LBS Blockchain Society Delegate Platform

Treasury Management - GSM Funding & RWA Strategy Preparations (Part 1), Frontier Staking as a Service

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 V1 Deprecation

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.

AMPL Interest Rate Updates on V2 Ethereum

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.

Onboard fdUSD to Aave v3 on BNB chain

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.

Freeze and Set LTV to 0 for DPI, BAL, CRV, and SUSHI on Aave v3 Polygon, 2024.01.19

Vote Result: YES

Rationale

This is the on-chain proposal for these Snapshot ARFCs (1, 2, 3, 4) that we voted in favour of according to our rationales here (1, 2, 3, 4) . Therefore, we will vote YES in favour of this proposal as well.

Gauntlet Recommendation for MAI / MIMATIC Deprecation Phase 2

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 Scroll 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. Therefore, we will vote YES in favour of this proposal as well.

stkABPT Balancer V2 migration

Vote Result: YES

Rationale

The community approved the addition of BPT to Aave’s Safety Module and the creation of a new Liquidity Pool on Balancer v2 on this Snapshot. This proposal finally migrates stkABPT to v2, was delayed by the passing of this Snapshot vote to replace wETH with wstETH, and is a technical proposal that is necessary to be passed. Therefore, we will vote YES in favour of this proposal.

Migration of Remaining Gov v2 Permissions & DAO’s Paraswap Positive Slippage

Vote Result: YES

Rationale

This is a technical proposal to collect slippage from the Paraswap contracts and migrate permissions from the deprecated Aave Arc pool on Governance v2 to v3 to align permissions. Since this proposal aligns the codebase and governance across v2 and v3, and aggregates funds on v3, it makes sense to us. Therefore, we will vote YES in favour of this proposal.

V2 Ethereum LT Reductions

Vote Result: YES

Rationale

This AIP is one in a series of proposals to deprecate v2 and encourage migration to v3. The total value liquidated is $78.4K but since this proposal follows others which encourage migration to v3 and users have been informed well in advance to top up collateral or withdraw, this makes sense. Encouraging migration to v3 is critical and we have voted in favour of proposals in the v2 deprecation framework previously. Therefore, we will vote YES in favour of this proposal as well.

[TEMP CHECK] Merit - A New Aave-Alignment User Reward System

Vote Result: YES

Rationale

This is a very interesting and relatively complex proposal. We have both points in favour and points against, and some further considerations for the ARFC stage:

Pros

  • Rewarding Aave users for actions that are beneficial for the protocol via the Boosters makes sense and uses the full functionality of the open blockchain ecosystem.
  • This system gamifies Aave even more and would bring about more usage and fees to the ecosystem in protocol-aligned manners.
  • While we are conflicted about the Diluters, this makes sense since it allows Aave to turn non-aligned users to more aligned users, which is better for the protocol and builds up a loyal user base, which is very beneficial in the long run

Cons

  • There is a chance that the non-aligned protocols may also apply a similar system and this would lead to a ‘war’ between the protocols, which may end up hurting Aave users and not allow them to maximise their capital efficiency.
  • The points formula is private which is not ideal - having one party, even if it is a ‘trusted’ one, knowing the formula leads to a centralisation vector even though this is somewhat mitigated since the ‘designer’ is not part of the reward system.

Further Considerations for ARFC Stage

  • It may be better to start with only a subset of these actions as @Jommi has suggested since it would be good to test this proposal out first and then expand it.

All in all, this is a very worthy experiment and we are in favour of it. Therefore, we will vote YES in favour of this proposal.

[ARFC] BGD. Correlated-Asset Price Oracle (CAPO)

Vote Result: YES

Rationale

The correlated asset price oracle is a great addition to Aave’s armour of reducing risk across its most used assets. It is important to protect against ‘black swan’ type events like unexpected inflation of the underlying asset or the underlying rate oracle is manipulated to the downside, which leads to unfair liquidations. Chaos Labs and Gauntlet are both in favour, and this proposal in combination with the upcoming killswitch mechanism will go a long way in maturing how Aave handles risk of LSTs. Therefore, we will vote YES in favour of this proposal.

[ARFC] MaticX Supply Cap Increase in Polygon V3

Vote Result: YES

Rationale

Given the relatively low risk of liquidation for MaticX since it is mostly used as collateral for borrowing wMATIC, and that the supply cap on Polygon v3 has been reached consistently, it makes sense to increase the cap. Chaos Labs is in favour and while we acknowledge Gauntlet’s concerns, it is better for Aave from a competitive position to offer a higher supply cap for MaticX and drive users to the protocol. Therefore, we will vote YES in favour of this proposal.

[ARFC] Establishing the Aave Protocol Embassy (APE)

Vote Result: YES

Rationale

This proposal makes a lot of sense and the initial platforms chosen are logical and aligned with the DAO. Prior to the on-chain vote, as we commented on the forum post, it would be good to get clarity on the below points:

  • Will there be any communication with and input from the rest of the DAO?
  • How does the APE plan to share the impact of some of these votes with the broader community?
  • Will there be term limits for embassy members? How long will the current APE be valid for and will other delegate platforms be considered over the longer term?

We will vote YES in favour of this ARFC and look forward to a response to our questions.

[ARFC] Set Liquidity Observation Labs as Emission Manager for wstETH on V3 Markets

Vote Result: YES

Rationale

This proposal makes sense and it is beneficial for Aave if an entity like Lido wants to fund incentive programs to increase usage of wstETH. Setting the Lido Liquidity Observation Labs wallet as the Emission Manager is non-obtrusive and does not pose risk to the protocol. Therefore, we will vote YES in favour of this proposal.

[ARFC] Add Contango Protocol, Cian Protocol and Index Coop to flashBorrowers on Aave V3

Vote Result: YES

Rationale

This proposal makes sense and we agree with ACI’s logic of making Aave more competitive for these strategic protocols who use flash loans. The lost revenue can be mitigated by increased borrow volume - this should be tracked, however, and if over time this is not the case then the relevant protocol should be removed as flashborrowers on Aave v3. We will vote YES in favour of this proposal.

[ARFC] GHO Stewards

Vote Result: YES

Rationale

Now that GHO has reached peg, it is important for the peg to be maintained and the GHO Stewards will have the ability to do so proactively. They will be able to mitigate GHO trading above peg and adjust borrow caps suitably to promote safe growth. Reacting quickly to maintain GHO’s growth is crucial and this role is very important. Moreover, the chosen stewards are appropriate, and therefore we will vote YES in favour of this proposal.

Reserve Factor Updates (Jan 31, 2024)

Vote Result: YES

Rationale

This is another AIP in a series of updates to increase RFs on Polygon v2 and encourage migration to v3. We have voted in favour of previous proposals and will therefore vote YES in favour of this proposal as well.

[TEMP CHECK] Enable Metis as Collateral on Metis Chain

Vote Result: YES

Rationale

It makes sense for METIS, as the native token of the Metis Chain, to be enabled as a collateral asset on the chain if there is enough demand and liquidity and the risk is low. Since both Chaos Labs and Gauntlet are in favour of this proposal and there are signs of liquidity and interest in the asset, we will vote YES in favour of this proposal.

Add PYUSD to Aave v3 Ethereum Pool

Vote Result: YES

Rationale

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