Wintermute Delegate Platform

1. [TEMP CHECK] GHO Stability Module
Vote: YAE
Summary: Aave Companies provide an enriched version of a safety module that has been proven to be successful across the DeFi ecosystem. We are supportive of the proposed model.

2. [ARFC] Set Metis Foundation Wallet as Emission Manager for METIS Token on Aave V3 Metis Pool
Vote: YAE
Summary: We support exogenous rewards that stimulate TVL growth on Aave.

3. [ARFC] TUSD Offboarding Plan
Vote: YAE - Lower LTV to 75%
Summary: Given this option has 0 forced liquidations we support the lowering of LTV to 75%.

4. [TEMP CHECK] Introducing “Curator” by Llama
Vote: YAE
Summary: This is a great tool for the DAO and support its addition.

5. [ARFC] Reserve Factor Updates - Polygon Aave v2
Vote: YAE
Summary: As described previously we support non-invasive migration from V2 → V3 and therefore support the small increase in RF on Polygon V2.

6. Gauntlet Risk Parameter Updates for Ethereum v3, Arbitrum v3, Ethereum v2
Vote: YAE
Summary: We support the proposed parameter updates from Gauntlet.

7. [ARFC] Cancel Llama Service Provider Stream
Vote: YAE (Cancel Stream)
Summary: We appreciate Llamas’s involvement thus far in Aave, and while there were some hiccups we do think some of the initiatives driven by Llama were important for Aave’s growth (as they should’ve been under the approval of their service provider agreement).

Looking at the remainder of Llama’s work, we believe the expected benefit of these changes would be notably less than the remaining balance of their payment stream. This is further emphasised if ACI/TokenLogic are willing to finish the remaining work for no extra cost to the DAO.

At the end of the day, the Aave DAO has to look after their bottom line.

We will be supporting this proposal and thank Llama for their contributions to Aave.

8. [ARFC] BUSD Offboarding Plan Part III
Vote: YAE
Summary: We support the third part of the BUSD offboarding plan as highlighted in previous votes.

1 Like

1. [ARFC] Activate LUSD as Collateral on Aave V3 ETH Pool
Vote: YAE
Summary: We support stablecoin diversity of Aave and believe LUSD is a great addition.

2. [ARFC] Aave | Flipside Crypto Facilitator [v2]
Vote: Abstain
Summary: Flipside has been a great contributor to Aave for a significant period of time and this proposal does bring some good additions to the DAO. We chose to abstain from this vote as we required a more defined scope around growth with clearer assessable measures and a reduction in compensation. Therefore, we don’t think that this reasoning in the full context of the proposal granted a NAY vote.

3. [TEMP CHECK] Treasury Management - Avalanche v2 to v3 Migration
Vote: YAE
Summary: V3 is much safer for the DAO’s funds and the migration will help improve available liquidity for borrowers.

4. aCRV OTC Deal
Vote: YAE
Summary: We are supportive of this OTC deal. It provided some short-term relief in regards to Michaels’s position. But we think the greatest impact will come from the long term vision of supporting GHO liquidity. CRV was always a strategic asset.

5. Reduce CRV LT by 6%
Vote: YAE
Summary: We support the deprecation of the CRV V2 market and therefore the reduction in LT.

6. Disable CRV Borrowing For Ethereum and Polygon V3
Vote: YAE
Summary: We are support of all efforts required to help prevent adverse liquidation from the CRV V2 market.

7. Supply cap increase - wstETH
Vote: YAE
Summary: We are supportive of the supply cap increase for wstETH, helping grow Aave’s market share.

8. [TEMP CHECK] Aave V3 Deployment on Celo
Vote: YAE
Summary: We are supportive of this proposal!

We support Aave’s multichain growth and a deployment on Celo could showcase Aave’s use for alternative assets. The CELO incentives are a welcomed addition, and hopefully, with greater activity after deployment, Aave will be able to support a larger list of assets on CELO.

9. [ARFC] Sigma Prime audit budget extension
Vote: YAE
Summary: Spending funds on maintaining a security and audit standard is extremely important for Aave.

10. Gauntlet Recommendation to Freeze CRV on Aave v2 Ethereum
Vote: YAE
Summary: We are in favour of setting LTV → 0 and freezing CRV.

While there has been some repayment to Aave, Aave came last out of Fraxlend and Abra
most likely due to Aave offering more favourable conditions.

We also doubt that this will be the last time the large CRV position gets tested and the protocol is on the verge of adverse liquidations.

We are not privy to any of the off-chain communication and understand that the protocol was used as designed. But maybe the current position was an edge case that was rather hard to foresee (or at least estimated to be extremely unlikely) and everything was okay until it wasn’t.

On freezing CRV - this is particularly important and places an upper limit on the protocol’s exposure to CRV. It reduces Mich’s optionality and forces him to pay back his debt instead of adding to his collateral position and further increasing Aave’s exposure to CRV. It’s evident from the recent OTC sales that managing this CRV position is becoming increasingly difficult. We fully support the freezing of CRV.

11. [ARFC] CRV V2 Ethereum Deprecation Plan
Vote: YAE
Summary: We support the proposed deprecation plan and coordination between both risk managers.

12. [ARFC] - Chaos Labs Scope and Compensation Amendment
Vote: YAE
Summary: Disclaimer: Wintermute Ventures is an investor in Chaos Labs

The team at Chaos Labs are extremely professional and proactive and we have thoroughly enjoyed working with them inside and outside of Aave.

We believe they add immense value to The Aave DAO as a risk service provider alongside Gauntlet. The compensation increase seems fair given the expanded work scope.

We are supportive of this proposal!

