Summary: There has been a recent increase in the SUSDE cap from 128 million to 256 million without a proposal being discussed in the forum. We are concerned that this increase is not aligned with the community’s interests, and we believe that further increases could harm the Aave ecosystem as a whole. This proposal suggests halting any further increases to the SUSDE cap on the AAVE V3 Core Market.
Reasoning:
- Lack of Transparency and Governance Process: The previous increase in the SUSDE cap from 128 million to 256 million was made without any community proposal or discussion on the Aave forum. This decision raises concerns of possible insider manipulation or a lack of proper governance processes. Such actions undermine the trust in Aave’s decentralized governance and may create an impression of unfair decision-making.
- Impact on the User Experience: Increasing the SUSDE cap further, especially in the current state of 256 million, will likely only benefit those engaging in SUSDE cycle lending and farming activities. This could exacerbate the issue of farming rewards, to the detriment of regular Aave users who are trying to make use of the protocol for legitimate lending and borrowing purposes. As the cap grows, it becomes harder for regular users to access liquidity, potentially harming the overall Aave experience.
Request: We propose that no further increases be made to the SUSDE cap on the Aave V3 Core Market. Instead, we recommend that the community engage in a more transparent and inclusive discussion regarding the future of SUSDE, ensuring that the decision-making process is fully decentralized and in line with the interests of all Aave users.
Thank you for considering this proposal.