[ARFC] ACI Phase II
Vote Result: YES
Rationale
The ACI has been one of, if not the, most prominent contributors in promoting the growth of Aave. Their performance has been great and ACI has proved itself as beneficial to the DAO, especially with Skyward and other initiatives. Therefore, we will vote YES in favour of this proposal.
Prices operational update. Unify disabled fallback oracles
Vote Result: YES
Rationale
This is another operational update by BGD in order to optimise Aave and there is no risk in this proposal. Therefore, we will vote in favour of this proposal.
Enhancing Aave DAO’s Liquidity Incentive Strategy on Balancer
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP.
Reserve Factor Update October 2023
Vote Result: YES
Rationale
This is the latest AIP in the series of reserve factor updates for assets on Polygon v2 that we voted in favour of - the last rationale is here. Therefore, we will vote YES in favour of this proposal as well.
Transfer Assets From Polygon To Ethereum Treasury
Vote Result: YES
Rationale
This is the on-chain vote for this Snapshot ARFC that we voted in favour of according to our rationale here. Therefore, we will vote YES in favour of this AIP.
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.
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.