13. [ARFC] Chaos Labs Risk Parameter Updates - Aave V2 Ethereum - 2023.08.09
Vote: YAE - Aggressive
Summary: Given there isn’t much difference in ‘value liquidated’ between aggressive and moderate, we support the aggressive option. Typically, we are not in favour of forcing liquidation but understand the push to deprecate frozen markets.

14. stataToken operational update
Vote: YAE
Summary: This transfer of ownership to Balancer to synchronize execution across multiple chains makes sense.

15. [ARFC] Aave <> Bored Ghosts Developing (BGD) Phase 2
Vote: YAE
Summary: We support the proposed budget for Phase 2. BGD has played a pivotal role in the development and refinement of Aave.

16. [TEMP CHECK] Aave Treasury Proposal for RWA Allocation
Vote: YAE
Summary: We support Centrifuge kickstarting the RWA allocation for Aave and think that the initial $1M allocation is doable. We suggest that an RWA GHO Facilitator be created on behalf of the DAO to provide the DAO with GHO liquidity if needed.

17. [TEMP CHECK] Aave V3 “MVP” Deployment on GnosisChain
Vote: YAE
Summary: We support the MVP deployment on GnosisChain. GnosisPay L2 provides a perfect synergy for Aave and we see a clear benefit from the deployment.

18. [ARFC] Chaos Labs Risk Parameter Updates - Aave V3 Optimism - 2023.08.13
Vote: YAE
Summary: We support the proposed risk parameters from Chaos Labs.

1 Like

1. [TEMP CHECK] TokenLogic Proposal
Vote: YAE
Summary: We support TokenLogic’s proposal for funding as a service provider to the DAO. Their scope is well-defined and focuses largely on treasury management and growth efforts which are both areas we believe are important to the DAO. Furthermore, given their previous history working with and supporting Aave, we think TokenLogic has proven its alignment with the DAO.

2. [ARFC] Treasury Management - Acquire AURA
Vote: YAE
Summary: We support continued efforts to acquire strategic assets that will help in growing a strong GHO ecosystem.

3. [TEMP CHECK] Proposal for Senate to Enable Dedicated Tooling for Aave Governance
Vote: YAE
Summary: Senate’s integration proposal will be a welcomed addition to the forum, allowing the community to track active discussions and follow proposals more easily.

4. [ARFC] Quarterly Gas Rebate Distribution - August 2023
Vote: YAE
Summary: We continue to support the quarterly gas rebate for recognized delegates.

5. [TEMP CHECK] Update Balancer Ecosystem Holdings
Vote: YAE
Summary: We support the effort to migrate to AURA to maximise emissions from Aave’s POV.

6. [ARFC] TokenLogic - 6 month Service Provider Proposal
Vote: YAE
Summary: TokenLogic has proven its alignment to Aave over a continuous time frame as well as provided previous work to the DAO in their own domain that is crucial to Aave’s growth. We support their service provider proposal.

7. [ARFC] Aave Treasury Proposal for RWA Allocation
Vote: YAE
Summary: As supported in the Temp Check, we are in favour of an RWA Allocation spearheaded by Centrifuge. We believe this opens up many opportunities for the DAO and improves it’s robustness.

8. [ARFC] - Chaos Labs Risk Parameter Updates - Aave V3 Avalanche - 2023.09.06
Vote: YAE
Summary: We support the proposed changes in risk parameters by Chaos Labs.

9. [ARFC] wGHO Aave V3 Onboarding
Vote: YAE
Summary: Improving GHO’s utility to drive demand and help the stablecoin repeg is super important. We support this effort to list wGHO on Aave V3.

10. [ARFC] Safety Module - Polygon & Avalanche Coverage Update
Vote: YAE
Summary: In effort to continue migration but also mitigate risk for safety module stakers, we support deprecating safety module support for polygon and avalanche v2 as well as support to extend the coverage to avalanche v3.

11. [ARFC] Expansion of “Orbit” - A DAO Funded Delegate Platform Initiative
Vote: YAE
Summary: We are super honoured to be considered for Orbit, but have humbly declined. Overall, Orbit is an amazing program to push delegates to strive for governance efficiency, high standards, and strong contribution - we support it’s expansion.

12. [TEMP CHECK] Treasury Management - Swap B-80BAL-20wETH to GHO
Vote: YAE
Summary: In order to net out the spending of stablecoins to acquire AURA, we support this initiative to sell B-80BAL-20wETH to GHO

13. [TEMP CHECK] Treasury Management - Create and Fund GHO Liquidity
Vote: YAE
Summary: We are in support of the GHO liquidity committee, but would like to see a larger focus on securing POL.

14. [ARFC] Treasury Management - GHO Liquidity Strategy Update
Vote: YAE
Summary: We support the new GHO liquidity strategy and look forward to seeing the results.

15. [TEMP CHECK] Add KNC to Ethereum Aave V3
Vote: YAE
Summary: We support the listing of KNC and look forward to risk parameter feedback from Aave’s service providers.

16. [TEMP CHECK] Onboard STG to Ethereum Aave v3
Vote: YAE
Summary: We support the listing of STG with the proposed risk parameters. Continuing to increase Aave’s asset onboarding under safe parameters is welcomed.

17. [ARFC] Aave V3 Deployment on zkEVM L2
Vote: YAE
Summary: We support the deployment of Aave V3 on zkEVM L2 as part of Aave’s continued multichain growth and expansion. We look forward to watching the growth of this deployment and the addition of new assets over time.

18. [ARFC] Treasury Management - GHO Funding
Vote: YAE
Summary: We support the conversion of assets into GHO to increase its adoption and transition the DAO’s payroll over to GHO.

