Velora & Cowswap Integration Analysis

[Mihai]

@TokenLogic

From a purely economic perspective, the stacked fees (5bps Flashloan, 2bps Cowswap, 15-25bps Aave Labs Partner Fee) from the Cowswap integration are significantly larger than those applied via the Velora integration. The Aave DAO <> Velora integration includes a concession whereby

Thanks to TokenLogic for such a precise and detailed report!

In addition to the economic arguments presented there, I would like to add that the justification used for the integration with CowSwap was mainly based on MEV protection features.

@AaveLabs

The batch-auction model reduces exposure to MEV and sudden price movement, which is important for users adjusting collateral or managing debt positions.

However, Velora also includes MEV protection as a core part of its value proposition.

The new integration therefore provides essentially the same MEV protection characteristics that were used as the rationale for the migration, but with significantly higher fees.

If the goal is truly to respect and prioritize the interests of $AAVE tokenholders and the protocol as a whole, Aave should reconsider its decision and reintegrate Velora integration.