[ARFC] Chaos Labs Risk Parameter Updates - WBTC.e on V2 and V3 Avalanche
Vote Result: YES
Rationale
Limiting risk exposure from WBTC.e and encouraging migration to BTC.b is logical given the inadequate liquidity for WBTC.e on Avalanche now that will cause issues if there is a need for liquidations. Moreover, the total amount liquidated is completely trivial. Therefore, we will vote YES in favour of this proposal.
[ARFC] Chaos Labs - Stablecoin IR Curves Updates
Vote Result: YES
Rationale
It is important to smooth borrow rates and reduce volatility. More aggressively increasing Slope1 would help in this endeavour, and Gauntlet agrees with the proposal. Therefore, we will vote YES in favour of this proposal.
[ARFC] Gauntlet Recommendation for MAI & MIMATIC Deprecation Phase 2
Vote Result: YES
Rationale
This is the next step in a series of proposals by Gauntlet to deprecate MAI and MIMATIC on Aave v3 Optimism. We have voted in favour of the previous proposals and therefore will vote YES in favour of this proposal as well.
Note: We were not able to vote for this proposal since our voting power is to be re-delegated following the implementation of Aave Governance v3, but have posted our rationale here regardless.
[TEMP CHECK] GHO Stability Module Launch
Vote Result: YES
Rationale
Activating the GSM right now will preserve the stability of exchange rates and it has been a long time coming. The GSM caps suggested are low and can help mitigate any temporary blips > 1 back to peg, and can reduce risk of unexpected GHO minting via GSM and potential associated market selling. The Buy/Sell fees are low enough to allow for peg stability but also high enough to disincentivise the USDC and USDT pools from being drained.
The only concern is that the risk providers have recommended enabling the GSM when GHO is consistently trading within ($0.995, $1.005) to avoid GSM reserve depletion and this has not been the case - GHO is currently in the range of $0.983. However, this is mitigated by the low GSM caps that have been set.
Therefore, we will vote YES in favour of Option B.
Note: We were not able to vote for this proposal since our voting power is to be re-delegated following the implementation of Aave Governance v3, but have posted our rationale here regardless.
[TEMP CHECK] Further Aave v1 Deprecation Strategy
Vote Result: YES
Rationale
Completely and thoroughly deprecating Aave v1 is necessary and the steps laid out by BGD are logical in removing the liquidity that is stuck on the protocol. The three phases give depositors enough notice to remove liquidity by the time Phase 3âs forced withdrawal mechanism comes into play. Therefore, we will vote YES in favour of this proposal.
Note: We were not able to vote for this proposal since our voting power is to be re-delegated following the implementation of Aave Governance v3, but have posted our rationale here regardless.
[ARFC] Retroactive Bug Bounties Proposal (pre-Immunefi)
Vote Result: YES
Rationale
White hats who have reported bugs to Aave should always be paid out and there is a reason the Immunefi program has been set up. This proposal rewards bugs that have been found pre-Immunefi and we think this is fair. We will leave the details of the exact rewards to BGD who have a lot more experience on this, and since there is no more information about the bug on report #3, we do not believe we are in the optimal position to opine on the size of the reward. Therefore, we will vote YES in favour of this proposal.
Note: We were not able to vote for this proposal since our voting power is to be re-delegated following the implementation of Aave Governance v3, but have posted our rationale here regardless.
[ARFC] Harmonize USDT Risk Parameters on Aave V3 Markets
Vote Result: YES
Rationale
Executing this proposal would reduce inefficiency in accessing USDT across Aave v3. Chaos Labs and Gauntlet agree with the recommendations. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Add ggAVAX to AAVE v3 on Avalanche
Vote Result: YES
Rationale
Adding support for liquid staking on Avalanche is logical, given that ggAVAX can be used as collateral to allow users to loop ggAVAXâAVAXâggAVAX for increased yield and borrow stablecoins for short-term goals or needs. Gogopool will also incentivise applications that build on top of it which is another incentive to approve this vote. ggAVAXâs yield of 4.8% APR will drive users towards it and allow revenue and usage of Aave to increase. Therefore, we will vote YES in favour of this proposal.
[TEMP CHECK] Add sFRAX to Ethereum V3
Vote Result: YES
Rationale
sFRAX is a very useful asset that will track the interest on the IORB rate. Given FRAXâs prominent position in the DeFi ecosystem, sFRAX is an attractive asset to list on Aave. Creating new demand for borrowable assets brings increased revenue to Aave, and therefore we will vote YES in favour of this proposal.