1. [TEMP CHECK] Updated Aave Grants Continuation Proposal
Vote: YAE
Summary: Aave Grants play an important role in fostering community and protocol growth and we fully support its renewal.

2. [ARFC] Aave V2 Markets Deprecation Plan
Vote: YAE
Summary: We support the gradual wind-down of Aave V2.

3. [ARFC] Gauntlet Recommendations to Lower stMATIC/MaticX non-emode LT/LTV on Polygon v3
Vote: Option 1
Summary: We support Option 1 as it minimises the liquidation of users.

4. [ARFC] Treasury Manage - GHO Liquidity Committee
Vote: YAE
Summary: We support the creation and funding of the GHO liquidity committee for 3 months and look forward to following their efforts towards GHO liquidity and peg restoration.

5. Gauntlet Interest Rate Recommendation for WETH Base Rate
Vote: Option 1
Summary: We support the change in the WETH base rate to drive additional revenue and adjust the current risk profile based on on-chain liquidity.

6. Aave Treasury RWA Allocation Part 1
Vote: YAE
Summary: We support the creation and allocation of relevant infrastructure s.t. Aave can begin accessing RWAs.

7. [ARFC] Treasury Management - Amend Safety Module AAVE Emissions
Vote: YAE
Summary: We support the reduction in SM emissions and look forward to seeing its effects on SM depositors.

8. [ARFC] KNC onboarding on AaveV3 Ethereum market
Vote: YAE
Summary: We support the addition of KNC improving Aave’s asset offerings.

9. [ARFC] STG onboarding on AaveV3 Ethereum Market
Vote: YAE
Summary: We support the addition of KNC improving Aave’s asset offerings.

10. [TEMP CHECK] Aave Events & Sponsorship Budget
Vote: YAE
Summary: We support Aave’s efforts towards continuing to build out its recognition, community, and brand within the DeFi ecosystem.

11. [TEMP CHECK] Add FXS to Ethereum V3
Vote: YAE
Summary: We support the addition of KNC improving Aave’s asset offerings.

12. [ARFC] TokenLogic Hohmann Transfer
Vote: YAE
Summary: We support the inclusion of TokenLogic into the Orbit delegate platform initiative.

13. [ARFC] Further increase GHO Borrow Rate
Vote: YAE
Summary: We support the increase in GHO borrow rate in efforts to reduce the profitability of sDAI looping strategies which put downward pressure on GHO’s peg.

14. Governance V3 Activation
Vote: YAE
Summary: Letsss goooo!

15. [ARFC] Add FXS to Ethereum V3
Vote: YAE (LTV: 35%; LT: 45%) Gauntlet
Summary: Given the nature of FXS and its on-chain liquidity we selected conservative parameters.

16. [ARFC] Upgrade Aave V3 ETH pool wETH parameters
Vote: Slope 1 → 2.8%, Uopt → 0.8
Summary: We support the proposed risk parameter changes.

16. [ARFC] Gauntlet recommendation for MAI / MIMATIC deprecation
Vote: Increase Borrow Rates + Option 2
Summary: We are typically against forced liquidations, however, given the depegging of MAI poses a threat to the protocol we believe it’s in the protocol’s best interests to act aggressively in reducing its risks.

17. [ARFC] ACI Phase II
Vote: YAE
Summary: The ACI has played a key part in Aave’s growth and more importantly its governance efficiency. We appreciate all the hard work that goes into the numerous proposals put forward and ACI’s contribution towards governance efforts such as Skyward, Orbit, and Gas Rebates.

18. [ARFC] Aave Funding Update
Vote: YAE
Summary: We support updating Aave DAO’s stablecoin holding in preparation for payments to service providers!

19. [ARFC] Treasury Management - Tooling Upgrade
Vote: YAE
Summary: We support the development of relevant contracts to ensure the DAO can easily and safely transfer assets across protocol deployments.

20. [ARFC] Chaos Labs <> Aave Risk Management - Renewal
Vote: YAE
Summary: Chaos Labs provides valuable service to the Aave DAO with a highly professional team. They bring immense value to the DAO and we look forward to supporting their continuation as a Risk Service Provider.

Disclaimer: Wintermute is an investor in Chaos Labs.

21. [ARFC] GHO - Increase Borrow Rate
Vote: YAE
Summary: While multiple increases has been rather annoying for organic users of GHO, closing the loop between the GHO borrow rate and the sDAI rate is important to reduce downward pressure on GHO’s peg.

22. [ARFC] Chaos Labs - CRV Aave V3 Polygon - LT Reduction - 10.28.2023
Vote: YAE
Summary: We support the LT reductions to further derisk the protocol.

23. [ARFC] wMATIC Interest Rate Update
Vote: YAE - 5.00%
Summary: We support the gradual reduction to react to market dynamics. However, we do agree that having an overall lower interest rate to make both MaticX and stMatic recursive loop strategies profitable is more beneficial for the protocol.

24. [ARFC] Aave Swap Upgrade
Vote: YAE
Summary: We support the addition of increased swap functionality for the DAO.

25. [TEMP-CHECK] Create an Aave Financial Management Working Group
Vote: YAE
Summary: We are generally supportive of this initiative and think it’ll help create some structure and consistency within the DAO.

We’d like to make one suggestion to collapse Treasury Management and Financial Reporting and Accounting into one working group.

We don’t think it’s necessary to have these two groups separated as they are likely endogenous to each other. For example, treasury management will likely be shaped by the financial health of the DAO and the need to cover costs. Treasury managers typically already produce regular financial reports and have the infra to track the DAO’s financial metrics. Therefore, I think it’s perfectly reasonable to add this requirement to the Treasury Management working group and reduce additional costs.

