{
  "006E2100C20F-AIP-ADD-CVX-TO-AAVE-V2": {
    "title": "Add CVX to Aave V2",
    "status": "Proposed",
    "author": "Llama (Matthew Graham, Dydymoon, Jean Brasse and Austin Green)",
    "shortDescription": "Add CVX as a collateral asset to Aave v2",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-cvx-convex-finance-token/7319",
    "created": "2022-05-12T00:00:00.000Z",
    "preview": "## Simple Summary\n\nLlama proposes listing CVX, the governance token …",
    "content": "\n\n## Simple Summary\n\nLlama proposes listing CVX, the governance token of the Convex Finance protocol, on Aave v2 mainnet as collateral with borrowing enabled. The risk parameters detailed within have been provided by Gauntlet.\n\n## Abstract\n\nConvex Finance allows Curve.fi liquidity providers to earn trading fees, CVX liquidity mining and boosted CRV rewards without having to lock and use their boosting power with veCRV. Convex Finance intends to add support for other tokens like FXS in the future.\n\nListing CVX on Aave v2 will enable lenders to receive yield and borrowers of CVX to partake in Convex Finance’s tokenomics model to earn yield. As CVX has a different, but similar tokenomics model to CRV, Llama expects there to be similar demand for CVX. aCRV is one of the highest earning assets on Aave v2 and Llama hopes CVX will become a significant source of revenue for the community.\n\nThe Aave community also benefits from being able to use the aCVX revenue to participate in Convex Finance’s tokenomics and vote CRV rewards to Curve pools that contain aTokens.\n\n## Motivation\n\nListing CVX on the Aave V2 market would allow Aave to benefit from the first mover advantage as CVX is not currently listed on any major lending market. This asset listing has the potential to be a meaningful high vol asset revenue source. CRV is currently the fifth highest earning asset on the Aave V2 Market and has generated 190.33k aCRV tokens in revenue worth around [$744k](https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c) at the time of writing.\n\nIn addition to the lending and borrowing demand, the aCVX revenue can be used to support directing CRV and CVX incentives distribution to those who stake Curve Liquidity Provider tokens on Convex Finance. Further details can be found [here](https://governance.aave.com/t/arc-consolidate-aave-v1-v2-amm-reserve-factors-purchase-cvx-and-deploy-to-earn-yield/6797).\n\n## Specification\n\nThis proposal initialises the CVX reserve, enables variable borrowing, sets a reserve factor and configures the reserve as collateral. As needed, it also connects a price source on the AaveOracle.\n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\n## Implementation\n\nWe recommend the following risk parameters.\nRisk Parameters:\nLTV \t\t\t\t\t45%\nLiquidation Threshold\t60%\nLiquidation Bonus\t\t8.5%\nReserve Factor\t\t\t20%\n\nVariable Interest Rate Parameters:\nUOptimal 50%\nR_0      0%\nR_s1     7%\nR_s2     200%\n\naToken = [0x0e9134467A273De42BE82D8764BF1E9cC0e0c8Ba](https://etherscan.io/address/0x0e9134467A273De42BE82D8764BF1E9cC0e0c8Ba)\nStable Debt Token = [0x10638C31Daeee246f0026f7174E1f30fB17010F5](https://etherscan.io/address/0x10638c31daeee246f0026f7174e1f30fb17010f5)\nVariable Debt Token = [0xa2eC40E5e60d71144e16C92A4C78F8b38FEA7877](https://etherscan.io/address/0xa2eC40E5e60d71144e16C92A4C78F8b38FEA7877)\nInterest Strategy = [0x1dA981865AE7a0C838eFBF4C7DFecb5c7268E73A](https://etherscan.io/address/0x1da981865ae7a0c838efbf4c7dfecb5c7268e73a)\nChainlink CVX/ETH Price Feed = [0xC9CbF687f43176B302F03f5e58470b77D07c61c6](https://etherscan.io/address/0xC9CbF687f43176B302F03f5e58470b77D07c61c6)\nCVX Token = [0x4e3FBD56CD56c3e72c1403e103b45Db9da5B9D2B](https://etherscan.io/token/0x4e3FBD56CD56c3e72c1403e103b45Db9da5B9D2B)\n\nThe governance forum proposal discussing Add CVX on Aave V2 mainnet market can be found [here](https://governance.aave.com/t/arc-add-support-for-cvx-convex-finance-token/7319) and the snapshot vote can be found [here](https://snapshot.org/#/aave.eth/proposal/0x399300d33120f63cdda37068b46e5da8485dbeeb1100dab0367a223124798f5b). The payload can be found here.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "006E2100C20F-AIP-ADD-CVX-TO-AAVE-V2"
  },
  "08C1D37498C4-AIP-AAVE-BGD": {
    "title": "Approval of BGD contribution to Aave",
    "status": "Proposed",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Mandate to approve the BGD Labs onboarding on Aave",
    "discussions": "https://governance.aave.com/t/aave-bored-ghosts-developing-bgd/7527",
    "created": "2022-05-02T00:00:00.000Z",
    "preview": "## Summary\n\nThis proposal acts as a mandate from the Aave community …",
    "content": "\n\n\n## Summary\n\nThis proposal acts as a mandate from the Aave community to engage with BGD Labs for the technical work defined on the Aave governance forum [here](https://governance.aave.com/t/aave-bored-ghosts-developing-bgd/7527) and already pre-approved by the Aave community via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0x10e6378f193ec4a2953b3ca73b86947586676250191346a90ed4c83593f14883).\n\nAs a result of this proposal, the proposed budget will be approved to a BGD-controlled address: 40% of the total transferred upfront, and the rest only defined as a claimable stream during the following 15 months.\nIn order to enable this mandate, this proposal also includes what can be considered as the first development on the list of tasks proposed: the update of the ecosystem's reserve of Aave v2 Ethereum to enable stream of funds, to be used now by BGD, but also by anybody else in the future.\n\n## Motivation\n\nA full rationale of the proposal can be found on the Aave governance forum post [here](https://governance.aave.com/t/aave-bored-ghosts-developing-bgd/7527), but the main motivation is the onboarding of another technical provider to the decentralized Aave ecosystem.\n\n## Specification\n\nA full specification of the contracts update enabling this mandate can be found on the BGD Labs github [here](https://github.com/bgd-labs/aave-ecosystem-reserve-v2/tree/release/final-proposal), together will all the security procedures applied, and the implementation of the governance payload.\nIn summary, the proposal:\n- Updates the Aave v2 Ethereum ecosystem reserve and the AAVE ecosystem reserve with a common implementation contract, with streaming capabilities.\n- Sets as fundsAdmin of those ecosystem reserves a new AaveEcosystemReserveController contract, controlled directly by the Aave governance and the only entity able to transfer and approve funds, create streams, and cancel streams.\n- Releases the 40% of the budget defined upfront: 1'200'000 USDC, 1'000'000 USDT, 1'000'000 DAI and 8'400 AAVE.\n- Creates 15-months duration streams: 4'800'000 USDC and 12'600 AAVE.\n\n## Security\nAs mandatory with any change on a running Aave smart contract, extensive security procedures have been applied to the proposal payload and the changes included. A full security report can be found [here](https://github.com/bgd-labs/aave-ecosystem-reserve-v2/tree/release/final-proposal#security), but as summary:\n- Full test coverage via units tests in the Forge environment.\n- Security review from Aave community members.\n- Minimal changes from the Sablier's v1 logic used as base for the streaming capabilities. The original codebase is audited and battle tested (running in production with meaningful funds for a long time).\n- Set of properties (formal verification) by Certora.\n- Slither analysis of the codebase.\n\n## Implementation\n\n- [AaveEcosystemReserveController](https://etherscan.io/address/0x3d569673daa0575c936c7c67c4e6aeda69cc630c#code)\n- [AaveEcosystemReserveV2](https://etherscan.io/address/0x1aa435ed226014407fa6b889e9d06c02b1a12af3#code)\n- [PayloadAaveBGD](https://etherscan.io/address/0x1e12071bd95341aa92fcba1513c714f9f49282a4#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "08C1D37498C4-AIP-AAVE-BGD"
  },
  "0DC11FACBC53-AIP-RENEW_AAVE_GRANTS": {
    "title": "Renew Aave Grants DAO",
    "status": "Proposed",
    "author": "Shreyas Hariharan (@hello-shreyas), Austin Green (@austingreen)",
    "shortDescription": "Provide funding to expand the budget and scope of Aave Grants DAO",
    "discussions": "https://governance.aave.com/t/aave-grants-dao-update-and-renewal/7842",
    "created": "2022-05-02T00:00:00.000Z",
    "preview": "## Simple Summary\n\nProvide Aave Grants DAO (AGD) with $6m ($3m per …",
    "content": "\n\n## Simple Summary\n\nProvide Aave Grants DAO (AGD) with $6m ($3m per quarter budget) to fund more projects that benefit Aave.\n\n## Abstract\n\nAfter two successful quarters of Aave Grants DAO, we are looking to renew the program for the next two quarters by providing $3 million dollars in AAVE and $3 million dollars in aUSDC ($3 million per quarter). By partially funding the AGD with stablecoins, budgeting will be easier. The aUSDC will be funded through an approval and the AAVE will be funded with a transfer. Our initial proposal was made in May 2021 and our renewal proposal was made in November 2021.\n\n## Motivation\n\nAave Grants DAO is a community-led grants program, focused on growing a thriving ecosystem of contributors within Aave through funding ideas, projects and events that benefit the ecosystem. We aim to drive development on top of Aave and ensure a constant influx of talented builders to maintain Aave’s long term growth. We help build culture and community around the Aave ecosystem that in turn attracts the best contributors.\n\n## Test Cases\n\nThe full test of this proposal can be found here: https://github.com/llama-community/renew-aave-grants\n\n## Implementation\n\nThis proposal includes a $3M transfer of AAVE from the AaveEcosystemReserve to the grants DAO multisig and the AaveV2Collector approving $3M of aUSDC to the grants DAO multisig. This will allow the grants DAO to withdraw funds as needed and let the V2Collector to continue to earn interest in the meantime. The proposa payload will target the contract AaveEcosystemReserveController and call the function `function transfer(address collector, IERC20 token, address recipient, uint256 amount)` and `approve(address collector, IERC20 token, address recipient, uint256 amount)`.\n\n**Target Contracts**\n\nProposalPayload = [0x8e7df91fed22c192a3aa1bb6143879295ee91295](\nhttps://etherscan.io/address/0x8e7df91fed22c192a3aa1bb6143879295ee91295)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "0DC11FACBC53-AIP-RENEW_AAVE_GRANTS"
  },
  "100K-BAL-ACQUISITION": {
    "title": "Strategic Partnership with Balancer DAO Part 2 - 100k BAL Acquisition",
    "author": "Llama, Matthew Graham, Rajath Alex",
    "shortDescription": "100k BAL Acquisition",
    "discussions": "https://governance.aave.com/t/arc-strategic-partnership-with-balancer-part-2/7813",
    "created": "2022-11-08T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThe Aave DAO is to acquire 100,000 BAL tokens …",
    "content": "\n\n# Simple Summary\n\nThe Aave DAO is to acquire 100,000 BAL tokens on-market by deploying a Bonding Curve contract.\n\n# Abstract\n\nThe Bonding Curve will have a defined 100,000 BAL acquisition target, where traders receive a small 50 bps premium over the BAL/USD Chainlink oracle price when purchasing USDC/aUSDC in return for depositing BAL. \n\nThis on-market purchase completes the two part process for acquiring a total of 300,000 BAL after an initial 200,000 BAL was acquired via the token swap in [AIP-87](https://app.aave.com/governance/proposal/87/). \n\nA separate proposal will detail how the BAL tokens from this AIP are to be utilised. The discussion can be found on the [Aave governance forum](https://governance.aave.com/t/arc-deploy-bal-to-vebal/9747).\n\n\n# Motivation\n\nThe 100,000 BAL acquisition further extends the DAO's holding to be used for supporting the growth of the Aave ecosystem. There are numerous opportunities within the Aave ecosystem to utilise veBAL. The BAL emissions are expected to lead to higher TVL and attract new users/use cases to Aave which will lead to additional revenue generation or alternatively reduce the AAVE emissions via the Safety Module. Exactly how the veBAL is to be utilised by the DAO is still open for discussion. \n\nFurther insights into the motivation behind this proposal can be found below:\n1. [ARC : Strategic Partnership with Balancer Part #2](https://governance.aave.com/t/arc-strategic-partnership-with-balancer-part-2/7813)\n2. [ARC : Staked ATokens, A New Aave Primitive Exploring Vote-Escrow Economies](https://governance.aave.com/t/arc-staked-atokens-a-new-aave-primitive-exploring-vote-escrow-economies/10406)\n3. [ARC : ERC4626 Strategies as Productive Collateral](https://governance.aave.com/t/arc-erc4626-strategies-as-productive-collateral/10337)\n\n# Specification\n\nA full specification of the payload contract, bonding curve contract and tests enabling this mandate can be found on the Llama Github [here](https://github.com/llama-community/aave-bal-bonding-curve).\n\nLlama will deploy a bonding curve enabling aUSDC held within the [Aave V2 Collector](https://etherscan.io/address/0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c) to be exchanged for BAL, with the traders receiving a 50 bps reward over the [BAL/USD Chainlink oracle](https://etherscan.io/address/0xdF2917806E30300537aEB49A7663062F4d1F2b5F) price for performing the transaction. The amount of BAL to be acquired is fixed and set at 100,000 BAL. The maximum amount of aUSDC that will be approved for spending from the Aave V2 Collector by the bonding curve and used in acquiring the BAL will be set at 800,000 aUSDC.\n\nThe aUSDC does not leave the Aave V2 Collector as the Bonding Curve enables the aUSDC to be transferred from the Collector to the trader's wallet upon the Collector receiving BAL from the trader.\n\nThe Proposal Payload does the following:\n1. Approve the Bonding Curve contract to spend 800,000 aUSDC from the Aave V2 Collector.\n\nThe Bonding Curve contract has the following functions and public storage variables:\n1. `function purchase(uint256 amountIn, bool toUnderlying) external returns (uint256)`: This function allows the trader to purchase aUSDC/USDC for BAL, with the trader receiving a 50 bps reward over the BAL/USD Chainlink oracle price. It takes `uint256 amountIn` (BAL amount input including 18 decimals) and `bool toUnderlying` (Whether to receive as USDC (true) or aUSDC (false)) as input parameters and returns the amount of aUSDC/USDC (including 6 decimals) received on purchase. \n2. `function availableBalToBeFilled() public view returns (uint256)`: This getter/view function returns how close to the 100k BAL amount cap the bonding curve contract is at. Trader check this function before calling `purchase()` to see the amount of BAL left to be filled in the bonding curve contract. This should give the trader information on upto how much BAL they can put in the `amountIn` input parameter of the `purchase()` function.\n3. `function getAmountOut(uint256 amountIn) public view returns (uint256)` : This getter/view function returns the amount of aUSDC/USDC that will be received after a bonding curve purchase using given BAL amount input (including the 50 bps reward over the BAL/USD Chainlink oracle price). Trader check this function before calling `purchase()` to see the amount of aUSDC/USDC you'll get for given BAL amount input.\n4. `function getOraclePrice() public view returns (uint256)` : This getter/view function returns the current peg price of the referenced Chainlink BAL/USD oracle as USD per BAL (value includes 8 decimals). \n5. `function rescueTokens(address[] calldata tokens) external` : This is a rescue function that can be called by anyone to transfer any tokens accidentally sent to the bonding curve contract to Aave V2 Collector. It takes an input list of token contract addresses. \n6. `uint256 public totalAusdcPurchased` : Cumulative aUSDC/USDC purchased through the bonding curve contract.\n7. `uint256 public totalBalReceived`: Cumulative BAL received through the bonding curve contract.\n\n## Test Cases\n\nThis proposal has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs).\n\nTest cases can be found: [Here](https://github.com/llama-community/aave-bal-bonding-curve/blob/main/src/test/OneWayBondingCurveE2E.t.sol)\n\n## Implementation\n\n1. Payload Implementation can be found: [Here](https://github.com/llama-community/aave-bal-bonding-curve/blob/main/src/ProposalPayload.sol)\n2. Bonding Curve Implementation can be found: [Here](https://github.com/llama-community/aave-bal-bonding-curve/blob/main/src/OneWayBondingCurve.sol)\n\n## Deployed Contracts\n\n1. Proposal Payload = [0x5e945515a8e1008DAC95404AeC9E12a9e65948F1](https://etherscan.io/address/0x5e945515a8e1008dac95404aec9e12a9e65948f1)\n2. Bonding Curve = [0x04f90d449D4f8316eDd6Ef4F963b657f8444a4cA](https://etherscan.io/address/0x04f90d449d4f8316edd6ef4f963b657f8444a4ca)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "100K-BAL-ACQUISITION"
  },
  "194D8F0A7E11-AIP-FEI-RISK-PARAMETER-UPDATE-AAVE-V2": {
    "title": "FEI Risk Parameter Updates for Ethereum Aave v2 Market",
    "status": "Proposed",
    "author": "Llama (@llama), Matthew_Graham (@Matthew_Graham_), defijesus.eth (@eldefijesus)",
    "shortDescription": "FEI Risk Parameter Updates for Ethereum Aave v2 Market",
    "discussions": "https://governance.aave.com/t/arc-risk-parameter-updates-for-ethereum-aave-v2-market/9393",
    "created": "2022-08-29T00:00:00.000Z",
    "preview": "# Simple Summary\n\nIn response to Tribe DAO’s proposal to enter a …",
    "content": "\n\n# Simple Summary\n\nIn response to Tribe DAO’s proposal to enter a terminal state, this ARC proposes disabling Deposits, disabling Borrowing and route 100% of the interest paid by FEI borrowers to the Reserve Factor.\n\n# Abstract\n\nTribe DAO is dissolving the DAO’s assets and TRIBE governance token. As a result, FEI will become backed 1:1 with DAI and redeemable 1FEI:1DAI. With Tribe DAO transitioning into a terminal state, the FEI stablecoin will overtime be redeemed for DAI.\n\nAs FEI is redeemed for DAI, over time FEI’s circulating supply and liquidity will fall away. Without sufficient liquidity, liquidations can not be performed efficiently which creates a risk for the Ethereum Aave v2 market.\n\nIn response, this ARC proposes freezing the FEI market which will Disabling Deposits, Disabling Borrowing and increase the Reserve Factor from 20% to 100%. Users will still be able to redeem aFEI and repay debt. \n\n# Motivation\n\nWith the emergence of news that Tribe DAO intends to dissolve FEI and the Protocol Controlled Value (PCV) backing the stablecoin, there is a need to amend the FEI reserve in preparation of the risks to emerge with transition Tribe DAO to a terminal state.\n\nThe details around how Tribe DAO will transition from current state to terminal state can be found [here](https://tribe.fei.money/t/tip-121-proposal-for-the-future-of-the-tribe-dao/4475).\n\nSnapshot found [here](https://snapshot.org/#/aave.eth/proposal/0x19df23070be999efbb7caf6cd35c320eb74dd119bcb15d003dc2e82c2bbd0d94). \n\n## Specification\n\nThe proposal will freeze the FEI reserve on the pool, stopping supply of liquidity and borrowing.\n\nBorrowing Enabled → Disable \nDeposits Enabled → Disable \n\nAlso,\n\nReserve Factor 20% → 100%\n\n## Test Cases\n\nThis proposal has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs).\n\nTest cases can be found: [Here](https://github.com/llama-community/aave-risk-param-updates-fei/blob/main/src/test/ValidationFeiRiskParamsUpdate.sol)\n\n## Implementation\n\nDeployment of the proposal payload can be found [here](https://etherscan.io/address/0xb8fe2a2104afb975240d3d32a7823a01cb74639f#code)\n\nThe repository of the payload can be found [here](https://github.com/llama-community/aave-risk-param-updates-fei)\n \nThe proposal calls freezeReserve on the LendingPoolConfigurator (0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756) targeting FEI (0x956F47F50A910163D8BF957Cf5846D573E7f87CA).\n\nThe proposal calls the setReserveFactor function on the LendingPoolConfigurator (0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756) for the FEI (0x956F47F50A910163D8BF957Cf5846D573E7f87CA) market with the new reserve Factor set to 10000 (100%).\n\n# Copyright\n\nCopyright and related rights waived via CC0.\n",
    "basename": "194D8F0A7E11-AIP-FEI-RISK-PARAMETER-UPDATE-AAVE-V2"
  },
  "1B0F30D959FD-AIP-AAVE_STARKNET_PHASE_I": {
    "title": "Aave <> Starknet - Phase I",
    "status": "Proposed",
    "author": "Ernesto Boado (@eboadom)",
    "shortDescription": "Kick-start of Phase I of Aave <> Starknet",
    "discussions": "https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145",
    "created": "2022-02-21T00:00:00.000Z",
    "updated (*optional)": "2022-02-21T00:00:00.000Z",
    "preview": "## Abstract\n\nThis proposal serves as kick-start of the Phase I of …",
    "content": "\n\n\n## Abstract\n\nThis proposal serves as kick-start of the Phase I of the Aave <> Starknet project, releasing the initial section of the budget, accounting for 100'000 USD in USDC and WETH.\nIn addition, this proposal includes some technical updates to enable release of any kind of tokens from the protocol treasury.\n\n## Specification\n\nThe proposal implementation's specification can be found [here](https://github.com/eboadom/aip-aave-starknet-phasei/blob/master/README.md#aip-aave--starknet-phase-i).\nIn summary, the proposal's executable code (payload) does the following:\n- Deploys a new ControllerOfCollector contract. Rationale explained on the previous link.\n- Upgrades the AaveCollector implementation to the same as the AAVE treasury implementation.\n- Withdraws 90'000 USDC to the project's facilitator address.\n- Withdraws 3 WETH to the project's facilitator address.\n\n## Test Cases\n\nBoth the proposal lifecycle and it's correctness have been tested and simulation on a mainnet fork, with the specific tests being [here](https://github.com/eboadom/aip-aave-starknet-phasei/blob/master/src/test/ValidateAIPStarknetPhaseI.sol).\n\n## Implementation\n\nThe proposal's payload has been deployed on [https://etherscan.io/address/0x4e76e1d71806aae6ccaac0fc67c3aa74cb245277](https://etherscan.io/address/0x4e76e1d71806aae6ccaac0fc67c3aa74cb245277)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "1B0F30D959FD-AIP-AAVE_STARKNET_PHASE_I"
  },
  "1E6D88C52590-AIP-CONTINUOUS-FORMAL-VERIFICATION-CERTORA": {
    "title": "Continuous Formal Verification",
    "status": "WIP",
    "author": "Shelly Grossman (@shellygr)",
    "shortDescription": "A proposal for integrating formal verification and path coverage tools for continuous securing of the Aave Protocol.",
    "discussions": "https://governance.aave.com/t/continuous-formal-verification/6308",
    "created": "2022-02-03T00:00:00.000Z",
    "preview": "## Simple Summary\n\nA proposal for significantly and continuously …",
    "content": "\n\n## Simple Summary\n\nA proposal for significantly and continuously improving the security of the Aave platform and the dApps built on top of it, by offering our formal verification and path coverage tooling service to the Aave Platform contributors and the Aave Protocol dApp developers. The initial proposal is for 6 months starting from the execution of this proposal.\n\n## Abstract\n\nCertora proposes two approaches to significantly increase the confidence in the platform itself and in the smart contracts built on top of it, even when the code is evolving.\n\nFirst, we propose to change the project-based relationship of Aave and Certora, to an ongoing relationship, where we will provide ongoing support and rule-writing for Certora Prover on Aave’s code. This service will be provided to all community contributions to core and periphery parts of the Aave ecosystem. This will ensure that the constantly-evolving code of Aave’s platform remains secure, protecting its users’ assets.\n\nSecond, we will develop a new symbolic execution tool (path coverage) which will significantly increase the coverage of code areas where we look for bugs, complementing the more focused nature of the Certora Prover. This tool’s results will be visible to all via a unique dashboard we will build. In addition, it will be open-source, so the community could contribute to its development.\n\n## Motivation\n\nOne of the major risks in managing a complex system of smart contracts such as Aave's is that it is harder to ensure that changes introduced via governance are safe, and that they do not break the behavior of the protocol.\n\nThese risks were highlighted by a recent incident in which a bug was introduced in a Compound governance proposal, leading to huge nonrecoverable financial losses. Of course, such bugs are not exclusive to Compound— they have been affecting many DeFi protocols.\n\nDetecting vulnerabilities before they are deployed is difficult because of the lack of good security tools for smart contract development. Smart contract developers often rely on manual auditing to prevent bugs, but audits are difficult to employ in the setting of ongoing, time-controlled governance proposals. Moreover, even the best auditor can miss critical bugs due to the complexity of the code.\n\n## Rationale\n\nSee `discussions` for further information.\n\n## Implementation\n\nThis AIP implements the proposal for its 6 months period. According to the forum discussion, the price is $1,700,000, where:\n1. $1,000,000 is paid in USDC. These funds will be transferred from the Aave Collector, and will be vested using [Sablier](https://docs.sablier.finance/).\n2. $700,000 is paid in Aave, also vested using Sablier.\n3. A one-time payment of $200,000 in Aave tokens will be transferred to a special 3/4 multi-sig wallet owned by the Aave Governance, 2 members from the Aave community, and 2 Certora delegates. The wallet will serve as a special fund for paying decentralized community rule writers.\n\nThe AAVE price is computed using the [Chainlink AAVE/USD price feed](https://etherscan.io/address/0x547a514d5e3769680Ce22B2361c10Ea13619e8a9) upon execution of the proposal.\n\nThe transactions that will be performed are as follows:\n1. Transfer a total worth of $900,000 in AAVE tokens from the EcosystemReserve to the ShortExecutor using the Ecosystem Reserve Controller contract at 0x1E506cbb6721B83B1549fa1558332381Ffa61A93.\n2. Approve $700,000 worth of AAVE tokens to Sablier.\n3. Create a Sablier stream with Certora as the beneficiary, to stream the $700,000 worth of Aave over 6 months.\n4. Transfer $200,000 worth of AAVE to a multisig co-controlled by Aave and Certora teams.\n5. Transfer USDC 1,000,000 from the Aave Collector to the ShortExecutor, first transfering aUSDC and then withdrawing them from the pool.\n6. Approve USDC 1,000,000 to Sablier.\n7. Create a Sablier stream with Certora as the beneficiary, to stream the USDC 1,000,000 over 6 months.\n\nThe source code for the proposal payload contract is available [here](https://github.com/Certora/aave-proposal-test).\nThe contract is deployed at [0x879A89D30b04b481Bcd54f474533d3D6A27cFd7D](https://etherscan.io/address/0x879a89d30b04b481bcd54f474533d3d6a27cfd7d).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "1E6D88C52590-AIP-CONTINUOUS-FORMAL-VERIFICATION-CERTORA"
  },
  "1F43FC2F4FC1-AIP-UPDATE-POLYGON-MARKET": {
    "title": "Add Assets to Aave Polygon Market and Update WMATIC Risk Parameters",
    "status": "Proposed",
    "author": "Coder Dan (@coderdannn), MatthewGraham, tomuky",
    "shortDescription": "Update Polygon Market",
    "discussions": "https://governance.aave.com/t/arc-list-aavegotchi-ghst-token-as-collateral-on-matic-aave-network/3619 https://governance.aave.com/t/listing-proposal-add-v2-market-assets-to-polygon-market-that-are-relevant-to-polygon-network/5511 https://governance.aave.com/t/arc-polygon-market-wmatic-risk-parameter-changes/6021",
    "created": "2021-12-14T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP would list BAL, CRV, DPI, GHST, LINK, …",