[ARFC - Addendum] Update StkGHO Launch Parameters
Vote Result: OPTION B
Rationale
Option B makes sense to us due to the following reasons:
While we appreciate the argument that yields for Option B may not be sufficient to incentivise users to stake their GHO compared to Balancer and Uniswap, we feel as if the difference is likely to be marginal and given the other benefits it brings, Option B makes more sense.
Therefore, we will vote YES in favour of Option B.
V2 Deprecation Plan, 2024.01.02
Vote Result: YES
Rationale
Reducing LTs on Aave v2 to move forward with the deprecation schedule, as we have voted in favour of in the past, is logical. The conservative recommendation which limits liquidations makes sense to us, and Chaos Labs and Gauntlet are both in agreement about this proposal. Therefore, we will vote YES in favour of this proposal.
Aave Funding Updates (part 2)
Vote Result: YES
Rationale
As we have voted in favour of previously, this is the second part of 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 AIP.
[TEMP CHECK] Onboard fdUSD to Aave v3 on BSC
Vote Result: YES
Rationale
Since fdUSD is a key asset on BSC, it makes sense to list it for Aaveâs upcoming BSC deployment subject to analysis from the risk providers. From a TEMP CHECK perspective, we are in favour of exploring the addition of this asset to Aave v3 on BSC. Therefore, we will vote YES in favour of this proposal.
[ARFC] Treasury Management - GSM Funding & RWA Strategy Preparations
Vote Result: YES
Rationale
Ensuring the runway to fulfil Aaveâs GSM and RWA commitments is critical, and we appreciate how TokenLogic and Karpatkey have laid this logic out. There are assets on other Aave chains that are siloed and it will be important to consolidate these in the near future so we do not have to drain one chain (Polygon, in this instance) and can instead spread the requirements out. Overall, this proposal makes sense and we will vote YES in favour of it.
[ARFC] Gauntlet Recommendation for MAI / MIMATIC Deprecation Phase 2
Vote Result: YES
Rationale
This is the next step in a series of proposals by Gauntlet to deprecate MAI and MIMATIC on Aave v3 Optimism. We have voted in favour of the previous proposals and therefore will vote YES in favour of this proposal as well.
[TEMP CHECK] Aave V3 MVP deployment on Neon EVM Mainnet
Vote Result: YES
Rationale
Echoing what @WintermuteGovernance and @Kene_StableLab have said, while this has been a contentious discussion, we believe that for the TEMP CHECK stage, the Neon team has addressed enough questions in order to progress to the ARFC stage and this proposal merits a deeper analysis from Chaos Labs and Gauntlet. However, we are not fully convinced that this is the correct time for Aave to deploy on Neon yet, especially given the low liquidity on the chain and the various concerns brought up in the forum post, and will reserve our judgement based on the further analysis provided at the ARFC stage. As such, we will vote YES on this TEMP CHECK proposal.
[ARFC] Aave V3 Deployment on Scroll Mainnet
Vote Result: YES
Rationale
Deploying Aave on Scroll will enable Aave to establish a strategic position in an ecosystem which has a large number of projects already lined up to deploy on it. Moreover, given that there seems to be no native lending experience on Scroll similar to that provided by Aave, this is an opportunity to build up the DeFi ecosystem on Scroll while providing Aave with another avenue to capture users and grow its revenue. Therefore, we will vote YES in favour of this proposal.
Aave v3 BNB Activation
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.
[ARFC] AMPL Interest Rate Updates on V2 Ethereum
Vote Result: YES
Rationale
Since the AMPL market has been frozen since Nov 2022 and the market is being deprecated, this change will make sure that aAMPL supply does not grow significantly due to the deviation within the market. Therefore, we will vote YES in favour of this proposal.
[ARFC] Update stETH and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum
Vote Result: YES
Rationale
While Gauntletâs rationale to wait to change these parameters until the killswitch and the correlated-asset price oracle functionality is fair, from a ârisk vs. rewardâ perspective, it seems as if the primary point of consideration is the amount of value Aave will lose to competitors that have more aggressive parameters. In this case, the main question to be answered is âhow much stETH/wETH will go to other venues compared to Aave if the parameters are less competitive than those of other venuesâ. While this is difficult to quantify, since the increases in the LT/LTV of these parameters are relatively low, the impact of the market price deviating from the price of ETH*exchange rate should not be too significant. From a risk perspective, moreover, with the current oracle configuration it does not make a large difference to have higher LTs. We agree with Gauntletâs rationale to wait to change RFs.
Overall, we will vote YES in favour of this proposal in order to allow Aave to maintain parity with the more aggressive parameters on other venues.