26. [ARFC] Increase Stablecoin Optimal Borrow Rates
Vote: YAE
Summary: We support the proposed borrow rate changes.

27. [Temp Check] GHO Bounty for Integration Issue Detection
Vote: YAE
Summary: We are super supportive of rewarding bounties as it sets an important precedent for future exploits.

28. [ARFC] Treasury Management - vlAURA
Vote: YAE
Summary: We support locking AURA as vlAURA and delegating control to the GHO liquidity committee.

29. [ARFC] TokenLogic - Retrospective Funding Proposal
Vote: YAE
Summary: TokenLogic has provided valuable service to the DAO and we fully support compensating them for their efforts.

30. [ARFC] Arbitrum USDC Migration
Vote: Abstain
Summary: We have voted to abstain due to a conflict of interest.

31. [ARFC] Increase Uopt for Stablecoins on all V3 Deployments and RF on V2 Ethereum
Vote: YAE
Summary: We support the proposed parameter changes to increase the DAO’s revenue with no additional excess risk.

32. [ARFC] Authorizing Use of Grace Sentinel
Vote: YAE
Summary: We support the use of Grace Sentinel and appreciate allowing users a grace period.

1 Like

1. [ARFC] Treasury Management - auraBAL
Vote: YAE
Summary: We support the creation of a permissioned contract to manage the auraBAL position.

2. [ARFC] Gauntlet Cap Recommendations for Polygon v3
Vote: YAE
Summary: We support the added security measure of adding caps to assets regardless of their configuration in Aave.

3. [ARFC] Gauntlet recommendation to lower stMATIC, MaticX non-emode LT, pt 2
Vote: Option 2
Summary: Option 2 is less aggressive and provides a path to a gradual reduction in LT.

4. [TEMP CHECK] Onboarding sfrxETH to Aave V3 Ethereum Market
Vote: YAE
Summary: sfrxETH is a solid asset with great usage and it would be a strong addition to Aave. However, we would need to see its supply and borrow caps reflect its lack of decentralization.

5. [TEMP CHECK] Onboarding ETHx to Aave V3 Ethereum Market
Vote: YAE
Summary: We support the addition of ETHx to Aave.

6. [ARFC] Onboarding wstETH to Aave V3 on Base Network
Vote: YAE (Aggressive)
Summary: Despite the low liquidity, the conservative supply and borrow caps are too low to see any meaningful growth and adoption.

7. [ARFC] Gauntlet Recommendation to re-enable CRV borrowing on v3 Ethereum/Polygon
Vote: YAE
Summary: With most of the excessive risk having left Aave, we support the new risk parameters that strike a balance between safety and re-enabling CRV borrows

8. [ARFC] Update the Asset Onboarding Framework
Vote: YAE
Summary: We agree with the proposed template and think it’ll bring a much-needed streamlined process + structure to the DAO.

9. [TEMP CHECK] onboard osETH to Aave v3 on Ethereum pool
Vote: YAE
Summary: We support the addition of additional LST assets including osETH to improve the diversity of asset offerings on Aave.

10. [TEMP CHECK] Add EURC to Avalanche Aave V3
Vote: NAE
Summary: Low adoption, little chain activity, and too little liquidity. The risk-reward is not worth it atm.

11. [TEMP CHECK] Financial Services Proposal: karpatkey & TokenLogic
Vote: YAE
Summary: We welcome the combined partnership of karpatkey and tokenlogic in looking after treasury management, strategic asset liquidity, and the safety module. Both service providers have proven to either have a strong track record in the above fields and/or shown their alignment with Aave. We looking forward to seeing the work they produce.

12. [ARFC] Upgrade Safety Module with StkGHO
Vote: YAE
Summary: The addition of GHO to the safety module will improve Aave’s robustness. Furthermore, it should help create demand for GHO, hopefully improving its peg.

13. [ARFC] New Chain Deployment Framework
Vote: YAE
Summary: We support the new proposed chain deployment framework! It provides a nice, clear, and consistent method for the DAO to assess new chain deployments.

14. [TEMP CHECK] Launch Aave V3 on Kava EVM
Vote: YAE
Summary: We support Aave’s multichain growth. Kava offers Aave the possibility to further capture new users and capital thanks to its alignment with Cosmos. We appreciate the proposed liquidity mining incentives.

15. [TEMP CHECK] Add PYUSD to Aave v3 Ethereum Market
Vote: YAE
Summary: We support the addition of PYUSD to Aave V3 on Ethereum Mainnet. With this addition, stablecoin diversity is improved. PYUSD has done a good job at attracting on-chain liquidity and we look forward to the future of Paypal driving demand for the token.

17. [TEMP CHECK] Further Aave v1 deprecation strategy
Vote: YAE
Summary: We support the deprecation efforts of V1. We don’t see the need to continue burdening the DAO with costs and technical support.

18. [ARFC] Retroactive bug bounties proposal (pre-Immunefi)
Vote: YAE
Summary: We support the payments of bug bounty requests prior to the Aave <> Immunefi set-up. As with the GHO bug bounty, we think it’s important for Aave to show their utmost willingness to compensate white hacks.

19. [ARFC] Harmonize USDT Risk Parameters on Aave V3 Markets
Vote: YAE
Summary: USDT has proven its resilience over time more often than not, being better than most stablecoin alternatives. We support its harmonization across Aave V3 markets.

1 Like

[TEMP CHECK] Onboard fdUSD to Aave v3 on BSC
Vote: YAE
Summary: We support the listing of fdUSD on Aave v3 on BSC. The stablecoin has proven demand illustrated by both its market cap and trading volume!