    "content": "\n\n## Simple Summary\n\nThis AIP would list BAL, CRV, DPI, GHST, LINK, and SUSHI from the AAVE V2 market on the Aave Polygon Market, and list GHST as a new asset to the Polygon market as collateral. WMATIC risk parameters are also being updated.\n\n## Rationale\n\nBAL, CRV, DPI, LINK, and SUSHI have been voted in by governance to be added to the Polygon market. These tokens are already listed in the V2 market.\n  \nWMATIC parameters are being updated to maintain the overall risk tolerance of the protocol while making risk trade-offs between specific assets.\n\nGHST is the token that powers the Aavegotchi universe. Aavegotchi (Playable DeFi-backed NFTs) utilizes Aave aTokens in game as collateral assets for Aavegotchis “playable bank”. Given Aave’s recent launch onto Polygon (where Aavegotchi is deployed) the Aavegotchi community believes it would be a great idea to have GHST token as collateral on Matic Aave. If GHST gets listed as an collateral on Aave, users of Aavegotchi will be able to use aGHST as collateral within their Aavegotchis.\n\n## Motivation\n\nWith the availability of cross chain governance, it's time to make long overdue updates to the Polygon market.\n\n## Specifications\n  \nThe risk parameters for the assets coming from the V2 market to the Polygon market are as follows:\n\n#### BAL\n- LTV: 20%\n- Liquidation Threshold: 45%\n- Liquidation Bonus: 10%\n- Reserve Factor: 20%\n#### CRV\n- LTV: 20%\n- Liquidation Threshold: 45%\n- Liquidation Bonus: 10%\n- Reserve Factor: 20%\n#### DPI\n- LTV: 20%\n- Liquidation Threshold: 45%\n- Liquidation Bonus: 10%\n- Reserve Factor: 20%\n- Not borrowable\n#### LINK\n- LTV: 50%\n- Liquidation Threshold: 65\n- Liquidation Bonus: 7.5%\n- Reserve Factor: 10%\n#### SUSHI\n- LTV: 20%\n- Liquidation Threshold: 45%\n- Liquidation Bonus: 10%\n- Reserve Factor: 35%\n- Not borrowable\n\n## Adding GHST to the Polygon Market\n\n1. Aavegotchis are crypto-collectibles (NFT). Aavegotchis are pixelated ghosts living on the Matic blockchain, backed by the ERC-721 standard. Their value is determined by rarity level 2, which is calculated via multiple factors, such as base traits, amount of staked collateral 2, and equipped wearables. GHST token is the backbone of Aavegotchi Realm. GHST is an in-game asset, used in all operations in-game (excluding usage of GHST as a collateral for summoning your Aavegotchi, which are aTokens powered by Aave) such as buying portals (opened\\closed), wearable items, potions and etc.\n\n2. Users of Aavegotchi will borrow GHST, to use it as an in-game asset, to speculate on in-game values or for other in-game purposes. Users of Aavegotchi will use it as a collateral to summon their gotchis with it because aTokens are another backbone of the game. To summon your Aavegotchi you need to have a specific amount of aTokens to make it possible.\n\n3. GHST token has been live on Ethereum Mainnet since September, when it was launched via a continuous bonding curve DAICO sale (still live today at aavegotchi.com/curve 5). The token was launched at 0.2 DAI / GHST and currently sits at around 1.2 DAI. The all-time high is around 1.9 DAI / GHST. GHST is priced in DAI because unlike most tokens in crypto, it is actually backed by a DAI reserve at a 33% connecting weight. This makes the price more stable because it takes more in/out to change the price.\n\nA significant challenge for Aavegotchi as a project was deciding to migrate our ecosystem from Ethereum to Polygon (then known as Matic). Expensive gas fees would have made it impossible for our players to use Aavegotchi NFTs (which require constant onchain attention). However, from January to March, we were able to complete the migration and launch successfully onto Polygon.\n\n4. GHST is the official utility token of the Aavegotchi ecosystem and can be used to purchase portals, wearables, and consumables.\n\n5. The inflation of GHST tokens through purchases on the bonding curve is positively correlated to the GHST price. The bonding curve has been mathematically programmed to increase the price of GHST as the circulating supply of GHST increases.\n\n6. The bonding curve has minting and burning permissions, but these permissions are governed by the AavegotchiDAO which exists on Ethereum Mainnet. GHST tokens are not arbitrarily minted or burned. The supply is determined by inputs via the bonding curve.\n\n#### Market Data\n\n- Market Cap - \\$140,000,000\n- 24hr Trading volume - \\$29,209,070\n- Currently listed on 14 exchanges: Binance, Okex, Poloniex, Uniswap, Gate.io, LBank, Bilaxy, Hoo, MXC, BiBox, 0x, BamBoo Relay, QuickSwap, 1ich Exchange;\n- Maturity - 15 months.\n\n#### Proposed Risk Parameters\n- LTV: 25%\n- Liquidation Threshold: 45%\n- Liquidation Bonus: 12.5%\n- Reserve Factor: 20%  \n  \n#### Socials\n\n- Telegram group: - Telegram: Contact @aavegotchi 8 - 12,000+ members;\n- Discord - https://discord.gg/aavegotchi 16,000+ members\n- https://twitter.com/aavegotchi - twitter 67,000 followers;\n- Active forum https://dao.aavegotchi.com/\n- Governance Snapshot https://snapshot.org/#/aavegotchi.eth\n- Active code development - https://github.com/aavegotchi\n\n#### Token Stats\n\n- Contract’s date of deployments: 14 September 2020 (Ethereum)\n- Number of transactions:\n  - Ethereum: 143,397\n  - Polygon: 2,507,992\n- Number of holders for tokens:\n  - Ethereum: 6,427\n  - Polygon: 68,943\n- Currently circulating Supply - 66,419,514\n- Current total supply - 66,419,514\n\n#### Full Disclosure\n\nStani Kulechov is an official advisor of Aavegotchi, and Aave has invested into Pixelcraft Studios, the development team behind Aavegotchi.\n  \n## WMATIC Risk Parameter Update\n  \nThe criteria for assessing market risk, as determined by the market size and changes in fluctuation in demand, is presented by the Aave community here. In line with the criteria, analysis of the MATIC token on Polygon network is presented below:\n\n|Holders:|168,102|B+ to A-|B+|\n| --- | --- | --- | --- |\n|Transactions|100,240,631|A||\n|Mkt Cap|586,568,252|B+ to A-||\n|Av. Vol.|$50,675,854|C+ to B-||\n|Norm. Vol|0.06579|C+ to B-||\n\nThe MATIC token risk score compiled by Index Coop is B+. This matches the risk score cited here 1. However, the volatility score of B- (C+ to B-) is justified by the 0.06579 score compared to 0.064 in the table presented in the documentation 1. Further to this, assets like BAL and BAT on Ethereum have similar vol characteristics to wMATIC on Polygon. The Norm. Vol parameter is the average of the t=30 days and t=90 days as shown in the below table.\n  \n#### wMATIC Volatility Data (Polygon Network Data)\n\n|Time|S.D Vol|\n| --- | --- |\n|t=7 days|0.08475|\n|t=30 days|0.06535|\n|t= 90 days|0.06622|\n|t= 180 days|0.09013|\n|t= 365 days|NA|\n\nBased upon the volatility data share above, Index Coop suggests changing the Liquidation Threshold and Loan to Value parameters as shown below:\n\n|Parameter|Current Value|Recommended Value|\n| --- | --- | --- |\n|wMATIC Liquidation Threshold|65%|70%|\n|wMATIC Loan to Value|50%|65%| \n\n## Implementation\n\nThis proposal is the first cross chain proposal for AAVE. AAVE holders will vote through the Ethereum mainnet to change parameters on the Polygon market. The proposal makes use of the [cross chain bridge](https://github.com/aave/governance-crosschain-bridges) to send a message to the [Polygon bridge executor](https://polygonscan.com/address/0xdc9A35B16DB4e126cFeDC41322b3a36454B1F772). The following functions are called on the [lending pool configurator](https://polygonscan.com/address/0x26db2b833021583566323e3b8985999981b9f1f3) from the executor:\n\nFor GHST, BAL, DPI, CRV, SUSHI, LINK:\n* batchInitReserve((address aTokenImpl, address stableDebtImpl, address variableDebtImpl, uint8 decimals, address interestRateStrategy, address underlyingAsset, address treasury, address incentivesController, string underlyingAssetName, string aTokenName, string aTokenSymbol, string varTokenName, string varTokenSymbol, string stableDebtName, string stableDebtSymbol, bytes params)[])\n* setReserveFactor(address asset, uint256 reserveFactor)\n\nFor GHST, BAL, CRV, LINK:\n* enableBorrowingOnReserve(address asset, bool stableBorrowEnabled)\n\nFor GHST, BAL, DPI, CRV, SUSHI, LINK, WMATIC:\n* configureReserveAsCollateral(address asset, uint256 ltv, uint256 liquidationThreshold, uint256 liquidationBonus)\n\nAnd the following function is called on the [Aave Oracle](https://polygonscan.com/address/0x0229f777b0fab107f9591a41d5f02e4e98db6f2d#code) for GHST, BAL, DPI, CRV, SUSHI, LINK:\n* setAssetSources(address[] assets, address[] sources)\n\nA payload contract has been created to initiate all the above changes.\n\n[Payload Contract](https://polygonscan.com/address/0x8b97a0B37974Ddec0CB8B8039a4e593457DefE8c)\n\nTests and implementation are located [here](https://github.com/pakim249CAL/Polygon-Asset-Deployment-Generic-Executor).\n",
    "basename": "1F43FC2F4FC1-AIP-UPDATE-POLYGON-MARKET"
  },
  "20230312-UNI-MKR-SNX-BAL-LISTINGS": {
    "title": "Add UNI, MKR, SNX & BAL to Ethereum v3",
    "discussions": "https://governance.aave.com/t/arfc-add-uni-to-ethereum-v3/11953",
    "shortDescription": "Add UNI, MKR, SNX & BAL to Ethereum v3, as collateral, with borrowing enabled and in isolation mode.",
    "author": "Llama",
    "created": "2023-03-13T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis proposal will onboard UNI, MKR, SNX & BAL to …",
    "content": "\n\n# Simple Summary\n\nThis proposal will onboard UNI, MKR, SNX & BAL to the Ethereum v3 Liquidity Pool.\n\n# Abstract\n\nThis proposal bundles four asset listing for Ethereum v3 into a single governance submission. Each asset is to be added in isolation mode, as collateral, with borrowing enabled.\n\nEach Asset is currently listed on Aave v2. Gauntlet and Chaos Labs have provided the risk parameters for each v3 asset listing. Each asset received a favouable Snapshot vote indicating broad community support for listing the asset on the v3 Ethereum deployment. \n\nUpon listing UNI, MKR, SNX & BAL users will be able to begin migrating there positions from Aave v2 to v3 on Ethereum.\n\n# Motivation\n\nEnabling users to migrate from Ethereum v2 to v3 requires each asset to first be added to v3. Llama presented individual ARFC for each of the mentioned assets and based upon the Snapshot results, the community supports adding UNI, MKR, SNX and BAL to the Ethereum v3 deployment. \n\nThe links below detail the individual governance forum posts and respective Snapshot proposals.  \n\n* **UNI**\n  * [UNI Governance Forum Discussion](https://governance.aave.com/t/arfc-add-uni-to-ethereum-v3/11953)\n  * [UNI Snapshot Vote](https://snapshot.org/#/aave.eth/proposal/0x51d67ef69e901b34f1d111f2cd5d582c59cffa8d70b7939023febd20f7613b88)\n* **MKR**\n  * [MKR Governance Forum Discussion](https://governance.aave.com/t/arfc-add-mkr-to-ethereum-v3/11954)\n  * [MKR Snapshot Vote](https://snapshot.org/#/aave.eth/proposal/0xf4aec3fbab5096752be96f0e5b522f37318c1902cf8b897b049b7a94d478de73)\n* **SNX**\n   * [SNX Governance Forum Discussion](https://governance.aave.com/t/arfc-add-snx-to-ethereum-v3/11956)\n   * [SNX Snapshot Vote](https://snapshot.org/#/aave.eth/proposal/0x5f232a89e10d67df3aad2907e8dce3bec9708596929b3254055cf37499969b89)\n\n* **BAL**\n   * [BAL Governance Forum Discussion](https://governance.aave.com/t/arfc-add-bal-ethereum-v3/11523)\n   * [BAL Snapshot Vote](https://snapshot.org/#/aave.eth/proposal/0xe394799e4d006c15e0cb13155701de495888b7e7dad8f917a6b5dd1c8106cea5)\n\n# Specification\n\nTicker: **UNI**\nContract Address: [`0x1f9840a85d5af5bf1d1762f925bdaddc4201f984`](https://etherscan.io/address/0x1f9840a85d5af5bf1d1762f925bdaddc4201f984)\n\nOracle: [`0x553303d460EE0afB37EdFf9bE42922D8FF63220e`](https://etherscan.io/address/0x553303d460EE0afB37EdFf9bE42922D8FF63220e)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|65.00%|\n|Liquidation Threshold|77.00%|\n|Liquidation Bonus|10.00%|\n|Reserve Factor|20.00%|\n|Liquidation Protocol Fee|10.00%|\n|Borrow Cap|500,000 units|\n|Supply Cap|2,000,000 units|\n|Debt Ceiling|$17,000,000|\n|Variable Base|0.00%|\n|Variable Slope1|7.00%|\n|Variable Slope2|300.00%|\n|Uoptimal|45.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|13.00%|\n|Stable Slope2|300.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\nTicker: **MKR**\nContract Address: [`0x9f8F72aA9304c8B593d555F12eF6589cC3A579A2`](https://etherscan.io/address/0x9f8F72aA9304c8B593d555F12eF6589cC3A579A2)\n\nOracle: [`0xec1D1B3b0443256cc3860e24a46F108e699484Aa`](https://etherscan.io/address/0xec1D1B3b0443256cc3860e24a46F108e699484Aa)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|65.00%|\n|Liquidation Threshold|70.00%|\n|Liquidation Bonus|8.50%|\n|Reserve Factor|20.00%|\n|Liquidation Protocol Fee|10.00%|\n|Borrow Cap|1,500 units|\n|Supply Cap|6,000 units|\n|Debt Ceiling|$2,500,000|\n|Variable Base|0.00%|\n|Variable Slope1|7.00%|\n|Variable Slope2|300.00%|\n|Uoptimal|45.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|13.00%|\n|Stable Slope2|300.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\nTicker: **SNX**\nContract Address: [`0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f`](https://etherscan.io/address/0xc011a73ee8576fb46f5e1c5751ca3b9fe0af2a6f)\n\nOracle: [`0xDC3EA94CD0AC27d9A86C180091e7f78C683d3699`](https://etherscan.io/address/0xDC3EA94CD0AC27d9A86C180091e7f78C683d3699)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|49.00%|\n|Liquidation Threshold|65.00%|\n|Liquidation Bonus|8.50%|\n|Reserve Factor|35.00%|\n|Liquidation Protocol Fee|10.00%|\n|Borrow Cap|1,100,000 units|\n|Supply Cap|2,000,000 units|\n|Debt Ceiling|$2,500,000|\n|Variable Base|3.00%|\n|Variable Slope1|15.00%|\n|Variable Slope2|100.00%|\n|Uoptimal|80.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|15.00%|\n|Stable Slope2|100.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\nTicker: **BAL**\nContract Address: [`0xba100000625a3754423978a60c9317c58a424e3D`](https://etherscan.io/address/0xba100000625a3754423978a60c9317c58a424e3d)\n\nOracle: [`0xdF2917806E30300537aEB49A7663062F4d1F2b5F`](https://etherscan.io/address/0xdF2917806E30300537aEB49A7663062F4d1F2b5F)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|57%|\n|Liquidation Threshold|62.00%|\n|Liquidation Bonus|8.30%|\n|Reserve Factor|20.00%|\n|Liquidation Protocol Fee|10.00%|\n|Borrow Cap|185,000 units|\n|Supply Cap|700,000 units|\n|Debt Ceiling|$2,900,000|\n|Variable Base|3.00%|\n|Variable Slope1|14.00%|\n|Variable Slope2|150.00%|\n|Uoptimal|80.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|20.00%|\n|Stable Slope2|150.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n  * [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3NewListings_20230321/AaveV3EthNewListings_20230321_test.t.sol)\n  * [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3NewListings_20230321/AaveV3EthNewListings_20230321.sol)\n  * [Deployed Contracts](https://etherscan.io/address/0xf146c735f39281d35fffee1a99e65b5307305a4f)\n\nThe risk paramters detailed within this proposal have been jointly provided by [Chaos Labs](https://twitter.com/chaos_labs) and [Gauntlet](https://twitter.com/gauntletnetwork).\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "20230312-UNI-MKR-SNX-BAL-LISTINGS"
  },
  "20230330-AAVE-V2-V3-BALA-INTEREST-RATES": {
    "title": "BAL Interest Rate Upgrade",
    "discussions": "https://governance.aave.com/t/arfc-bal-interest-rate-upgrade/12423",
    "shortDescription": "Update BAL Interest Rate Parameters",
    "author": "Llama - TokenLogic",
    "created": "2023-03-30T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication proposes amending the BAL interest rate …",
    "content": "\n\n# Summary\n\nThis publication proposes amending the BAL interest rate parameters across all BAL Reserves.\n\n# Abstract\n\nPreviously, Aave implemented the first stage of increasing the BAL interest rate across all deployments. This was performed with the intention of monitoring the market response and revising the rates higher at a later date.\n\nThis publication presents the next BAL interest rate increase.\n\n# Motivation\n\nAt the time of writing the utilisation and borrowing rate for BAL on the Polygon v3 deployment is nearing the Uoptimal value, 80%. With utilisation at 77.34% and the borrow APY 17.98%, the market is signalling strong demand for borrowing BAL.\n\n![|602x264](https://lh3.googleusercontent.com/19l1mSPDDfwqZjucfpmkcoaRWQICKqoCFCrlKM8dNf0ZCb6DQUgdyLKhYXtkJ4GdDrg1e3zEQ4-Mg5LB8QfyM9QRLpbWKOutsBAiGG-gFXnkbZz28U49aCuGLp0hk078r0LsJ8nMJONNfYPbpIQwotA)\n\nThe table below presents the current APY for various tokenised B-80BAL-20WETH wrappers deposited into their respective liquidity pools:\n\n||Description|APY|TVL|Network|\n| --- | --- | --- | --- | --- |\n|Aura Finance (Aura Gauge)|B-80BAL-20WETH / auraBAL|58.21%|$21,380,000|Ethereum|\n|Tetu (Balancer Gauge)|B-80BAL-20WETH / tetuBAL|88.77%|$10,220,000|Polygon|\n|Stake DAO (Balancer Gauge)|B-80BAL-20WETH / sdBAL|18.25% - 45.35%|$637,221|Ethereum|\n\nThe APY for each of the pools above exceeds the Uoptimal borrow rate APR, Base + Slope1, 17% APR or 18.53% APY, compounded interest rate over time. Previous commentary from Gauntlet supported a Base + Slope1 total of 40% at the time Aura Finance was offering around 60%. Tetu is deployed on Polygon and is currently offering a notably higher 88.77% yield for depositing and locking the B-80BAL-20WETH / tetuBAL.\n\nPrevious discussion within the community centred around increasing the borrowing rates gradually over time and monitoring the market's response. \n\nThe previous proposal increased the Borrow rate at the Uoptimal point from 7% to 17%. This publication seeks to increase the borrow rate by a similar 10%. This is to be achieved by increasing the Base from 3% to 5% and Slope1 from 14% to 22%. Pending how the market responds, this interest rate can be further increased. This approach keeps true to the previous communication of gradually increasing the borrow rates rather than all at once.\n\n![|602x372](https://lh3.googleusercontent.com/NP5xMf8IuxxR5xVN525978OIUofs1twCOJgYQPCrkuQtoJq7oYx2Lh4SrU7I1nDYVfB5EM2wt9tQMig4pfCM8AnSSbwpWTw9IjrfcaWanBwc9Rya84lH2sSa-dlxlxHC-4jgi1PJ4Ya_Tlj5EXCCxTg \"Chart\")\n\n# Specification\n\nUpdate the following parameters as per below table:\n\n|Parameter|Current (%)|Proposed (%)|\n| --- | --- | --- |\n|Uoptimal|80.00|80.00|\n|Base|3.00|5.00|\n|Slope1|14.00|22.00|\n|Slope2|150.00|150.00|\n|Stable Borrowing|Disabled|Disabled|\n|Stable Slope1|0.00|22.00|\n|Stable Slope2|0.00|150.00|\n|Base Stable Rate Offset|2.00|5.00|\n|Stable Rate Excess Offset|5.00|5.00|\n|Optimal Stable To Total Debt Ratio|20.00|20.00|\n\nThis is to be implemented across all BAL reserves, Polygon v2, v3, Ethereum v2 and v3.\n\n# Implementation\n\nPayload for AAVE V3 Ethereum can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV3EthRatesUpdates_20230328.sol)\n\nTests can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV3MultiRatesUpdates_20230328Test.t.sol)\n\nPayload for AAVE V3 Polygon can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV3PolRatesUpdates_20230328.sol)\n\nTests can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV3MultiRatesUpdates_20230328Test.t.sol)\n\nDeployment script for interest rate strategy can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer/blob/main/script/DeployContract.s.sol)\n\nPayload for AAVE V2 Polygon can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV2PolRatesUpdates_20230328_Payload.sol)\n\nPayload for AAVE V2 Ethereum can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV2EthRatesUpdates_20230328_Payload.sol)\n\nTests can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RatesUpdates_20230328/AaveV2MultiRatesUpdates_20230328_PayloadTest.t.sol)\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "20230330-AAVE-V2-V3-BALA-INTEREST-RATES"
  },
  "20230403-AAVE-V3-POL-WMATIC-CAPS-UPDATE": {
    "title": "Increase wMATIC Supply Cap & BAL Borrow Cap",
    "discussions": "https://governance.aave.com/t/arfc-wmatic-supply-cap-increase/12046",
    "shortDescription": "Increase wMATIC Supply Cap and BAL Borrow Cap on Polygon v3",
    "author": "Llama - TokenLogic",
    "created": "2023-04-04T00:00:00.000Z",
    "preview": "# Summary\n\nLlama proposes increasing the wMATIC Supply Cap and BAL …",
    "content": "\n\n# Summary\n\nLlama proposes increasing the wMATIC Supply Cap and BAL Borrow Cap on the Polygon v3 deployment after each respective proposal successfully passed a Snapshot vote. \n\n# Abstract\n\nThis publication presents Aave with the opportunity to increase the wMATIC SupplyCap from 47M to 66M units and the BAL Borrow Cap from 256,140 to 290,000 units on the Polygon v3 deployment. \n\nIncreasing the wMATIC Supply Cap will enable inflows from new Balancer bb-a-wMATIC liquidity pools and migration of user funds from v2 to v3 without exceeding the deposit restriction on v3. \n\nIncreasing the BAL Borrow Cap will enable Aave to benefit from elevated borrowing demand at a time when Tetu is offering considerable rewards.\n\nBoth risk service providers support increasing the BAL Borrowing Cap and wMATIC Supply Cap parameters.\n \n# Motivation\n\n## wMATIC Supply Cap\n\nWith Liquidity Mining (LM) ongoing on Polygon v3 by Polygon Foundation, Lido DAO and Stader Labs, the wMATIC v3 deposit rate comfortably exceeds the v2 deposits rate. This creates favourable conditions, encouraging users to migration wMATIC deposits. There is 14.94M units of wMATIC deposited in Aave v2 on Polgyon. \n\nThe MaticX/wMATIC and stMATIC/wMATIC Balancer Liquidity pools are migrating to MaticX/bb-a-wMATIC and stMATIC/bb-a-wMATIC. An estimated 23.03M units of wMATIC are expected to be deposited into the wMATIC reserve on Polygon v3.\n\nThe utilisation of the wMATIC reserve is 57% with 26.72M of 47.00M units deposited.  \n\nThe current SupplyCap is insufficient to accomodate the potential inflows of wMATIC into the reserve. As a result, this proposal seeks to increase the SupplyCap from 47M to 66M units. A Supply Cap of 66M enables the bb-a-wMATIC linear pools on Balancer to deposit into Aave and 100% of the v2 wMATIC deposits to migrate to v3. \n\n## BAL Borrow Cap\n\n![](https://i.imgur.com/CzJMapl.png)\n\nThe BAL Borrow Cap utilisation has been edging higher in recent weeks and previous Supply Cap adjustment proposals did not adjust the Borrow Cap. \n\nThis publication will increase the Borrow Cap modestly by an additional 13.2%, or 33.86k units, from 256,140 to 290,000 units. The Supply Cap is to remain unchanged as there is sufficient capacity in Aave v3 to enable migration of user funds from v2 to v3 on Polygon. Separately, an AIP has been submitted to add BAL to Aave v3 on Ethereum. \n\n# Specification\n\nThe following risk parameters are being presented by Llama:\n\nTicker: wMATIC\n\nContract: [`0x0d500b1d8e8ef31e21c99d1db9a6444d3adf1270`](https://polygonscan.com/token/0x0d500b1d8e8ef31e21c99d1db9a6444d3adf1270)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|Supply Cap|47M units| 66M units|\n\nTicker: BAL\n\nToken Contract: [`0x9a71012B13CA4d3D0Cdc72A177DF3ef03b0E76A3`](https://polygonscan.com/address/0x9a71012b13ca4d3d0cdc72a177df3ef03b0e76a3)\n\n|Parameter|Current Value |Proposed Value|\n| --- | --- | --- |\n| Borrow Cap | 256,140 |290,000|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [wMATIC Supply Cap Governance Forum Discussion](https://governance.aave.com/t/arfc-wmatic-supply-cap-increase/12046)\n* [BAL Borrow Cap Governance Forum Discussion](https://governance.aave.com/t/arfc-polygon-v3-bal-supply-borrow-cap-increase/12505/3)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230328/AaveV3PolCapsUpdates_20230328Test.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230328/AaveV3PolCapsUpdates_20230328.sol)\n* [Deployed Contracts](https://polygonscan.com/address/0x47938b58f104b4e06a5572faa9cb3c3cd53f15a4)\n\nChaos Labs and Gauntlet are both supportive of the risk parameters presented above. \n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "20230403-AAVE-V3-POL-WMATIC-CAPS-UPDATE"
  },
  "20230418-AAVE-V3-POLYGON-CAPS-UPDATES": {
    "title": "Increase SupplyCap stMATIC Polygon & wETH Arbitrum",
    "discussions": "https://governance.aave.com/t/arfc-stmatic-supply-cap-increase-polygon-v3/12606",
    "shortDescription": "Increase SupplyCap stMATIC on Polygon v3 from 21.0M units to 25M units. Increase wETH Supply Cap on Arbitrum from 35,280 to 45,000 units.",
    "author": "Llama - TokenLogic",
    "created": "2023-04-17T00:00:00.000Z",
    "preview": "# Summary\n\nThis AIP increasing the stMATIC Supply Cap on Polygon …",
    "content": "\n\n# Summary\n\nThis AIP increasing the stMATIC Supply Cap on Polygon from 21.0M to 25.0M units and the wETH Supply Cap on Arbitrum from 35,280 to 45,000 units. \n\n# Abstract\n\nThis AIP implements risk parameter changes to stMATIC Polgyon v3 adn wETH on Arbitrum v3.\n\nThe utilisation of the stMATIC reserve has reached 77.92% and this AIP will increase the SupplyCap by a further 19% to 25M units.\n\nUtilisation of wETH Supply Cap on Arbitrum has reached 93.54% and this AIP will increase the Supply Cap from 35,280 to 45,000 units.\n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions on Aave v3 Polygon to facilitate the creation of several yield aggregation products. This has led to increase stMATIC deposits and the continual revision of Supply Caps enabling users to enter the yield maximising strategy.\n\nThis AIP is a continuation of LLama's efforts and presents the community the opportunity to enable stMATIC deposits to grow on Polygon v3.\n\n![](https://i.imgur.com/3DIda6Q.png)\n\nPreviously an AIP was submitted to increase the wETH Supply Cap on Arbitrum and although being approved, the upgrade was not executed. This AIP includes the Arbitum wETH Supply Cap upgrade in collaboration with Gauntlet.\n\n![](https://i.imgur.com/Dc5GCQK.png)\n\nThe wETH Supply Cap is to be increased from 35,280 to 45,000 units on Arbitrum with no other changes being made.\n\n# Specification\n\nThe following risk parameters changes are presented:\n\n**Polygon** \n\nTicker: stMATIC\n\nContract: [`0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4`](https://polygonscan.com/address/0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|21,000,000M units|25,000,000 units|\n\n**Arbitrum**\n\nTicker: wETH\n\nContract: [`0x82aF49447D8a07e3bd95BD0d56f35241523fBab1`](https://arbiscan.io/token/0x82af49447d8a07e3bd95bd0d56f35241523fbab1)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|35,280 units|45,000 units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [stMATIC Governance Forum Discussion](https://governance.aave.com/t/arfc-stmatic-supply-cap-increase-polygon-v3/12606)\n* [wETH Governance Forum Discussion](https://governance.aave.com/t/arc-gauntlet-recommendations-for-aave-link-and-weth-on-v3-arbitrum-2023-03-21/12394)\n* [stMatic Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230418/AaveV3PolCapsUpdates_20230418_PayloadTest.t.sol)\n* [stMatic Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230418/AaveV3PolCapsUpdates_20230418_Payload.sol)\n* [wETH Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdate_20230327/AaveV3MultiCapsUpdate_20230327_Test.t.sol)\n* [wETH Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdate_20230327/AaveV3ArbCapsUpdate_20230327.sol)\n\nRisk Service providers have endorsed the contents of this proposal. \n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "20230418-AAVE-V3-POLYGON-CAPS-UPDATES"
  },
  "226BEDACF8B7-AIP-ADD-MATICX-TO-AAVE-V3-POLYGON": {
    "title": "Add MaticX to Aave v3 Polygon Pool",
    "status": "Proposed",
    "author": "Llama, Matthew Graham, Rajath Alex",
    "shortDescription": "Add MaticX to Aave v3 Polygon Pool",
    "discussions": "https://governance.aave.com/t/proposal-to-add-maticx-to-aave-v3-polygon-market/7995",
    "created": "2022-09-12T00:00:00.000Z",
    "preview": "# Simple Summary\n\nLlama proposes listing MaticX on the Aave v3 …",
    "content": "\n\n# Simple Summary\n\nLlama proposes listing MaticX on the Aave v3 Polygon Pool. MaticX is an ERC20 receipt token which represents staked MATIC and a portion of the staking rewards.\n\n# Abstract\n\nStader is building a native staking smart contract platform spanning multiple networks that enables users to develop staking-related applications. The MaticX product selects validators based upon performance, safety, decentralisation and the commission terms to ensure users receive the best user experience in supporting the Polygon Network. \n\nMaticX allows users to stake their MATIC tokens on the Ethereum mainnet or Polygon and immediately get the representation of their share in the form of MaticX token without maintaining staking infrastructure. Users will receive staking rewards whilst being able to utilise their MaticX tokens in secondary markets on Ethereum mainnet and Polygon.\n\nMaticX will be added as collateral and Users will be able to borrow against their MaticX deposits. A SupplyCap of $6M will be implemented, borrowing disabled and Matrix will be added to the 'Matic correlated' eMode. \n\n# Motivation\n\nListing MaticX on the Aave v3 Polygon Pool will allow Aave DAO to benefit from the first mover advantage and provide an alternative to Lido’s stMATIC. \n\nIn addition to being able to stake on Ethereum mainnet, MaticX allows users to stake Matic directly on Polygon through a unique instant pool mechanism while remaining on Polygon throughout. This is expected to drive staking penetration higher for MATIC with Users being able to enjoy the cheaper, faster transactions on Polygon to stake.\n\nMaticX offers users a maximum 50 hours withdrawal period, which is shorter than alternatives and is expected to support a tighter secondary spot market price relative to the fundamental value of the receipt token’s claim.\n\nWith the introduction of eMode on Aave v3, there exists the potential for users to recursive loop MaticX and wMATIC to create a significant source of yield provided borrowing rates remain accommodative. \n\n## Specification\n\nIn supporting the MaticX asset listing, this proposal creates a liquidity pool that reflects the characteristics shown below and connect the Chainlink oracle price source to AaveOracle.\n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\nThis proposal has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs).\n\nLink to Test Cases: [Here](https://github.com/llama-community/aave-v3-crosschain-maticx-listing/blob/master/src/test/PolygonMaticXE2E.t.sol)\n\n## Implementation\n\nThis proposal presents the following parameter configuration upon listing MaticX.\n\nRisk Parameters:\n\nCollateral: Yes\nBorrowing: No\nLTV: 50%\nLiquidation Threshold: 65%\nLiquidation Bonus: 10%\nReserve Factor: 20%\nChainlink Oracle: [0x5d37E4b374E6907de8Fc7fb33EE3b0af403C7403](https://polygonscan.com/address/0x5d37E4b374E6907de8Fc7fb33EE3b0af403C7403)\n\nVariable Interest Rate Parameters:\n\nUOptimal: 45%\nR_0: 0%\nR_s1: 7%\nR_s2: 300%\n\n'MATIC correlated' eMode Parameters:\n\nLTV: 92.5%\nLiquidation Threshold: 95%\nLiquidation Bonus: 1%\n \nSupply / Borrow Caps:\n\nNewSupplyCap: $6m MaticX\n\nThe governance forum proposal discussing Add MaticX on Aave v3 Polygon pool can be found [here](https://governance.aave.com/t/proposal-to-add-maticx-to-aave-v3-polygon-market/7995) and the snapshot vote can be found [here](https://snapshot.org/#/aave.eth/proposal/0x88e896a245ffeda703e0b8f5494f3e66628be6e32a7243e3341b545c2972857f). \n\nLink to Payload Implementation: [Here](https://github.com/llama-community/aave-v3-crosschain-maticx-listing/blob/master/src/contracts/polygon/MaticXPayload.sol)\n\n**Deployed Contracts**\nProposalPayload = [0xD417d07c20e31F6e129fa68182054B641FbEC8Bd](https://polygonscan.com/address/0xD417d07c20e31F6e129fa68182054B641FbEC8Bd)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "226BEDACF8B7-AIP-ADD-MATICX-TO-AAVE-V3-POLYGON"
  },
  "29720ED10AEA-AIP-ADD-CLAIMREWARDSTOSELF-TO-INCENTIVES": {
    "title": "Add claimRewardsToSelf() to incentives for Ethereum V2 Aave Market",
    "status": "Proposed",
    "author": "Sean Casey (@SeanJCasey)",
    "shortDescription": "Add claimRewardsToSelf() to the liquidity mining incentives contract for Ethereum V2 Aave Market",
    "discussions": "https://governance.aave.com/t/proposal-adapt-contracts-slightly-to-improve-defi-composability/4125",
    "created": "2021-11-30T00:00:00.000Z",
    "preview": "## Summary\n\nAdd a `claimRewardsToSelf()` function to the liquidity …",
    "content": "\n\n## Summary\n\nAdd a `claimRewardsToSelf()` function to the liquidity mining incentives contract, so a caller can claim their own rewards without specifying the `to` recipient.\n\n## Abstract\n\nAave incentive contracts currently only contain claiming functions in which the caller specifies the recipient `to` address, who will receive the claimed rewards. Unfortunately, this poses a security problem for abstractly-designed smart contract claimants that do not have fully-trusted originators of claiming txs. This is the case for Enzyme vaults. By adding an additional claiming function to the incentive contract that uses `msg.sender` instead of `to`, the tx originator no longer needs to be trusted.\n\nThis simple addition - that reuses the exact same claiming logic as the current claiming functions with no changes to storage layout - will increase composability opportunities with Enzyme and similarly architected protocols.\n\n## Motivation\n\nEnzyme is a decentralised asset management infrastructure built on Ethereum. It allows asset managers to build on-chain investment Vaults that utilise and allocate to the newest innovations in DeFi. Because all transactions occur on the Ethereum blockchain, compliance, accounting, and investor management services are rendered programatically and at a dramatically-reduced cost to their traditional finance counterparts.\n\nAmongst other things, Enzyme Vaults can interact with AAVE by lending. We are currently also working on accommodating the borrowing functionality to enable leveraged strategies.\n\nIn order to keep providing our users with superior asset management tools in DeFi, we want to open up the liquidity mining option for them as soon as possible. Our users rely on having the latest DeFi functionality in Enzyme to reach their full potential.\n\nBenefits for AAVE:\n\n- Increased AAVE adoption by the Enzyme user base and other similarly architected protocols\n- Tapping into a new and fast-growing community\n- A closer collaboration between our two projects & communities\n- Enzyme contracts have been audited by PWC, Chain Security and some of the leading auditors in the space who sit on the Enzyme Council\n- Opening up the possibility for new and novel use-cases to be built around AAVE\n\n## Specification\n\nAdds `function claimRewardsToSelf(address[] calldata assets, uint256 amount)` to the liquidity mining incentives contract, which reuses the logic of `claimRewards()` but uses `msg.sender` instead of `to`.\n\n## Rationale\n\nThis is the simplest, least intrusive way to support claimants who might not be trusted to send claimed rewards to a third party.\n\n## Test Cases\n\nTest suites (local, mainnet fork, and proposal flow on mainnet fork) have been included at https://github.com/aave/incentives-controller/pull/4 and have been reviewed by Aave team.\n\n## Implementation\n\nFull PR: https://github.com/aave/incentives-controller/pull/4\n\nNew incentives implementation contract on Ethereum mainnet: `0xD9ED413bCF58c266F95fE6BA63B13cf79299CE31`\n\nUpgrade to be executed via deployment of `ProposalIncentivesV2Executor.sol`: https://github.com/aave/incentives-controller/blob/e5e8b2c994ee29b0af883db7c94add372b4423b2/contracts/proposals/ProposalIncentivesV2Executor.sol\n\nDeployed proposal payload (`ProposalIncentivesV2Executor.sol`) on Ethereum mainnet: `0xb8fA635fEC4E6BDb05e7937cBeF01214991e9D5a`\n\n## Audit\n\nhttps://github.com/aave/incentives-proposal/blob/1ef7705546dc7970795003e435f76b73efebbb1d/audits/Enzyme_Aave_IncentivesController_Improvement.pdf\n\n## Snapshot vote\n\nhttps://snapshot.org/#/aave.eth/proposal/QmcgTovk982fcUTN17qtDyZ4oCoVGnKZJGuwMVtqspfphk\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "29720ED10AEA-AIP-ADD-CLAIMREWARDSTOSELF-TO-INCENTIVES"
  },
  "298883DBD784-AIP-ADD-MAI-TO-AAVE-V3": {
    "title": "Add MAI to Aave V3 on Polygon",
