[TEMP CHECK] Safety Module Update Part I - Migrate AAVE/wETH Balancer v1 Pool to Balancer v2

For some extra context from the technical side, one of our tasks pending execution is the aforementioned migration of 80/20 AAVE/WETH aBPT from Balancer v1 to Balancer v2 (last update here)

Given the permissions involved to execute this in practice (Level 2 governance), pre-requirements (update of Level 2 requirements, Safety Module 1.5) and availability of security resources of the community, this will be finished only now, after the Safety Module 1.5 upgrade.

Regarding the options proposed and how they would fit into the project:

  • It is possible (we have it almost ready) and important to migrate the current users from v1 to v2, via a governance proposal, but this applies only with 80/20 weight distribution. We don’t recommend changing the weight of the current ABPT to 50/50, as it will create important friction for users, together with important operational overhead.
  • Following on the previous point, the reason for an 80/20 distribution was that participants in the Aave Safety Module are in practice AAVE holders, who want to keep more AAVE exposure in all senses. A change for a 50/50 could encourage existing participants to acquire WETH/wstETH from their AAVE, which is a clearly bad dynamic.
  • It needs more technical evaluation, but we are fairly confident that we can include in our planned upgrade/migration Balancer v1->v2 the “swap” from AAVE/WETH to AAVE/wstETH. Of course, if maintaining the 80/20.
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