[ARFC] Treasury Management - GSM Funding & RWA Strategy Preparations
Vote: YAE
Summary: We support the collection and consolidation of Aave assets in preparation for GSM funding and the RWA strategy.

[ARFC] Update stETH and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum
Vote: YAE
Summary: The updated risk params improve Aave’s competitiveness which we support.

[TEMP CHECK] Aave V3 MVP deployment on Neon EVM Mainnet
Vote: YAE
Summary: There has been sufficient clarification from the Neon team regarding the most pressing concerns. We will support this proposal at the TEMP CHECK stage but will wait for a deeper analysis from Aave’s Risk Providers.

Our main concerns will be the proposed caps and relevant risk parameters for the proposed assets, given the low level of TVL which may affect liquidations.

Disclaimer: Wintermute is an investor in Neon.

1 Like

[ARFC] Introducing “Frontier” - Staking as a Service for the Aave DAO
Vote: YAE
Summary: We appreciate ACI’s ETH LST diversity efforts and this is a great initiative that is one of the first on the DAO front. One thing we would’ve liked to have seen included is a rough process on how the DAO would claw back funds if needed

[ARFC] Gauntlet USDC.e Supply and Borrow Cap Recommendation on Optimism Aave v3
Vote: NAY
Summary: We continue to support the efforts of onboarding native USDC and therefore the deprecation of USDC.e. This directly counters this objective and therefore we do not support the proposal despite possibly increased risk to the protocol due to high utilization.

[ARFC] Add sFRAX on Ethereum V3
Vote: YAE
Summary: sFRAX presents a good addition to the Aave protocol. While we do have concerns about its CR, we believe it can be managed accordingly with tighter supply/borrow caps. In general, Frax has a strong user base with an extensive product suite. sFRAX presents a good opportunity for increasing Aave’s revenue and product offering.

[ARFC] Modify Retroactive bug bounties proposal (pre-Immunefi)
Vote: Option C
Summary: We don’t see any merit in the justification of modifying the bug bounty. We support Option C in this case, honouring the original agreement.

[ARFC] Deprecate Aave V2 AMM Market Phase 2
Vote: YAE
Summary: We support the next phase of Aave V2 AMM’s deprecation.

[TEMP CHECK] Add gmBTC on Arbitrum V3
Vote: YAE
Summary: With Chainlink price feeds available, we support the addition of gmBTC to Aave Arbitrum V3. The addition of gmBTC to Aave allows the protocol to cater to a unique but strong user base who are looking to leverage their exposure while earning yield.

[TEMP CHECK] Onboard RSR to Aave v3
Vote: Abstain
Summary: We have chosen to abstain from voting purely from a lack of interest from the community and other delegates. However, we do think that RSR can become a viable asset to be listed on Aave once demand has increased due to a higher total market cap for their RTokens. RSR does have some underlying demand given it backs RTokens in exchange for yield, however, we don’t think the demand is large enough to justify the listing on Aave.

[TEMP CHECK] Add gmETH on Arbitrum V3
Vote: YAE
Summary: Akin to gmBTC, we support the addition of gmETH under the same rationale. Improved product offering, strong yield product, great user base integration.

[TEMP CHECK] Merit - A New Aave-Alignment User Reward System
Vote: YAE
Summary: The Merit system proposes some good ideas that incentivize some positive behaviour that is beneficial for the protocol. We are happy to support this as a trial and see if such expenditure leads to greater profit and user base.

[ARFC] BGD. Correlated-asset price oracle (CAPO)
Vote: YAE
Summary: We support BGD’s CAPO implementation. We appreciate the ongoing efforts to ensure Aave is further protected from adverse price oracle conditions.

[ARFC] Establishing the Aave Protocol Embassy (APE)
Vote: YAE
Summary: APE is a much-needed effort on behalf of the Aave DAO. We support the proposed multisig signers for the initial trial but would like to see other community members involved in the future.

[ARFC] Set Liquidity Observation Labs as Emission manager for wstETH on V3 markets
Vote: YAE
Summary: We support adding LOL as emissions manager for wstETH.

[ARFC] Add Contango Protocol, Cian Protocol and Index Coop to flashBorrowers on Aave V3
Vote: YAE
Summary: The proposed protocols are building genuine products on top of Aave, we support adding them to the list of approved flashBorrowers. Building out Aave’s composable product layer is super important.

[ARFC] GHO Stewards
Vote: YAE
Summary: We support the launch of GHO stewards given GHO and the GSM’s infancy. However, we would like to see a large portion of these responsibilities automated in the future.

[TEMP CHECK] Enable Metis as Collateral on Metis Chain
Vote: YAE
Summary: We support the listing of Metis as Collateral under the guidance of the risk parameters proposed by the Risk service providers

[ARFC] Chaos Labs Risk Parameter Updates - Increase Debt Ceiling for SNX and MKR on V3 Ethereum
Vote: YAE
Summary: We support the increased debt ceiling proposed by Chaos Labs.

[TEMP CHECK] Onboarding weETH to Aave V3 Ethereum
Vote: YAE
Summary: LRT has experienced massive growth, and adding support for weETH on Aave will allow the protocol to begin capturing some of this demand. We are supportive of this proposal.

[ARFC] Set Aave Chan Initiative as Emission Manager for fdUSD on BNB Chain Aave V3
Vote: YAE
Summary: We support the addition of ACI as emissions manager for fdUSD. Any form of additional incentives to drive demand and supply is a win for Aave.

[ARFC] Orbit Program Renewal
Vote: YAE
Summary: Orbit is a fantastic initiative and we are very supportive of the program. We hope to see more delegates get accepted in the future to continue growing Aave’s governance ecosystem.