    "status": "Proposed",
    "author": "Pablo Peillard (@itspublu)",
    "shortDescription": "Add MAI Stablecoin to Aave V3 on Polygon",
    "discussions": "https://governance.aave.com/t/add-mai-on-aave-v3/7630",
    "created": "2022-08-16T00:00:00.000Z",
    "preview": "## Author: \nQiDao Protocol core team\n\n## Forum post: \n …",
    "content": "\n\n## Author: \nQiDao Protocol core team\n\n## Forum post: \n\nhttps://governance.aave.com/t/add-mai-on-aave-v3/7630\nProposal to add support for MAI (aka miMatic) on Aave V3 (On Polygon)\n\n## Summary\n\nMAI is the first and largest native stablecoin project on Polygon and a variety of other chains. It is an overcollateralized stablecoin that is non-custodial. All MAI is backed by collateral locked in user-managed vaults. MAI minting is available on 8 chains, and bridging to 18 chains.\n\nAll accepted collaterals are priced using Chainlink price feeds. MAI has stayed within its peg through several market downturns.\n\nThere’s around 250M MAI minted, with liquidity on all top DEXs in which MAI is present. A significant portion of liquidity for MAI is on Curve. MAI hosts the largest pool on Curve Polygon.\n\n## Risk Parameters\n\nV3 Efficiency mode: stablecoins\nV3 Isolation mode: 75% LTV, 80% liquidation threshold, 10% reserve factor, $2M initial debt ceiling per chain\n\n## Specifications\n**What is the link between the author of the AIP and the Asset?**\n\nCore team at QiDao Protocol.\n\n**Provide a brief high-level overview of the project and the token**\n\nMAI is the first and largest stablecoin protocol on Polygon. It allows users to lock their tokens and use them as collateral to mint MAI at 0% interest.\n\nMAI is an overcollateralized CDP stablecoin on Polygon, Avalanche, Fantom, Arbitrum, Harmony, Moonriver, and Gnosis Chain. MAI is one of the most crosschain assets in DeFi, currently on 18 chains through Multichain. Accepted collateral includes interest-bearing assets like Aave Market Tokens. Users are not charged interest for borrowing MAI - instead, they are charged a 0.5% fee upon repayment.\n\nDespite market downturns during its existence, MAI has maintained its peg.\n\nMAI currently has a TVL of around $90M, and has around 70M MAI outstanding.\n\n**Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?**\n\nBeing the largest native stablecoin on Polygon and Fantom, MAI has a wide reach within the native projects on those chains. Listing MAI would connect Aave to most communities in these chains through the integrations already made by MAI.\nMAI is one of the most crosschain assets, available on 18 chains through canonical bridging. As a result, users will be drawn to borrow MAI to bridge value to other chains and take advantage of the many yield opportunities that MAI has.\n\nMAI’s risk profile is low. It is used by large institutions. MAI has also received grants from several blockchains, including Polygon, Metis, Optimism, Arbitrum, and Gnosis.\n\n**Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?**\n\nMAI is governed by the QiDao Protocol, a community-run DAO around the QI token.\nSeveral other projects have participated in our DAO through proposals and bribing, including Frax Finance, Stake DAO, Celsius, * PolygonDAO, SpiritSwap, SpookySwap, Gotchi Vault, and Beefy Finance\nThe Polygon Alliance was recently set up to participate in QiDao.\n\n**How is the asset currently used?**\n\nLending (Market.xyz, Impermax, Tarot)\nListed on several DEXs on 18 chains. Main DEXs are Curve, Balancer, QuickSwap, SpookySwap, SpiritSwap, Solidly, Saber, and TombSwap\nTop two pools on Curve Fantom and Polygon\nMAI is used by Celsius to borrow against their AUM\nMAI has been used by Polygon to award bounties\nMAI offers low-cost leverage to strategies on Stake DAO, Yearn, Beefy, and Aave\n\n**Emission schedule**\n\nUsers can mint MAI by locking up their assets and borrowing against that value at 0% interest. Temporary debt ceilings serve as the a supply mitigation.\n\n**Token (& Protocol) permissions (minting) and upgradability.**\n\n**Is there a multisig? What can it do? Who are the signers?**\n\nAll funds stored as collateral are fully controlled by users\nThere is a 3/5 multisig, comprised by the QiDao team. Team members are doxxed and regularly appear on podcasts, live streams, and crypto conferences\nThe multisig executes the results of Snapshot votes: liquidation ratios for new collaterals, partnerships, and debt ceilings. There have been over 70 votes since the start of the DAO: see votes here 1.\nSince the protocol uses canonical bridging, QiDao retains the power to mint MAI on chains it is bridged to.\n\n## Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n- Market Cap: ~$70M\n- 24h Volume: >$40M\n- Volatility: Low\n- Exchanges: Curve, Balancer, QuickSwap, SpookySwap, SpiritSwap, Saber, Beethoven, Solidly, TombSwap, Solarbeam, Trader Joe, Crodex, ZoomSwap, PaintSwap, Elk Finance, and Rose\n- Maturity: Launched 5/4/21\n- Social channels data (Size of communities, activity on Github)\n- Project: https://www.mai.finance/\n- Defillama: https://defillama.com/protocol/qidao\n- Whitepaper: https://docs.mai.finance/\n- Document portal: https://docs.mai.finance/\n- Source code for the system(s) that interact with the proposed asset: https://github.com/0xlaozi\n- Twitter: 17k followers: https://twitter.com/QiDaoProtocol\n- Telegram: 2,130 members: @QiDaoProtocol\n- Discord: 8,987 members: https://discord.com/qidaoprotocol\n- Contracts date of deployments, number of transactions, number of holders for tokens\nMAI token\n\n- Date of deployment: May 4, 2021\n- Number of transactions: +3M\n- Number of crosschain token holders: 16k+\n\n## Security Considerations\nMAI has undergone 2 thorough audits (linked below). Constant internal reviews are performed to ensure MAI’s economic and technical safety.\n\nThe protocol currently has around $90M TVL.\n\n- First audit: https://uploads-ssl.webflow.com/606120c25fb119221b762612/60bd3b9a1366549deb6a1cf7_Mai_Finance_Audit_Bramah.pdf\n\n- Second audit: https://cloakwire.com/qi-dao-security-audit/\n\n## Other links\n\nContract addresses: https://docs.mai.finance/functions/smart-contract-addresses\n\nChainlink Oracle: 0xd8d483d813547CfB624b8Dc33a00F2fcbCd2D428 (Polygon)\n\n## Proposal's technical implementation\n\nThis asset listing will be executed via Aave's cross-chain governance module, described here [https://github.com/bgd-labs/aave-v3-crosschain-listing-template](https://github.com/bgd-labs/aave-v3-crosschain-listing-template). The listing of miMATIC via cross-chain is one of the examples included there, together with tests.\n\nProposal Payload on Polygon: [https://polygonscan.com/address/0x83fba23163662149b33dbc05cf1312df6dcba72b#code](https://polygonscan.com/address/0x83fba23163662149b33dbc05cf1312df6dcba72b#code)\n\nBGD Labs has provided support on the technical aspects of the listing and Certora has reviewed the proposal's payload.\n",
    "basename": "298883DBD784-AIP-ADD-MAI-TO-AAVE-V3"
  },
  "30C900A596F6-AIP-APP-SECURITIZE-WHITELISTER-TO-AAVE-ARC": {
    "title": "Appoint Securitize as a Whitelister to Aave Arc",
    "status": "Proposed",
    "author": "Adan Carreno (@adancspal)",
    "shortDescription": "Securitize asks the Aave Governance community to approve Securitize as a Whitelister for Aave Arc",
    "discussions": "https://governance.aave.com/t/arc-appoint-securitize-as-a-whitelister-to-aave-arc/6434",
    "created": "2022-06-08T00:00:00.000Z",
    "updated": "2022-06-21T00:00:00.000Z",
    "preview": "## Simple Summary\n\nSecuritize asks the Aave Governance community to …",
    "content": "\n\n## Simple Summary\n\nSecuritize asks the Aave Governance community to approve the appointment, adoption, and authorization of Securitize as a “whitelister” on the Aave Arc market.\n\n## Abstract\n\nSecuritize is the leading digital asset securities company. As a FINRA member Broker-Dealer and the first SEC-registered Transfer Agent operating with digital asset securities, Securitize is one of the most regulated firms in the entire digital assets industry.\n\nSecuritize has an excellent track record for providing comprehensive compliance services to a vast array of digital assets companies. Our proprietary investor passport, Securitize iD, is globally recognized and built upon Securitize’s battle-tested KYC/KYB/AML/CFT compliance program, allowing Securitize iD to be trusted by over 450K registered investors and over 200 issuers to date.\n\nWe have performed a detailed analysis and documented it [here](https://governance.aave.com/t/arc-appoint-securitize-as-a-whitelister-to-aave-arc/6434) for the consideration of the Aave Governance community. We believe that Securitize satisfies all criteria necessary to be appointed as a whitelister for Aave Arc.\n\n\n## Motivation\n\nThe institutional appetite for DeFi is growing, but that hunger remains mostly unsatisfied due to compliance obstacles. In response, pragmatic DeFi communities like Aave launched permissioned versions of their services, like Aave Arc, and are wisely seeking regulated third parties, like Securitize, to facilitate user credential and access management.\n\nAs a whitelister, Securitize will function as one of the trusted gatekeepers for Aave Arc, ensuring that only wallets with verified credentials can access the permissioned liquidity pool. Therefore, institutions can safely leverage the transactional benefits of Aave — e.g., supply, borrow, and liquidate digital assets — while still abiding by their compliance requirements. Securitize believes that this is a monumental first step toward the eventual mass inclusion of institutions in the decentralized economy.\n\n## Specification\n\n“Whitelisting” is the gatekeeping function performed by whitelisters on users of Aave Arc. The term refers specifically to the process of:\n\nConducting KYC/KYB checks on the user;\nOnboarding the user with appropriate disclosures, terms, and conditions;\nGranting specific permissions (e.g., borrow, supply, liquidate) to the Ethereum wallet address(es) provided by the user.\nIn addition, Aave Arc whitelisters perform a similar role on Arc as guardians do on Aave V2. Specifically, whitelisters can use a multi-sig veto on governance proposals that add excessive compliance risk on the Aave Arc protocol. For example, existing whitelisters can veto the addition of a privacy coin if such a coin is impermissible in the relevant jurisdiction, or veto the addition of a whitelister that has a poor reputation for compliance.\n\nThe whitelisting is managed via a [PermissionManager](https://etherscan.io/address/0xF4a1F5fEA79C3609514A417425971FadC10eCfBE) contract, in which whitelisters are designated as Permission Admins. Permission Admins are permitted to add or remove wallets grants to the Aave Arc market by calling addPermissions() and removePermissions() contract methods, respectively.\n\n## Rationale\n\nThe Aave Governance community voted on the Snapshot proposal with “YES” 389K AAVE (99.98%) and “No” 87 AAVE (0.02%)\n\n## Implementation\n\nThe implementation is described [here](https://github.com/aave/arc-timelock#adding-a-new-permissionadmin)\n\n## Proposal\n\nThe proposal executes a single call to the PermissionManager contract to add [Securitize](https://etherscan.io/address/0x36b8A1D23BDc76092aD88A1c4Ef59fafD4931b03) as PermissionAdmin in Aave ARC market:\n`IPermissionManager(0xF4a1F5fEA79C3609514A417425971FadC10eCfBE).addPermissionAdmins([0x36b8A1D23BDc76092aD88A1c4Ef59fafD4931b03]);`\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "30C900A596F6-AIP-APP-SECURITIZE-WHITELISTER-TO-AAVE-ARC"
  },
  "3C58C5F00209-AIP-SIGP": {
    "title": "Sigma Prime - Security Assessment Services for Aave",
    "status": "Proposed",
    "author": "Sigma Prime (@sigp)",
    "shortDescription": "Proposal for continuous security assessment services from Sigma Prime",
    "discussions": "https://governance.aave.com/t/sigma-prime-security-assessment-services-for-aave/8518",
    "created": "2022-07-12T00:00:00.000Z",
    "preview": "## Summary\n\nThis proposal acts as a mandate from the Aave community …",
    "content": "\n\n## Summary\n\nThis proposal acts as a mandate from the Aave community to engage [Sigma Prime](https://sigmaprime.io) for continous security assessment services as outlined in [this post](https://governance.aave.com/t/sigma-prime-security-assessment-services-for-aave/8518) and already pre-approved via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0xf4d2d4c89e29cd11472d5b86f013cb0995952b96099ced35eb91a03e99fbb5cf).\n\n\n## Abstract\n\nThe aim of this proposal is to ensure Aave receives high-quality security assessment services to address all upcoming updates to its protocols, including critical upgrades such as the v2 → v3 migration.\n\n[Sigma Prime](https://sigmaprime.io) has been providing security assessment services to Aave for the past 2.5 years, reviewing critical components such as Aave v2 and v3, along with various other changes made to the lending platform.\n\n## Motivation\n\nAave’s success relies partly on its ability to deliver high quality products with a strong security posture. To date, and despite the large TVL potentially attracting a lot of malicious actors, Aave users haven’t suffered any losses due to smart contract bugs or vulnerabilities. Lately, it has been increasingly difficult to contract reputable smart contract security auditors, as most of the prominent firms in this space are booked out for months.\n\n\n## Specification\n\nThis proposal authorises payment of the minimum engagement fee outlined in [the proposal](https://governance.aave.com/t/sigma-prime-security-assessment-services-for-aave/8518) (US$ 1,296,000) through the following:\n- Upfront payment for 50% of the minimum engagement fee (US$ 648,000) paid in aUSDC and aUSDT (even split, $324,000 each)\n- Remaining 50% (US$ 648,000) paid at the end of the engagement period (12 months) via two (2) payment streams in aUSDC and aUSDT (even split, $324,000 each), with each stream starting 12 months from now, and lasting a duration of 1 second.\n\nIf the maximum fee was to apply to this engagement, a subsequent proposal will be pushed forward for the remaining amount in 12 months (i.e at the end of the engagement period).\n\n\n## Rationale\n\nSigma Prime is an information security consultancy who specialise in Blockchain technology and administered from Sydney, Australia.\n\nThe primary focus of Sigma Prime is to help secure distributed systems through in-depth security assessments of decentralised projects, while concurrently researching and developing core Blockchain infrastructure. Over the past 6 years, we have been working with some of the most prominent organisations in the space: the Ethereum Foundation, Chainlink, SushiSwap, 1inch, the Filecoin Foundation, NEAR, Arbitrum, Lido, Rocket Pool, and plenty of others.\n\nSigma Prime is also the founder and maintainer of the Lighthouse project, an open-source implementation of the Ethereum Proof-of-Stake Consensus specification, written in Rust. Lighthouse is one of the leading Ethereum consensus client implementations and has a particular focus on performance and security.\n\nThroughout the works performed for Aave, the feedback received from the leadership team has been highly positive. Sigma Prime has gained a high degree of familiarity with the protocol, which will be leveraged as required for the delivery of this engagement.\n\n## Test Cases\n\n- Please refer to the [test section](https://github.com/sigp/sigp-aip-payload/tree/master/test) of the [sigp/sigp-aip-payload](https://github.com/sigp/sigp-aip-payload) repository.\n\n## Implementation\n\n- [PayloadAaveSigP](https://etherscan.io/address/0xe8ea74754dce51168102e820424f7e7f74c5be3e#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "3C58C5F00209-AIP-SIGP"
  },
  "3D16C7B29565-AIP-FEI-RESERVE-FACTOR-UPDATE": {
    "title": "FEI Reserve Factor Update",
    "status": "Proposed",
    "author": "Llama, Shreyas Hariharan, Rajath Alex",
    "shortDescription": "FEI Reserve Factor Update",
    "discussions": "https://governance.aave.com/t/bgd-aave-v2-ethereum-fei-security-report/10251",
    "created": "2022-10-18T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis proposal updates FEI’s Reserve Factor on Aave …",
    "content": "\n\n# Simple Summary\n\nThis proposal updates FEI’s Reserve Factor on Aave v2 Ethereum from 100% to 99%. As noted by [BGD](https://governance.aave.com/t/bgd-aave-v2-ethereum-fei-security-report/10251), the current configuration of FEI’s Reserve Factor at 100% does not accrue variable borrow debt and does not redirect the Reserve Factor fees to the Collector smart contract.\n\n# Abstract\n\nAs noted [here](https://governance.aave.com/t/bgd-aave-v2-ethereum-fei-security-report/10251), the Reserve Factor (RF) on Aave is a percentage representing the proportion of the supplier’s yield that gets redirected to the protocol as a “fee”.\n\nOn every user action, when the new interest rate is calculated, the amount of aTokens calculated from the RF of that specific asset gets minted to the Collector. In addition, extra accounting gets done on the so-called “indexes” of the asset (supply/variable borrow), which represent the total accumulation of yield on both supply and borrow side.\n\nIt is important to highlight that the reserve factor gets discounted when calculating the supply rate, prior to further accounting like the indexes.\n\nOn September 05, [Aave governance proposal 96](https://app.aave.com/governance/proposal/96/) was executed, freezing the FEI asset on Aave v2 Ethereum.\n\nInitially, the payload seemed fine and performed two actions:\n1. Call a freeze() function on the protocol for FEI.\n2. In order for suppliers of FEI to not have incentives and withdraw, “redirect” all yield on the borrowers’ side to the protocol’s Collector. This was done by setting the Reserve Factor configuration of FEI to 100% (maximum).\n\nLater, it was realized that the variable borrow interest did not properly accrue for FEI borrowers. After some debugging, it was realized that the issue was caused by a side effect of configuring any RF to exactly 100%.\n\nThe temporary solution to fix this (until the protocol is updated to handle reserve factor of 100% correctly), is to set the FEI reserve factor to 99% through this AIP.\n\n# Motivation\n\nThe full motivation for this AIP can be found [here](https://governance.aave.com/t/bgd-aave-v2-ethereum-fei-security-report/10251)\n\n# Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Llama Github [here](https://github.com/llama-community/aave-fei-rf-update)\n\nThe Proposal Payload does the following:\n1. Sets FEI Reserve Factor from 100% to 99%.\n2. If liquidity is available to withdraw, then calls `swapAllAvailable()` on the [aFEI to aDAI Swapper Contract](https://etherscan.io/address/0x9A953AC1090C7014D00FD205D89c6BA1C219Af8b)\n\n## Test Cases\n\nThis proposal has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs).\n\nTest cases can be found: [Here](https://github.com/llama-community/aave-fei-rf-update/blob/main/src/test/ProposalPayloadE2E.t.sol)\n\n## Implementation\n\nPayload Implementation can be found: [Here](https://github.com/llama-community/aave-fei-rf-update/blob/main/src/ProposalPayload.sol)\n\n## Deployed Contracts\n\nProposal Payload = [0x993ee4acc9F736fd3e47846d18b397d06B899112](https://etherscan.io/address/0x993ee4acc9f736fd3e47846d18b397d06b899112)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "3D16C7B29565-AIP-FEI-RESERVE-FACTOR-UPDATE"
  },
  "412B6185D705-AIP-ADD-STETH-TO-AAVE-V2": {
    "title": "Add stETH to AAVE v2",
    "status": "Proposed",
    "author": "Jacob Blish (@jbeezy); Gregory Stepanov (@grstepanov)",
    "shortDescription": "AAVE governance proposal to enable stETH as a collateral asset",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-steth-lido/5793",
    "created": "2022-04-02T00:00:00.000Z",
    "preview": "## Simple Summary\nLido allows users to earn staking rewards on the …",
    "content": "\n\n## Simple Summary\nLido allows users to earn staking rewards on the Ethereum beacon chain without locking Ether or maintaining staking infrastructure. This is done through the stETH token. stETH tokens represent a tokenized staking deposit with staking rewards and slashing penalties applied. stETH can be held, traded, or sold.  \nWe propose listing stETH to AAVE v2 market. This would allow users to borrow against stETH.\n\n#### References\n- Website: [lido.fi](https://lido.fi/)\n- [Primer](https://lido.fi/static/Lido:Ethereum-Liquid-Staking.pdf) \n- [Document portal](https://docs.lido.fi/)\n- [Source code for the system(s) that interact with the proposed asset](https://github.com/lidofinance/lido-dao/blob/master/contracts/0.4.24/Lido.sol)\n- [Ethereum addresses contracts](https://docs.lido.fi/deployed-contracts)\n- [ChainLink Oracle](https://etherscan.io/address/0x86392dC19c0b719886221c78AB11eb8Cf5c52812)\n- [Audits](https://github.com/lidofinance/audits)\n- Community\n    - [Governance forum](https://research.lido.fi/)\n    - [Twitter](https://twitter.com/lidofinance)\n    - [Discord](https://discord.gg/vgdPfhZ)\n    - [Telegram](https://t.me/lidofinance)\n    - [Reddit](https://www.reddit.com/r/LidoFinance)\n\n## Abstract\nThe goal of listing stETH on AAVE v2 market is to provide the ability to deposit stETH into AAVE and allow to use it as collateral. There is no intention to enable borrowing of stETH on AAVE v2 market.\n\n## Motivation\nListing stETH on AAVE can work to attract a larger audience to both AAVE and Lido. More ETH staked with Lido would subsequently benefit the decentralization and security of the Ethereum network, to the benefit of the community as a whole. stETH would likely bring new borrow demand to AAVE as market participants look to borrow against stETH.\n\nstETH makes a perfect DeFi collateral and is beneficial for a number of reasons covered in the Specifications section of this AIP.\n\n## Specification\n1. **What is the link between the author of the AIP and the Asset?**\n\n- Jacob (jbeezy) is a full time member of the DAO working to facilitate integrations for st-Assets across DeFi in protocols such as Aave among others.\n- Gregory (GrStepanov) is a full time protocol contributor working on technical integrations.\n\n2. **Provide a brief high-level overview of the project and the token.**\n\n#### Lido Background\n\nThe Lido Protocol, built on Ethereum’s beacon chain to start, allows users to earn staking rewards on the beacon chain without rendering their assets illiquid or maintaining staking infrastructure.\n\nLido was [announced](https://blog.lido.fi/how-lido-works/) in November 2020. The testnet was released in late November.\n\nLido today has 3 products (stETH, stSOL, bLuna) managed by 4 teams in separate organizations. Across these products is a multi billion dollar TVL and has pushed Lido to #6 on [DeFi Llama rankings](https://defillama.com/protocol/lido). stETH has also been accepted as part of Nexus Mutual’s treasury as part of their [risk management strategy](https://forum.nexusmutual.io/t/proposal-increase-the-allocation-of-the-capital-pool-to-steth/641).\n\nLido has begun the process to move over to a fully non-custodial solution. Details can be found here: [Withdrawal Credentials in Lido](https://blog.lido.fi/withdrawal-credentials-in-lido/).\n\nThe Lido DAO manages the liquid staking protocol by deciding on key parameters (e.g. setting fees, assigning node operators and oracles) through the voting power of governance token holders.\n\nLido has been audited by Sigma Prime, Quantstamp and MixBytes.\n\n#### stETH Background\n\nLido allows users to deposit ETH and receive stETH. The deposited ETH is then pooled and staked with node operators selected by the Lido DAO. stETH represents the user’s staked ETH balance of the beacon chain along with staking rewards accrued or penalties inflicted on validators in the beacon chain. When withdrawals are enabled on the beacon chain, stETH can be redeemed for unstaked ETH and accumulated rewards.\n\nUnlike beacon chain ETH, stETH can be freely transferred and traded. Onboarding stETH to Aave would allow users to borrow against stETH.\n\nThe balance of stETH is based on the total amount of staked ETH plus total staking rewards minus slashing applied on validators. stETH rebases daily.\nThe stETH supply stands at 1,697,460 - worth $5.4BN using current stETH prices.\n\n3. **Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?**\n\nstETH as DeFi collateral is beneficial for a number of reasons.\n\n- stETH is almost as safe as ETH, price-wise: barring catastrophic scenarios, its value tends to hold the ETH peg well;\n- stETH is a productive asset. Earning rewards on collateral effectively lowers the cost of borrowing. This could make borrowing more attractive on Aave and help to increase market utilization (and therefore Aave’s protocol revenue from \ncoin reserve factors).\n- stETH is a very liquid asset with $5+ billion in liquidity used across [multiple DeFi projects](https://dune.xyz/LidoAnalytical/Integration-monitor-dashboard\n). stETH<>ETH liquidity pool on Curve is the deepest LP in DeFi with $3.8 billion TVL.\n\n4. **Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?**\n\nLido protocol background is listed in Question #2.\n\nThere is a DAO and it is live. The Lido DAO consists of, amongst others, Semantic VC, ParaFi Capital, Libertus Capital, Terra, Bitscale Capital, StakeFish, StakingFacilities, Chorus, P2P Capital and KR1, Stani Kulechov of Aave, Banteg of Yearn, Will Harborne of Deversifi, Julien Bouteloup of Stake Capital and Kain Warwick of Synthetix.\n\nThe Lido treasury has been diversified and DAO members now include Paradigm, Three Arrows Capital, DeFiance Capital, Jump Trading, Alameda Research, iFinex, Dragonfly Capital, Delphi Digital, Robot Ventures, Coinbase Ventures, Digital Currency Group, The LAO and [angels](https://research.lido.fi/t/proposal-ldo-treasury-diversification-part-2/506).\n\nThe Lido suite of products consist of st-assets which represent the underlying staked collateral on various protocols. Currently this is stETH, bLuna, stLuna and stSOL and is managed by 4 teams in separate organizations to further mitigate centralization risk.\n\nThere are further wrapped versions to address platform limitations around rebasing assets or bridging to other ecosystem. These wrapped assets are minted/burned based on locking of the st-asset. Currently there is wstETH (non-rebasing) and bETH (Terra representation of stETH).\n\nEarly challenges were overcome with DAO member support, speed of execution and utility of st-assets. The last one is particularly critical in the success of any liquid product.\n\n5. **How is the asset currently used?**\n\nstETH is used in a number of ways.\n\n- a productive asset (e.g. in Nexus Mutual Treasury risk management strategy);\n- compounding yield strategies in DeFI (AMMs, autofarms) (e.g. Convex, Yearn, Harvest);\n- multichain collateral (e.g. wstETH on Ethereum on Maker and bETH on Terra in Anchor).\n\n5. **Emission schedule**\n\nThere is no emission schedule. Similar to DAI, stETH is minted on demand when users lock ETH into the protocol.\n\n6. **Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?**\n\nstETH token is the upgradable contract behind `AppProxyUpgradeable` proxy at https://etherscan.io/address/0xae7ab96520de3a18e5e111b5eaab095312d7fe84. Lido DAO can change the implementation with the successful DAO vote.\n\nThe roles and addresses can be checked in the Aragon UI: https://mainnet.lido.fi/#/lido-dao/permissions/app/0xae7ab96520de3a18e5e111b5eaab095312d7fe84\n\nTo mitigate withdrawal risks, Lido staking went live on December 18th, 2020, through a [withdrawal key ceremony](https://blog.lido.fi/lido-withdrawal-key-ceremony/). Chorus One, Staking Facilities, Certus One, Argent, Banteg (yearn.finance), Alex Svanevik (Nansen), Anton Bukov (1inch), Michael Egorov (Curve/Nucypher), Rune Christensen (MakerDAO), Will Harborne (DeversiFi), and Mustafa Al-Bassam (LazyLedger) came together over a four-day event to generate threshold signatures for Lido’s withdrawal keys in a secure environment on air-gapped machines. \nLido has already migrated to a non-custodial solution and >60% of all stETH already uses this. Details can be found here: [Withdrawal Credentials in Lido](https://blog.lido.fi/withdrawal-credentials-in-lido/).\n\n8. **Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)**\n\n**Market Cap** $5.5B\n\n**Volatility** - Over the past year, stETH proved to hold peg extremely well through various market conditions. [stETH<>ETH balance data for the Curve pool can be found here](https://dune.xyz/queries/36557/72603).\n\n**Volumes and DEXes**\n\n**[Balancer (wstETH/WETH)](https://app.balancer.fi/#/pool/0x32296969ef14eb0c6d29669c550d4a0449130230000200000000000000000080)**  \nLiquidity: $409.3M  \nVolume (24h): $509,3  \nhttps://dune.xyz/embeds/153863/304423/684fdf22-161c-4352-a41d-81ce8a705c01  \n\n**[SushiSwap (wstETH/DAI)](https://analytics.sushi.com/pairs/0xc5578194d457dcce3f272538d1ad52c68d1ce849)**  \nLiquidity: $32.2M  \nVolume (24h): $756,211  \nhttps://dune.xyz/embeds/153729/304165/5c53e046-47ef-485d-9767-6ec188a5629e  \n\n**[Curve (stETH/ETH)](https://curve.fi/steth)**  \nLiquidity: $3,75B  \nVolume (24h): $5,7M  \nhttps://dune.xyz/embeds/153374/303383/9c8cb193-4538-497e-a774-c33e78bcd34d  \n\n9. **Social channels data**\n\n[Discord](https://discord.gg/vgdPfhZ) - 7400 members  \n[Twitter](https://twitter.com/LidoFinance) - 60K followers  \n[GitHub](https://github.com/lidofinance) - Active and managed  \n\n10. **Contracts date of deployments, number of transactions, number of holders for tokens**\n\nDate of Deployment: December 18th, 2020  \nNumber of Transactions (stETH): [146,000+](https://etherscan.io/token/0xae7ab96520de3a18e5e111b5eaab095312d7fe84)  \nUnique holders: [42,000+](https://etherscan.io/token/0xae7ab96520de3a18e5e111b5eaab095312d7fe84)  \n\n11. **Unique Depositors**\n\nUnique depositors: [36,000+](https://dune.xyz/queries/20029/41160)\n\n## Rationale\nstETH represents the user’s staked ETH balance of the beacon chain along with staking rewards accrued or penalties inflicted on validators in the beacon chain.  \nThis is implemented via rebasing mechanism. \n\nDue to the rebasing nature of stETH, the proposed listing implementation involves few changes  to AAVE's generic aToken.\nThe proposed aToken uses underlying stETH shares to store balances and implement the rebase ability. Thus, it has 2 private balances and 1 public balance.\n\n1. The internal (fixed-supply) balance and total supply are used for book-keeping. The deposited balance is stored in stETH shares and converted into the amount of the tokens with functions from stETH. Users’ balances are book-kept with the underlying ERC20 token.\n2. The internal (elastic-supply) balance and total supply correspond to the deposited balance without accrued interest. Rebasing of aSTETH according to stETH happens in this layer.  \n3. The external (elastic-supply) balance and total supply correspond to the deposited balance with interest.\n\nExternally, the aSTETH behaves similar to every other aToken. It always maintains a 1:1 peg with the underlying stETH. \n\nThe current implementation doesn't support borrowing, neither with variable nor with stable interest rates. The stableDebtSTETH and variableDebtSTETH contracts extend default stableDebtToken and variableDebtToken contracts accordingly to make it impossible to use borrowing with aSTETH because default debt tokens are not compatible with the AStETH contract.\n\n## Implementation\n\n#### Code\nAStETH https://etherscan.io/address/0xbd233D4ffdAA9B7d1d3E6b18CCcb8D091142893a  \nvariableDebtSTETH https://etherscan.io/address/0xde2c414b671d2db93617d1592f0490c13674de24  \nstableDebtSTETH https://etherscan.io/address/0x8180949ac41ef18e844ff8dafe604a195d86aea9  \nDefaultReserveInterestRateStrategy https://etherscan.io/address/0xff04ed5f7a6C3a0F1e5Ea20617F8C6f513D5A77c  \nSteps the proposal will execute: start a vote to add stETH as a new asset.\n\n#### Security Considerations\nStandard technical risks of smart contracts apply to the AToken implementation.\nThe implementation has been audited by MixBytes() and considered safe. Read the full report from [here](https://github.com/lidofinance/audits/blob/main/MixBytes%20AAVE%20stETH%20integration%20Security%20Audit%20Report%2002-22.pdf).\n\n**Proposed Risk Parameters**\nLTV: 70%  \nLiquidation Threshold: 75%  \nLiquidation Bonus: 7.5%  \nReserve Factor: 10%  \n\n**Interest Rate Model:**  \nUOptimal: 60%  \nBase: 0%  \nSlope 1: 8%  \nSlope 2: 200%  \n\nAs stETH is more suited as collateral instead of a borrowing asset, we propose listing stETH on AAVE v2 market with borrowing disabled. \n\n## Risk Assessment\n\n**Smart contract risks**\n\nLido faces smart contract risks. To mitigate these, Lido has been audited multiple times - by Quantstamp, Sigma Prime, and MixBytes (see [Audits](https://github.com/lidofinance/audits)), with no critical issues found.\n\n**Counterparty risks**\n\nLido is a DAO. Decisions in the Lido DAO are made through proposals and votes - community members manage protocol parameters, node operators, oracle members, and more. The Lido staking infrastructure for stETH consists of 22 node operators, with a focus on decentralization.\nLido relies on a set of oracles to report staking rewards to the smart contracts. Their maximum possible impact is limited by the [recent upgrade](https://github.com/lidofinance/lido-improvement-proposals/blob/develop/LIPS/lip-2.md#sanity-checks-the-oracles-reports-by-configurable-values) (limit oracles report change by 10% APR increase in stake and 5% decrease in stake), and the operators of oracles are all well-known entities: Stakefish, Certus One, Chorus One, Staking Facilities, DSRV, Blockscape, Everstake, SkillZ, RockX, Allnodes, P2P Validator, and others.\nRead further in Lido [documentation](https://docs.lido.fi/token-guides/steth-superuser-functions/).\n\n**Market risk**\n\nOver the past year, stETH proved to hold the ETH peg 1:1 steadily.\nFour liquidity pools across different DEXes are incentivized with significant LDO rewards. Curve stETH<>ETH LP has grown into the deepest LP across DeFi, which makes it extremely resistant to any attempts of moving the peg.\n\n**Staking risks**\n\nstETH faces staking risks, specifically validator risks including slashing and hostage risks. To mitigate these, Lido works only with best-in-class validators with a track record of success.\nBesides, there's an ongoing [discussion in the community](https://research.lido.fi/t/lip-6-in-protocol-coverage-proposal/1468) about in-protocol coverage options to mitigate slashing risks.\n\n**Price feed risk**\n\nThe ChainLink price feed for stETH is based on the pools with extremely deep liquidity. This makes stETH price very stable and resilient. Manipulating stETH price at this point would require staggering amount of resources and potentially render this kind of attack unreasonable.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "412B6185D705-AIP-ADD-STETH-TO-AAVE-V2"
