[ARFC] Chaos Labs - Incremental Reserve Factor Updates - Aave V2 Ethereum
Vote Result: YES
Rationale
There is a need to incentivise migration from v2 to v3 while ensuring that v2 users do not get discriminately affected. Gradually increasing the RFs across v2 assets would help achieve this and gives Chaos Labs the time to assess the impact of each increase before moving on to the next update. Therefore, we will vote YES in favour of this proposal.
Note: Our Snapshot vote did not go through due to technical issues.
[ARFC] Chaos Labs Risk Parameter Update - CRV Aave V3 Polygon - 2023.06.20
Vote Result: YES
Rationale
It is important to change CRVās parameters according to new market conditions and a series of incremental LT and LTV reductions is logical. Moreover, since the decrease in this proposal will impact zero accounts, we will vote YES in favour of this proposal.
Note: Our Snapshot vote did not go through due to technical issues.
[TEMP CHECK] Integrating MakerDAOās DSR into Aave V3 Ethereum Pool
Vote Result: YES
Rationale
This integration would allow Aave LPs to benefit from the DSR rate without additional cost to the Aave DAI borrowers. It also has a strategic angle - integrating DSR into v3 Ethereum would also prevent the outflow of DAI supply out of Aave. Chaos Labs has already observed users withdrawing DAI from Aave V3 Ethereum and depositing into Maker, which would be important for Aave to counteract. Moreover, the risk partner, Chaos Labs, is in favour of this proposal. Therefore, we will vote YES in favour of this proposal.
One point to note for the future is that this integration will increase the gas cost of using DAI in Aave for every user. This may have a significant impact if gas costs increase a lot and may disincentivise usage of DAI. This data should be modelled before an ARFC is published so that the community makes as informed a decision as possible.
Note: Our Snapshot vote did not go through due to technical issues.
[TEMP CHECK] GHO Stewards - Agile Parameter Changes
Vote Result: YES
Rationale
Dynamically making risk parameter changes is critical in successfully bootstrapping GHO and the multisig consisting of the risk service providers is logical. Moreover, there are guardrails against the GHO Steward getting misused in the form of the lean governance process which still allows for dynamism, and in the Steward getting deactivated 60 days after the passing of this proposal. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Allocating Part of GHO Revenue to Safety Incentives
Vote Result: YES
Rationale
Allocating part of GHO revenues to Aave Safety Incentives will provide additional incentives for AAVE holders to stake their tokens, improving the synergies between the two tokens in the ecosystem and in turn drive adoption of GHO. It also reduces the reliance on AAVE for safety incentives and is a positive signal to the community about the adoption and importance of GHO. A potential negative is that it reduces the incoming revenue from GHO, however this could be seen as more of a redistribution from GHO to AAVE. Therefore, we will vote YES in favour of this proposal.
[ARFC] Gas Rebate for Recognized Delegates
Vote Result: YES
Rationale
This proposal simply reimburses gas fees incurred by delegates voting on proposals. The rebate amounts according to Flipsideās data seem valid. Therefore, as the original authors of this proposal, we will vote YES in favour.
As an aside, to Alice and Flipsideās points in the governance forum, it would be sensible to add AIP deployment costs to the rebate in the future.
[ARFC] Aave Robot v1 Activation
Vote Result: YES
Rationale
The Robots feature streamlines and automates the governance process and reduces the number of external actions needed to execute approved smart contract payloads. Chainlink Automation is a relatively well adopted service used across various DeFi protocols (e.g. Beefy Finance), and Chainlink is a well-funded and adopted company that should provide a robust automation service. A potential negative point is that off-chain automations are subject to oracle risk, though in this case are low risk as they have no financial implications. Therefore, we will vote YES in favour of this proposal.
[ARFC] Chaos Labs Risk Parameter Updates - Aave V2 Ethereum - 2023.6.23
Vote Result: YES - MODERATE
Rationale
To protect against risks associated with the V2 markets a moderate approach should be taken. The more aggressive approach will set a precedence to favour this approach which might not be applicable in all circumstances. Whilst it could be good to completely negate risks these steps can be taken later if the risk factor is increased.
