Update on Aave Swapper and Strategic Asset Manager Contracts

Development
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TLDR

We wanted to share an update on the development of the Aave Swapper (formerly called “Curator”) and Strategic Asset Manager. We have built an initial version of both contracts, received useful feedback from BGD on review, and are currently making changes to simplify these contracts.

Recap

  • Aave Swapper is a dedicated contract for managing the exchange of assets with MEV and price-impact protection, where possible. It is currently not possible to perform swaps directly from the Collector / Treasury Contract. The Swapper will receive assets from the Collector / Treasury Contract, swaps (or deposits) assets and sends the newly received asset to another address. The Swapper is intended for solely exchanging assets and not holding assets.
  • Strategic Asset Manager is a dedicated contract for managing Aave DAO’s strategic assets. At launch, it will manage the DAO’s veBAL holdings.

Progress

We built an initial version of the Aave Swapper and Strategic Asset Manager and shared it with BGD for review and feedback. From discussions with BGD as well as internal discussions, we decided that we will simplify both contracts to ensure maximum value for Aave DAO while minimizing any risks.

Per these discussions, Aave Swapper V1 will only handle swaps on behalf of the DAO. We also introduced some payloads to be extended by future proposals where it is quite simple to swap tokens on behalf of the DAO and then deposit them strategically.

The Strategic Asset Manager originally was able to support any kind of veToken and sdToken, however, we have simplified V1 for it to only be able to handle veBAL.

After the DAO has utilized these complex contracts and is satisfied with the results, new versions handling more tokens and use cases can easily be built by contributors on top of what we will release.

These two projects are currently under review, as well as another tool we are building in order for the DAO to be able to bridge ERC20 tokens from Polygon to Ethereum mainnet. (We will share more on the bridging tool later.)

Next Steps

Nothing actionable for the DAO at the moment; we just wanted to share an update on our progress.

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The Aave Swapper has been deployed! It is now available as a public good for Aave contributors to exchange assets directly from the treasury contract while minimizing MEV and price-impact where possible.

Till date, the DAO relied on custom one-use contracts in order to accomplish the swap of one token for another, e.g. BAL <> AAVE, acquisition of CRV, acquisition of B-80BAL-20WETH, etc. All these exchanges required significant time to develop, test, and review, all while reinventing the wheel every time for something that should be easy to reuse. Aave Swapper facilitates swaps of tokens by the DAO without the constant need to review the contracts that do so.

More details can be found here:

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Update for the community: we developed a contract to bridge ERC20 tokens from Polygon to Mainnet. This is a publicly-available tool for managing treasury assets, in addition to the Aave Swapper and Strategic Asset Manager.

Currently, Polygon assets cannot be withdrawn from Polygon and thus, assets held on that network cannot be used as part of a treasury management strategy. The Aave Polygon-Mainnet ERC20Bridge is a bridge that lets the DAO send funds from Polygon to Mainnet to best manager treasury funds. The main functions on this contract are to bridge from Polygon, and later on to confirm the transaction on Mainnet.

More details can be found here:

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