[TEMP CHECK] Integrate Oval for the BAL & SNX Ethereum V3 Markets
Vote: YAE
Summary: Consistent with the nature of a TEMP CHECK we are in favour of this proposal and believe the DAO should consider further exploring the Oval integration for BAL and SNX markets. It makes a lot of sense from Aave’s POV to be auctioning off their liquidations and capturing the fee that already goes to validators.

In saying that, for us to be in favour of the integration at the AFRC phase, we’d like to see a more thorough analysis of the effect of longer auction periods on potential bad debt specifically for longer tail assets with lower liquidity and under high volatility scenarios. Such results should also better inform the length of the max lockout period. Right now the 3 block justification is purely focused on capturing 99.99% of OEV and not necessarily ensuring liquidations are done in a timely manner.

For example, is capturing 99% of OEV under a 2 block max lockout window worth it if it means the protocol is safer from bad debt? Or does such an argument not hold up because liquidator behaviour is expected to be approximately the same under Oval as it is currently during such a scenario?

[ARFC] Set OP Emission Admin
Vote: YAE
Summary: We support the SAFE members and their access to distribute rewards on Aave to aid in the migration of USDC.

[ARFC] Set ETHx and SD Emission Admin to Stader Labs
Vote: YAE
Summary: We support adding Stade Labers as an emission admin to incentivize ETHx adoption.

[ARFC] Amend Safety Module Emissions
Vote: YAE
Summary: We support this proposal only based on the fact that it’ll incentivize greater stkGHO deposits which is more robust during times of stress. We are hesitant to keep leveraging AAVE rewards in the future with the sole purpose of trying to protect GHO’s peg. We are happy to support this given the total amount of AAVE SM emissions remains the same.

[ARFC] Merit - A New Aave-Alignment User Reward System
Vote: YAE
Summary: The Merit system proposes some good ideas that incentivize some positive behaviour that is beneficial for the protocol. We are happy to support this as a trial and see if such expenditure leads to greater profit and user base.

[TEMP CHECK] GHO Cross-Chain Strategy Launch with CCIP
Vote: YAE
Summary: We believe Chainlink’s CCIP architecture is sufficient to implement a robust GHO cross-chain strategy. We are supportive of the integration and look forward to cross-chain GHO!

[TEMP CHECK] Add rsETH to Aave V3 Ethereum
Vote: NAY
Summary: While we’d love to see Aave capture more of the LRT narrative rsETH adds a lot more risk and complexity given their exchange rate calculation and lack of withdrawal mechanism. We’d be happy to revisit the listing once withdrawals are live.

[ARFC-Addendum] Introduce “Hold StkGHO” Reward Action
Vote: YAE
Summary: Adding this reward action to merit should have a positive impact on GHO’s peg, GHO demand, and in general GHO activity. We support this proposal!

[TEMP CHECK] Onboard wbETH on Aave V3 BNB Chain
Vote: YAE
Summary: We support the addition of wbETH on Aave V3 BNB Chain. bETH has a decently sized market cap and capturing even a small percentage of this on Aave will be beneficial to the protocol.

[TEMP CHECK] Onboard BNBx on Aave V3 BNB Chain
Vote: YAE
Summary: We are supporting this asset purely based on it being redeemable for bETH. Given its current market cap, we don’t expect any meaningful deposits in Aave V3 BNB Chain. It’s demand should be reevaluated in 6 months time to determine if the added risk to Aave is worth it.

[TEMP CHECK] Onboard sUSDe to Aave V3 on Ethereum
Vote: YAE
Summary: The addition of sUSDe makes complete sense for Aave given its overall impact on market lending rates. Given the high level of risks associated with the token, we would like to see caps set appropriately and then adjusted upward over time to ensure Aave does not gain too much exposure too quickly.

[ARFC] Emission Manager Framework Update
Vote: YAE
Summary: We agree with the proposed framework update, the current process is way too long in the current market environment. We don’t see the need for a long discussion regarding emission managers.

[ARFC] - Remove ARB from Isolation mode on Arbitrum Market
Vote: YAE
Summary: We support removing ARB from isolation mode under guidance from Chaos Labs. ARB has proven to be a decent revenue generator for Aave and we are looking forward to it being removed from isolation mode.

[TEMP CHECK] Onboard sUSDe to Aave V3 on Ethereum
Vote: YAE
Summary: We support the addition of sUSDe to Aave, the product has captured a lot of mind share, has great onchain liquidity, and should be a significant revenue driver for Aave.

[ARFC] TUSD and BUSD Aave V2 Rate Amendments
Vote: YAE
Summary: We support the rate amendments to address the current bad debt growth.

[ARFC] Stablecoin IR Curve Amendment on Aave V2 and V3
Vote: Aggressive
Summary: We support the aggressive amendment as recommended in the proposal to mitigate short-term rate volatility.

[ARFC] BGD <> Aave Phase 3 (2 scopes)
Vote: For
Summary: BGD has been instrumental in pushing forwarding, fixing, and securing the Aave protocol. We support their updated scope.

[TEMP CHECK] Onboard Catapulta as Aave V3 Deployment Service Provider
Vote: YAE
Summary: One of our visions as a delegate is to support the multi-chain growth of Aave. Onboarding Catapulta fits well into this vision and we look forward to assessing their impact.

[ARFC] Chaos Labs - Borrow Cap Reductions on Aave Ethereum - 03.11.24
Vote:
Summary: We support the reduction in borrow caps and agree that given the lack of revenue generated by these riskier assets, it makes sense to limit the protocols exposure.

Generalized LT/LTV Reduction on Aave
Vote: YAE
Summary: We support the proposed LT/LTV reductions.

[ARFC] Onboard osETH to Aave V3 on Ethereum
Vote: YAE
Summary: We support the listing of osETH on Aave V3 Ethereum. We are happy with their LST design and the token has reached a sufficient enough market cap to indicate there is enough demand for a listing.

[ARFC] GHO Stewards + Borrow Rate Update
Vote: YAE
Summary: We support the changes to match the DSR rate. The GHO peg remains under pressure due to using it as a vehicle for DSR leverage.

[ARFC] Reset Aave v3 Deployment Pipeline
Vote: YAE
Summary: We support the reset. We understand that there are limited resources available for chain deployments which are highly technical and therefore, the DAO needs to prioritise chains with the best future outlook for the DAO.

[TEMP CHECK] Onboard LlamaRisk as Aave Risk Service Provider
Vote: YAE
Summary:

  • Extensive experience with assessing various collateral types and their risks from a market, regulatory, and smart contract perspective, which provides a holistic overview for the DAO.
  • Great emphasis on sectors relevant to Aave including LSTs, LRTs, & Stablecoins.
  • Their previous experience working deeply with Curve and Prisma brings a welcomed difference in human capital that could greatly benefit Aave.
  • LlamaRisk provided a great analysis of the DAI/sDAI <> USDe situation.
  • In general, we really like LlamaRisk’s long-form analyses, but would suggest that they provide a perspective summary at the beginning to provide clear guidance to the DAO.

[ARFC] Avalanche v2 Reserve Factor Adjustment
Vote: YAE
Summary: We support the reserve factor adjustments in aim of migrating users from v2 to v3.

[ARFC] aAMPL interim distribution
Vote: For
Summary: We support providing compensation to affected aAMPL users. We always believe that the DAO should reimburse users for any relevant bugs.

[TEMP CHECK] Onboard ezETH to Aave V3 Ethereum
Vote: Abstain
Summary: The LRT market has a lot of demand at the moment and it’s great to see Aave beginning to support relevant markets.

But we would like to see some caution with selecting which assets will be listed. ezETH is a protocol with $2.3b in TVL and a single audit from Halborn and does not offer native withdrawals, meaning $2.3b worth of ezETH relies on a $72M Balancer pool to facilitate its redemption of ETH.

In comparison, weETH (EtherFi) has 6 audits with native withdrawals.

We will be abstaining from voting in the temp check and if passed, we will wait for bgdlabs & chaos labs analysis at the AFRC stage. However, we are inclined to vote no unless conservative caps are imposed.

[TEMP CHECK] Onboard OpenBlock as Aave Risk Service Provider
Vote: YAE
Summary:

  • Extensive experience working with LRTs, LST, incentive management, and growth.
  • We find their dashboards to be quite useful and informative and can see them working well with initiatives like Merit.
  • On the risk side, their demonstrated experience seems rather limited and they lack prior work with lending markets which we think is pretty crucial.
  • There also seems to be a large overlap with the services offered by Chaos Labs, which is not a bad thing, but something to consider.
  • In all honesty, we think OpenBlock would fit much better into a growth role in Aave DAO given their prior experience, expertise, and infrastructure.
  • They also did not provide any form of analysis during the DAI risk parameter changes.

[ARFC] Onboard wbETH to Aave v3 BNB Chain
Vote: YAE
Summary: We support the listing of wbETH. LSTs have proven PMF within Aave and wbETH has a large enough market cap to expect enough demand to justify the listing.

[ARFC] Risk Parameters for DAI Update
Vote: Conservative
Summary:
This seems like a pretty natural response given the pace at which Maker are onboarding sUSDe, but we should take a step back to wait on further analysis from Chaos Labs (or other risk partys willing to provide some additional analysis).

Firstly, we are against fully offboarding DAI as collateral and think such a decision is a bit too harsh and unjustified. Aave’s DAI & sDAI market across all deployments totals ~$368.2M with an avg. utilization rate of ~88% (excl. sDAI supplies), which is small relative to Aave’s total TVL but still significant nonetheless. A full offboarding cuts off a decent portion of Aave’s user base and revenue which will likely increase with the launch of MakerDAO’s Endgame subDAO farms.

Secondly, we do agree that DAI’s risk profile has increased and the DAO should act in response by adjusting risk params that we can all agree on are sufficient given the heightened risk profile of DAI. Pending Chaos Labs’ analysis, we should have sufficient time for ample discussion as the 600M sUSDe increase will not happen overnight.

Monet Supply has provided a good thread on the current and future risk situation for MakerDAO under their sUSDe expansion https://twitter.com/MonetSupply/status/1775210473605980407 .

Tl;dr:

  • Current 100M exposure is ~2% of DAI backing
  • 600M will represent ~12% of DAI backing, achieved gradually overtime
  • Morpho vault overcollaterlization sitting at avg. of 12.3% excess capital
  • Maker surplus buffer sitting at 61M DAI
  • $140M in MKR/DAI POL acting as a potential backstop and venue for on-chain liquidations
  • Ethena’s insurance fund sits at $27.5M

Futhermore, USDe will arguably become more robust with the nearing addition of BTC-based perp yield farming.

[ARFC-Addendum] Update Boosters & diluters for Merit Round 2
Vote: Conservative Option
Summary: Merit has already done a great job at realigning users to Aave and therefore, opted for the more conservative option. We understand the reasoning as to why sDAI should not be incentivized with protocol revenue.

[ARFC] - Chaos Labs Engagement Amendment
Vote: YAE
Summary: Chaos Labs has been a tremendous value add for Aave and have proven to go above and beyond first, while asking for compensation second. We support their requested increase.

Disclaimer: Wintermute is an investor in Chaos Labs.