  },
  "4A7DEC60B007-AIP-AAVE-LLAMA": {
    "title": "Llama <> Aave",
    "status": "Proposed",
    "author": "Llama (@llama)",
    "shortDescription": "Approve Llama <> Aave Proposal",
    "discussions": "https://governance.aave.com/t/updated-proposal-llama-aave/9924",
    "created": "2022-09-28T00:00:00.000Z",
    "preview": "# Simple Summary\n\nLlama outlines a 12-month proposal to work with …",
    "content": "\n\n# Simple Summary\n\nLlama outlines a 12-month proposal to work with Aave on treasury management, protocol upgrades, growth, and analytics.\n\n# Abstract\n\nThis proposal acts as a mandate from the Aave community to engage with Llama for the work defined on the Aave governance forum [here](https://governance.aave.com/t/updated-proposal-llama-aave/9924) and pre-approved by the Aave community via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0x9f65a598bee69a1dd84127d712ffedbc0795f0647e89056a297cae998dd18bf1).\n\n# Motivation\n\n[Llama](https://www.llama.xyz/) is one of the most active contributors to Aave. We hope to deepen our engagement with the community and ensure that Aave is a market-leading protocol for many decades to come.\n\nAave currently has $9 billion of liquidity locked across 7 networks and over 13 pools, with more in the works. To continue its rate of growth, the community needs to onboard proven contributors who can drive value to the Aave ecosystem. Skilled teams have the knowledge, trust, and alignment to meaningfully contribute to growing Aave.\n\nLlama has received grants from Aave Grants DAO over the past 12 months for work that includes treasury management, protocol upgrades, DAO to DAO partnerships, and analytics. Aave Grants has recommended that we move from short-term grants to a longer-term work scope funded through governance, allowing us to drive more impact to the Aave ecosystem. It should be noted that many of the deliverables in this proposal require substantial smart contract engineering, data engineering, and financial expertise.\n\nLlama charges a $1.5 million base fee plus a bonus of upto $500k based on completion of deliverables. 70% of the total fee will be in aUSDC and 30% in AAVE. Note that the bonus payment is not included in this proposal but will be included in a separate proposal towards the end of our 12-month period.\n\nWe will provide regular updates on the forum with details of our work and will solicit feedback from the community to ensure we continue to uphold the commitments outlined in our forum post. Towards the end of the 12-month period, a renewal proposal will be shared with Aave governance.\n\n## Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Llama Github [here](https://github.com/llama-community/aave-llama-proposal).\n\nIn summary, the proposal:\n1. Transfers upfront 350,000 aUSDC ($0.35 Million) to the Llama-controlled address.\n2. Transfers upfront 1,813.68 AAVE ($0.15 Million using 30 day TWAP on day of proposal) to the Llama-controlled address.\n3. Creates a 12-month stream of 700,000 aUSDC ($0.7 Million) to the Llama-controlled address.\n4. Creates a 12-month stream of 3,627.35 AAVE ($0.3 Million using 30 day TWAP on day of proposal) to the Llama-controlled address.\n\n## Test Cases\n\nThe Proposal Payload has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs), including simulations on mainnet of the whole proposal lifecycle.\n\nLink to Test Cases: [Here](https://github.com/llama-community/aave-llama-proposal/blob/main/src/test/ProposalPayload.t.sol)\n\n## Implementation\n\nLink to Payload Implementation: [Here](https://github.com/llama-community/aave-llama-proposal/blob/main/src/ProposalPayload.sol)\n\n**Deployed Contracts**\nProposalPayload = [0xbDd286d4b9BfbD10319f3FCd1c76e9ECA12a80Ee](https://etherscan.io/address/0xbdd286d4b9bfbd10319f3fcd1c76e9eca12a80ee)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "4A7DEC60B007-AIP-AAVE-LLAMA"
  },
  "4B301050BD35-AIP-ADD-STMATIC-TO-AAVE-V3-POLYGON": {
    "title": "Add stMATIC to Aave v3 pool on Polygon",
    "status": "Proposed",
    "author": "Llama (@llama), Matthew Graham (@Matthew_Graham_), Rajath Alex (@0xrajath)",
    "shortDescription": "Add stMATIC to Aave v3 pool on Polygon",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-stmatic-lido/7677",
    "created": "2022-09-01T00:00:00.000Z",
    "preview": "# Simple Summary\n\nLlama proposes listing stMATIC on the Aave v3 …",
    "content": "\n\n# Simple Summary\n\nLlama proposes listing stMATIC on the Aave v3 Polygon pool. stMATIC is an ERC20 token that represents the account’s share of the total supply of MATIC tokens inside the Lido system. \n\n# Abstract\n\nLido is a DAO governed liquid staking protocol for the Polygon PoS chain. It allows users to stake their MATIC tokens on the Ethereum mainnet and immediately get the representation of their share in the form of stMATIC token without maintaining staking infrastructure. Users will receive staking rewards whilst being able to utilize their stMATIC tokens in secondary pools on Ethereum mainnet and Polygon.\n\nListing stMATIC as collateral will enable depositors to borrow funds against stMATIC. In addition, a special 'MATIC correlated' eMode will be created for just stMATIC and wMATIC, a $7.5M Supply Cap will be set and borrowing disabled to manage the risk exposure with this asset listing.\n\n# Motivation\n\nListing stMATIC on the Aave v3 pool would allow Aave DAO to benefit from the first mover advantage and hopefully in time replicate the success of the stETH listing which has generated $1.38B in TVL on the Ethereum Aave v2 pool. \n\nAs with the stETH listing on Ethereum Aave v2 pool, we expect stMATIC to stimulate demand for wMATIC and other assets. With the introduction of eMode on Aave v3, we expect the recursive stMATIC and wMATIC loop to create a significant source of yield for Users. \n\n## Specification\n\nIn supporting the stMATIC asset listing, this proposal creates a pool that reflects the characteristics shown below and connects the Chainlink oracle price source to AaveOracle.\n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\nThis proposal has been tested and peer reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs).\n\nLink to Test Cases: [Here](https://github.com/llama-community/aave-v3-crosschain-stmatic-listing/blob/master/src/test/PolygonStMaticE2E.t.sol)\n\n## Implementation\n\nLlama recommends the following parameter configuration upon listing stMATIC.\n\nRisk Parameters:\n\nCollateral: Yes\nBorrowing: No\nLTV: 50%\nLiquidation Threshold: 65%\nLiquidation Bonus: 10%\nReserve Factor: 20%\nChainlink Oracle: [0x97371dF4492605486e23Da797fA68e55Fc38a13f](https://polygonscan.com/address/0x97371dF4492605486e23Da797fA68e55Fc38a13f)\n\nVariable Interest Rate Parameters:\n\nUOptimal: 45%\nR_0: 0%\nR_s1: 7%\nR_s2: 300%\n\n'MATIC correlated' eMode Parameters:\n\nLTV: 92.5%\nLiquidation Threshold: 95%\nLiquidation Bonus: 1%\n \nSupply / Borrow Caps:\n\nNewSupplyCap: $7.5m stMATIC\n\nThe governance forum proposal discussing Add stMATIC on Aave v3 Polygon pool can be found [here](https://governance.aave.com/t/proposal-add-support-for-stmatic-lido/7677) and the snapshot vote can be found [here](https://snapshot.org/#/aave.eth/proposal/0xc8646abba01becf81ad32bf4adf48f723a31483dc4dedc773bbb6e3954c3990f). \n\nLink to Payload Implementation: [Here](https://github.com/llama-community/aave-v3-crosschain-stmatic-listing/blob/master/src/contracts/polygon/StMaticPayload.sol)\n\n**Deployed Contracts**\nProposalPayload = [0xc730008C64783a283988b0fA3b5eE6b6F997922A](https://polygonscan.com/address/0xc730008C64783a283988b0fA3b5eE6b6F997922A)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "4B301050BD35-AIP-ADD-STMATIC-TO-AAVE-V3-POLYGON"
  },
  "4C7076AA6CC7-AIP-FIREBLOCKS-WHITELISTER-ON-AAVE-ARC": {
    "title": "Add Fireblocks as a whitelister on Aave Arc",
    "status": "Proposed",
    "author": "Idan Ofrat (@idan-fb)",
    "shortDescription": "Proposal to add Fireblocks LLC, a Fireblocks company, as a “whitelister” on the Aave Arc market.",
    "discussions": "https://governance.aave.com/t/add-fireblocks-as-a-whitelister-on-aave-arc/5753",
    "created": "2021-10-02T00:00:00.000Z",
    "preview": "## Simple Summary\n\nFireblocks asks the Aave Governance community to …",
    "content": "\n\n## Simple Summary\n\nFireblocks asks the Aave Governance community to approve the appointment, adoption, and authorization of Fireblocks LLC, a Fireblocks company, as a “whitelister” on the Aave Arc market.\n\n## Abstract\n\nAave Arc is a “permissioned” version of the software underlying V2 of the Aave protocol that employs an additional smart contract layer to only allow “whitelisted” or “permissioned” users to engage with the protocol.\n\nOnly regulated entities that (a) employ KYC/KYB principles in accordance with FATF guidelines to identify and accept their clients; (b) have robust AML/CFT compliance programs; and (c) are currently in good standing with an active license/registration in the entity’s operating jurisdiction will be accepted as “whitelisters” on Aave Arc.\n\nWe believe that Fireblocks LLC, a Fireblocks company, satisfies all the qualification requirements to be a whitelister. We have performed a detailed analysis and documented it [here](https://governance.aave.com/t/add-fireblocks-as-a-whitelister-on-aave-arc/5753) for the consideration of the Aave Governance community.\n\n## Motivation\n\nDeFi is considered by institutional users to be one of the more complex markets to navigate across security, compliance, and risk perspectives. We are eager to be at the forefront of this transformational opportunity with Aave Arc by extending access to even our most compliance-conscious customers, who have been searching to engage with DeFi in a way that comports with their own internal requirements.\n\nApproval of Fireblocks LLC can potentially also facilitate the integration of other “whitelisters” and institutions into instances of the Aave protocol. This may have multiple benefits, including the creation of sustainable governance practices for Aave Arc whitelisters and whitelister customers, as well as the enablement of benefits to the ecosystem, such as the onboarding of regulated fiat on/off ramps and protocol deployments connected to debit cards, high yield savings accounts and other innovative fintech products.\n\n## Specification\n\n“Whitelisting” is the gatekeeping function performed by whitelisters on users of Aave Arc. The term refers specifically to the process of:\n1. Conducting KYC/KYB checks on the user;\n2. Onboarding the user with appropriate disclosures, terms, and conditions;\n3. Granting specific permissions (e.g., borrow, supply, liquidate) to the Ethereum wallet address(es) provided by the user.\n\nIn addition, Aave Arc whitelisters perform a similar role on Arc as guardians do on Aave V2. Specifically, whitelisters can use a multi-sig veto on governance proposals that add excessive compliance risk on the Aave Arc protocol. For example, existing whitelisters can veto the addition of a privacy coin if such a coin is impermissible in the relevant jurisdiction, or veto the addition of a whitelister that has a poor reputation for compliance.\n\nThe whitelisting is managed via a [PermissionManager](https://etherscan.io/address/0xF4a1F5fEA79C3609514A417425971FadC10eCfBE) contract, in which whitelisters are designated as Permission Admins.  Permission Admins are permitted to add or remove wallets grants to the Aave Arc market by calling `addPermissions()` and `removePermissions()` contract methods, respectively. \n\n## Rationale\n\nThe Aave community voted on the [Snapshot proposal](https://snapshot.org/#/aave.eth/proposal/QmYQEh4vstJADjSK2b8nyK1otFG6R4rh9VHszU5xUEw26S) with Yes 149.2k AAVE (98.33%) and No 2.54k AAVE (1.67%).\n\n## Test Cases\n\nTest cases for an implementation are mandatory for AIPs but can be included with the implementation.\n\n## Implementation\n### Proposal\n\nExecutes the proposal deployed at:\n\n[https://etherscan.io/address/0xA7fC6E204c2069edb0ed5Fed451F419B985eC416#code](https://etherscan.io/address/0xA7fC6E204c2069edb0ed5Fed451F419B985eC416#code)\n\nThe proposal executes the following:\n- Adds [Fireblocks](https://etherscan.io/address/0x686a12A79008246F4dF2f1Ea30d136BD6DE748B4) as Permission Admin by calling addPermissionAdmins` on the [PermissionManager](https://etherscan.io/address/0xF4a1F5fEA79C3609514A417425971FadC10eCfBE) contract.\n\n`IPermissionManager(0xF4a1F5fEA79C3609514A417425971FadC10eCfBE).addPermissionAdmins([0x686a12A79008246F4dF2f1Ea30d136BD6DE748B4]);`\n\n- Unpause the pool by calling setPoolPause on the [LendingPoolConfigurator](https://etherscan.io/address/0x4e1c7865e7BE78A7748724Fa0409e88dc14E67aA) contract.\n\n`ILendingPoolConfigurator(0x4e1c7865e7BE78A7748724Fa0409e88dc14E67aA).setPoolPause(false);`\n\n- Transfers the EmergencyAdmin role of the system to the [ArcTimelock's Veto DAO](https://etherscan.io/address/0x33B09130b035d6D7e57d76fEa0873d9545FA7557).\n\n`provider.setEmergencyAdmin(ARC_TIMELOCK_VETO_DAO_ADDRESS);`\n\n- Transfers ownership of the system to the [ARC Market Multisig](https://etherscan.io/address/0x23c155C1c1ecB18a86921Da29802292f1d282c68) temporarily until handed over to Aave Governance.\n\n`provider.transferOwnership(ARC_MARKET_MULTISIG_ADDRESS);`\n\n### Aave Arc Timelock\n\nAave Arc Timelock gives a guardian address the opportunity to cancel an approved governance action prior to its execution.\nThe timelock implementation can be found [here](https://github.com/aave/arc-timelock).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "4C7076AA6CC7-AIP-FIREBLOCKS-WHITELISTER-ON-AAVE-ARC"
  },
  "541C8BE22C02-AIP-AAVE_STARKNET_PHASE_I_PART2": {
    "title": "Aave <> Starknet - Phase I (Part 2)",
    "status": "Proposed",
    "author": "Ernesto Boado (@eboadom)",
    "shortDescription": "Requests for the second scheduled payment on Aave <> Starknet Phase I",
    "discussions": "https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145#payments-8",
    "created": "2022-07-01T00:00:00.000Z",
    "preview": "## Simple Summary\n\nAave <> Starknet Phase I was approved by the Aave …",
    "content": "\n\n## Simple Summary\n\nAave <> Starknet Phase I was approved by the Aave community with 2 payment tranches. This proposal releases the second payment tranche of 92'500 USDC.\n\n## Abstract\n\nBack in February 26th, the Aave community approved both on [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x56eb24ad5e2811990899653155caee022a80f3800e51b2b37ecc9254a0a51335) and [on-chain governance](https://app.aave.com/governance/proposal/61/) the execution of the Aave <> Starknet Phase I project, with a planned budget of 192'500 USD to be released from the Aave DAO.\n\nWith the project almost ready for delivery as described in the last update [HERE](https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145/20), it is the moment now to request for the release of the second tranche of payment, accounting for 92'500 USDC and to be used to cover the rest of expenses of the project.\n\n## Relevant links\n\n- Thread of the Aave <> Starknet Phase I project: [https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145](https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145)\n\n- Definition of payment schedule: [https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145#payments-8](https://governance.aave.com/t/request-for-approval-aave-starkware-phase-i/7145#payments-8)\n\n- Snapshot approval of the project: [https://snapshot.org/#/aave.eth/proposal/0x56eb24ad5e2811990899653155caee022a80f3800e51b2b37ecc9254a0a51335](https://snapshot.org/#/aave.eth/proposal/0x56eb24ad5e2811990899653155caee022a80f3800e51b2b37ecc9254a0a51335)\n\n- On-chain governance approval of the project: [https://app.aave.com/governance/proposal/61/](https://app.aave.com/governance/proposal/61/)\n\n## Implementation\n\nThis proposal exclusively releases 92'500 USDC from the Aave V2 Ethereum collector, to the account receiving the funds on behalf of the Aave <> Starknet project.\n\nThe implementation can be found on [https://github.com/eboadom/aip-aave-starknet-phase1-part2/blob/main/src/contracts/PayloadAaveStarknetPhaseIPart2.sol](https://github.com/eboadom/aip-aave-starknet-phase1-part2/blob/main/src/contracts/PayloadAaveStarknetPhaseIPart2.sol)\n\nSimple tests can be found on [https://github.com/eboadom/aip-aave-starknet-phase1-part2/blob/main/test/PayloadAaveStarknetPhaseIPart2.t.sol](https://github.com/eboadom/aip-aave-starknet-phase1-part2/blob/main/test/PayloadAaveStarknetPhaseIPart2.t.sol)\n\n**Target Contracts**\n\nPayloadAaveStarknetPhaseIPart2 = [https://etherscan.io/address/0x0e06e1618e11ae602539b8d70fb6b611272d8a71#code](\nhttps://etherscan.io/address/0x0e06e1618e11ae602539b8d70fb6b611272d8a71#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "541C8BE22C02-AIP-AAVE_STARKNET_PHASE_I_PART2"
  },
  "656A6D889F89-AIP-GOV-LVL2-EXECUTOR-PROPOSAL": {
    "title": "Adjust Aave Governance Level 2 requirements",
    "status": "Proposed",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Activate a new Aave Governance Level 2 Executor with new requirements",
    "discussions": "https://governance.aave.com/t/rfc-aave-governance-adjust-level-2-requirements-long-executor/8693",
    "created": "2022-09-16T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal updates the governance parameters …",
    "content": "\n\n## Simple Summary\n\nThis proposal updates the governance parameters (voting/proposition requirements) of the Level 2 Executor smart contract on the Aave Governance v2.\n\n## Motivation\nAll context/motivation of this proposal is extensively explained on the [Aave Governance forum thread](https://governance.aave.com/t/rfc-aave-governance-adjust-level-2-requirements-long-executor/8693)\n\n## Specification\nThis proposal upgrades Level 2 requirements the following way:\n\n- Quorum of Level 2 Executor changes from 20% to 6.5%\n- Vote differential of Level 2 Executor changes from 15% to 6.5%\n- Proposition power required for Level 2 proposal changes from 2% to 1.25%.\n- A delay of 7200 blocks is added between proposal creation and vote start. 1 day considering 12 seconds/block.\n\nThese updates are applied in practice by whitelisting on the Aave Governance v2 a newly deployed Executor smart contract.\n\nAs the current Level 2 Executor holds permissions of the Aave ecosystem, this proposal also migrates them from the old Executor to the new one; permissions being:\n\n- Ownership of the Aave Governance v2 smart contract.\n- Proxy admin of the AAVE token smart contract.\n- Proxy admin of stkAAVE (Safety Module).\n\nThis proposal also migrates the Proxy admin of ABPT and stkABPT to the [Short Executor](https://etherscan.io/address/0xEE56e2B3D491590B5b31738cC34d5232F378a8D5) as they don't have influence on the Aave Governance\n\n**This proposal will be created via a fully decentralized smart contract (so-called Autonomous Proposal)**\n\n## Security\n\n- An extensive suite of tests can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/test)\n\n- We have executed a diff between the current [Level 2 Executor](https://etherscan.io/address/0x61910ecd7e8e942136ce7fe7943f956cea1cc2f7#code) and the new Executor, to verify that the changes are exclusively the ones expected. The diff can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/diffs/Executor-diff.md).\n\n- In order to properly verify that all permissions are transferred to the new Executor, we did a verification procedure described [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/Analysis%20of%20Level%202%20executor%20permissions.md)\n\n- SigmaPrime has audited the changes, and implemented an [independent test suite](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/audits/sigmap/tests), complementary to BGD's. The audit report can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/sigmap/SigmaPrime.md).\n\n- Certora has reviewed the changes, and implemented an [independent test suite](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/certora/specs/executor.spec), complementary to BGD's. The audit report can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/certora/report/Security%20Review%20of%20Aave%20Governance%20V2%20Update.pdf)\n\n## Implementation\n\nSmart contracts can be found [here](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/src/contracts). Especifically for what concerns this proposal:\n\n- New Executor [https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/Executor.sol](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/Executor.sol)\n- Proposal payload [https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/ProposalPayloadNewLongExecutor.sol](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/ProposalPayloadNewLongExecutor.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "656A6D889F89-AIP-GOV-LVL2-EXECUTOR-PROPOSAL"
  },
  "720A45A31DA6-AIP-ADD-1INCH-TO-AAVE-V2": {
    "title": "Add 1INCH to Aave v2 market",
    "status": "Proposed",
    "author": "Governance House - [Llama](https://twitter.com/llama), [Matthew Graham](https://twitter.com/Matthew_Graham_), [defijesus.eth](https://twitter.com/eldefijesus)",
    "shortDescription": "Add 1INCH as collateral on the Aave V2 market",
    "discussions": "https://governance.aave.com/t/arc-add-1inch-as-collateral/8056",
    "created": "2022-07-18T00:00:00.000Z",
    "preview": "## Simple Summary\n\nLlama proposes listing 1INCH, the governance …",
    "content": "\n\n\n## Simple Summary\n\nLlama proposes listing 1INCH, the governance token of the 1inch Network, on Aave v2 mainnet as collateral with borrowing enabled. The risk parameters detailed within have been provided by Gauntlet. \n\n## Abstract\n\n1inch is a network of decentralized protocols designed to provide the fastest and most efficient operations in the DeFi space. The 1inch Network was launched in May 2019 with the release of its Aggregation Protocol v1. The 1inch Aggregation Protocol is both the oldest and most trusted DEX aggregator in the DeFi space.\n\nListing 1INCH on Aave v2 will enable lenders to receive yield and borrowers of 1INCH to partake in 1inch’s tokenomics to vote and be reimbursed their gas cost to perform swaps on 1inch’s Aggregation Platform.\n\n## Motivation\n\nListing 1INCH on the Aave v2 market would allow Aave to benefit from the first mover advantage and recognise the efforts of the 1inch team for being supportive of Aave since before v1.  \n\nSince the original proposal to list 1INCH the team has removed minting roles on the token, introduced a progressive vesting schedule and created use cases for aTokens. The 1INCH token is supported by a Chainlink oracle feed and has favourable on-chain liquidity conditions.\n\n## Specification\n\nThis proposal initializes the 1INCH reserve, enables variable borrowing, sets a reserve factor and configures the reserve as collateral. As needed, it also connects a price source on the AaveOracle.\n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\nLink to Test Cases: [End-to-end test suite](https://github.com/defijesus/bdg-labs-aave-v2-listings/blob/master/src/test/Validation1InchListing.sol), [aToken/stableDebtToken/variableDebtToken verification](https://github.com/defijesus/bdg-labs-aave-v2-listings/tree/master/diffs), [deployment script](https://github.com/defijesus/bdg-labs-aave-v2-listings/blob/master/scripts/1InchListingPayload.s.sol)\n\n## Implementation\n\nWe recommend the following risk parameters.\n\n### Risk Parameters:\n\nLTV 40%\n\nLiquidation Threshold 50%\n\nLiquidation Bonus 8.5%\n\nReserve Factor 20%\n\n### Variable Interest Rate Parameters:\n\nUOptimal 45%\n\nR_0 0%\n\nR_s1 7%\n\nR_s2 300%\n\n\nThe snapshot vote to add 1INCH on Aave v2 mainnet market can be found [here](https://snapshot.org/#/aave.eth/proposal/0x2ea76814a0dfcad7ea1a7b3c597f059a8d574f8143886b23043918998505f5a7).  \n\n\n- [ProposalPayload](https://etherscan.io/address/0xd417d07c20e31f6e129fa68182054b641fbec8bd#code)\n- [aINCH implementation](https://etherscan.io/address/0x130FBED7dBA2b370f0F93b0Caea2cfD9b811D66D#code)\n- [Variable Debt 1INCH implementation](https://etherscan.io/address/0x4d3707566Ee8a0ed6DE424a262050C7587da8152#code)\n- [Stable Debt 1INCH implementation](https://etherscan.io/address/0x9C2114Bf70774C36E9b8d6c790c9C14FF0d6799E#code)\n- [Interest rate strategy](https://etherscan.io/address/0xb2eD1eCE1c13455Ce9299d35D3B00358529f3Dc8#code) \n- [1INCH/ETH price feed](https://etherscan.io/address/0x72AFAECF99C9d9C8215fF44C77B94B99C28741e8#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "720A45A31DA6-AIP-ADD-1INCH-TO-AAVE-V2"
  },
  "7896B42652EF-AIP-RENEW-ALLOWANCE-AAVE-SM": {
    "title": "Renew allowance of the Aave Safety Module",
    "status": "Proposed",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Increase allowance of AAVE from the Ecosystem's Reserve to stkAAVE and stkABPT",
    "discussions": "N/A",
    "created": "2022-06-10T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal aims to extend the allowance of …",
    "content": "\n\n## Simple Summary\n\nThis proposal aims to extend the allowance of AAVE for safety incentives on the Aave Safety Module for two years at the current emission, pending eventual review of the emission rate by the community.\n\n## Abstract\n\nThis proposal extends the ability for the Safety Module contracts (stkAAVE and stkABPT) to transfer the AAVE rewards out of the Aave Ecosystem's Reserve for the next two years onwards (401'500 AAVE each; 802'300 AAVE in total).\n\nDoing so will allow the technical continuation of the safety incentives for at least two years, but submitted to any change of the community at any moment, as this proposal doesn't modify the emission per second currently configured.\n\nThis continues the strategy for which changing the emission requires an on demand emission review when the community deems necessary. Only one yearly review will be required.\n**This update represents a purely technical update to allow the continuation of the incentives and to stackers that have rewards left to claim to receive their incentives.**\n\n## Relevant links\n\n- AIP-19 postponing the end of safety incentives: [https://app.aave.com/governance/14-QmTYMox4aBpyQH53LwMzTuJY2z7Df7ANUSakeeeWWUoXmJ](https://app.aave.com/governance/14-QmTYMox4aBpyQH53LwMzTuJY2z7Df7ANUSakeeeWWUoXmJ)\n- Aavenomics : [https://docs.aave.com/aavenomics/](https://docs.aave.com/aavenomics/)\n\n## Implementation\n\nThis proposal exclusively increases the allowance of AAVE from the AAVE Ecosystem's reserve (owner) to stkAAVE and stkABPT (spenders).\nIn order to comply with the requirements of the Controller of the Reserve, there is a previous reset of allowance to 0, before the increase.\n\n**Target Contracts**\n\nAllowanceRenewalSMPayload = [https://etherscan.io/address/0x83fba23163662149b33dbc05cf1312df6dcba72b#code](\nhttps://etherscan.io/address/0x83fba23163662149b33dbc05cf1312df6dcba72b#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "7896B42652EF-AIP-RENEW-ALLOWANCE-AAVE-SM"
  },
  "7CDA90A3999E-AIP-REDEEM-AFEI-FOR-DAI": {
    "title": "Ethereum v2 Reserve Factor - aFEI Holding Update",
    "status": "Proposed",
    "author": "Llama, Matthew Graham, defijesus",
    "shortDescription": "Redeem aFEI for aDAI",
    "discussions": "https://governance.aave.com/t/arc-ethereum-v2-reserve-factor-afei-holding-update/9401",
    "created": "2022-09-28T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis proposal proposes unwinding the aFEI holding …",
