In this case, we ARE supportive of onboarding sDAI to Aave v3 Ethereum, but with modified parameters incorporating Gauntlet and @monet-supply’s feedback. Therefore, we will vote NO against this proposal.
1 Like
Swap Assets to aUSDC
Vote Result: YES
Rationale
This proposal to secure service provider revenue is critical and we have voted in favour of multiple Snapshot and AIPs to get it passed. This is a follow-up proposal to this AIP, which we voted for in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Aave V3 Deployment on Celo
Vote Result: YES
Rationale
With the decision to pivot to an L2 on Ethereum and the refocus on real world use cases, the value prop of Celo is now much clearer to us than it was before. Celo’s growth over the past few months, supported by its strategic partnerships and targeting of use cases in emerging markets, is a promising sign of the network’s growth even during a bear market. The incentives that the Celo foundation have committed to allocate to Aave V3 shows they are committed to bootstrapping liquidity and ensuring a successful launch. The TVL of Celo is already higher than some other networks that Aave V3 is deployed on. Other blue chip protocols (Uniswap, Sushiswap) have also launched on the blockchain. Therefore, we will vote YES to deploy Aave v3 on Celo.
[ARFC] Aave <> Bored Ghosts Developing (BGD) Phase 2
Vote Result: YES
Rationale
BGD has been invaluable in spearheading Aave’s technical growth and development and are extremely well-suited to the task at hand. We also agree with the logic to reduce scope over time and also think that this should be done in a measured manner. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Aave Treasury Proposal for RWA Allocation
Vote Result: ABSTAIN
Rationale
We are of the firm belief that RWAs are extremely important and will help diversify the treasury while earning real returns. They are the future of how Aave’s treasury is allocated. Moreover, Aave can earn significant returns at the moment on its treasury which is mostly allocated in USDC, and this initial investment will allow the community to understand and get comfortable with RWAs and their nuances. However, we have concerns around the legal structure and timing. Implementing this strategy so quickly may be rushing things and the ramifications of setting up a legal structure and an Ultimate Beneficial Owner (UBO) need to be better understood by the community. Moreso, we encourage an RFP process as suggested by @hazbobo. This process, to hear proposals and encourage deeper discussion around the assets Aave is investing in, the differences in maturities, risks, custody, etc., is necessary. It is important that there’s a more rigorous process applied to how Aave invests and more detailed discussion would be a good first step. It will also make this process more competitive for Aave and allows other RWA providers to pitch to the DAO as well.
We are choosing to ABSTAIN on this TEMP CHECK since while we are in favour of RWA investments, we have concerns around community education and buy-in on timing and legal structure. Having spoken to the Centrifuge team, who have been extremely collaborative, prompt, and detailed in their responses, we want to give them a chance to make the ARFC a multi-stage proposal where the first step establishes the legal infrastructure and the investment of the stablecoins themselves only come after another proposal and approval process.
1 Like
[TEMP CHECK] Aave V3 “MVP” Deployment on GnosisChain
Vote Result: YES
Rationale
Gnosis has been growing rapidly and provides a number of applications that are extremely useful, especially with the launch of GnosisPay and the GnosisCard products. There are strategic synergy opportunities between Aave and Gnosis longer-term and enabling a seamless deposit, borrow, and spend experience is a great first step. Moreso, deploying on Gnosis should not be difficult in terms of development costs. Therefore, we will vote YES in favour of this proposal.
[ARFC] Chaos Labs Risk Parameter Updates - Aave V3 Optimism - 2023.08.13
Vote Result: YES
Rationale
This proposal will increase borrows by $130k without adding risk to the system and increasing its capital efficiency. Therefore, we will vote YES in favour of this proposal.
Treasury Management - Polygon v2 to v3 Migration
Vote Result: YES
Rationale
This is the on-chain proposal for this Snapshot that we voted in favour of according to our rationale here. The changes to the original proposal make sense. Therefore, we will vote YES in favour of this proposal.
Chaos Labs Scope and Compensation Amendment
Vote Result: YES
Rationale
This is the on-chain proposal for this Snapshot that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
CRV Aave V2 Ethereum - LT Reduction
Vote Result: YES
Rationale
This proposal is in line with the previous LT reductions for CRV on Aave v2 that we have voted in favour of and aims to reduce LT by 2%. Two accounts with a total of ~$4 will be eligible for liquidation following the proposed changes which is minuscule. Therefore, we will vote YES in favour of this proposal.
sDAI Onboarding
Vote Result: YES
Rationale
This is the on-chain proposal for this Snapshot that we voted against according to our rationale here. However, the Snapshot passed overwhelmingly and we will respect the community’s decision and vote YES in favour of this AIP since the specifications have not markedly changed since the Snapshot vote.
GHO Unpause and Freezing
Vote Result: YES
Rationale
Freezing the market is a more precise mechanism and we are in favour of doing so while the technical issue identified with GHO gets fixed. Therefore, we will vote YES in favour of this proposal.
GHO Update on Aave V3 Ethereum Pool
Vote Result: YES
Rationale
This AIP fixes the technical issue with the GHO integration with the Aave v3 GHO pool. Therefore, we will vote YES in favour of this proposal.
[ARFC] Treasury Management - Avalanche v2 to v3 Migration
Vote Result: YES
Rationale
Consolidating funds on v3 is a logical move. Moreover, the higher deposit rates on v3 and wAVAX incentives make it sensible to migrate to v3. Therefore, we will vote YES in favour of this proposal.
[ARFC] Return OP to Aave Grants DAO Safe
Vote Result: YES
Rationale
This is a simple proposal to return the OP from the Aave Guardians Safe to the AGD Safe. We will therefore vote YES in favour of this proposal.
Chaos Labs Risk Parameter Updates - Aave V3 Optimism
Vote Result: YES
Rationale
This is the on-chain proposal for this Snapshot that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.
[ARFC] Enabling USDT as Collateral on Aave v3 AVAX Market
Vote Result: YES
Rationale
USDT can be used to borrow assets on the v3 AVAX market which will increase protocol revenue for Aave and this proposal is in line with other proposals to increase USDT utility across Aave. Moreover, Chaos and Gauntlet are both in support. Therefore, we will vote YES in favour of this proposal.
[ARFC] Increase GHO Borrow Rate
Vote Result: YES
Rationale
Having looked at all opinions in the forum, we are of the opinion that increasing the interest rate at this point would be the first step towards repegging GHO. Firstly, early borrowers would have likely sold the borrowed GHO, leading to the depeg. Increasing the interest rate would lead them to buy back GHO and repay the debt, helping with the repeg. Furthermore, according to both Gauntlet and Chaos Labs, increasing the IR would not add additional risk. The counterpoints are to 1) wait for the GSM to be implemented and 2) that a 100 bps increase in interest rates may not be enough to kickstart a repayment of existing debt and may only stop or slow down demand for new debt creation. However, for 1), the GSM is not ready yet and will take time to be implemented, opening up the need for a short-term solution, and for 2), the 2.5% is still a better interest rate than that for other stables so it is not necessary that a capital flight will occur. Therefore, we will vote YES in favour of this proposal.
Funding Aave Robot for Governance V2 Automation
Vote Result: YES
Rationale
This is the on-chain implementation of this Snapshot that we voted in favour of according to our rationale here. Moreover, it is fair to compensate BGD Labs for their efforts in testing the Robot over the last 2 months. Therefore, we will vote YES in favour of this proposal.
1 Like
Aave BGD Phase 2
Vote Result: YES
Rationale
This is the on-chain implementation of this Snapshot that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal.