[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.
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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.
[ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 Ethereum - 2023.08.25
Vote Result: YES
Rationale
Implementing these changes will result in a projected borrow increase of ~$2.5M, with no increase in VaR and Extreme VaR. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] TokenLogic Proposal
Vote Result: YES
Rationale
A stream that can be cancelled and is flexible enough for Aave to comprehensively define and run an RFP process while being able to, in parallel, continue the work that is currently being done around GHO integrations and treasury management, is beneficial for Aave. Moreover, TokenLogic have already done a lot of work for the DAO and deserve to be compensated for their efforts to date, and for their forthcoming efforts in lieu of a formal RFP process. A couple of concerns are that the stream of 350k for 6 months does seem excessive and the scope is too broad and may stretch the team of 4.5 FTE too much. However, for the moment, the DAO has not defined an RFP process and until it does so, it would be prudent to ensure business as usual by sticking to the status quo while the community defines a comprehensive process in parallel. Therefore, we will vote YES in favour of this proposal.
[ARFC] Treasury Management - Replace AGD’s DAI Allowance with GHO Allowance
Vote Result: YES
Rationale
Aligning AGD’s funding to GHO is logical and supporting the peg is also a benefit. Therefore, we will vote YES in favour of this proposal.
[ARFC] Treasury Management - Acquire AURA
Vote Result: YES
Rationale
Aura/Balancer is the correct place to bootstrap GHO and given that the commit from the Aura Finance team is ending and the veBAL and vlAURA being used to support GHO pools will reduce, acquiring AURA to bootstrap GHO is logical. Therefore, we will vote YES in favour of this proposal.