    "content": "\n\n# Simple Summary\n\nThis proposal proposes unwinding the aFEI holding for DAI and depositing the DAI into the Aave v2 Ethereum Pool DAI Reserve.\n\n# Abstract\n\nDue to recent events within the Tribe DAO community, the FEI stablecoin is being removed from circulation. This proposal details how Aave DAO will enable anyone with an EOA to convert the DAO’s aFEI holding to an aDAI holding. \n\nBased upon available FEI liquidity in the FEI Reserve, Aave DAO’s aFEI will be redeemed for FEI, swapped for DAI, and then deposited into the DAI Reserve on Ethereum. The Reserve Factor will transition from holding aFEI to aDAI over time.  \n\n# Motivation\n\nAave DAO is currently holding 94.3% (624,866.75 units) of aFEI supply while there are only 80,069.50 units of FEI in the FEI Reserve available for redeeming aFEI to FEI, [2]. \n\nThe Reserve currently supports 662,518.93 units of aFEI, with 582,449.43 units of debt and 80,069.50 units available for lenders to redeem their collateral from or for users to borrow, [3,4]. Any user seeking to claim 80,069.50 units or less is able to do so now, but this may change as others start redeeming aFEI. \n\nMigrating Aave’s aFEI holding in the Reserve Factor to aDAI can not be performed in a single transaction and therefore must occur gradually over time as FEI liquidity becomes available.\n\n# Specification\n\nThe below provides a broad, high level summary of how any EOA calling the `swapAllAvailable` function from the Swapper contract will convert aFEI to aDAI. \n\nThe contract determines the maximum amount of aFEI to be redeemed by assessing the amount of aFEI held in the Reserve Factor and the amount FEI in the FEI Reserve. The lower of the two amounts will be used to redeem aFEI to FEI.\n\nAll FEI held within the Reserve Factor will then be swapped for DAI via Tribe DAO’s SimpleFeiDaiPSM. There are no fees, the exchange rate is fixed at 1:1 (Example: unwrapping wETH to ETH), and there is around $57.4 Million of liquidity at the time of writing, [1]. \n\nDAI is then deposited into the DAI Reserve and the Ethereum Reserve Factor will receive aDAI.\n\n# Test Cases\n\nThis proposal has been tested and peer reviewed by Bored Ghost Developing, [5].\n\nTest cases, payload, and Swapper can be found at reference [6], [7] & [8] respectively.\n\n## Implementation\n\nThe governance payload is deployed at [9], the Swapper contract is deployed at [10].\n\nThe payload gives the Swapper aFEI max allowance from the Aave Ethereum Reserve Factor and calls the `swapAllAvailable` function on the Swapper.\n\nWhen called, Swapper transfers all possible aFEI from the Aave Ethereum Reserve Factor ([0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c](https://etherscan.io/address/0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c)) to the payload contract via the Aave Ecosystem Controller ([0x3d569673dAa0575c936c7c67c4E6AedA69CC630C](https://etherscan.io/address/0x3d569673dAa0575c936c7c67c4E6AedA69CC630C)) transfer function.\n\nThe proposal redeems aFEI for FEI via the FEI Reserve ([0x7d2768dE32b0b80b7a3454c06BdAc94A69DDc7A9](https://etherscan.io/address/0x7d2768dE32b0b80b7a3454c06BdAc94A69DDc7A9)).\n\nThe proposal redeems all available FEI for DAI via the Tribe DAO Fixed Price PSM ([0x2A188F9EB761F70ECEa083bA6c2A40145078dfc2](https://etherscan.io/address/0x2A188F9EB761F70ECEa083bA6c2A40145078dfc2)), depositing all DAI in the Aave V2 Ethereum DAI Reserve with the Aave Ethereum Reserve Factor ([0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c](0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c)) as the beneficiary.\n\n# References\n\n1. [https://etherscan.io/address/0x7842186cdd11270c4af8c0a99a5e0589c7f249ce#code](https://etherscan.io/address/0x7842186cdd11270c4af8c0a99a5e0589c7f249ce#code)\n2. [https://etherscan.io/token/0x683923db55fead99a79fa01a27eec3cb19679cc3#balances](https://etherscan.io/token/0x683923db55fead99a79fa01a27eec3cb19679cc3#balances)\n3. [https://etherscan.io/address/0x683923db55fead99a79fa01a27eec3cb19679cc3](https://etherscan.io/address/0x683923db55fead99a79fa01a27eec3cb19679cc3)\n4. [https://tribe.fei.money/t/tip-121-proposal-for-the-future-of-the-tribe-dao/4475](https://tribe.fei.money/t/tip-121-proposal-for-the-future-of-the-tribe-dao/4475)\n5. [https://twitter.com/bgdlabs](https://twitter.com/bgdlabs)\n6. [https://github.com/llama-community/aave-redeem-fei/blob/main/src/test/ValidateRedeemFei.sol](https://github.com/llama-community/aave-redeem-fei/blob/main/src/test/ValidateRedeemFei.sol)\n7. [https://github.com/llama-community/aave-redeem-fei/blob/main/src/RedeemFei.sol](https://github.com/llama-community/aave-redeem-fei/blob/main/src/RedeemFei.sol)\n8. [https://github.com/llama-community/aave-redeem-fei/blob/main/src/AFeiToDaiSwapper.sol](https://github.com/llama-community/aave-redeem-fei/blob/main/src/AFeiToDaiSwapper.sol)\n9. [https://etherscan.io/address/0x8dfd2255a9d38c182a14f49afcb8a4a4763c6098#code](https://etherscan.io/address/0x8dfd2255a9d38c182a14f49afcb8a4a4763c6098#code)\n10. [https://etherscan.io/address/0x9a953ac1090c7014d00fd205d89c6ba1c219af8b#code](https://etherscan.io/address/0x9a953ac1090c7014d00fd205d89c6ba1c219af8b#code)\n\n# Copyright\n\nCopyright and related rights waived via CC0.\n",
    "basename": "7CDA90A3999E-AIP-REDEEM-AFEI-FOR-DAI"
  },
  "7CFFAE5FB3C0-AIP-ADD_LUSD_TO_AAVE_V2": {
    "title": "Add LUSD to Aave V2",
    "status": "Proposed",
    "author": "ßingen (@bingen)",
    "shortDescription": "List LUSD as borrowing asset on the Aave V2 pool",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-lusd-liquity/8443",
    "created": "2022-08-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\nAdd LUSD as a borrowable asset on Aave (0% LTV), …",
    "content": "\n\n## Simple Summary\n\nAdd LUSD as a borrowable asset on Aave (0% LTV), helping the protocol diversify its stablecoin offering away from centralized stablecoins.\n\n## Abstract\n\nLUSD is stablecoin minted directly by the protocol users by opening a Trove and depositing ETH as collateral. Loans are interest-free, with a 0.5% base initiation fee. All the contracts of the Liquity protocol are immutable, which makes LUSD the most trustless stablecoin currently available on the Ethereum mainnet.\n\nLUSD is overcollateralized by ETH with two main mechanisms helping it keep its peg: first, LUSD can be redeemed for ETH at face value (i.e., 1 LUSD for $1 of ETH). Secondly, there is a minimal collateral ratio of 110%. Both mechanisms respectively create a price floor and ceiling through arbitrage opportunities.\n\nSince the protocol is immutable, no additional developments are planned, yet the Liquity team is working on another project that will prove synergetic with LUSD.\n\nLUSD’s resilience makes it a highly sought-after stablecoin for DAOs and protocols looking to diversify their treasury and users looking for cost-effective leverage on ETH. The current focus is to grow the DeFi ecosystem around LUSD to enable more diverse use cases.\n\n## Motivation\n\nMost of the stablecoins available for borrowing on Aave are centralized or relying heavily on centralized collateral, apart from FEI, sUSD and RAI. Adding LUSD as a borrowable asset on Aave would enable the protocol to further diversify away from centralized stablecoins.\n\n## Specification\n\nThis proposal initialises the LUSD reserve, enables variable borrowing and sets a reserve factor. As needed, it also connects a price source on the AaveOracle.\n\n## Rationale\n\nLUSD will be added as a borrowable asset only (0% LTV) to ensure the safest onboarding possible. If the demand for borrowing is sufficient, the LTV could later be raised and once mainnet v3 is available, efficiency mode could also be enabled. \n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\nLink to Test Cases: [End-to-end test suite](https://github.com/liquity/example-aave-v2-listing/blob/master/src/test/ValidationLUSDListing.sol)\n\n## Implementation\n\n- [LUSDListingPayload](https://etherscan.io/address/0xe0070f7a961dcb102e3d904a170613be3f3b37a9)\n- [aLUSD implementation](https://etherscan.io/address/0x893E606358205AD994e610ad48e8aEF98aEadDbe)\n- [Variable Debt LUSD implementation](https://etherscan.io/address/0xEB1cfEF24F5B9d287F702AC6EbD301E606936B54)\n- [Stable Debt LUSD implementation](https://etherscan.io/address/0x595c33538215DC4B092F35Afc85d904631263f4F)\n- [Interest rate strategy for LUSD](https://etherscan.io/address/0x545Ae1908B6F12e91E03B1DEC4F2e06D0570fE1b)\n- [LusdUsdToLusdEth price feed](https://etherscan.io/address/0x60c0b047133f696334a2b7f68af0b49d2F3D4F72)\n- [LUSD token](https://etherscan.io/address/0x5f98805A4E8be255a32880FDeC7F6728C6568bA0)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "7CFFAE5FB3C0-AIP-ADD_LUSD_TO_AAVE_V2"
  },
  "8E70B487F248-AIP-CONSOLIDATE-RESERVE-FACTORS-ENABLE-DPI": {
    "title": "Consolidate Reserve Factors and Enable Borrowing DPI",
    "status": "Proposed",
    "author": "Llama - Matthew Graham (@Matthew_Graham_), Dydymoon (@dydymoon1), Austin Green (@AustinGreen), Noah Citron (@NoahCitron)",
    "shortDescription": "Consolidate Aave Mainnet V1 and V2 Reserve Factors and Enable Borrowing DPI",
    "discussions": "https://governance.aave.com/t/arc-consolidate-aave-v1-v2-amm-reserve-factors-purchase-cvx-and-deploy-to-earn-yield/6797",
    "created": "2022-05-30T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis is a copy of [Proposal …",
    "content": "\n\n## Simple Summary\n\nThis is a copy of [Proposal 76](https://app.aave.com/governance/proposal/76/) ([IPFS](https://gateway.pinata.cloud/ipfs/QmaqqGyP76hDi5ywqSoF5r63jVrG7TdZVNzcm8Zdwa4PeM)). It expired before execution so we need to re-propose it to the Aave community.\n\nThis AIP is the combination of two ARCs presented on the Aave Governance Forum. This proposal performs the initial step of the [Llama treasury management strategy](https://governance.aave.com/t/arc-consolidate-aave-v1-v2-amm-reserve-factors-purchase-cvx-and-deploy-to-earn-yield/6797) and also includes [Index Coop’s enable borrowing of DPI](https://governance.aave.com/t/arc-enable-borrowing-of-dpi-on-aave-markets/6976) proposal. \n\nThe Llama proposal entails re-routing the current and future revenue from the mainnet V1 Reserve Factor to the mainnet V2 Reserve Factor. The Index Coop proposal re-enables users to borrow DPI after it was disable by [AIP-44](https://app.aave.com/#/governance/44-QmNVWrrm3ieyRRVD4f77zdxrvSUj1W4HDCojLKNcxmVQhr). \n\n## Abstract\n\nThe Llama Community recommends consolidating revenue earned on all Aave markets on mainnet into a single Reserve Factor (RF). This proposal consolidates past and future Aave mainnet V1 market revenue into the mainnet V2 RF. In the future, other aspects of the Llama treasury management proposal will be implemented through separate AIPs.\n\nThis proposal is broken into two parts, the second part is to enable borrowing of DPI. The borrowing of DPI was disabled via [AIP-44](https://app.aave.com/#/governance/44-QmNVWrrm3ieyRRVD4f77zdxrvSUj1W4HDCojLKNcxmVQhr) along with xSUSHI. Shortly after enacting AIP-44, DPI was found to be safe. This proposal is to reinstate DPI as an asset that can be borrowed on the Aave markets.\n\n## Motivation\n\n### Part A - Consolidate Aave Mainnet V1and V2 Reserve Factors\n\nThe legacy V1 market continues to generate mostly flash loan fee revenue and this has slowed down in recent times. There is only ~$102.7M of TVL remaining in the V1 market, and at the rate of which revenue is generated is expected to continue declining as more and more users move to V2 or V3 over time. \n\nThis proposal recommends consolidating the Aave V1, V2, and AMM market revenue into a single location before deploying the capital to earn additional yield. The V1 RF holds around [~$435K](https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae) of assets at the time of writing, whereas the Ethereum V2 + AMM market holds [$26.88M](https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c) of assets. Consolidating the RF balance would increase the mainnet treasury to around $27.32M.\n\n## Specification\n\n### Part A - Consolidate Aave Mainnet V1 and V2 Reserve Factors\n\nWithin this proposal, the assets held with the Aave mainnet V1 RF are to be transferred to the Aave mainnet V2 RF. All future revenue from the V1 deployment will now automatically accrue in the V2 RF upon implementation of this proposal. Post implementation of this proposal, the V1 RF is not expected to accrue any future revenue.\n\nA detailed breakdown of the consolidated constituents can be found on the [Aave Treasury Finances by Llama Dune Dashboard](https://dune.com/llama/Aave-Treasury-Finances-by-Llama?Trailing%20Num%20Time-Series=60).\n\n### Part B - Enable Borrowing DPI\n\nThe recommendation is to enable borrowing and although there are a number of extrinsic use cases for DPI emerging, starting with a utilisation rate of 45%. For Variable Interest Rate parameters, a Base of 0, Slope 1 of 7% and Slope 2 of 300% was selected which is similar to the constituents within DPI. At this point in time, there is no ask for Stable Interest Rate borrowing. \n\nThe details outlining the original specification for listing DPI can be found here, [AIP-31](https://app.aave.com/#/governance/27-Qme2d9yZ81j3JkQ4ecr7BSZv4Rvh5NyU36um48f5S75CQG). For any additional information see Index Coop’s website: https://www.indexcoop.com/dpi.\n\n## Test Cases\n\nThe full test of this proposal can be found here: https://github.com/llama-community/refactor-aave-rf/\n\n## Implementation\n\nAave mainnet V1 Reserve Factor: `0xE3d9988F676457123C5fD01297605efdD0Cba1ae`\nAave mainnet V2 Reserve Factor: `0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c`\n\nBy calling `function execute()` and `function distributeTokens()` on the ProposalPayload contract, the token distributor will be upgraded to send all funds to the `Aave mainnet V2 Reserve Factor`, the AAVE protocol v1's token distributor will be set to `Aave mainnet V2 Reserve Factor`, DPI borrowing will be enabled and all large balances from the `Aave mainnet V1 Reserve Factor` will be distributed to `Aave mainnet V2 Reserve Factor`. The new token distributor implementation was deployed to [0x55c559730cbCA5deB0bf9B85961957FfDf502603](\nhttps://etherscan.io/address/0x55c559730cbCA5deB0bf9B85961957FfDf502603).\n\n**Target Contracts**\n\nProposalPayload = [0x43D2A74c55eE4DB917251eC934b2fD03E3069bd6](\nhttps://etherscan.io/address/0x43D2A74c55eE4DB917251eC934b2fD03E3069bd6)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "8E70B487F248-AIP-CONSOLIDATE-RESERVE-FACTORS-ENABLE-DPI"
  },
  "8EB7754E04CE-AIP-BOUNTY-TO-HACXYK-FALLBACK-ORACLE": {
    "title": "Bounty to Hacxyk for fallback oracle misconfiguration",
    "status": "Proposed",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Releases the bug bounty payment to the Hacxyk team for their finding on the fallback oracle of Aave v3",
    "discussions": "https://governance.aave.com/t/bgd-proposal-for-bounty-fallback-oracle-misconfiguration/8421",
    "created": "2022-07-05T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal releases the 50'000 USDC …",
    "content": "\n\n## Simple Summary\n\nThis proposal releases the 50'000 USDC pre-approved by the Aave community on forum and Snapshot to the Hacxyc team, for their finding concerning a misconfiguration on Aave v3 fallback oracle.\n\n## Abstract\n\nDuring the past month of April, the security firm Hacxyk disclosed to the Aave community a misconfiguration on the fallback oracle used for Aave v3 pools across markets.\nThis disclosure was analysed from a technical perspective and a bounty proposed to the Aave community to approve [HERE](https://governance.aave.com/t/bgd-proposal-for-bounty-fallback-oracle-misconfiguration/8421).\nAfter having support in both forum and Snapshot, this on-chain proposal will release the pre-approved 50'000 USDC to Hacxyk.\n\n\n## Relevant links\n\n- Governance discussion: [https://governance.aave.com/t/bgd-proposal-for-bounty-fallback-oracle-misconfiguration/8421](https://governance.aave.com/t/bgd-proposal-for-bounty-fallback-oracle-misconfiguration/8421)\n\n- Snapshot vote: [https://snapshot.org/#/aave.eth/proposal/0xb4886ff25f454773a779be3627863181ec7dbe1fb6b6e631678610dbe3f03a88](https://snapshot.org/#/aave.eth/proposal/0xb4886ff25f454773a779be3627863181ec7dbe1fb6b6e631678610dbe3f03a88)\n\n## Implementation\n\nThis proposal exclusively releases 50'000 USDC from the Aave V2 Ethereum collector, to the Ethereum account provided by the Hacxyk team.\n\nThe implementation can be found on [https://github.com/bgd-labs/aip-hacxyk-bug-bounty/blob/main/src/contracts/PayloadBountyHacxykFallbackOracle.sol](https://github.com/bgd-labs/aip-hacxyk-bug-bounty/blob/main/src/contracts/PayloadBountyHacxykFallbackOracle.sol)\n\nSimple tests can be found on [https://github.com/bgd-labs/aip-hacxyk-bug-bounty/blob/main/test/PayloadBountyHacxykFallbackOracle.t.sol](https://github.com/bgd-labs/aip-hacxyk-bug-bounty/blob/main/test/PayloadBountyHacxykFallbackOracle.t.sol)\n\n**Target Contracts**\n\nPayloadBountyHacxykFallbackOracle = [https://etherscan.io/address/0xF4294973B7E6F6C411dD8A388592E7c7D32F2486#code](\nhttps://etherscan.io/address/0xF4294973B7E6F6C411dD8A388592E7c7D32F2486#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "8EB7754E04CE-AIP-BOUNTY-TO-HACXYK-FALLBACK-ORACLE"
  },
  "922C7BCAA707-AIP-RENEW_AAVE_GRANTS_DAO": {
    "title": "Renew Aave Grants DAO",
    "status": "Proposed",
    "author": "Shreyas Hariharan (@hello-shreyas), Austin Green (@austingreen)",
    "shortDescription": "Provide funding to expand the budget and scope of Aave Grants DAO",
    "discussions": "https://governance.aave.com/t/aave-grants-update-and-renewal/6371",
    "created": "2021-12-11T00:00:00.000Z",
    "preview": "## Simple Summary\n\nProvide Aave Grants DAO (AGD) with a $2m per …",
    "content": "\n\n## Simple Summary\n\nProvide Aave Grants DAO (AGD) with a $2m per quarter budget to fund more projects that benefit Aave.\n\n## Abstract\n\n[AIP 17](https://app.aave.com/governance/13-QmURZNW6PT4z3e4DZqxHMAW1bWRFvxZjtyQZqhnhgdLB6R) established Aave Grants DAO on May 4, 2021 with the goal of funding ideas and builders in the Aave ecosystem. The two quarter pilot program had a grants budget of $1 million and an operating budget of $250,000 per quarter. The pilot program has awarded $1.17m to 38 grant recipients and made the initial steps to put the grants process and the protocol in the hands of the community.\n\nMoving forward we propose renewing Aave Grants DAO with an increased grants budget of $2 million and an operations budget of $2 million per quarter. With the increased budget we will increase the number of larger community grants, fund non-developer grants including sponsorship and community events, and work to decentralize the grants process.\n\n## Motivation\n\nAGD’s mission is to build a thriving ecosystem of contributors for Aave. We provide grants to projects, ideas, and events that benefit Aave and its ecosystem. We hope to be at the forefront of ecosystem development at Aave. Ensuring a constant influx of talented builders is critical to Aave’s growth.\n\n## Test Cases\n\nThe full test of this proposal can be found here: https://github.com/aave/aave-grants-update-and-renewal\n\n## Implementation\n\nIn order to transfer funds from the Aave Ecosystem Reserve, the proposal will target the contract ControllerAaveEcosystemReserve and call the function `transfer(IERC20 token, address recipient, uint256 amount)`.\n\n**Target Contract**\n\nControllerAaveEcosystemReserve = [0x1E506cbb6721B83B1549fa1558332381Ffa61A93](\nhttps://etherscan.io/address/0x1e506cbb6721b83b1549fa1558332381ffa61a93)\n\n**Transfer Parameters**\n\ntoken = the aave token [0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9](\nhttps://etherscan.io/address/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9)\n\nrecipient = the grants dao multi-sig = [0x89C51828427F70D77875C6747759fB17Ba10Ceb0](\nhttps://etherscan.io/address/0x89C51828427F70D77875C6747759fB17Ba10Ceb0)\n\namount = $2 million / ($189.67 / aave) = 10544.63 adjust for decimals = 10544630000000000000000\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "922C7BCAA707-AIP-RENEW_AAVE_GRANTS_DAO"
  },
  "9DDCC8B77A40-AIP-AUTHORIZE-GUARDIAN-TO-HOLD-EMERGENCY-KEYS-FOR-V2": {
    "title": "Authorize the Guardian to hold the emergency keys for V2",
    "status": "Proposed",
    "author": "Imran Khan",
    "shortDescription": "Authorize the Guardian to hold the emergency keys for V2",
    "discussions": "https://governance.aave.com/t/aip-authorize-the-guardian-to-hold-the-emergency-keys-for-v2/6291",
    "created": "2021-11-18T00:00:00.000Z",
    "preview": "## Abstract\nThis Aave Improvement Proposal (AIP) is to authorize the …",
    "content": "\n\n\n## Abstract\nThis Aave Improvement Proposal (AIP) is to authorize the Guardian to hold the emergency keys for V2 of the Aave Protocol, just as the Guardian holds the keys for new deployments of the Aave Protocol. These keys will allow the Guardian to pause the protocol in case of an unforeseen event, such as an exploit or other emergency.\n\nThe Guardian – a community multisig comprised of elected, reputable members of the Aave community – was established to protect the Aave Protocol in a number of ways, including against potential governance takeovers by centralized actors. Recently, the Aave community voted in favor of the Guardian holding the admin keys for new deployments of the Aave Protocol on different networks such as Avalanche.\n\nConsistent with its purpose to protect the Aave Protocol, the Guardian should hold the emergency keys for all deployments of the Aave Protocol in order to ensure security and safety for the Aave ecosystem. This will allow a more rapid response in the event of an exploit or emergency. As you know, the Guardians were a community-elected set of DeFi participants, builders, and capital allocators (see here for more info). These individuals are active contributors in the space, and are prepared to act at a moment’s notice to help the community and ecosystem mitigate risk.\n\nAlthough Aave Governance makes all decisions regarding the Aave Protocol, the need to act quickly in the case of an unanticipated event points to having the Guardian – a smaller DAO / multisig of ten – hold the emergency keys in order to be able protect the Aave Protocol and its users.\n\nTo protect the Aave Protocol from malicious actors, this AIP sets forth a proposal to authorize the Community Guardian to hold the emergency keys for all deployments of the Aave Protocol.\n\n## Motivation\n\n\n## Specification\n\n\n## Rationale\n\n\n## Test Cases\n\n\n## Implementation\n### Proposal\n\n\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "9DDCC8B77A40-AIP-AUTHORIZE-GUARDIAN-TO-HOLD-EMERGENCY-KEYS-FOR-V2"
  },
  "A22882572B3F-AIP-V3-RETROACTIVE-FUNDING": {
    "title": "V3 Retroactive Funding",
    "status": "Proposed",
    "author": "AaveCompanies",
    "shortDescription": "Aave V3 Retroactive Funding Proposal",
    "discussions": "https://governance.aave.com/t/arc-aave-v3-retroactive-funding/9250",
    "created": "2022-12-04T00:00:00.000Z",
    "preview": "## Simple Summary\n\nWe propose that the Aave DAO retribute a total of …",
    "content": "\n\n## Simple Summary\n\nWe propose that the Aave DAO retribute a total of $16.28M in retroactive funding to Aave Companies for development of Aave Protocol V3. This total includes $15M for work performed directly by the team over the course of more than one year and \\$1.28M for costs paid to third-party audit services.\n\n## Abstract\n\nFollowing the successful launch of V3 of the Aave Protocol, this Aave Request for Comment (ARC) seeks community feedback and validation for a governance proposal to the Aave DAO seeking retroactive funding for the development and deployment of V3 by the Aave Companies.\n\nAave V3 provided enhanced features to the Aave Protocol based on community feedback, solving limitations in V2 while pushing important new features to the forefront of the protocol and contributing to the overall success and strength of the Aave ecosystem.\n\nSome of the important new features include:\n\n- New modes such as the High Efficiency Mode and Isolation Mode which allow for increased capital efficiency whilst limiting risks for the protocol.\n- Risk Management Improvements providing additional protection to the protocol through risk caps and other tools.\n- L2-Specific features which improve user experience and reliability.\n- Portal, which allows assets to seamlessly flow between Aave V3 markets over different networks\n\nWe propose that the Aave DAO retribute $15 million (incurred work) and $1.28 million (audit) to the Aave Companies to retroactively fund the development of V3. This funding request covers work done by members of the Aave Companies over the course of more than a year.\n\nThe full proposal can be found here: https://governance.aave.com/t/arc-aave-v3-retroactive-funding/9250\n\n## Motivation\n\n### **Introduction**\n\n![Introduction](https://raw.githubusercontent.com/aave/aip/Pending-AIPs/content/assets/a22882572b3f-AIP-V3-RETROACTIVE-FUNDING/introimage.png)\n\nA focus on risk management and capital efficiency and a contemporaneous reinforcement of the flexibility and decentralization of the protocol has been instrumental in the success of Aave V3.\n\nAligned with [Vitalik’s take on retroactive public goods funding](https://medium.com/ethereum-optimism/retroactive-public-goods-funding-33c9b7d00f0c) —it’s easier to agree on what was useful than what will be useful—the benefit of hindsight allows the community to make an accurate and fair quantification of the work done on V3 against the backdrop of V3’s post-launch success, as well as the potential for V3 moving forward.\n\nThis ARC follows this logic, seeking retroactive funding for the work that went into V3, which allows the community to view V3’s success since its launch, as noted in the [initial proposal](https://governance.aave.com/t/introducing-aave-v3/6035): “The community will also be able to decide whether to provide retroactive funding to those who contributed to the creation of V3, and how much funding to provide.”\n\n### **Context: Decentralization and Incentivizing Contributors**\n\nIt is imperative that the Aave protocol ecosystem remains as decentralized as possible. This is why contributors to the Aave protocol such as BGD Labs, Certora, SigmaPrime, Llama and Gauntlet have been able to build sustainable businesses within the Aave ecosystem. By working on the protocol, interacting with governance, and collaborating, all these different contributors add to the decentralized space.\n\nContributors interact with the protocol and the DAO in a symbiotic circle, as demonstrated in the diagram below:\n\n![circle](https://raw.githubusercontent.com/aave/aip/Pending-AIPs/content/assets/a22882572b3f-AIP-V3-RETROACTIVE-FUNDING/circle.jpeg)\n\nEach part of this symbiotic circle is integral to the whole. Contributors help to develop the protocol and ensure that protocol revenue continues to grow in a sustainable manner. Innovations and contributions help attract more users by improving user experience and developing new products and services. Protocol revenue, in part, then gets redirected to the DAO; bolstering the DAO treasury to continue fuelling innovations in the Aave ecosystem.\n\nThe DAO has the ability to fund contributors within the ecosystem, spurring further innovation and ensuring that contributors can operate successfully in this environment. This incentivizes groups to continue to build, in turn contributing efforts that benefit the Aave community and the cycle continues.\n\nTherefore, for the Aave Protocol to continue to develop, contributors need to be able to build and sustain successful businesses through decentralized funding methods within the ecosystem.\n\n### Aave Companies as a Contributor\n\nThe revenue created across versions of the Aave Protocol adds to the sustainability of the DAO, facilitating the funding of a variety of contributors within the ecosystem through various types of cryptoassets.\n\nWith request, permission and support granted by the Aave DAO, the Aave Companies have been an important contributor for the protocol, alongside others such as BGD Labs, Gauntlet, Certora, SigmaPrime, Llama and others. We have been building exciting innovations within the Aave ecosystem and want to continue doing so. A brief overview of this work that has taken place over many years is visualized in the simple diagram below:\n\n![timeline](https://raw.githubusercontent.com/aave/aip/Pending-AIPs/content/assets/a22882572b3f-AIP-V3-RETROACTIVE-FUNDING/timeline.jpeg)\n\nAs the Aave protocol has grown into what it is today, costs associated with development have risen substantially. For example, security has always been a cornerstone of protocol development, and this has become more crucial as Aave’s TVL has increased. Building an innovative, secure and battle-tested version of a protocol such as Aave V3 requires experienced builders across a variety of skill sets that are fairly compensated for their work.\n\n### **V3’s Technological Advancements and Success**\n\nIn 2019, the first version of the Aave Protocol smart contracts was deployed on Ethereum. Users were able to obtain and provide liquidity and earn yield on the liquidity they provided. In 2021, V2 of the Aave Protocol saw new features such as credit delegation, debt tokenization, and optimized gas costs. V2 established the Aave Protocol as a DeFi primitive, substantially growing the community and ecosystem.\n\nWhilst V2 provided a solid foundation, through community feedback, it became clear that to scale the Aave Protocol, capital efficiency and risk management would need to be central to the protocol’s functionalities.\n\nAave V3 therefore iterates on the previous versions, solving limitations present in V2 while pushing innovative features to the forefront of the protocol. Here are just a few of these features and improvements:\n\n- High Efficiency Mode allows borrowers to extract the highest borrowing power out of their collateral;\n- Isolation Mode limits exposure and risks to the protocol from newly listed assets by only permitting borrowing up to a specific debt ceiling;\n- Risk Management Improvements provide additional protection for the protocol through various risk caps and other tools;\n- L2-Specific Features designs specific to Layer 2 networks to improve user experience and reliability;\n- Portal allows assets to seamlessly flow between Aave V3 markets over different networks;Community Contribution facilitates and incentivizes community usage through a modular, well-organized codebase.\n\nThese new features offer flexibility for Aave V3 users. In the last few months, new markets have been created based on community proposals thanks to the V3 supply caps and isolation mode, which add risk mitigation features so that the community can manage such markets on the Aave Protocol.\n\nOne of the most talked about features of V3, Portal, has already found a use case for bridges like Connext as detailed in [their proposal](https://governance.aave.com/t/arc-whitelist-connext-for-v3-portals/8047) to the Aave DAO, allowing for Connext’s LPs to access immediate extra liquidity to fulfil transactions in a trust minimized way. Other proposals have followed suit, such as [this one](https://governance.aave.com/t/arc-whitelist-debridge-for-portals-v3/8259) from deBridge.\n\nV3 has also seen demand for stable Efficiency Mode (eMode), with proposals for new asset listings such as this one for FRAX continually taking advantage of Aave V3’s capital efficiency. So far, over 4,100 borrowing addresses have enabled eMode, accounting for 12% of all borrowing wallets on V3. Power users and automated strategies likely will utilize eMode more frequently as more liquidity enters market ecosystems. In light of recent significant crypto market events, risk management features such as isolation mode have also proven to be prescient.\n\nAave V3 markets attracted liquidity quickly, with the Avalanche V3 market growing to a market size of $2.22 billion, driven by the Avalanche Rush rewards despite adverse market conditions. Much of this growth was in stable assets, accounting for ~60% of total supply since mid-April. We have seen this growth in activity mirrored on V3 on Optimism, which in the recent weeks has risen to a market size of $2 billion. We expect this increase in liquidity and usage to be mirrored across other versions of Aave V3 moving forward.\n\nDuring May and June’s difficult crypto-ecosystem events, liquidations functioned well across V3 markets, minimizing insolvencies while market size was reduced by two thirds. V3 also provides the ability to set liquidation collection factors, meaning the DAO can benefit from fee accumulation during liquidation events. This is particularly pertinent given the extent of recent liquidation events in the industry.\n\nThese examples are only the tip of the iceberg, and we expect V3 to continue to further prove itself over time as users experiment with the new features and opportunities. The Aave Grants DAO has been playing, and will continue to play, a large role in this by helping to fund creative projects that take advantage of V3 and add value to the Aave ecosystem.\n\n### **What is the Compensation Model based on?**\n\nWe propose that the Aave DAO retribute $15 million (work incurred) and $1.28 million (audits) to the Aave Companies to retroactively fund the development of Aave V3, cover the cost of audits, incentivize further building on the Aave Protocol, and enable sustainable building within the Aave ecosystem. This request covers the work done by members of the Aave Companies over more than a year.