Title: [TEMP CHECK] Add AERO to Base V3
Author: 0xlide - SaucyBlock
Date: 2024-04-22
Summary
This publication presents the community an opportunity to add AERO on the Base Aave v3 Liquidity Pool.
Motivation
Aerodrome Finance is the largest decentralized exchange on Base that inherits Verodrome. AERO is ERC-20 utility token and can be used as the voting powers for the amount of emission rewards the pool receives each epoch by vote-escrow their tokens and receive a $veAERO
The Addition of AERO to Base V3 is diversifying listed assets and improve user experience. Furthermore, AERO earned from Pool can be used to boost GHO and/or aToken adoption and liquidity on Base as a strategic asset.
Specification
Ticker: AERO
Contract Adress: 0x940181a94A35A4569E4529A3CDfB74e38FD98631
Chainlink Oracle: 0x4EC5970fC728C5f65ba413992CD5fF6FD70fcfF0
Proposed risk parameters will be shared at the potential ARFC stage of this proposal.
Reference
Project: https://aerodrome.finance/
GitHub:https://github.com/aerodrome-finance
Docs: https://aerodrome.finance/docs
Audit*¹: https://velodrome.finance/security
Twitter: https://twitter.com/aerodromefi
Discored: http://discord.gg/aerodrome
*¹ Aerodrome Finance inherits the contract architecture and full security maintenance from Velodrome V2. Velodrome V2 has been audited and runs a bug-bounty program.
Next Step
- Gather community feedback on this TEMP CHECK.
- If consensus is reached, escalate this proposal to TEMP CHECK snapshot stage.
- If TEMP CHECK snapshot outcome is YAE, escalate to ARFC stage.
- If consensus on ARFC stage is reached and risk service providers provide feedback on risk parameters, escalate to ARFC snapshot stage.
- If ARFC snapshot stage outcome is YAE, escalate to AIP stage
Disclaimer
0xlide is not presenting this TEMP CHECK on behalf of any third party and is not compensated by any entity for creating this TEMP CHECK.
Copyright
Copyright and related rights waived via CC0.
1 Like
This proposal has been escalated to the snapshot stage
Vote starts tomorrow.
This proposal received high support from voters (289k AAVE YAE, 98.51%), but did not meet the quorum(320k AAVE YAE). In light of the low voter turnout, we propose taking re-snapshot.
3 Likes
Two weeks ago, out of the delegate platforms that voted in favor of this proposal’s snapshot, strangely three of them voted against the exact same proposal’s snapshot. There were no major changes or incidents with Aerodrome in these past two weeks. Notably, these delegate platforms have not explained why they changed their stance from the previous vote.
In this post, I would like to present a few data regarding AERO to answer the reasons for opposition that were raised in the Snapshot voting.
https://dune.com/0xkhmer/aerodrome
This chart shows the ratio of circulating AERO to locked AERO (veAERO). While the main use case for AERO is veAERO, considering that 446 million AERO (worth $1.02 at the time of posting) is unlocked, and the Aave BASE V3 market size is $85 million, onboarding AERO could potentially drive significant growth for Aave V3 on BASE.
AERO is listed on
Moonwell, the top lending protocol on BASE. In AERO’s lending market on Moonwell, we can confirm there is high demand from both suppliers and borrowers.
Other data
-
Coingecko: https://www.coingecko.com/en/coins/aerodrome-finance
-
Defillama (DEX Liquiditys of AERO and AAVE) : https://defillama.com/yields?token=AERO&token=AAVE
1 Like
Rationale: There is no need to add additional risk for the protocol by adding a long tail asset. The main usecase is to lock the token to profit from bribes and voting power. By locking it, it becomes an NFT with up to 4 years of being locked. The only reasonable thing people may would do is to hedge against downside of their locked position. So nobody is going to borrow to then lock because of the long lockup time.
I even talked to a few holder and a whale I know who also confirmed that they wouldn’t use Aero if it was on Aave. This person is an ex member of the Velo/Aero team.
1 Like
@EzR3aL very helpful analysis. We would have voted NO against this proposal if we had this information prior to the vote ending, and next time if possible we’d love if you could post the results of your DD on the forum!
1 Like
Will try in general to post rationale with the voting to provide information that may be useful to others.
3 Likes
The following Snapshot has ended, with NAY as winning option, with 495K votes.
Therefore, the TEMP CHECK Snapshot has not passed.
I just wanted to point out that Moonwell has $5.4m of AERO supplied and $3.6m borrowed from their Base market. Of course there are differences between the protocols and we should not make decisions based solely on others - however, clearly and empirically there is demand to supply and borrow this asset on Base.
2 Likes