[ARFC] Onboard New Risk Service Provider
Vote: Onboard LlamaRisk
Summary:
LlamaRisk

  • Extensive experience with assessing various collateral types and their risks from a market, regulatory, and smart contract perspective, which provides a holistic overview for the DAO.
  • Great emphasis on sectors relevant to Aave including LSTs, LRTs, & Stablecoins.
  • Their previous experience working deeply with Curve and Prisma brings a welcomed difference in human capital that could greatly benefit Aave.
  • LlamaRisk provided a great analysis of the DAI/sDAI <> USDe situation.
  • In general, we really like LlamaRisk’s long-form analyses, but would suggest that they provide a perspective summary at the beginning to provide clear guidance to the DAO.

OpenBlock

  • Extensive experience working with LRTs, LST, incentive management, and growth.
  • We find their dashboards to be quite useful and informative and can see them working well with initiatives like Merit.
  • On the risk side, their demonstrated experience seems rather limited and they lack prior work with lending markets which we think is pretty crucial.
  • There also seems to be a large overlap with the services offered by Chaos Labs, which is not a bad thing, but something to consider.
  • In all honesty, we think OpenBlock would fit much better into a growth role in Aave DAO given their prior experience, expertise, and infrastructure.
  • They also did not provide any form of analysis during the DAI risk parameter changes.

Allez Labs

  • Allez Labs had a great application that was well defined and clear. We appreciated their emphasis on scope and deliverables which was much better than the other applications.
  • We value their extensive experience working with Aave and their input into the design of GHO and the GSM. However, it should be acknowledged that GHO’s launch was not perfect and it has taken a massive amount of uplift from the DAO and service providers to get it close to peg.
  • We would’ve liked to have seen examples of tooling, infrastructure, or any form of risk analysis that they have previously done to get a better understanding of the type of work we expect to see.
  • They also provided a great analysis of the DAI risk parameter changes.
  • In comparison to the other two candidates, a lot of their work is limited to Aave which is not a bad thing but we do value the experience LlamaRisk and OpenBlock could potentially bring to Aave.

After assessing all Risk Service Provider applications we think LlamaRisk complements Chaos Labs the best. They bring extensive knowledge outside of Aave that is super relevant and we think their holistic analysis of collateral assets will be valuable for the Aave DAO.

[ARFC] “Merit is Forever” Reward System Program Extension
Vote: YAE
Summary: Merit has proven to be successful in its mission. We think it’s appropriate for the DAO to continue with such efforts and we support the proposed mandate.

[TEMP CHECK] GHO Cross-Chain Rollout Plan - First Network
Vote: Arbitrum
Summary: Arbitrum is the liveliest Ethereum L2 with a very strong DeFi ecosystem. We think it’s the best place for GHO to be deployed initially.

[TEMP CHECK] Introducing “FastPass” - A Safety Module Update
Vote: YAE
Summary: We are supportive of this idea and agree that it complements the Safety Module nicely and helps with GHO-sided demand.

[TEMP CHECK] Onboard ggAVAX to Aave V3 on Avalanche
Vote: YAE
Summary: While we were initially supportive in the Temp Check stage, analysis by Chaos Labs has recommended for the DAO to not list ggAVAX which we agree with especially in light of recent risk efforts to offboard risky assets.

[ARFC] aAMPL Second Distribution
Vote: For
Summary: As with the first aAMPL distribution, we support reimbursing users that are affected by bugs.

[ARFC] Aave v3.1 activation
Vote: For
Summary: We support the proposed features/improvements within the v3.1 release.

[TEMP CHECK] Add AERO to Base V3
Vote: YAE
Summary: We were initially supportive of adding AERO as there is a strong user base and utility associated with the token. However, given the recent push to reduce risky assets on Aave and the veAERO mechanism we are worried that the protocol gets into a similar situation to CRV with onchain liquidity drying up over time.

[TEMP CHECK] Onboard tBTC to Aave v3 on Ethereum, Arbitrum and Optimism
Vote: YAE
Summary: tBTC has proven it’s resistance over time and as a result accrued a sufficient enough market cap for us to support its listing on Aave V3. Most importantly, we are aware of the continued efforts by the team to improve liquidity and integrations across DeFi.

[ARFC] ACI Phase III - “Ad Astra”
Vote: YAE
Summary: ACI continues to over-deliver on value and we are supportive of their renewal. We appreciate all the work they do in driving governance efficiency and their alignment with Aave.

[ARFC] Deprecation of Small-cap Stablecoins on V2 Ethereum
Vote: YAE
Summary: We support the initiative to reduce Aave V2’s exposure to small-cap stablecoins.

[ARFC] Onboard ggAVAX to Aave V3 on Avalanche
Vote: NAY
Summary: While we were initially supportive in the Temp Check stage, analysis by Chaos Labs has recommended for the DAO to not list ggAVAX which we agree with especially in light of recent risk efforts to offboard risky assets.

[ARFC] Renewal of Aave Guardian - 2024
Vote: YAE
Summary: We support the elected members for the renewal of Aave Guardian.

[ARFC] Safety Module stkGHO - Rewards Adjustment
Vote: YAE
Summary: We are supportive of eliminating AAVE emissions for stkGHO and replacing them with GHO. GHO rewards are more predictive and easier to manage.

*[TEMP CHECK] Add AERO to Base V3 Reproposal
Vote: NAY
Summary: We were initially supportive of adding AERO as there is a strong user base and utility associated with the token. However, given the recent push to reduce risky assets on Aave and the veAERO mechanism we are worried that the protocol gets into a similar situation to CRV with onchain liquidity drying up over time.

[ARFC] Fund USDC & USDT GSM
Vote: YAE
Summary: We support funding the GSM with USDC and USDT!