\n\nOverall, there were multiple functions involved in V3’s creation. These functions included Data Science, Risk Management, QnA, Dev Ops, Smart Contract Engineering, Front-end Engineering, Back-end Engineering, Product, and Design. On top of the direct work done on V3 by the aforementioned departments there were a number of supporting measures that helped maintain high standards of security and quality throughout the process.\n\nBelow you can find a breakdown of the different teams that make up the Aave V3 Working Group at the Aave Companies:\n\n![aavepod](https://raw.githubusercontent.com/aave/aip/Pending-AIPs/content/assets/a22882572b3f-AIP-V3-RETROACTIVE-FUNDING/aavepod.jpeg)\n\nIn terms of costs related to incurred work for V3, 60% are associated with engineering roles, whilst 40% are related to non-engineering roles.\n\nMore than full-time personnel costs, there were significant operational costs associated with the creation of V3, from equipment to software, which is included in our calculations for incurred work.\n\nThere were also two rounds of extensive and in-depth audits. The first round of audits was conducted by ABDK, OpenZeppelin, Trail of Bits, and Peckshield. The second round was done by SigmaPrime. Certora provided [formal verification](https://github.com/aave/aave-v3-core/blob/master/Certora/certora/Verification_Report.pdf). These were important expenses given the Aave community’s high standards regarding security and ethos. A more digestible breakdown of these security measures is shown in the table below:\n\n|  **Auditor**  |  **Date**  |                                                 **Report**                                                 | **Round** |\n| :-----------: | :--------: | :--------------------------------------------------------------------------------------------------------: | :-------: |\n|     ABDK      | 27-01-2022 |         [ABDK](https://github.com/aave/aave-v3-core/blob/master/audits/27-01-2022_ABDK_AaveV3.pdf)         |     1     |\n| OpenZeppelin  | 01-11-2021 | [OpenZeppelin](https://github.com/aave/aave-v3-core/blob/master/audits/01-11-2021_OpenZeppelin_AaveV3.pdf) |     1     |\n| Trail of Bits | 07-01-2022 | [Trail of Bits](https://github.com/aave/aave-v3-core/blob/master/audits/07-01-2022_TrailOfBits_AaveV3.pdf) |     1     |\n|  Peckshield   | 14-01-2022 |   [Peckshield](https://github.com/aave/aave-v3-core/blob/master/audits/14-01-2022_PeckShield_AaveV3.pdf)   |     1     |\n|  SigmaPrime   | 14-01-2022 |   [SigmaPrime](https://github.com/aave/aave-v3-core/blob/master/audits/27-01-2022_SigmaPrime_AaveV3.pdf)   |     2     |\n\n### <a name=\"compesation\">Compensation Model</a>\n\nIf the AIP is approved by the DAO, the Aave team will receive $16,280,000 million in retroactive funding for the development of Aave Protocol V3. The funding will consist of $5,456,993.61 between DAI, USDT and USDC; $1,148,881.31 in alternative stable assets, $3,394,125.08 million in more volatile crypto assets; and \\$6,280,000 million in AAVE tokens.\n\nThe \\$6.28 million in AAVE tokens requested will be based on a 14-day TWAP - time weighted average price (average of open, high, low, close) per Messari at UTC+0 - from the moment the proposal is approved in a Snapshot vote.\n\nThe funding of the aforementioned \\$6.28 million in AAVE tokens will be reimbursed with two lock-up periods. 50% of the AAVE tokens received will be deposited in the Safety Module for one year, whilst the other 50% of AAVE tokens will be deposited in the Safety Module for two years. During this time, the tokens will contribute to the protocol safety module, helping to reduce risk for the protocol. Based on this model, Aave Companies would be free to use the tokens after the end of each lock-up period.\n\nWe request that the USDC, DAI, and USDT be broken down as follows:\n\n|                              |    **USDC**    |    **DAI**     |    **USDT**    |\n| :--------------------------: | :------------: | :------------: | :------------: |\n| **Approximate % Breakdown**  |      51%       |      30%       |      19%       |\n| **Total \\$ Value Requested** | \\$2,783,066.74 | \\$1,637,098.08 | \\$1,036,828.78 |\n\nRegarding the \\$1,148,881.31 in alternative stable assets, a small volatility discount has been applied to each asset to account for peg fluctuations and low liquidity. These discounts are based on the lowest close price of each asset in the past 90 days. An itemized view of the requested alternative assets and their respective discounts can be found below:\n\n| **Token** | **Volatility Discount** | **Number** |   **Value**    |\n| :-------: | :---------------------: | :--------: | :------------: |\n| **sUSD**  |          -0.2%          | 463,358.33 |   462,526.88   |\n| **TUSD**  |          -0.4%          | 292,927.66 |   291,647.27   |\n| **FRAX**  |          -1.4%          | 154,992.10 |   152,830.21   |\n| **BUSD**  |          -0.5%          | 130,749.62 |   130,142.79   |\n| **GUSD**  |          -1.4%          | 86,354.30  |   85,154.05    |\n| **USDP**  |          -1.1%          | 26,871.32  |   26,580.10    |\n| **Total** |                         |            | \\$1,148,881.31 |\n\nFurther, the remaining \\$3,394,125.08 that will be composed of more volatile crypto assets will remain fixed. The price will be determined by TWAP - time weighted average price (average of open, high, low, close) per Messari at UTC+0 on the day the Snapshot vote is made.\n\nLooking at the volatility of ETH over the last week, there is daily implied volatility of 5%. This does not mean that every day ETH will move by 5%, but on average, the general size of the moves will be so big that their standard deviation will be 5%.\n\nAssuming a normal distribution of returns, there is a 68% chance prices move 5% daily, a 95% chance that prices move 10% and 99% chance they are 15%. When looking at the actual daily movements we see an average difference between the daily high and low prices of 6.6%, with a maximum difference of 13.2%. With the exception of BTC, most assets we are requesting have volatility equal to or exceeding ETH.\n\nGiven the time delay of at least 1-2 weeks between the end of the Snapshot and execution of the AIP, we are asking for a flat 10% discount on the market value of non-stable crypto assets to account for this extreme market volatility. This accounts for expected daily volatility of the assets and the time delay between asset pricing and any hedge execution we need to make.\n\nAny difference between the aforementioned $3,394,125.08 value and the TWAP value at the close of the Snapshot will be made up for with additional AAVE tokens which will not be subject to a lock if the price of the assets has reduced. If the volatile assets are worth more than $3,394,125.08 after the discount at the conclusion of the Snapshot vote, then the amount of USDC et al will be lowered proportionally. This is to ensure the amount of stable funding requested from the DAO remains fixed.\n\nA detailed breakdown of the requested assets with the 10% discount outlined can be found below:\n\n| **Token**  | **Volatility Discount** | **Tokens Requested** | **Current Price** | **Value w/ Discount** |\n| :--------: | :---------------------: | :------------------: | :---------------: | :-------------------: |\n| **WMATIC** |           10%           |      850,000.00      |       0.80        |      612,000.00       |\n| **WAVAX**  |           10%           |      29,000.00       |       22.60       |      589,860.00       |\n|  **CRV**   |           10%           |      509,732.68      |       1.10        |      504,635.36       |\n|  **WETH**  |           10%           |        350.00        |     1,597.00      |      503,055.00       |\n|  **WBTC**  |           10%           |        23.62         |     21,300.00     |      452,817.23       |\n|  **SNX**   |           10%           |      96,251.92       |       3.00        |      259,880.19       |\n|  **RAI**   |           10%           |      66,094.61       |       2.92        |      173,535.14       |\n|  **MANA**  |           10%           |      103,234.63      |       0.82        |       76,558.80       |\n|  **LINK**  |           10%           |      12,053.48       |       7.01        |       76,045.43       |\n|  **YFI**   |           10%           |         7.08         |     8,951.00      |       57,067.95       |\n|  **CVX**   |           10%           |       5,137.26       |       5.29        |       24,458.50       |\n|  **MKR**   |           10%           |        30.36         |      835.00       |       22,812.38       |\n|  **KNC**   |           10%           |      12,031.49       |       1.85        |       20,032.43       |\n|  **UNI**   |           10%           |       1,685.66       |       6.99        |       10,604.50       |\n|  **ENJ**   |           10%           |       7,242.48       |       0.55        |       3,585.03        |\n| **xSUSHI** |           10%           |       2,331.22       |       1.58        |       3,314.99        |\n|  **BAT**   |           10%           |       6,395.16       |       0.36        |       2,072.03        |\n|  **REN**   |           10%           |      15,300.17       |       0.13        |       1,790.12        |\n| **Total**  |                         |                      |                   |    \\$3,394,125.08     |\n\nThis compensation model aims to reduce the burden on the DAO’s stablecoin reserves by diversifying the requested compensation to include other assets from the DAO treasury.\n\nAs part of this retro funding proposal, we gave great consideration to the continued economic health of the DAO and the variety of tokens requested.\n\nWith these amendments, this ARC will go to Snapshot for vote by the DAO.\n\n### Conclusion\n\nTo conclude, this proposal outlines a request for the Aave DAO to provide feedback and validation for granting Aave Companies funding for the creation of Aave V3.\n\nAave V3 is a protocol that emphasizes capital efficiency, security, and risk management. It is a reflection of both the current and future success of the community.\n\n## Specification\n\nThis proposal transfers the requested funds to the Aave Companies, following the compensation model described above. The requested assets are pulled from multiple contracts, fee collectors and ecosystem reserves across networks.\n\nThese are the main actions included in the proposal:\n\n1. Transfer of AAVE assets from the Aave Ecosystem Reserve.\n2. Transfer of aToken assets from the AaveCollector of Ethereum V2 Market.\n3. Upgrade the AaveCollector contract of Polygon V2 and V3 Markets to add the ability to retrieve funds from themselves.\n4. Transfer of aToken assets from the AaveCollector of Polygon V2 Market.\n\nA detailed breakdown of the assets to transfer, following the considerations described in the [Compensation](#compesation) section, can be found below:\n\n| **Received Token** |  **# Tokens**  | **Market Value USD (w/ Discount)** | **Transfer Method** |\n| :----------------: | :------------: | :--------------------------------: | :-----------------: |\n|   **aAvaWAVAX**    |  9584.301837   |            \\$164,451.39            |       Manual        |\n|    **aAvaWBTC**    |    1.077275    |            \\$19,376.34             |       Manual        |\n|      **AAVE**      |  76196.367344  |           \\$6,533,944.52           |      On-chain       |\n|      **aBAT**      |  6395.160000   |             \\$1,927.71             |      On-chain       |\n|     **aBUSD**      | 130399.257103  |            \\$129,794.20            |      On-chain       |\n|      **aCRV**      | 509732.680000  |            \\$519,461.65            |      On-chain       |\n|      **aCVX**      |  5137.260000   |            \\$23,534.81             |      On-chain       |\n|      **aDAI**      | 1637098.070000 |           \\$1,637,098.07           |      On-chain       |\n|      **aENJ**      |  7242.480000   |             \\$3,339.30             |      On-chain       |\n|     **aFRAX**      | 154992.100000  |            \\$152,829.96            |      On-chain       |\n|     **aGUSD**      |  86354.300000  |            \\$85,153.98             |      On-chain       |\n|      **aKNC**      |  11236.269638  |            \\$17,632.12             |      On-chain       |\n|     **aLINK**      |  12053.480000  |            \\$73,118.35             |      On-chain       |\n|     **aMANA**      | 103234.630000  |            \\$71,608.23             |      On-chain       |\n|      **aMKR**      |   30.360000    |            \\$20,592.35             |      On-chain       |\n|     **amWBTC**     |   16.656090    |            \\$299,583.70            |      On-chain       |\n|    **amWMATIC**    | 850000.000000  |            \\$656,394.81            |      On-chain       |\n|      **aPAX**      |  26871.320000  |            \\$26,580.03             |      On-chain       |\n|      **aRAI**      |  66094.610000  |             \\$7,874.06             |      On-chain       |\n|      **aREN**      |  15300.170000  |             \\$1,670.62             |      On-chain       |\n|      **aSNX**      |  96251.920000  |            \\$256,779.94            |      On-chain       |\n|     **aSUSD**      | 463358.329101  |            \\$462,526.88            |      On-chain       |\n|     **aTUSD**      | 292839.518601  |            \\$291,559.81            |      On-chain       |\n|      **aUNI**      |  1681.265487   |             \\$9,370.44             |      On-chain       |\n|     **aUSDC**      | 2783066.720000 |           \\$2,783,066.72           |      On-chain       |\n|     **aUSDT**      | 1036828.780000 |           \\$1,036,828.78           |      On-chain       |\n|    **avWAVAX**     |  19415.698163  |            \\$333,142.53            |       Manual        |\n|     **avWBTC**     |    1.807146    |            \\$32,504.12             |       Manual        |\n|     **aWBTC**      |    3.388551    |            \\$60,947.95             |      On-chain       |\n|     **aWETH**      |   350.000000   |            \\$492,366.99            |      On-chain       |\n|    **aXSUSHI**     |  2331.216007   |             \\$2,922.55             |      On-chain       |\n|      **aYFI**      |    7.080000    |            \\$57,880.72             |      On-chain       |\n|      **BUSD**      |   350.362897   |              \\$348.74              |      On-chain       |\n|      **KNC**       |   795.220362   |             \\$1,247.87             |      On-chain       |\n|      **TUSD**      |   88.141399    |              \\$87.76               |      On-chain       |\n|      **UNI**       |    4.394513    |              \\$24.49               |      On-chain       |\n|      **WBTC**      |    0.445770    |             \\$8,017.82             |      On-chain       |\n|  **Grand Total**   | 8405344.837285 |          \\$16,275,590.32           |                     |\n\n## Test Cases\n\nPlease refer to the [test section](https://github.com/aave/v3-retroactive-funding/tree/main/test) of the [aave/v3-retroactive-funding](https://github.com/aave/v3-retroactive-funding) repository.\n\n## Implementation\n\nThe [aave/v3-retroactive-funding](https://github.com/aave/v3-retroactive-funding) repository contains all the code, tests and scripts needed to deploy, execute and test the governance proposal.\n\nRelevant contracts:\n\n- [EthereumProposalPayload](https://etherscan.io/address/0xDB89487A449274478e984665b8692AfC67459deF)\n- [PolygonProposalPayload](https://polygonscan.com/address/0xccf14215e0134d6709c7dd7fa172cec40e97bfb1#code)\n- [AaveCollector Implementation](https://polygonscan.com/address/0xc773bf5a987b29ddeac77cf1d48a22a4ce5b0577)\n- [CollectorController](https://polygonscan.com/address/0xdb89487a449274478e984665b8692afc67459def)\n\n## **Copyright**\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "A22882572B3F-AIP-V3-RETROACTIVE-FUNDING"
  },
  "AAVE-SAFETY-MODULE-1_5-PART-1": {
    "title": "Upgrade the safety module to v1.5 PART 1",
    "discussions": "https://governance.aave.com/t/bgd-aave-safety-module-v1-5/12148",
    "shortDescription": "Upgrades the stkAAVE contract implementations.",
    "author": "BGD labs",
    "preview": "# Summary\n\nThis AIP presents the community with the opportunity to …",
    "content": "\n\n# Summary\n\nThis AIP presents the community with the opportunity to upgrade the safety module to v1.5 which introduces:\n\n- a new slashing mechanism\n- new cooldown mechanism\n- a transfer hook to be used by GHO\n\nThe new version also adds some convenience features like permit support or the ability to claim and stake in a single transaction.\n\n# Motivation\n\nOn September 2020, the Aave Safety Module was introduced into the ecosystem, to improve the protection of the liquidity protocol, adding an extra utility for the AAVE token: AAVE or AAVE/WETH BPT holders stake their assets to act as a defensive layer in front of any shortfall event.\n\nSince then, apart from really minor upgrades, the contracts have remained the same and in parallel, the system has been adopted by other communities.\n\nAs part of our engagement with Aave, we identified that the Safety Module is a clear area of improvement in the ecosystem, from 2 different standpoints:\n\n- Technical. Improving the basic existing mechanisms of the contracts, but without disrupting radically the current design of the SM.\n- Conceptual. Making more efficient the SM dynamics (e.g. slashing, rewards distribution rules, etc), by modifying the whole design.\n\n## New slashing mechanism\n\nOn the running SM v1, in order to slash, an ad-hoc governance proposal is required, involving important development overhead, which is not ideal.\n\nThe new SM v1.5 adds an enhanced mechanism to facilitate slashing of the underlying by tracking an exchange rate between the staked AAVE and the stkAAVE received by stakers. The mechanism is simple: when somebody stakes AAVE, they receive a certain amount of stkAAVE, which no longer is 1:1 equivalent, as it keeps track of slashing (meaning with the same stkAAVE, stakers are able to claim less AAVE).\n\n## New cooldown mechanism\n\nThe current cooldown on SM v1 consists of a time delay of 10 days to be respected whenever anybody wants to redeem the staked AAVE. At the moment, this cooldown is affected by in/outflows of stkAAVE, both via transfer() and stake()/redeem(), in order to protect the system from being gamed. Even with this protection mechanism the mechanism is currently gamable, by staking aave within the active cooldown window to [extend the window](https://github.com/bgd-labs/aave-stk-v1-5/issues/6).\n\nThis mechanism is not really optimal and adds important complexity, so on v1.5 has been changed to the following: after activation of cooldown, a staker will be able to redeem the minimum balance he will hold between cooldown activation and redeem window. Apart from the user-level cooldown new mechanics, we also propose to increase the cooldown period from 10 days to 20 days.\n\n## GHO Transfer hook\n\nThe Aave community has already approved the deployment and activation of the GHO stablecoin and the first facilitator will be the Aave v3 Ethereum pool.\n\nIn order to enable the discount mechanism by holding stkAAVE described on the GHO proposal, the design of Aave Companies requires to introduce of a piece of logic on the stkAAVE transfer(), in order to “notify” the GHO facilitator system of stakers’ balances.\n\nWe have evaluated this and we think it is acceptable, so it will be included in this upgrade. From a technical perspective, stkAAVE includes logic protections to remain unaffected if anything would go wrong with the GHO facilitator, which at the same time should be considered a trustable entity, as it will be controlled by the Aave governance.\n\n## Misc\n\nThe upgrade also allowed us to add some smaller ux improvements:\n\n- a new `stakeWithPermit()` is introduced on `stkAAVE`\n\n- convenience methods to batch claiming and staking/redeeming into a single transaction have been added as `claimRewardsAndRedeem` and `claimRewardsAndStake` have been added to `stkAAVE`\n\n- `preview*()` methods have been added to follow the `4626` standard more closely, even if there's no objective to be compliant\n\n# Specification PART 1\n\nThe proposal is split in two parts, as currently the `stkAAVE` is controlled by the `LONG_EXECUTOR` where `stkABPT` is controlled by the `SHORT_EXECUTOR`. As there's a single executor per proposal `Part 1` upgrades the `stkAAVE` implementation and targets the `LONG_EXECUTOR`. `Part 2` upgrades the `stkABPT` implementation and targets the `SHORT_EXECUTOR`.\n\nThe proposal will:\n\n- transfer ownership of `stkAAVE` to a `ProxyAdmin` controlled by the `LONG_EXECUTOR`. This is done for consistency reasons with `stkABPT` as the `SHORT_EXECUTOR` cannot be the `SLASHING_ADMIN` and `PROXY_ADMIN` at the same time.\n\n```solidity\nIInitializableAdminUpgradeabilityProxy(STK_AAVE).changeAdmin(\n  address(AaveMisc.PROXY_ADMIN_ETHEREUM_LONG)\n);\n```\n\n- deploy the new implementation while maintaining the current values:\n\n```solidity\nStakedAaveV3 newImpl = new StakedAaveV3(\n  IERC20(AaveV2EthereumAssets.AAVE_UNDERLYING),\n  IERC20(AaveV2EthereumAssets.AAVE_UNDERLYING),\n  GenericProposal.UNSTAKE_WINDOW,\n  GenericProposal.REWARDS_VAULT,\n  GenericProposal.EMISSION_MANAGER,\n  GenericProposal.DISTRIBUTION_DURATION\n);\n```\n\n- upgrade `stkAAVE` implementation. The `SLASHING_ADMIN`, `COOLDOWN_ADMIN` and `CLAIM_HELPER` are all initialized as the `SHORT_EXECUTOR`. `MAX_SLASHING` is set to `30%`, `COOLDOWN_SECONDS` is increased to `20 days`:\n\n```solidity\nProxyAdmin(AaveMisc.PROXY_ADMIN_ETHEREUM_LONG).upgradeAndCall(\n  TransparentUpgradeableProxy(payable(STK_AAVE)),\n  address(newImpl),\n  abi.encodeWithSignature(\n    'initialize(address,address,address,uint256,uint256)',\n    GenericProposal.SLASHING_ADMIN,\n    GenericProposal.COOLDOWN_ADMIN,\n    GenericProposal.CLAIM_HELPER,\n    GenericProposal.MAX_SLASHING,\n    GenericProposal.COOLDOWN_SECONDS\n  )\n);\n```\n\n# References\n\nA list of relevant links like for this proposal:\n\n- [ProposalPayloads](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/ProposalPayload.sol)\n- [StakedTokenV3](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/StakedTokenV3.sol)\n- [StakedAaveV3](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/StakedAaveV3.sol)\n- [sigma prime audit](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/audits/Sigma_Prime_Aave_Safety_Module_Security_Assessment_Report_v2.pdf)\n- [Certora audit](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/audits/Certora_FV_Report.pdf)\n- [Certora specs](https://github.com/bgd-labs/aave-stk-v1-5/tree/main/certora/specs)\n- [Test Cases](https://github.com/bgd-labs/aave-stk-v1-5/tree/main/tests)\n- [Technical review by aave companies](https://governance.aave.com/t/technical-review-aave-safety-module-v1-5/12436)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-SAFETY-MODULE-1_5-PART-1"
  },
  "AAVE-SAFETY-MODULE-1_5-PART-2": {
    "title": "Upgrade the safety module to v1.5 PART 2",
    "discussions": "https://governance.aave.com/t/bgd-aave-safety-module-v1-5/12148",
    "shortDescription": "Upgrades the stkABPT contract implementation.",
    "author": "BGD labs",
    "preview": "# Summary\n\nThis AIP presents the community with the opportunity to …",
    "content": "\n\n# Summary\n\nThis AIP presents the community with the opportunity to upgrade the safety module to v1.5 which introduces:\n\n- a new slashing mechanism\n- new cooldown mechanism\n\nThe new version also adds some convenience features like permit support or the ability to claim and stake in a single transaction.\n\n# Motivation\n\nOn September 2020, the Aave Safety Module was introduced into the ecosystem, to improve the protection of the liquidity protocol, adding an extra utility for the AAVE token: AAVE or AAVE/WETH BPT holders stake their assets to act as a defensive layer in front of any shortfall event.\n\nSince then, apart from really minor upgrades, the contracts have remained the same and in parallel, the system has been adopted by other communities.\n\nAs part of our engagement with Aave, we identified that the Safety Module is a clear area of improvement in the ecosystem, from 2 different standpoints:\n\n- Technical. Improving the basic existing mechanisms of the contracts, but without disrupting radically the current design of the SM.\n- Conceptual. Making more efficient the SM dynamics (e.g. slashing, rewards distribution rules, etc), by modifying the whole design.\n\n## New slashing mechanism\n\nOn the running SM v1, in order to slash, an ad-hoc governance proposal is required, involving important development overhead, which is not ideal.\n\nThe new SM v1.5 adds an enhanced mechanism to facilitate slashing of the underlying by tracking an exchange rate between the staked AAVE and the stkAAVE received by stakers. The mechanism is simple: when somebody stakes AAVE, they receive a certain amount of stkAAVE, which no longer is 1:1 equivalent, as it keeps track of slashing (meaning with the same stkAAVE, stakers are able to claim less AAVE).\n\n## New cooldown mechanism\n\nThe current cooldown on SM v1 consists of a time delay of 10 days to be respected whenever anybody wants to redeem the staked AAVE. At the moment, this cooldown is affected by in/outflows of stkAAVE, both via transfer() and stake()/redeem(), in order to protect the system from being gamed. Even with this protection mechanism the mechanism is currently gamable, by staking aave within the active cooldown window to [extend the window](https://github.com/bgd-labs/aave-stk-v1-5/issues/6).\n\nThis mechanism is not really optimal and adds important complexity, so on v1.5 has been changed to the following: after activation of cooldown, a staker will be able to redeem the minimum balance he will hold between cooldown activation and redeem window. Apart from the user-level cooldown new mechanics, we also propose to increase the cooldown period from 10 days to 20 days.\n\n## Misc\n\nThe upgrade also allowed us to add some smaller ux improvements:\n\n- `preview*()` methods have been added to follow the `4626` standard more closely, even if there's no objective to be compliant\n\n# Specification PART 2\n\nThe proposal is split in two parts, as currently the `stkAAVE` is controlled by the `LONG_EXECUTOR` where `stkABPT` is controlled by the `SHORT_EXECUTOR`. As there's a single executor per proposal `Part 1` upgrades the `stkAAVE` implementation and targets the `LONG_EXECUTOR`. `Part 2` upgrades the `stkABPT` implementation and targets the `SHORT_EXECUTOR`.\n\nThe proposal will:\n\n- transfer ownership of `stkABPT` to a `ProxyAdmin` controlled by the `SHORT_EXECUTOR`.\n\n```solidity\nIInitializableAdminUpgradeabilityProxy(STK_ABPT).changeAdmin(\n  address(AaveMisc.PROXY_ADMIN_ETHEREUM)\n);\n```\n\n- deploy the new implementation while maintaining the current values:\n\n```solidity\nStakedAaveV3 newImpl =new StakedTokenV3(\n  IERC20(ABPT),\n  IERC20(AaveV2EthereumAssets.AAVE_UNDERLYING),\n  GenericProposal.UNSTAKE_WINDOW,\n  GenericProposal.REWARDS_VAULT,\n  GenericProposal.EMISSION_MANAGER,\n  GenericProposal.DISTRIBUTION_DURATION\n);\n```\n\n- upgrade `stkABPT` implementation. The `SLASHING_ADMIN`, `COOLDOWN_ADMIN` and `CLAIM_HELPER` are all initialized as the `SHORT_EXECUTOR`. `MAX_SLASHING` is set to `30%`, `COOLDOWN_SECONDS` is increased to `20 days`:\n\n```solidity\nProxyAdmin(AaveMisc.PROXY_ADMIN_ETHEREUM).upgradeAndCall(\n  TransparentUpgradeableProxy(payable(STK_ABPT)),\n  address(newImpl),\n  abi.encodeWithSignature(\n  'initialize(address,address,address,uint256,uint256)',\n  GenericProposal.SLASHING_ADMIN,\n  GenericProposal.COOLDOWN_ADMIN,\n  GenericProposal.CLAIM_HELPER,\n  GenericProposal.MAX_SLASHING,\n  GenericProposal.COOLDOWN_SECONDS\n  )\n);\n```\n\n# References\n\nA list of relevant links like for this proposal:\n\n- [ProposalPayloads](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/ProposalPayload.sol)\n- [StakedTokenV3](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/StakedTokenV3.sol)\n- [StakedAaveV3](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/src/contracts/StakedAaveV3.sol)\n- [sigma prime audit](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/audits/Sigma_Prime_Aave_Safety_Module_Security_Assessment_Report_v2.pdf)\n- [Certora audit](https://github.com/bgd-labs/aave-stk-v1-5/blob/main/audits/Certora_FV_Report.pdf)\n- [Certora specs](https://github.com/bgd-labs/aave-stk-v1-5/tree/main/certora/specs)\n- [Test Cases](https://github.com/bgd-labs/aave-stk-v1-5/tree/main/tests)\n- [Technical review by aave companies](https://governance.aave.com/t/technical-review-aave-safety-module-v1-5/12436)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-SAFETY-MODULE-1_5-PART-2"
  },
  "AAVE-V3-AGD-APPROVAL-20230503": {
    "title": "AGD Approval",
    "discussions": "https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289",
    "shortDescription": "AGD approval.",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-03T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication corrects the Aave Grants DAO aUSDT …",
    "content": "\n\n# Summary\n\nThis publication corrects the Aave Grants DAO aUSDT allowance that was incorrectly set previously.\n\n# Motivation\n\nPreviously, the allowance of aUSDT for AGD was incorrectly set to the v1 implementation of aUSDT which the Collector contract does not hold any of. This new proposal will set the v1 aUSDT allowance to zero, and correctly set the v2 aUSDT implementation to the originally specified amount of $812,944.90.\n\nPlease see the original proposal to renew the grants program [here](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289).\n\nThe original payload with the incorrect approval can be found [here](https://github.com/llamaxyz/aave-proposals/blob/main/src/proposals/aave-grants-dao-renewal/ProposalPayload.sol).\n\nThe original communication about this issue can be found [here](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289/9).\n\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV2EthAGDGrantsPayload.sol)\n* [Test cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV2EthAGDGrantsPayloadTest.t.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-V3-AGD-APPROVAL-20230503"
  },
  "AAVE-V3-ARBITRUM-LUSD-LISTING": {
    "title": "Add LUSD to Arbitrum Aave V3",
    "discussions": "https://governance.aave.com/t/arfc-add-lusd-to-aave-v3-on-arbitrum/12858",
    "shortDescription": "Add LUSD to Arbitrum Aave V3 deployment",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-24T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication presents the community with the …",
