It’s been a while since last posting updates here, but we’re now ready to move forward with risk dao proposal. I’m sharing the proposal text below, and will put up a Snapshot poll tomorrow to gauge community sentiment on the proposal before putting up an on chain governance vote. Any feedback or comments from the community are welcomed and appreciated!
A note for prospective contributors - we reached a decent initial budget based on contributors who engaged with the process beginning earlier this summer, so I was not able to engage with everyone who expressed interest in contributing to risk DAO in this initial proposal. Once we get the organization up and running, I think they may be scope to onboard additional members as needed in future renewals. My sincere apologies to anyone who was not able to be included in initial scope of this proposal, I look forward to continuing to work together for the benefit of the Aave protocol and community I also think strategically it makes sense to onboard individual contributors to a core risk DAO organization before considering engagement with outside organizations and service providers.
A proposal to fund the Aave Risk DAO, an organization of contributors dedicated to risk analysis for the Aave protocol.
The Aave Risk DAO will provide professional, committed risk analysis to support the Aave protocol and community. Key focus areas include asset onboarding, additional money markets, new risk management features, and supporting community initiatives.
The Aave protocol is evolving rapidly with new features, integrations, assets, and markets. Aave users and token holders rely on the protocol to operate securely and safeguard the funds deposited in Aave markets and the safety module. Committed professional analysis will help governance and the community mitigate risk and take advantage of new opportunities with greater confidence.
The Risk DAO will initially focus on the following areas:
- Reviewing proposed new assets for technical and market risks
- Facilitating community discussions through biweekly risk calls
- Building dashboards and tooling to help increase understanding of Aave protocol risk factors
- Evaluating markets for cross chain deployments or new asset types
- Commenting on community led initiatives that affect protocol risk
Refer to the Aave governance forum post for additional details on Risk DAO scope and priorities.
The Risk DAO will seek to work collaboratively with Gauntlet Network, which recently received approval for dynamic risk parameter management of the primary Aave v2 money market on Ethereum mainnet. Gauntlet’s engagement will allow the Risk DAO to focus on other important priorities for Aave risk management. We will remain open to opportunities for collaboration with Gauntlet and other Aave contributors including the Aave Grants DAO.
The Aave Risk DAO will be funded for an initial operating period of 3 months (12 weeks). At the conclusion of this period, the community can review performance and determine next steps for extending the program.
Project management and governance
Market risk and analytics
Real world asset risk
- Members of Blockchain at Berkeley
Members will post short introductions below. Additional contributors may be onboarded to the Risk DAO as needed with mutual agreement of existing members, with any new contributors providing introduction details and falling under the existing Risk DAO budget outlined below. Budget changes will require consent of Aave governance.
Technical Risk - 10 hours per week at $225/hour
Market Risk and Analytics - 30 hours per week at $200/hour
Real World Asset Risk - 10 hours per week at $225/hour
Project Management and Governance - 10 hours per week at $100/hour
Student Contributors - 15 hours per week at $100/hour
Total: $156,000 over 3 months ($13,000 per week)
This budget category includes spending on software, infrastructure, and other miscellaneous expenses. The Risk DAO will submit an invoice detailing itemized costs and descriptions for any miscellaneous expenses on a monthly basis.
Total: $30,000 over 3 months
Grand total: $186,000 over 3 months
We will establish a multisig wallet to hold operational funding for the Aave Risk DAO. The multisig will require 4 of 6 signers to move funds or take other action. The proposed signers are listed below:
Monetsupply (Risk DAO contributor)
Tom Borgers (Risk DAO contributor)
Jack Clancy (Risk DAO contributor)
Nick Cannon (Gauntlet)
John Morrow (Gauntlet)
1 additional Aave community member not affiliated with Risk DAO (TBD)
Due to potential price volatility between proposal submission and final approval, the Risk DAO is requesting $204,600 worth of AAVE tokens (final amount of tokens to be determined based on AAVE price when on-chain proposal is submitted), representing a 10% surplus buffer over the stated budget. Funds will be converted by the multisig to stablecoins (DAI or USDC) when received, to minimize volatility and avoid funding shortfalls.
Each month, the multisig will transfer payments to Risk DAO contributors for the upcoming month. In addition, the multisig will transfer reimbursements for any miscellaneous expenses incurred over the previous month.
At the conclusion of the 3 month period, the multisig will return any unused funds to Aave governance. Additionally, Aave governance may request early termination of the Risk DAO and return of funds via the AIP process.
Risk DAO contributors who are reconfirmed for a new term of membership at the end of this period should be eligible for a 10% bonus paid in AAVE tokens, calculated based on their total compensation earned over the 3 month initial period covered by this proposal. This bonus payment is contingent on renewal by Aave governance, so the necessary funds would be requested in a future proposal.
Transfer $204,600 worth of AAVE tokens from ecosystem reserve to the Risk DAO multisig
Copyright and related rights waived via CC0.