LBS Blockchain Society Delegate Platform

Governance v2.5 Activation

Vote Result: YES

Rationale

We are in favour of v3 Governance and this is a step towards it while we wait for Mixbytes’ security review of Certora’s formal verification components to finish. Activating a.DI is a positive step for Aave’s governance mechanisms and therefore we will vote YES in favour of this proposal.

[ARFC] Aave Funding Update

Vote Result: YES

Rationale

This proposal very clearly outlines the expenses for the DAO over the next few months and how we will propose to cover them. It is the standard of what treasury management should look like, with transparency on all costs and holdings, actions that need to cover all costs and maintain a healthy runway. Therefore, we will vote YES in favour of this proposal.

[ARFC] Treasury Management - Tooling Upgrade

Vote Result: YES

Rationale

The proposed funding amount to build these contracts is fair and will streamline Aave’s treasury management while building public goods that can be used by Aave for the foreseeable future. This proposal optimises Aave’s treasury and infrastructure, which is necessary. Therefore, we will vote YES in favour of this proposal.

1 Like

ACI Phase II

Vote Result: YES

Rationale

This is the on-chain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal as well.

Aave v3 Gnosis Activation

Vote Result: YES

Rationale

This is the on-chain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal as well.

[ARFC] Chaos Labs <> Aave Risk Management - Renewal

Vote Result: YES

Rationale

As we expressed in our post on the forum here, we are completely in support of renewing Chaos Labs’ contract with Aave DAO - it is a no-brainer, especially with the way the proposal has been structured and how Chaos has exceeded expectations in its first year with the DAO. Therefore, we will vote YES in favour of this proposal.

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

Vote Result: YES

Rationale

Aligning CRV’s parameters in line with market liquidity is logical and de-risks the asset on Aave. The number of liquidations are not high and have a low monetary impact. Therefore, we will vote YES in favour of this proposal.

Disable Stable Borrows

Vote Result: YES

Rationale

It makes sense to disable stable borrows for the moment until the bug is fixed, especially if the vulnerability is critical and the protocol could get hacked. Therefore, we will vote YES in favour of this proposal.

[ARFC] GHO - Increase Borrow Rate

Vote Result: YES

Rationale

While in the long-term, increasing the utility of GHO and generating organic demand are the only ways to ensure the peg remains solid, increasing the borrow rate to reduce the incentive to mint GHO relative to other stablecoins will at least get GHO in line with other stablecoins. It will still be hard enough to hold the peg but this measure to a certain extent limits the downward pressure on the peg, especially when Chaos Labs and Gauntlet do not think this adds too much risk. While being cognizant of the fact that increasing the borrow rate will not bring the peg back to parity and limits GHO’s growth, we think limiting any sources of peg deviation (e.g., discount to other stablecoins) is paramount to begin with, and therefore will vote YES in favour of this proposal.

Multichain Stable Debt Token Upgrades

Vote Result: YES

Rationale

Disabling the minting of new stable debt given the vulnerability reported is an essential step to mitigate further risk to the protocol. Moreover, this proposal will also enable the unpausing of all assets on v3 Polygon, v3 Avalanche, v3 Optimism and v3 Arbitrum. Therefore, we will vote YES in favour of this proposal.

[ARFC] wMATIC Interest Rate Update

Vote Result: YES - Slope1 5%

Rationale

Reducing Slope1 is the correct choice right now given the benefits of facilitating more Emode borrowing against LST collateral, additional revenue to Aave, and adjusting the current risk profile for LSTs to depend less on onchain activity, which has been volatile in recent months. Option 1 at the moment makes more sense given the current borrow rate for wMATIC on Polygon v3 is 5.17% and reducing it to 4.30%, which is much lower, would be a riskier proposition. It would be better to wait and see how the market responds and then reduce the rate down further. Therefore, we will vote YES in favour of OPTION 1.

[ARFC] Aave Swap Upgrade

Vote Result: YES

Rationale

Upgrading the functionality of the Aave Swap contract makes sense especially in light of the need to use TWAP swap functionality to purchase AURA for Aave’s treasury management strategy. Adding limit orders, especially if the lift is low, makes sense. The proposed funding amount seems to be appropriate especially given the relatively quick delivery period. Therefore, we will vote YES in favour of this proposal.

Chaos Labs Risk Management Renewal

Vote Result: YES

Rationale

This is the on-chain proposal for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this proposal as well.

Liquidations Grace Sentinel Activation

Vote Result: YES

Rationale

It is important to enable the Liquidations Grace Sentinel to protect Aave users who have already deposited assets and are impacted by such security incidents. Gauntlet is also in agreement and has recommended a 3-hour grace period which does not add excess risk to the protocol under current conditions. Therefore, we will vote YES in favour of this proposal.

Aave V2 Ethereum LT Reduction

Vote Result: YES

Rationale

This is the latest in a series of LT reductions on Aave v2 according to the v2 deprecation framework and it is important to deprecate v2. The number of liquidations is controlled by being at least ~4% from the closest LT figure which would trigger more substantial liquidations. Therefore, we will vote YES in favour of this proposal.

[TEMP CHECK] Create an Aave Financial Management Working Group

Vote Result: YES

Rationale

There is a need for an RFP process and to professionalise the DAO and we are in favour of this proposal. The high level items to be outlined by applicants in the RFP are sensible - we encourage as in-depth RFPs as possible as well as providing clear and concise summaries of all the sections for the community to easily be able to digest. Therefore, we will vote YES in favour of this proposal.

[ARFC] Increase Stablecoin Optimal Borrow Rates and [ARFC] Increase Uopt for Stablecoins on all V3 Deployments and RF on V2 Ethereum

Vote Result: YES

Rationale

@monetsupply’s research provides ample evidence towards increasing Slope1 for all stablecoins across all Aave deployments. Chaos Labs and Gauntlet are also clearly in favour of the proposal. Therefore, we will vote YES in favour of this proposal to increase the optimal borrow rates and are also in favour of increasing Uopt and RF for the listed assets given it does not add excess risk according to Gauntlet’s analysis.

[TEMP CHECK] GHO Bounty for Integration Issue Detection

Vote Result: YES

Rationale

Security is crucial, this white hat reporting the incident was critical and must be rewarded. This proposal is a no-brainer and we will vote YES in favour of this proposal. Therefore, we will vote YES in favour of this proposal.

[ARFC] Treasury Management - vlAURA

Vote Result: YES

Rationale

Locking the AURA holdings by sending it to the SAM and most effectively bootstrapping the liquidity of GHO on Balancer is important. Efficient management of the AURA is also crucial and delegating it to the GLC makes the process of supporting GHO simpler. Therefore, we will vote YES in favour of this proposal.

[ARFC] TokenLogic - Retrospective Funding Proposal

Vote Result: YES

Rationale

TokenLogic has done a great job for the DAO and any service provider who has done a lot of work for the DAO, let alone the amount done by TokenLogic, deserves to get retrospectively get funding for the time they have put in. Therefore, we will vote YES in favour of this proposal.