    "content": "\n\n# Summary\n\nThis publication presents the community with the opportunity to add LUSD to Aave Arbitrum v3. \n\n# Abstract\n\nLUSD is decentralised stable coin backed by ETH that is minted on the non-custodial, immutable, and governance-free, Liquidity Protocol.\n\nAdding LUSD to Arbitrum will promote stable coin diversity. All Liquidity Protocol contracts are immutable, which makes LUSD the most trustless stablecoin available.\n\nThis publication proposes listing LUSD with collateral disabled (LTV 0%) with borrowing enabled. \n\n# Motivation\n\nLUSD is currently listed on the following Aave deployments:\n\n* Ethereum V3\n* Ethereum V2\n* Optimism V3\n\nThis publication seeks to list LUSD on Aave v3 Arbitrum.\n\nPast publications, which can be found [here](https://governance.aave.com/t/arc-add-lusd-to-ethereum-v3-market/11522) and [here](https://governance.aave.com/t/arc-add-support-for-lusd-liquity/8443), provide insight and context.\n\nLUSD brings more stable coin diversity to the Aave Protocol and will further empower the support for decentralized stablecoins. The LUSD stable coin mechanism is relatively simple and is in line with the risk averse ethos of the Aave Community.\n\nLUSD is overcollateralised by ETH with two main mechanisms helping it keep its peg: \n\n* LUSD can be redeemed for ETH at face value (i.e., 1 LUSD for $1 of ETH). \n* Minimal collateral ratio of 110%.\n \nBoth mechanisms respectively create a price floor and ceiling through arbitrage opportunities.\n\nLUSD on Arbitrum and Optimism relies on users transferring LUSD through each networks respective bridge to arbitrage the price variation across the networks.\n\nThis proposal aims to add LUSD as a borrowable asset (LTV 0%).\n\n# Specification\n\nThe parameters shown below are the [combined recommendation](https://governance.aave.com/t/arfc-add-lusd-to-aave-v3-on-arbitrum/12858) of Gauntlet and Chaos Labs.\n\nTicker: LUSD\n\nContract Address: [`0x93b346b6BC2548dA6A1E7d98E9a421B42541425b`](https://arbiscan.io/token/0x93b346b6bc2548da6a1e7d98e9a421b42541425b)\n\nChainlink Oracle LUSD/USD [`0x0411D28c94d85A36bC72Cb0f875dfA8371D8fFfF`](https://arbiscan.io/address/0x0411D28c94d85A36bC72Cb0f875dfA8371D8fFfF)\n\n|Parameter|Value|\n| --- | --- |\n|Isolation Mode|No |\n|Borrowable|Yes |\n|Collateral Enabled| No |\n|Supply Cap | 900,000 units |\n|Borrow Cap | 900,000 units|\n|Debt Ceiling| 0 |\n|LTV| NA |\n|LT| NA |\n|Liquidation Bonus| NA |\n|Liquidation Protocol Fee |NA|\n|Variable Base|0.00%|\n|Variable Slope1|4.00%|\n|Variable Slope2|87.00%|\n|Uoptimal|80.00|\n|Reserve Factor|10.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|4.00%|\n|Stable Slope2|87.00%|\n|Base Stable Rate Offset|1.00%|\n|Stable Rate Excess Offset|8.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-add-lusd-to-aave-v3-on-arbitrum/12858)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230523/AaveV3ArbListings_20230523_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230523/AaveV3ArbListings_20230523_Payload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Disclaimer\n\n@llamaxyz and contributor, @TokenLogic, are not associated with or compensated by Liquity for publishing this AFRC.\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-V3-ARBITRUM-LUSD-LISTING"
  },
  "AAVE-V3-ARBITRUM-RETH-LISTING": {
    "title": "Add rETH to Arbitrum Aave v3",
    "discussions": "https://governance.aave.com/t/arfc-add-reth-to-aave-v3-arbitrum-liquidity-pool/12810",
    "shortDescription": "Add rETH to Arbitrum Aave v3 deployment as collateral, with borrowing enabled.",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-24T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication presents the community with the …",
    "content": "\n\n# Summary\n\nThis publication presents the community with the opportunity to add rETH to Aave Arbitrum v3. \n\n# Abstract\n\nThis proposal will add rETH to the Aave Arbtirum v3  deployment as collateral, with borrowing enabled and no isolation mode. \n\nrETH can be used for creating a range of yield maximising and lower carry cost leveraged trading strategies. Given the typically low borrowing cost for LSTs, users are able to borrow the LST and participate in yield strategies beyond the Aave protocol.\n\n# Motivation\n\nrETH is listed on Aave v3 Ethereum and has over $20M of deposits. Rocket Pool is expanding its support for rETH across the L2 ecosystem, first Optimism, now Arbitrum and soon Polygon. There are currently only Chainlink Oracles for Arbitrum and Ethereum. This AIP focusses on listing rETH on Arbitrum.\n\nLST collateral types drive material borrowing revenue to Aave as users deposit the LST and borrow the corresponding network token. This is most evident on Ethereum where the LST-wETH-yield-maximising loop is the source of the vast majority of wETH borrowing demand.\n\nBy providing LST diversification, Aave presents itself as a neutral platform offering users the choice between various LSTs. An added benefit of offering a variety of LSTs is the respective communities may elect to compete for user acquisition via Aave through offering incentives. This is currently happening on Aave v3 Polygon and Aave’s TVL has meaningfully increased from a relatively small base.\n\n# Specification\n\nThe parameters shown below are the [combined recommendation](https://governance.aave.com/t/arfc-add-reth-to-aave-v3-arbitrum-liquidity-pool/12810/2) of Gauntlet and Chaos Labs.\n\nTicker: rETH\n\nContract Address: [`arbitrum: 0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8`](https://arbiscan.io/address/0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8)\n\nChainlink Oracle rETH/ETH [`0xF3272CAfe65b190e76caAF483db13424a3e23dD2`](https://arbiscan.io/address/0x0411D28c94d85A36bC72Cb0f875dfA8371D8fFfF)\n\nNewly deployed Oracle rETH/ETH/USD [`0x04c28D6fE897859153eA753f986cc249Bf064f71`](https://arbiscan.io/address/0x04c28D6fE897859153eA753f986cc249Bf064f71)\n\n\n|Parameter|Value|\n| --- | --- |\n|Isolation Mode|No|\n|Borrowable|Yes|\n|Collateral Enabled|Yes|\n|Supply Cap|325 units|\n|Borrow Cap|85 units|\n|LTV|67.00%|\n|LT|74.00%|\n|Liquidation Bonus|7.50%|\n|Liquidation Protocol Fee|10.00%|\n|Reserve Factor|15.00%|\n|Variable Base|0.00%|\n|Variable Slope 1|7.00%|\n|Variable Slope 2|300.00%|\n|Uoptimal|45.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope 1|13.00%|\n|Stable Slope 2|300.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable to Total Debt Ratio|20.00%|\n|Flahloanable|Yes|\n|Siloed Borrowing|No|\n|Borrowed in Isolation|No|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-add-reth-to-aave-v3-arbitrum-liquidity-pool/12810)\n* [Snapshot](https://snapshot.org/#/aave.eth/proposal/0xa7bc42ca1f658655e9998d22d616133da734bad0e6caae9c7d016ad97abf1451)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230524/AaveV3ArbListings_20230524_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230524/AaveV3ArbListings_20230524_Payload.sol)\n\nChaos Labs and Gauntlet both contributed to the development of the risk parameters presented above. \n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-V3-ARBITRUM-RETH-LISTING"
  },
  "AAVE-V3-ETHEREUM-CRV-LISTING": {
    "title": "Add CRV to Ethereum v3",
    "discussions": "https://governance.aave.com/t/arfc-add-crv-to-ethereum-v3/11532",
    "shortDescription": "Add CRV to Ethereum v3, as collateral, with borrowing enabled and in isolation mode.",
    "author": "Llama, DeFi_Consulting & efecarranza",
    "created": "2023-02-27T00:00:00.000Z",
    "preview": "# Summary\n\nThis proposal presents Aave the opportunity to onboard …",
    "content": "\n\n# Summary\n\nThis proposal presents Aave the opportunity to onboard CRV to the Ethereum v3 Liquidity Pool.\n\n# Abstract\n\nCRV is a strategic asset to Aave and any CRV earned from the pool could be used by Aave to support bootstrapping the adoption of GHO, StakedAToken and in the long term, perhaps help incentivize the Safety Module too.\n\nThe risk parameters provided within have been reviewed and endorsed by Gauntlet.\n\n# Motivation\n\nListing CRV on Aave v3 Ethereum compliments the community's recent on-market purchase of CRV to repay the excessive debt created on v2 Ethereum. CRV is a material contributor to Aave’s revenue through the continual borrowing demand for CRV. With serveral v2 CRV reserves being frozen, Month on Month revenue has fallen significantly in recently months. \n\n![](https://i.imgur.com/pOKdNoR.png)\n\nThe Polygon v3 deployment is the only liquidity pool with Borrowing enabled. The chart below shows how deposit rates on this deployment have been affect by the freezing and disabling borrowing on Polygon v2 and Ethereum v2 respectively during late November 2022. \n\n![](https://i.imgur.com/VDtUak2.png)\n\nBy listing CRV on v3 Ethereum and with a suitable BorrowCap in place, users will have the ability to migrate there positions from v2 to v3. \n\nAny CRV earned by Aave can be used in a number of different ways, with examples shown below:\n\n* Treasury yield\n* GHO adoption\n* StakedAToken adoption\n* Support Safety Module yield\n\nHow the CRV will be used is open for discuss and implementation via a separate proposal.\n\nThe risk parameters presented have been reviewed by Gauntlet and a supportive comment can be found on the [forum](https://governance.aave.com/t/arfc-add-crv-to-ethereum-v3/11532/5).\n\nThe interest rate curve parameters have been sourced from Llama's [ARFC CRV Interest Rate Curve Upgrade post](https://governance.aave.com/t/arfc-crv-interest-rate-curve-upgrade/11337) and have also been reviewed by Gauntlet. \n\n# Specification\n\nTicker: CRV\n\nContract Address: [0xD533a949740bb3306d119CC777fa900bA034cd52](https://etherscan.io/token/0xD533a949740bb3306d119CC777fa900bA034cd52)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|55.00%|\n|Liquidation Threshold|61.00%|\n|Liquidation Bonus|8.30%|\n|Reserve Factor|20.00%|\n|Liquidation Protocol Fee|10.00%|\n|Borrow Cap|7.70M|\n|Supply Cap|62.50M|\n|Debt Ceiling|20.90M|\n|Variable Base|3.00%|\n|Variable Slope1|14.00%|\n|Variable Slope2|300.00%|\n|Uoptimal|70.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|8.00%|\n|Stable Slope2|300.00%|\n|Base Stable Rate Offset|3.00%|\n|Stable Rate Excess Offset|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\n# Implementation\n\nTest cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3EthAddCRVPoolPayloadTest.t.sol)\n\nPayload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthAddCRVPoolPayload.sol)\n\nProposal Payload deployed address can be found [here](https://etherscan.io/address/0x5594475f068f814bdeb2d21b1676431a376322f5)\n\nInterest Rate Strategy deployed address can be found [here](https://etherscan.io/address/0x76884cAFeCf1f7d4146DA6C4053B18B76bf6ED14)\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arfc-add-crv-to-ethereum-v3/11532), [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0xa0b5336692735fb4288537646aec5819cb4cbf01fc3a8a7cb06c9e62db708055) and [Risk Service Provider feedback](https://governance.aave.com/t/arfc-add-crv-to-ethereum-v3/11532/5).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "AAVE-V3-ETHEREUM-CRV-LISTING"
  },
  "AAVE-V3-ETHEREUM-LDO-LISTING": {
    "title": "Add LDO to Ethereum Aave v3",
    "discussions": "https://governance.aave.com/t/arfc-add-support-for-ldo-on-ethereum-v3/12045",
    "shortDescription": "Add LDO to Ethereum Aave v3 deployment as collateral, with borrowing enabled and in isolation mode.",
    "author": "Llama - TokenLogic",
    "created": "2023-03-30T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication presents the community with the …",
    "content": "\n\n\n# Summary\n\nThis publication presents the community with the opportunity to add LDO to the Ethereum V3 Liquidity Pool.\n\n# Abstract\n\nLDO would be the first Ethereum liquid staking protocol governance token to be listed on Aave. Aave would benefit from being the first major lending market to list LDO. Users will be able to express various trading views on LDO’s price outlook in the lead up to Shanghai. \n \nThis publication uses the parameters provided by Gauntlet and Chaos Labs.\n\n# Motivation\n\nLido is a suite of software protocols that facilitates liquid staking across multiple blockchains. The Lido DAO is a decentralised autonomous organisation. The LDO token is used to vote on the use of the DAO treasury associated with the protocols, research and development, and incentive programs.\n\nThe Lido DAO is an Aragon organization. The LDO token was created using an [Aragon Minime contract](https://aragon.org/dao). Since Aragon provides a full end-to-end framework to build DAOs, Lido DAO uses its standard tools.\n\nLDO is a Top 50 token by market cap, currently ranked [31st](https://www.coingecko.com/en/coins/lido-dao) by Coingecko. Lido Protocol is the largest minter of liquid staked ETH tokens with [5,880,987 ETH staked](https://lido.fi/ethereum).\n\nMaking LDO available on Aave v3 would make Aave v3 the first major lending market to do so and would benefit from the first mover advantage.\n\n# Specification\n\nThe parameters shown below are the [combined recommendation](https://governance.aave.com/t/arfc-add-support-for-ldo-on-ethereum-v3/12045/5) of Gauntlet and Chaos Labs.\n\nTicker: LDO\n\nContract Address: [`0x5a98fcbea516cf06857215779fd812ca3bef1b32`](https://etherscan.io/address/0x5a98fcbea516cf06857215779fd812ca3bef1b32)\n\nOracle: LDO/ETH/USD: [`0xb01e6C9af83879B8e06a092f0DD94309c0D497E4`](https://etherscan.io/address/0xb01e6C9af83879B8e06a092f0DD94309c0D497E4)\n\nOracle Components:\n\nLDO/ETH: [`0x4e844125952D32AcdF339BE976c98E22F6F318dB`](https://etherscan.io/address/0x4e844125952D32AcdF339BE976c98E22F6F318dB)\n\nETH/USD: [`0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419`](https://etherscan.io/address/0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419)\n\n|Parameter|Value|\n| --- | --- |\n|Isolation Mode|Yes|\n|Borrowable|Yes|\n|Collateral Enabled|Yes|\n|Supply Cap (LDO)|6,000,000|\n|Borrow Cap (LDO)|3,000,000|\n|Debt Ceiling|$7,500,000|\n|LTV|40.00%|\n|LT|50.00%|\n|Liquidation Bonus| 9.00%|\n|Liquidation Protocol Fee |10.00%|\n|Variable Base|0.00%|\n|Variable Slope1|7.00%|\n|Variable Slope2|300.00%|\n|Stable Slope1|13.00%|\n|Stable Slope2|300%|\n|Uoptimal|45.00%|\n|Reserve Factor|20.00%|\n|Stable Borrowing|Disabled|\n\n# Implementation\n\nTest cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230403/AaveV3Listings_20230403_PayloadTest.t.sol)\n\nPayload implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Listings_20230403/AaveV3Listings_20230403_Payload.sol)\n\nDeployed Payload can be found [here](https://etherscan.io/address/0x7b766a02eba6d8651eeebdeb886323fc64bf1739)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "AAVE-V3-ETHEREUM-LDO-LISTING"
  },
  "AAVE-V3-MULTI-CAPS-UPDATES-20230508": {
    "title": "LST Supply Cap Increase Polygon & Arbitrum",
    "discussions": "https://governance.aave.com/t/arfc-increase-wsteth-supply-cap-on-polygon-v3/12971/2",
    "shortDescription": "Increase Supply Cap stMATIC on Polygon v3 from 25.0M units to 30M units. Increase Supply Cap wstETH on Polygon v3 from 1,800 units to 2,400 units. Increase Supply Cap of wstETH on Abritrum from 4,650 units to 9,300 units.",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-10T00:00:00.000Z",
    "preview": "# Summary\n\nThis AIP increasing the following Supply Caps:\n\n* stMATIC …",
    "content": "\n\n# Summary\n\nThis AIP increasing the following Supply Caps:\n\n* stMATIC Supply Cap on Polygon from 25.0M to 30M units\n* wstETH on Polygon v3 from 1,800 units to 2,400 units\n* wstETH on Abritrum from 4.65k unit to 9,300 units\n\n# Abstract\n\nThis publication present the community the opportunity to increase three Supply Caps across two Aave v3 deployments. Each asset is currently at, or nearing, 100% utilisation.  Some assets are receiving deposit rewards from Lido DAO.\n\nIncreasing the Supply Caps will enable users to enter yield maximising strategies, creating borrowing demand for network tokens that generates revenue for Aave DAO.\n\nEach of the parameter changes presented have been reviewed and are endorsed by at least one risk service provider. \n\n# Motivation\n\n## stMATIC Supply Cap Polygon\n\nRecently, the Supply Cap of stMATIC was increased from 21M units to 25M units. Within a few days, the Supply Cap was reached.\n\n![](../assets/AAVE-V3-MULTI-CAPS-UPDATES-20230508/supplycapreached.png)\n\nThe above chart shows the pent up demand awaiting Supply Cap increases. The right most part of the chart shows a rapid increase in utilisation as soon as the Supply Cap was lifted.\n\nThe recent increase in stMATIC deposits is from users entering the yield maximising strategy. This type of interaction with Aave Protocol is deemed lower risk than borrowing less price correlated assets.\n\n![](../assets/AAVE-V3-MULTI-CAPS-UPDATES-20230508/tokensupply.png)\n\nThe chart above shows that the supply of stMATIC on Polygon has only increased notably over the last few days. 50% of supply is 25,825,944 which can be rounded to 25.8M units. This AIP presents a stMATIC Supply Cap of 30M units, or 58.08% of supply.\n\n## wstETH Supply Cap Polygon\n\nCurrent utilisation of the wstETH Supply Cap is 100%. Supply of wstETH on Polygon is [4,034 units](https://polygonscan.com/token/0x03b54a6e9a984069379fae1a4fc4dbae93b3bccd). \n\nAs the majority of larger holdings are entering into the yield maximising strategy and the oracle draws upon liquidity from DEXs across various networks and CEX, Aave Protocol can be more flexible with setting the Supply Cap.\n\nAs a result, this AIP will implement a Supply Cap that is approximately 59.49% of supply. This is equivalent to a 33% increase in the Supply Cap.\n\n## wstETH Supply Cap Arbitrum\n\nThe wstETH Supply Cap on Arbitrum v3 is at 100% utilisation. \n\nThere is ample liquidity for wstETH to wETH to USDC swaps to occur when liquidating the largest wstETH holdings. At the time of writing, wstETH supply on Arbitrum is [34,699.59 units](https://arbiscan.io/token/0x5979d7b546e38e414f7e9822514be443a4800529), 50% of the supply is 17.35k units. The wstETH Supply Cap is to be increased by 100% to 9,300 units.\n\n# Specification\n\nThe following risk parameters changes are presented:\n\n**Polygon** \n\nTicker: stMATIC\n\nContract: [`polyon: 0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4`](https://polygonscan.com/address/0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|25M units|30M units|\n\nTicker: wstETH\n\nContract: [`polygon: 0x03b54A6e9a984069379fae1a4fC4dBAE93B3bCCD`](https://polygonscan.com/token/0x03b54A6e9a984069379fae1a4fC4dBAE93B3bCCD)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|1,800 units|2,400 units|\n\n**Arbitrum** \n\nTicker: wstETH\n\nContract: [`arbitrum: 0x5979D7b546E38E414F7E9822514be443A4800529`](https://arbiscan.io/token/0x5979d7b546e38e414f7e9822514be443a4800529)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|4,650 units|9,300 units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n**Polygon stMATIC**\n\n* [stMATIC Governance Forum Discussion](https://governance.aave.com/t/arfc-stmatic-supply-cap-increase-polygon-v3/12606)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3MultiCapsUpdate_20230508_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3PolCapsUpdates_20230508_Payload.sol)\n\n**Polygon wstETH**\n\n* [wstETH Governance Forum Discussion](https://governance.aave.com/t/arfc-increase-wsteth-supply-cap-on-polygon-v3/12971)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3MultiCapsUpdate_20230508_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3PolCapsUpdates_20230508_Payload.sol)\n\n**Arbitrum wstETH**\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-wsteth-supply-cap-increase-arbitrum-v3/13016)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3MultiCapsUpdate_20230508_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230508/AaveV3ArbCapsUpdates_20230508_Payload.sol)\n\nRisk Service providers have endorsed the contents of this proposal. \n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AAVE-V3-MULTI-CAPS-UPDATES-20230508"
  },
  "AAVE-V3-OPTIMISM-OP-REWARDS-EMISSION-ADMIN": {
    "title": "OP Emission_Admin for Optimism v3 Liquidity Pool",
    "author": "Llama",
    "discussions": "https://governance.aave.com/t/arfc-grant-op-emission-admin-for-optimism-v3-liquidity-pool-to-lido-dao/11905",
    "shortDescription": "Enable Lido DAO to distribute OP rewards across the Aave v3 Optimism Liquidity Pool.",
    "created": "2023-03-14T00:00:00.000Z",
    "preview": "# Summary\n\nThis proposal is to enable Lido DAO to distribute OP …",
    "content": "\n\n# Summary\n\nThis proposal is to enable Lido DAO to distribute OP rewards across the Aave v3 Optimism Liquidity Pool.\n\nThe `Emission_Admin` role for OP on Optimism is currently assigned to the Optimism team and is to be transferred to Lido DAO.\n\n# Abstract\n\nLido DAO seeks to distribute OP rewards across to the Aave v3 Optimism deployment. To achieve this, the `EmissionManager` function reassigns an owner to the `Emission_Admin` role for OP.\n\nThe wallet with `Emission Admin` permission for OP then controls the distribution of OP and LDO rewards on the Optimism Liquidity Pool. This proposal will enable LDO and OP rewards to be distributed across the Optimism v3 deployment. \n\n# Motivation\n\nLido DAO has received a grant nominated in OP tokens that are to be used for bootstrapping the adoption of wstETH on the Optimism network. A portion of these rewards are to be distributed on the Aave v3 deployment. \n\nThe Lido Liquidity Mining Committee (LMC) will be determining the emission rate and duration that OP rewards are offered on the Aave v3 deployment.\n\nTypically, the LMC meets and determines the next 30 days rewards to be distributed on a rolling basis. This means each month, the committee will determine if to extend the OP rewards, or change the amount of OP being offered across the Aave v3 Liquidity Pools on Optimism.\n\n# Specification\n\nThe `EmissionManager`, a governance controlled function, assigns the `Emission_Admin` role for a specified token, OP, on each respective network. \n\nThe `Emission_Admin` role controls the distribution of the specified token, OP, across the specified Aave deployment.\n\nThe `Emission_Admin` can distribute OP anywhere across the Aave v3 on the Optimism Liquidity Pool.\n\nEmission Admin: `0x5033823F27c5f977707B58F0351adcD732C955Dd`\n\n# Implementation\n\nsetEmissionAdmin(address reward, address admin)\n\nOP Address Reward: [0x4200000000000000000000000000000000000042](https://optimistic.etherscan.io/address/0x4200000000000000000000000000000000000042)\n\nOP Address Admin: [0x5033823F27c5f977707B58F0351adcD732C955Dd](https://optimistic.etherscan.io/address/0x5033823F27c5f977707B58F0351adcD732C955Dd)\n\nThe relevant links for this proposal are shown:\n\n  * [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/optimism/AaveV3OptOPEmissionAdminPayloadTest.t.sol)\n  * [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/optimism/AaveV3OptOPEmissionAdminPayload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "AAVE-V3-OPTIMISM-OP-REWARDS-EMISSION-ADMIN"
  },
  "AAVE-V3-POLYGON-CAPS-UPDATES-20230518": {
    "title": "wMATIC Supply & Borrow Cap Increase Polygon v3",
    "discussions": "https://governance.aave.com/t/arfc-wmatic-supply-borrow-cap-increase-polygon-v3/13095",
    "shortDescription": "Increase Supply & Borrow Cap wMATIC on Polygon v3",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-18T00:00:00.000Z",
    "preview": "# Summary\n\nThis AIP proposes increasing the wMATIC Supply and Borrow …",
    "content": "\n\n# Summary\n\nThis AIP proposes increasing the wMATIC Supply and Borrow Cap on Polygon v3.\n\n# Abstract\n\nWith strong deposit flows from the Balancer bb-a-wMATIC integration and the continual growth of the yield maximising strategy, the Supply and Borrow Cap of wMATIC are both experiencing strong utilisation.\n\nThis AIP enables the continued growth of wMATIC deposits as Balancer Liquidity Providers migrate to the new gauges and users continue to migrate from Aave v2 to v3. As wMATIC deposits grow so does the demand for borrowing wMATIC. Subsidised borrowing costs has lead to significant demand for wMATIC and TVL growth for Aave.\n\nIncreasing the Supply and Borrow Caps as outlined will continue to users of yield maximising strategies.\n\n# Motivation\n\nWith several Balancer liquidity pools depositing wMATIC into Aave v3 on Polygon, the utilisation of the Supply Cap has increased to 100%. This is currently preventing the Balancer linear pools from depositing into the wMATIC reserve. \n\nCurrently, there is around [5,294,939](https://app.balancer.fi/#/polygon/pool/0x8159462d255c1d24915cb51ec361f700174cd99400000000000000000000075d) and [1,228,487](https://app.balancer.fi/#/polygon/pool/0xb20fc01d21a50d2c734c4a1262b4404d41fa7bf000000000000000000000075c) units of wMATIC not yet migrated to the new gauges. The wMATIC Supply Cap is at 100% utilisation.\n\nThere is also [15.13M](https://app.aave.com/markets/?marketName=proto_polygon) units of wMATIC on Aave v2 that has not yet migrated to v3. \n\nCollectively, this represents around 21.65M units of wMATIC relative to a Supply Cap. This AIP intends to provide sufficent capacity for the 21.65M units to be deposited into the wMATIC reserve by increasing the Supply Cap from 66M units to 90M units, a 24M unit increase. The utilisation of the pool will be 73.33% after the Supply Cap is implemented.\n\nWith many teams are offering yield maximising strategies, there is continued strong demand for borrowing wMATIC. The current Borrow Cap has reached 74.50% utilisation. The newly proposed Borrow Cap 50M units is equivalent to 25% increase and represents 62.5% of the Supply Cap.\n\nWith reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) it is possible to ship several upgrades to gradually increasing Aave's exposure to wMATIC over time.\n\n# Specification\n\nThe following risk parameters have been proposed by Llama and Chaos Labs has expressed support on the governance forum.\n\nTicker: wMATIC\n\nContract: [`polygon: 0x0d500b1d8e8ef31e21c99d1db9a6444d3adf1270`](https://polygonscan.com/address/0x0d500b1d8e8ef31e21c99d1db9a6444d3adf1270)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|66.00M units|90M units|\n|BorrowCap|39.95M units|50M units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-wmatic-supply-borrow-cap-increase-polygon-v3/13095)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230518/AaveV3PolCapsUpdates_20230518_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230518/AaveV3PolCapsUpdates_20230518_Payload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-V3-POLYGON-CAPS-UPDATES-20230518"
  },
  "AAVE-V3-POLYGON-CAPS-UPDATES-AGD-APPROVAL-20230503": {
    "title": "MaticX Supply Cap Increase Polygon v3 and AGD Approval",
    "discussions": "https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657",
    "shortDescription": "Increase Supply Cap MaticX on Polygon v3 to 29.3M units and AGD approval.",
    "author": "Llama - TokenLogic",
    "created": "2023-05-03T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication proposes increasing the MaticX Supply …",
    "content": "\n\n# Summary\n\nThis publication proposes increasing the MaticX Supply Cap on Polygon v3 from 17.2M units to 29.3M units. It also corrects the Aave Grants DAO aUSDT allowance that was incorrectly set previously.\n\n# Abstract\n\nAfter a vote for increasing the communities counter party risk was passed on Snapshot, the Supply Cap for MaticX can be increased from 50% to 75% of circulating supply.\n\nThe dominant use case for MaticX on Aave Protocol is as collateral to borrow wMATIC. Since the MaticX oracle, a calculated price feed provided by Chainlink based upon the underlying asset's (MATIC) price, the risk of liquidation is minimal. As a result, the primary risk of increasing aave Protocol's exposure to MaticX is the assocaited counterparty risk which is expressed as concentration risk with up to 75% of supply on the Polygon network.\n\nThe current Supply Cap's utilisation is hovering around 94%, with 1.03M units of MaticX deposit capacity. Stader Labs is currently offering SD rewards to user who deposit MaticX. This proposal seeks to encourage Stader Labs to continue distributing SD rewards by increasing the Supply Cap and enabling more MaticX to be deposited into Aave. \n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions conducive to growing TVL and Revenue by facilitate the creation of several yield aggregation products. \n\nWith liquidity mining ongoing, MaticX deposit rewards (SD) and wMATIC borrowing rewards (stMATIC & MaticX), ensuring there is adequate capacity enabling the yield maximising strategies to grow is key for Aave Protcol's abililty to generate wMATIC revenue. Several liquidity pools on Balancer v2 now include bb-a-wMATIC with over 14.5M units of wMATIC being deposited in Aave Protocol. This has lead to reduced borrowing rates for wMATIC and supports the continued growth of yield maximising strategies on Aave Protocol. \n\n![](https://i.imgur.com/CdVGNQ9.png)\n\nTo facilitate the continued growth of the MaticX reserve, the Supply Cap needs to be raised enabling more deposits into the reserve.\n\nWith reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) the preferred path forward is to implement several upgrades to gradually increase Aave's MaticX exposure over time. \n\nThis proposal will increase the Supply Cap from 17.2M units to  29.3M units. Feedback from Chaos Labs and Gauntlet can be found [here](https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657/13). The two appllicable Snapshot votes can be founds [here](https://snapshot.org/#/aave.eth/proposal/0xf9261916c696ce2d793af41b7fe556896ed1ff7a8330b7d0489d5567ebefe3ba) and [here](https://snapshot.org/#/aave.eth/proposal/0x7057a6311c791ebd57b93acb4a231dfd4fb92755fc02fa1de4723d0a5510d2ed).\n\n# Specification\n\nTicker: MaticX\n\nContract: [`polygon: 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6`](https://polygonscan.com/token/0xfa68fb4628dff1028cfec22b4162fccd0d45efb6)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|17.2M units|29.3M units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV3PolCapsUpdates_20230503_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV3PolCapsUpdates_20230503_Payload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Aave Grants Dao\n\nPreviously, the allowance of aUSDT for AGD was incorrectly set to the v1 implementation of aUSDT which the Collector contract does not hold any of. This new proposal will set the v1 aUSDT allowance to zero, and correctly set the v2 aUSDT implementation to the originally specified amount of $812,944.90.\n\nPlease see the original proposal to renew the grants program [here](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289).\n\nThe original payload with the incorrect approval can be found [here](https://github.com/llamaxyz/aave-proposals/blob/main/src/proposals/aave-grants-dao-renewal/ProposalPayload.sol).\n\nThe original communication about this issue can be found [here](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289/9).\n\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV2EthAGDGrantsPayload.sol)\n* [Test cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV2EthAGDGrantsPayloadTest.t.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n\n\n\n",
    "basename": "AAVE-V3-POLYGON-CAPS-UPDATES-AGD-APPROVAL-20230503"
  },
  "AAVE-V3-POLYGON-MATIC-UPDATE-20230503": {
    "title": "MaticX Supply Cap Increase Polygon v3",
    "discussions": "https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657",
    "shortDescription": "Increase Supply Cap MaticX on Polygon v3 to 29.3M units.",
    "author": "Llama (Fermin Carranza, TokenLogic)",
    "created": "2023-05-03T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication proposes increasing the MaticX Supply …",
    "content": "\n\n# Summary\n\nThis publication proposes increasing the MaticX Supply Cap on Polygon v3 from 17.2M units to 29.3M units.\n\n# Abstract\n\nAfter a vote for increasing the communities counter party risk was passed on Snapshot, the Supply Cap for MaticX can be increased from 50% to 75% of circulating supply.\n\nThe dominant use case for MaticX on Aave Protocol is as collateral to borrow wMATIC. Since the MaticX oracle, a calculated price feed provided by Chainlink based upon the underlying asset's (MATIC) price, the risk of liquidation is minimal. As a result, the primary risk of increasing aave Protocol's exposure to MaticX is the assocaited counterparty risk which is expressed as concentration risk with up to 75% of supply on the Polygon network.\n\nThe current Supply Cap's utilisation is hovering around 94%, with 1.03M units of MaticX deposit capacity. Stader Labs is currently offering SD rewards to user who deposit MaticX. This proposal seeks to encourage Stader Labs to continue distributing SD rewards by increasing the Supply Cap and enabling more MaticX to be deposited into Aave. \n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions conducive to growing TVL and Revenue by facilitate the creation of several yield aggregation products. \n\nWith liquidity mining ongoing, MaticX deposit rewards (SD) and wMATIC borrowing rewards (stMATIC & MaticX), ensuring there is adequate capacity enabling the yield maximising strategies to grow is key for Aave Protcol's abililty to generate wMATIC revenue. Several liquidity pools on Balancer v2 now include bb-a-wMATIC with over 14.5M units of wMATIC being deposited in Aave Protocol. This has lead to reduced borrowing rates for wMATIC and supports the continued growth of yield maximising strategies on Aave Protocol. \n\n![](../assets/AAVE-V3-POLYGON-CAPS-UPDATES-AGD-APPROVAL-20230503/chart.png)\n\nTo facilitate the continued growth of the MaticX reserve, the Supply Cap needs to be raised enabling more deposits into the reserve.\n\nWith reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) the preferred path forward is to implement several upgrades to gradually increase Aave's MaticX exposure over time. \n\nThis proposal will increase the Supply Cap from 17.2M units to  29.3M units. Feedback from Chaos Labs and Gauntlet can be found [here](https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657/13). The two appllicable Snapshot votes can be founds [here](https://snapshot.org/#/aave.eth/proposal/0xf9261916c696ce2d793af41b7fe556896ed1ff7a8330b7d0489d5567ebefe3ba) and [here](https://snapshot.org/#/aave.eth/proposal/0x7057a6311c791ebd57b93acb4a231dfd4fb92755fc02fa1de4723d0a5510d2ed).\n\n# Specification\n\nTicker: MaticX\n\nContract: [`polygon: 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6`](https://polygonscan.com/token/0xfa68fb4628dff1028cfec22b4162fccd0d45efb6)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|17.2M units|29.3M units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-maticx-supply-cap-increase-polygon-v3/12657)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV3PolCapsUpdates_20230503_PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3CapsUpdates_20230503/AaveV3PolCapsUpdates_20230503_Payload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE-V3-POLYGON-MATIC-UPDATE-20230503"
