Close! Since there is 900 AMPL not lent Bob’s share will be 900 * 1.05 = 945 AMPL after the rebase! So he missed out on 5 AMPL. So Bob’s final total will 1045 AMPL instead of 1050 AMPL (Bill profited 5 AMPL from the rebase)
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ok, thanks, now I got it.
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Quorum reached! 80k+ Aave have been delegated in favor of the proposal. Where can i vote now to get aAMPL on Aave proper? Excitement intensifies
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80,000! Lets go! Congrats on passing through proposal!
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I’m amazed by the sheer effort the AMPL community is putting into this. Brandon and the team are putting a lot of effort in ensuring that the implementation of aAMPL is safe and bug free. They will be ready to move forward with this soon!
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Hey everyone, here’s the latest development update:
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After some recommendations from Aave devs, we made small updates to the implementation. This included no behavioral changes–different math library, method of initializing configuration, etc.
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We ran a second round of audits with Peckshield, which raised no new issues.
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We still have the full test coverage of all the borrow/repay/rebase flows as before.
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Internal testing was done using a mainnet fork.
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We launched an Immunefi Bug Bounty for the aToken with a competitive $100K reward for critical vulnerabilities. Special thanks to ArmorFi for the generous $50K bounty match!
If you’re an AAVE holder and you’d like to see this proposal move forward, please re-delegate Proposition power to the same address as before: 0x32a9d6A550C3D89284D5700F7d7758dBc6f0fB2C
We plan to submit as soon as we re-reach the threshold. Thank you!
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EDIT: Found a tweet that basically says the same thing I say in this post but better:
Hi, I saw a discord post that really interested me regarding the implementation of the AMPL aTokens. It looks like the plan is to make it so that only the unborrowed portion of AMPL tokens rebases, while the borrowed portion remains fixed. I’d like to point out that this creates an opportunity for arbitrage that is extremely damaging for AMPL lenders, and diminishes the ability for AMPL lenders to benefit from rebases when it is beneficial for them. Let me point this out with an example:
There are only two participants in the AAVE AMPL market: Alice the lender and Bob the borrower.
Scenario A:
Alice deposits 1000 AMPL into AAVE at $1.
It is approaching the time of the rebase and the price of AMPL has jumped up to $1.05.
Bob borrows all 1000 AMPL and waits for the rebase. His AMPL balance increases from the rebase, giving him approximately 1050 AMPL.
Bob returns his 1000 AMPL debt plus a marginal amount of interest, profiting 50 AMPL.
Alice is left with 1000 AMPL at $1 plus a marginal amount of interest.
Scenario B:
Alice deposits 1000 AMPL into AAVE at $1.
It is approaching the time of the rebase and the price of AMPL has dropped to $0.95.
Bob simply doesn’t borrow any AMPL since he knows the rebase will effectively increase his debt if he borrows. If he was already borrowing, he has an opportunity to profit by returning it and borrowing it again after the rebase.
Alice is left with 950 AMPL at $1 and no interest.
Note: I know the math and parameters aren’t completely right and there’s smoothing, but the overall concept should make sense here.
I know this behavior is intentional, but I’m of the opinion that the damage to lenders can end up being quite severe. I think the borrowed balances need to rebase along with the tokens to maintain a healthy lending market, which I am well aware goes completely against what you want this AAVE listing to accomplish. This aToken implementation may end up having AMPL lenders inheriting all of the negative effects of volatility and unable to benefit from positive movements, leaving lenders ultimately as bagholders which may strike many lenders by surprise, as this is really just an obscure math issue.
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Love it! Bringing creative ideas to the world on global finance solutions is what AMP is all about and I as an investor is “ALL IN”.
Wow, we are headed in the right direction. As an investor, I’m so proud of the creative ideas that keeps us moving forward and partnerships that works. Go AAVE!
I agree! Bringing together both assets will be a great partnership for digital finance
Hey guys,
Currently the ampl pool on aave is a complete mess for lenders. Especially unexperienced ones. The high APY attracts them but they can’t get out due to no liquidity. I get that this drives the ampl price up and also borrowers are killing it, but it’s a bit unethical to say the least.
What can be done about it? Pause borrowing ?
Yes, very bad for the reputation of the protocol