[ARFC] Chaos Labs Risk Parameter Updates - FEI on Aave V2 Ethereum - 2023.6.22
Vote Result: YES
Rationale
Given the volatility of FEI as well as a drop in market cap, protection to Aave V2 Ethereum is required and the measures of this proposal are in line with risk mitigation.
Lower TUSD LT and LTV on Aave V2
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot proposal that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP as well.
The ARFC failed to meet the quorum for YES but the Snapshot guidelines for quorum are ambiguous and will be made clearer in the near future. We will vote YES for this proposal to give Gauntlet the benefit of the doubt, but going forward will adhere to stricter guidelines that are set.
Chaos Labs - Payment Collection Request
Vote Result: YES
Rationale
This is a straightforward proposal that enables Chaos Labs to receive the second half of their payment as outlined in their service provider proposal. Therefore, we will vote YES in favour of this AIP.
Freeze TUSD Reserve on Aave V2 Ethereum
Vote Result: YES
Rationale
This is a conservative approach to the TUSD situation and has been recommended by both the risk service providers. Moreover, this freeze will not impact current positions and users will still be able to repay and withdraw TUSD from the Aave v2 Ethereum pool. Lastly, this proposal is in line with the Aave v3 Caps update framework and is therefore valid. Therefore, we will vote YES in favour of this proposal.
Optimism - Create ETH eMode Category
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot proposal that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP as well.
Add FRAX Ethereum Aave v3
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot proposal that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP as well.
Add FRAX Arbitrum Aave v3
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot proposal that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP as well.
[ARFC] Framework for ARFC and TEMP CHECK Proposals
Vote Result: YES
Rationale
There is a need to more clearly define the governance process and this proposal adds the detail and granularity that is required. The template is comprehensive and we agree on the logic around the 320k quorum for YAE votes. There is a description of the differences between TEMP CHECKS and ARFCs that should be detailed enough for proposers to understand when a proposal should be a TEMP CHECK and when it should be an ARFC. Our response on the forum post provides more clarity around the improvements and additions that could be made to this framework in the future, but this is a good starting point and provides needed clarity to the community. Therefore, we will vote YES in favour of this ARFC.
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[ARFC] Gauntlet Risk Parameter Updates for Ethereum v3, Arbitrum v3, Ethereum v2
Vote Result: NO
Rationale
We agree with the changes for all assets apart from CRV, as we have mentioned on this vote which was highly contested, according to our rationale here. Decreasing it as part of this Snapshot vote would not make sense to us. Therefore, we will vote NO for this proposal.
Treasury Management - Acquire wstETH & rETH
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot proposal that we voted YES in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP as well.
Price feeds operational update Pt2.5 - wstETH
Vote Result: YES
Rationale
This proposal is Part 2.5 of this AIP that we voted in favour of and follows on from this Part 2 AIP. This is a non-controversial follow-on update to introduce the same type of adapter contract based on the primary exchange rate for wstETH on Aave v3 Polygon as in Part 2.
This update creates more consistency in pricing methods of LSTs on Aave, which will allow the growth of strategic assets for the Aave DAO while maintaining the highest safety standards. The updates made here smooth out technicalities in pricing mechanics and optimises the protocol. Therefore, we will vote YES in favour of this AIP.
[ARFC] Add GMX to Arbitrum v3
Vote Result: YES
Rationale
Given the more conservative risk strategy being proposed for GMX, we believe this proposal should pass as it would be beneficial to the Aave ecosystem. While we note the point made around GMX revenue potentially not being high and the risk/reward for Aave not being appropriate in this situation, we believe the Aave ecosystem should allow users, large or small, to be able to utilise their assets in a number of ways. Since the risk to Aave is bounded by the conservative risk parameters chosen, we will vote YES in favour of this proposal.
1 Like