  },
  "AAVE_ETHEREUM_V3": {
    "title": "Aave Ethereum V3",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Activation of Aave v3 Ethereum",
    "discussions": "https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990/16",
    "created": "2023-01-20T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis governance proposal activates the Aave V3 …",
    "content": "\n\n# Simple Summary\n\nThis governance proposal activates the Aave V3 Ethereum pool (3.0.1), by completing all the initial setup and listing WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE, already pre-approved by the community.\nAll the Aave Ethereum V3 addresses can be found in the [aave-address-book](https://github.com/bgd-labs/aave-address-book/blob/main/src/AaveV3Ethereum.sol).\n\n# Motivation\n\nWhile AAVE V3 was deployed to various networks right after the release, the Ethereum pool was still running V2.\nAfter careful consideration, the community [decided to deploy a fresh V3](https://snapshot.org/#/aave.eth/proposal/0x584eb4e0f79e1d9dcdd99b3a0c831bfc3c654af3f8f619d5f68eae23cd9cb149) instead of upgrading the V2 pool, for increased compatibility between the V3 pools and less general complexity.\nThe assets to be listed & respective configurations have been discussed in [the governance forum](https://governance.aave.com/t/arc-aave-v3-ethereum-deployment-assets-and-configurations/10238) and been decided in the following [snapshot](https://snapshot.org/#/aave.eth/proposal/0xc31254fac1369090cea7c0105cbc6381b72189c038391996f855708ff2e0c02e).\n\n# Specification\n\nThis proposal's payload does the following:\n\n1. Create the eMode category for eth correlated assets via `POOL_CONFIGURATOR.setEModeCategory(1, 90_00, 93_00, 10_100, address(0), 'ETH correlated')`\n2. Swap of emergency admin to Aave Guardian via `ACL_MANAGER.removeEmergencyAdmin(AaveGovernanceV2.SHORT_EXECUTOR)` followed by `ACL_MANAGER.addEmergencyAdmin(GUARDIAN_ETHEREUM)`\n3. grant `POOL_ADMIN` permissions to all the asset listing stewards created inside the `constructor()` via `ACL_MANAGER.addPoolAdmin(stewards[i])`\n\nThe Steward pattern is taken from [V3-listing stewards](https://github.com/bgd-labs/aave-v3-listing-stewards/blob/feat/v3-ethereum-tests/src/contracts/common/StewardBase.sol#L8). Each Steward will handle the listing of one specific asset and then renounce to the granted POOL_ADMIN role. This process is needed as otherwise, the proposal's gas limit would be really gas-expensive.\n\n## Configuration snapshot\n\nWhat you can see here is a formatted excerpt of the configuration snapshot with the relevant configurations after proposal execution.\nYou can find the full snapshot in the proposal [repository](https://github.com/bgd-labs/aave-v3-ethereum-proposal/blob/main/reports/0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2_post-stewards-aave-v3-ethereum.md).\n\n### Reserve Configurations\n\n| symbol                                                                                 |    ltv | liqThreshold | liqBonus | liqProtocolFee | reserveFactor | borrowingEnabled |          supplyCap |          borrowCap |  eModeCategory | isFlashloanable |\n| -------------------------------------------------------------------------------------- | -----: | -----------: | -------: | -------------: | ------------: | ---------------: | -----------------: | -----------------: | -------------: | --------------- |\n| [WBTC](https://etherscan.io/address/0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599#code)   | 70.00% |       75.00% |    6.25% |            10% |           20% |             true |         43'000 BTC |         28'000 BTC |              - | true            |\n| [WETH](https://etherscan.io/address/0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2#code)   | 80.00% |       82.50% |    5.00% |            10% |           15% |             true |     1'800'000 WETH |     1'400'000 WETH | ETH correlated | true            |\n| [wstETH](https://etherscan.io/address/0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0#code) | 68.50% |       79.50% |    7.00% |            10% |           15% |             true |     200'000 wstETH |       3'000 wstETH | ETH correlated | true            |\n| [USDC](https://etherscan.io/address/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48#code)   | 74.00% |       76.00% |    4.50% |            20% |           10% |             true | 1'760'000'000 USDC | 1'580'000'000 USDC |              - | true            |\n| [DAI](https://etherscan.io/address/0x6B175474E89094C44Da98b954EedeAC495271d0F#code)    | 64.00% |       77.00% |    4.00% |            20% |           10% |             true |    338'000'000 DAI |    271'000'000 DAI |              - | true            |\n| [LINK](https://etherscan.io/address/0x514910771AF9Ca656af840dff83E8264EcF986CA#code)   | 50.00% |       65.00% |    7.50% |            10% |           20% |             true |    24'000'000 LINK |    13'000'000 LINK |              - | true            |\n| [AAVE](https://etherscan.io/address/0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9#code)   | 60.00% |       70.00% |    7.50% |            10% |            0% |            false |     1'850'000 AAVE |                  - |              - | false           |\n\n### InterestRateStrategies\n\n| strategy                                                                                                                   | BaseVariableBorrowRate | VariableRateSlope1 | VariableRateSlope2 | optimalUsageRatio | maxExcessUsageRatio | assets           |\n| -------------------------------------------------------------------------------------------------------------------------- | ---------------------: | -----------------: | -----------------: | ----------------: | ------------------: | ---------------- |\n| [0x24701A6368Ff6D2874d6b8cDadd461552B8A5283](https://etherscan.io/address/0x24701A6368Ff6D2874d6b8cDadd461552B8A5283#code) |                     0% |              7.00% |            300.00% |            45.00% |              55.00% | WBTC, LINK, AAVE |\n| [0x53F57eAAD604307889D87b747Fc67ea9DE430B01](https://etherscan.io/address/0x53F57eAAD604307889D87b747Fc67ea9DE430B01#code) |                  1.00% |              3.80% |             80.00% |            80.00% |              20.00% | WETH             |\n| [0x7b8Fa4540246554e77FCFf140f9114de00F8bB8D](https://etherscan.io/address/0x7b8Fa4540246554e77FCFf140f9114de00F8bB8D#code) |                  0.25% |              4.50% |             80.00% |            45.00% |              55.00% | wstETH           |\n| [0xD6293edBB2E5E0687a79F01BEcd51A778d59D1c5](https://etherscan.io/address/0xD6293edBB2E5E0687a79F01BEcd51A778d59D1c5#code) |                     0% |              4.00% |             60.00% |            90.00% |              10.00% | USDC             |\n| [0x694d4cFdaeE639239df949b6E24Ff8576A00d1f2](https://etherscan.io/address/0x694d4cFdaeE639239df949b6E24Ff8576A00d1f2#code) |                     0% |              4.00% |             75.00% |            80.00% |              20.00% | DAI              |\n\n### EMode categories\n\n| label          |    ltv | liqThreshold | liqBonus |\n| -------------- | -----: | -----------: | -------: |\n| ETH correlated | 90.00% |       93.00% |    1.00% |\n\n## Security procedures\n\nThe proposal execution is simulated [within the tests](https://github.com/bgd-labs/aave-v3-ethereum-proposal/blob/main/tests/AaveV3EthereumActivation.t.sol) and the resulting pool configuration is tested for correctness.\n\nIn addition this proposal has been tested one the [aave interface](https://github.com/aave/interface) using forks.\n\nAave Companies have reviewed the proposal code.\n\n## Deployed Contracts\n\n- [GenericV3ListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code)\n- [ProposalPayload](https://etherscan.io/address/0xc5a0ba13a3749c5d4a21934df8fd64821ac3fce7#code)\n\n## References\n\n- [Discussion: upgrade vs fresh deployment](https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990)\n- [Discussion: asset listings & parameters](https://governance.aave.com/t/arc-aave-v3-ethereum-deployment-assets-and-configurations/10238)\n- [Code: ListingEngine](https://github.com/bgd-labs/aave-helpers/tree/master/src/v3-listing-engine)\n- [Code: ProposalPayload](https://github.com/bgd-labs/aave-v3-ethereum-proposal)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE_ETHEREUM_V3"
  },
  "AAVE_METIS_V3_ACTIVATION": {
    "title": "Aave Metis V3",
    "shortDescription": "Activation of Aave v3 Metis.",
    "discussions": "https://governance.aave.com/t/launch-aave-v3-on-metis/7056",
    "created": "2023-5-27",
    "author": "BGD Labs (@bgdlabs)",
    "preview": "# Summary\n\nThis proposal allows the Aave governance to activate the …",
    "content": "\n\n# Summary\n\nThis proposal allows the Aave governance to activate the Aave V3 Metis pool (3.0.2) by completing all the initial setup and listing WETH, USDC, USDT, DAI, and METIS as suggested by the risk service providers (Gauntlet and Chaos Labs) on the [governance forum](https://governance.aave.com/t/launch-aave-v3-on-metis/7056/78).\nAll the Aave Metis V3 addresses can be found in the [aave-address-book](https://github.com/bgd-labs/aave-address-book/blob/main/src/AaveV3Metis.sol).\n\n# Motivation\n\nAll the governance procedures for the expansion of Aave v3 to Metis have been finished, said:\n\n- Positive signaling and approval regarding the expansion on the [governance forum](https://governance.aave.com/t/launch-aave-v3-on-metis/7056), [temp check snapshot](https://snapshot.org/#/aave.eth/proposal/0xaba8da3287788ee77013aa6b0584694807dc15304ab5c283fe1fc728bf1d5864), and [final snapshot](https://snapshot.org/#/aave.eth/proposal/0x7e6175c21342dbd88dc5b0dabf2d0a86339e3ef3f199fc7d778a9a6f05ed0df9).\n- Positive technical evaluation done by BGD Labs of the Metis network, as described in the [forum](https://governance.aave.com/t/bgd-aave-metis-infrastructure-technical-evaluation/11374) in detail.\n- Positive risk analysis and assets/parameters recommendation by the risk providers Chaos Labs and Gauntlet, as commented on the [forum](https://governance.aave.com/t/launch-aave-v3-on-metis/7056/78).\n\n# Specification\n\nThis proposal's payload does the following: grants `POOL_ADMIN` permissions to all the asset listing Stewards created inside the `constructor()` of the payload via `ACL_MANAGER.addPoolAdmin(stewards[i])`\n\nThe Steward pattern is taken from [V3-listing stewards](https://github.com/bgd-labs/aave-v3-listing-stewards/blob/feat/v3-ethereum-tests/src/contracts/common/StewardBase.sol#L8), already used for the activation of Aave V3 Ethereum. Each Steward will handle the listing of one specific asset and then renounce to the granted `POOL_ADMIN` role. This process is needed as otherwise, the proposal's gas limit would be really high.\n\nThe pool activation will be done via the cross-chain governance with the help of cross-chain forwarder on Ethereum, which on a successful vote by the community, will trigger queuing of the payload action on Metis, which later could be executed by anyone.\n\n## Configuration snapshot\n\nWhat you can see here is a formatted excerpt of the configuration snapshot with the relevant configurations after proposal execution. Although stable borrowing is disabled for all the respective assets, interest rate parameters for stable borrowing have been configured according to the values set in [Aave V3 Ethereum](https://github.com/bgd-labs/aave-v3-ethereum-proposal/blob/main/src/contracts/AaveV3EthereumRateStrategiesDefinition.sol). You can find the complete snapshot in the proposal [repository](https://github.com/bgd-labs/aave-v3-metis-proposal/blob/main/reports/post-stewards-aave-v3-metis.json).\n\n### Reserve Configurations\n\n| symbol | ltv | liqThreshold | liqBonus | liqProtocolFee | reserveFactor | borrowingEnabled | collateralEnabled | stableBorrowing | borrowableInIsolation | supplyCap | borrowCap | isFlashloanable |\n| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |\n| [WETH](https://andromeda-explorer.metis.io/address/0x420000000000000000000000000000000000000A) | 80.00% | 82.50% | 7.50% | 10% | 15% | true | true | false | false | 50 WETH | 30 WETH | true |\n| [USDC](https://andromeda-explorer.metis.io/address/0xEA32A96608495e54156Ae48931A7c20f0dcc1a21) | 80.00% | 85.00% | 5.00% | 10% | 10% | true | true | false | true | 1'200'000 USDC | 1'200'000 USDC | true |\n| [DAI](https://andromeda-explorer.metis.io/address/0x4c078361FC9BbB78DF910800A991C7c3DD2F6ce0) | 75.00% | 80.00% | 5.00% | 10% | 10% | true | true | false | false | 950'000 DAI | 950'000 DAI | true |\n| [USDT](https://andromeda-explorer.metis.io/address/0xbB06DCA3AE6887fAbF931640f67cab3e3a16F4dC) | 75.00% | 80.00% | 5.00% | 10% | 10% | true | true | false | true | 1'400'000 USDT | 1'400'000 USDT | true |\n| [METIS](https://andromeda-explorer.metis.io/address/0xDeadDeAddeAddEAddeadDEaDDEAdDeaDDeAD0000) | N/A | N/A | N/A | N/A | 15% | true | false | false | false | 7'500 METIS | 4'000 METIS | true |\n\n### InterestRateStrategies\n\n| assets | baseVariableBorrowRate | variableRateSlope1 | variableRateSlope2 | optimalUsageRatio |\n| --- | --- | --- | --- | --- |\n| WETH | 1% | 3.80% | 80.00% | 80.00% |\n| USDC | 0% | 4.00% | 60.00% | 90.00% |\n| DAI | 0% | 7.00% | 75.00% | 80.00% |\n| USDT | 0% | 4.00% | 75.00% | 80.00% |\n| METIS | 0% | 7.00% | 300.00% | 45.00% |\n\n## Security procedures\n\nThe proposal execution is simulated [within the tests](https://github.com/bgd-labs/aave-v3-metis-proposal/blob/main/tests/AaveV3MetisPool.t.sol) and the resulting pool configuration is tested for correctness.\n\nThe deployed pool and other permissions have been programmatically verified.\n\nIn addition, we have also checked the code diffs of the deployed metis contracts with the deployed contracts on Ethereum and other networks.\n\nAs a matter of caution, the `POOL_ADMIN` role will be given for the first weeks to the Aave Guardian multisig.\n\n## Deployed Contracts\n\n- [ProposalPayload](https://andromeda-explorer.metis.io/address/0xF7780A54Ee6f99EE9C028ae552149CFbDDbaDfc4)\n\n## References\n\n- [Discussion: asset listings & parameters](https://governance.aave.com/t/launch-aave-v3-on-metis/7056/77)\n- [Code: ProposalPayloadActivation](https://github.com/bgd-labs/aave-v3-metis-proposal/)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AAVE_METIS_V3_ACTIVATION"
  },
  "AAVE_STARKNET_PHASE_I_DEPLOYMENT": {
    "title": "Aave StarkNet Phase I - Aave <> StarkNet Bridge deployment/activation by Aave governance",
    "author": "Aave on StarkNet",
    "shortDescription": "Deployment/activation of the Aave <> StarkNet Bridge",
    "discussions": "https://governance.aave.com/t/aave-starknet-phase-i-release/10428",
    "created": "2022-11-28T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis governance proposal deploys and activates the …",
    "content": "\n\n# Simple Summary\n\nThis governance proposal deploys and activates the different smart contract components result of the community project to create a bridge of Aave v2 Ethereum aTokens from/to StarkNet.\n\n\n# Motivation\n\nAll the information regarding the project is explained on [https://governance.aave.com/t/aave-starknet-phase-i-release/10428](https://governance.aave.com/t/aave-starknet-phase-i-release/10428). \n\nIn summary, with the previous approval of the project via governance, the Aave community has decided to start its expansion to StarkNet, a validity rollup, starting with smart contracts for bridging infrastructure of Aave v2 Ethereum aTokens.\n\nAdditionally, this also sets the foundation for the connection of instances of Aave in other networks (e.g. Polygon, Avalanche) with StarkNet.\n\n\n# Specification\n\nThis proposal's payload does the following:\n\n**Ethereum side**\n\n1. Deploys the `Bridge` smart contract, main component on Ethereum of the system, by calling a transparent proxy factory.\n2. Initializes the Ethereum `Bridge` to accept bridging of aUSDC, aUSDT and aDAI, with a 30'000 total ceiling for each one of them (in units of each asset, which in this case is relatively equivalent to USD).\n3. Sends a message via the StarkNet core messaging smart contract to activate the smart contract components on the StarkNet side.\n\n**StarkNet side**\n\n1. The message is received by the Governance Relay contract (proxy [HERE](https://starkscan.co/contract/0x07bbb769e53d886f77792d59b9cd65a2eb14a84c49a0942ba9577e291deefcec#class) and implementation [HERE](https://starkscan.co/class/0x0431f8e4ac4298966bdf1d99ea273d9f22e72005874d76498bd630fcb806f605#code)), which executes the payload on [https://starkscan.co/class/0x00be3e7fe64939ef463bc80b76703b93c10a61944de34df5bb2dbc7b734e3159#code](https://starkscan.co/class/0x00be3e7fe64939ef463bc80b76703b93c10a61944de34df5bb2dbc7b734e3159#code) via delegatecall.\n2. The payload connects and activates all the components: activates rewAAVE (representing AAVE rewards on StarkNet), connects the L1 Bridge to the L2 side of it, and connects the L1 aTokens to their static versions on L2.\n\nThe payload smart contract for Ethereum can be found [HERE](https://etherscan.io/address/0x4919E176f02142C20727da215e8dc1b3d046D026#code), \n\nThe payload smart contract for StarkNet can be found [HERE](https://starkscan.co/class/0x00be3e7fe64939ef463bc80b76703b93c10a61944de34df5bb2dbc7b734e3159#code).\n\nAll the other components are also present in the [same repository](https://github.com/aave-starknet-project/aave-starknet-bridge#deployed-contracts).\n\nAfter this proposal gets approved and executed, the `Bridge` will be fully operative on [https://etherscan.io/address/0x25c0667E46a704AfCF5305B0A586CC24c171E94D](https://etherscan.io/address/0x25c0667E46a704AfCF5305B0A586CC24c171E94D) (no code at the moment, being a counterfactual/CREATE2 deployment).\n\n## Security procedures\n\nThis proposal has been tested using the available tools to be as close as possible to fork both Ethereum and StarkNet mainnets.\n\nIn addition, all the components apart from the payload had gone through the security procedures enumerated on the Aave governance forum [HERE](https://governance.aave.com/t/aave-starknet-phase-i-release/10428#security-procedures-5).\n\n[Bored Ghost Developing](https://twitter.com/bgdlabs) has reviewed the proposal payload too.\n\n\n## Deployed Contracts\n\n[https://github.com/aave-starknet-project/aave-starknet-bridge#deployed-contracts](https://github.com/aave-starknet-project/aave-starknet-bridge#deployed-contracts)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AAVE_STARKNET_PHASE_I_DEPLOYMENT"
  },
  "AAVE_V3_ETH_AAVE_RISK_PARAMS": {
    "title": "Update AAVE V3 ETH Risk Parameters",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Update AAVE V3 ETH Risk Parameters",
    "discussions": "https://governance.aave.com/t/arfc-align-aave-risk-parameters-on-aave-v3-ethereum-market-with-aave-v2/12656",
    "created": "2023-04-16T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposal presents Aave with the opportunity to update AAVE risk parameters on the Aave V3 Ethereum Pool\n\n## Motivation\n\nThis AIP proposes the alignment of the AAVE risk parameters on the Aave V3 Ethereum market with those on Aave V2, as the current parameters on Aave V3 are less attractive for users considering migration.\n\nBy matching the Aave V2 parameters, we aim to encourage migration and ensure a smoother transition for users. This proposal does not suggest any changes to Aave V3 caps or interest rate strategies.\n\nTo make Aave V3 more attractive for migration and to match Aave V2 parameters, we propose the following changes:\n\n- Loan-to-Value (LTV): Increase the LTV from 60% to 66%.\n- Liquidation Threshold (LT): Increase the LT from 70% to 73%.\n- Liquidation Penalty (LP): Maintain the current LP of 7.5%, as it is already in alignment with Aave V2.\n\n\n## Specification\n\nTicker: AAVE\n\nContract address: [0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9](https://etherscan.io/address/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9)\n\n| Parameter                | Current Aave V3 | Current Aave V2 | Proposed Aave V3 |\n|--------------------------|-----------------|-----------------|------------------|\n| Loan-to-Value (LTV)      | 60%             | 66%             | 66%              |\n| Liquidation Threshold (LT)| 70%             | 73%             | 73%              |\n| Liquidation Penalty (LP)  | 7.5%            | 7.5%            | 7.5%             |\n\n```solidity\ncontract AaveV3RiskParams_20230516 is AaveV3PayloadEthereum {\n  function collateralsUpdates() public pure override returns (IEngine.CollateralUpdate[] memory) {\n    IEngine.CollateralUpdate[] memory collateralUpdate = new IEngine.CollateralUpdate[](1);\n\n    collateralUpdate[0] = IEngine.CollateralUpdate({\n      asset: AaveV3EthereumAssets.AAVE_UNDERLYING,\n      ltv: 66_00,\n      liqThreshold: 73_00,\n      liqBonus: EngineFlags.KEEP_CURRENT,\n      debtCeiling: EngineFlags.KEEP_CURRENT,\n      liqProtocolFee: EngineFlags.KEEP_CURRENT,\n      eModeCategory: EngineFlags.KEEP_CURRENT\n    });\n    return collateralUpdate;\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/arfc-align-aave-risk-parameters-on-aave-v3-ethereum-market-with-aave-v2/12656)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/src/AaveV3RiskParams_20230516/AaveV3RiskParams_20230516test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3RiskParams_20230516/AaveV3RiskParams_20230516.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AAVE_V3_ETH_AAVE_RISK_PARAMS"
  },
  "ACI_SERVICE_PROVIDER_PROPOSAL": {
    "title": "ACI Service Provider Proposal",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "ACI Service Provider Proposal",
    "discussions": "https://governance.aave.com/t/arfc-aci-service-provider-6-month-proposal/12513",
    "created": "2023-04-12T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposal presents Aave with the opportunity to onboard Aave-Chan Initiative (ACI) as a service provider for the Aave protocol.\n\n## Motivation\n\nThe Aave Chan Initiative has been a dedicated contributor to the Aave ecosystem. The 6-Month Budget Proposal aims to secure the necessary resources to continue the ACI's work, ensuring that we can maintain our level of commitment and contribution to the Aave ecosystem. For more details about the ACI proposal, please refer to the [TEMP CHECK](https://governance.aave.com/t/temp-check-aave-chan-initiative-6-month-budget-proposal/12344) version of the current proposal.\n\n## Specification\n\nIf this proposal is approved, a stream of the allocated budget will be activated, with [treasury.aavechan.eth](https://etherscan.io/address/0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922) as the recipient.\n\nThis will allow the ACI to periodically claim a fraction of the budget for the duration of the stream.\n\nThe proposed budget is 250k aUSDT for a period of 6 months.\n\nThe proposal payload uses the delegatecall pattern with a pre-deployed payload. The payload creates a 180 days stream with the following parameters:\n\n```solidity\ncontract ProposalPayload is IProposalGenericExecutor {\n  address public constant ACI_TREASURY = 0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922;\n  address public constant AUSDT = AaveV2EthereumAssets.USDT_A_TOKEN;\n  address public constant COLLECTOR = AaveV2Ethereum.COLLECTOR;\n  address public constant RESERVE_CONTROLLER = AaveV2Ethereum.COLLECTOR_CONTROLLER;\n  uint256 public constant STREAM_AMOUNT = 250000e6;\n  uint256 public constant STREAM_DURATION = 180 days;\n\n  function execute() external {\n    uint256 ACTUAL_STREAM_AMOUNT_AUSDT = (STREAM_AMOUNT / STREAM_DURATION) * STREAM_DURATION;\n\n    IAaveEcosystemReserveController(RESERVE_CONTROLLER).createStream(\n      COLLECTOR,\n      ACI_TREASURY,\n      ACTUAL_STREAM_AMOUNT_AUSDT,\n      AUSDT,\n      block.timestamp,\n      block.timestamp + STREAM_DURATION\n    );\n  }\n}\n```\t\n\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/arfc-aci-service-provider-6-month-proposal/12513)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3ACIProposal_20230411/AaveV3ACIProposal_20230411Test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3ACIProposal_20230411/AaveV3ACIProposal_20230411.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "ACI_SERVICE_PROVIDER_PROPOSAL"
  },
  "ADD-CBETH-TO-AAVE-V3-ETHEREUM": {
    "title": "Add cbETH to Aave V3 Ethereum",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-cbeth/10425",
    "author": "Flispide Crypto (@Fig)",
    "shortDescription": "Integrate cbETH (Coinbase Wrapped Staked ETH) to the recently deployed Aave Ethereum V3 pool",
    "created": "2023-01-31T00:00:00.000Z",
    "preview": "## Summary\n\nFlipside Crypto presents a proposal to onboard cbETH to …",
    "content": "\n\n## Summary\n\nFlipside Crypto presents a proposal to onboard cbETH to Aave's Ethereum V3 pool. cbETH (Coinbase Wrapped Staked ETH) is an ERC-20 compliant token on Ethereum that represents underlying staked ETH on the Coinbase platform.\n\n## Motivation\n\ncbETH adds greater functionality to the recently deployed V3 pool, using robust risk controls. cbETH allows Aave to attract new users and deposits, pre-Shanghai upgrade. We are excited to add new, quality assets - bringing valuable liquidity to the latest Aave pool.\n\n## Risk Parameters\n\nThe complete technical and risk parameters:\n\n|Parameter|Value|\n|---------|-----|\n|Loan-to-value|67%|\n|Liquidation threshold|74%|\n|Liquidation bonus|7.5%|\n|Price feed|[0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731](https://etherscan.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code) adapter of [cbETH/ETH Chainlink](https://data.chain.link/ethereum/mainnet/crypto-eth/cbeth-eth)|\n|A/S/V tokens (aToken/Variable/Stable)|Standard implementation|\n|Interest rate strategy|[0x24701A6368Ff6D2874d6b8cDadd461552B8A5283](https://etherscan.io/address/0x24701A6368Ff6D2874d6b8cDadd461552B8A5283#readContract)|\n|Borrowing enabled|Yes|\n|Stable borrowing Enabled|No|\n|Reserve Factor|15%|\n|Liquidation Protocol Fee|10%|\n|Debt Ceiling|N/A|\n|Borrowable in Isolation|No|\n|Supply Cap|10,000|\n|Borrow Cap|1,200|\n|eMode (efficiency mode)|No|\n|Unbacked Mint Cap|0|\n|Siloed Borrowing|N/A|\n\n# Specification\n\nThe proposal payload uses the [GenericListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code) to perform a new asset listing with the following parameters:\n\n```solidity\nIGenericV3ListingEngine.Listing({\n      asset: 0xBe9895146f7AF43049ca1c1AE358B0541Ea49704,\n      assetSymbol: 'cbETH',\n      priceFeed: 0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731,\n      rateStrategy: 0x24701A6368Ff6D2874d6b8cDadd461552B8A5283,\n      enabledToBorrow: true,\n      stableRateModeEnabled: false,\n      borrowableInIsolation: false,\n      withSiloedBorrowing: false,\n      flashloanable: true,\n      ltv: 67_00,\n      liqThreshold: 74_00,\n      liqBonus: 7_50,\n      reserveFactor: 15_00,\n      supplyCap: 10_000,\n      borrowCap: 1_200,\n      debtCeiling: 0,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n});\n```\n\n## References \n\n* [GenericV3ListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code)\n* [Forum discussion](https://governance.aave.com/t/arc-add-support-for-cbeth/10425)\n* [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0xcbb588f0030f7726da3d065a30c2500652bbd0def6ca5f5f17a82daca777578e)\n\n## Deployed Contracts\n\n- [CLSynchronicityPriceAdapterPegToBase: cbETH/USD feed](https://etherscan.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code)\n\n- [AaveV3EthcbETHPayload: ProposalPayload](https://etherscan.io/address/0xd91d1331db4f436daf47ec9dd86decb8eef946b4#code)\n\n\n## Security Considerations\n\n The [CLSynchronicityPriceAdapterPegToBase: cbETH/USD feed](https://etherscan.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code) was deployed by Bored Ghost Developing as an adapter of the [Chainlink cbETH/ETH price feed](https://etherscan.io/address/0xf017fcb346a1885194689ba23eff2fe6fa5c483b#code).\n\n\n## Proposal's Technical Implementation\n\nAll the components involved in this proposal (token's implementations, interest rate strategy, oracle feed, proposal payload) have been reviewed by Bored Ghost Developing.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "ADD-CBETH-TO-AAVE-V3-ETHEREUM"
  },
  "ADD-DFS-FLASHBORROWERS": {
    "title": "Add DeFi Saver to Aave V3 FlashBorrowers",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Add DFS to Aave V3 FlashBorrowers",
    "discussions": "https://governance.aave.com/t/arfc-add-defi-saver-to-flashborrowers-on-aave-v3/12410",
    "created": "2023-04-04T00:00:00.000Z",
    "preview": "## Simple Summary\nThis proposal presents Aave governance with the …",
    "content": "\n\n## Simple Summary\nThis proposal presents Aave governance with the opportunity to whitelist DeFi Saver as part of FlashBorrowers of Aave V3 on Ethereum, Arbitrum & Optimism liquidity pools.\n\n## Motivation\nDeFi Saver has a long-standing history of synergies with the Aave Protocol, being one of the first third-party integrations of Aave V1 in 2020.\n\nCurrently, every flashloan has a 9 bps fee that rewards liquidity providers in Aave. While flashloans were created by Aave, the ecosystem as a whole has replicated this feature, and most protocols do not implement any fees.\n\nThe ACI does not support waiving the fees for flashloans in general, as we firmly believe that users’ funds used, even in the context of a single transaction, should be rewarded.\n\nHowever, some strategic use cases of V3, such as emode, are very fee-sensitive as they mobilize high leverage. Waiving the DeFi Saver flashloan fees is expected to make these strategies more convenient and profitable, leading to increased borrow volume and thus increased Aave DAO revenue.\n\nThis proposal presents Aave governance with the opportunity to whitelist DeFi Saver as a part of FlashBorrowers of Aave V3 on Ethereum, Arbitrum & Optimism liquidity pools.\n\n## Specification\n\nThis AIP aims to implement three similar payloads (one for each network), which will simply call addFlashBorrower() on the ACL_MANAGER contract.\n\nHere's one of these payloads for Ethereum:\n\n```solidity\n\ncontract AaveV3EthDFSFlashBorrowActivation is IProposalGenericExecutor {\n  address public constant FL_AAVE_V3 = 0xd9D8e68717Ce24CCbf162868aaad7E38d81b05d1;\n  address public constant FL_ACTION = 0x72915D41982DfCAf30b871290618E59C45Edba7F;\n\n  function execute() external {\n    AaveV3Ethereum.ACL_MANAGER.addFlashBorrower(FL_AAVE_V3);\n    AaveV3Ethereum.ACL_MANAGER.addFlashBorrower(FL_ACTION);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-defi-saver-to-flashborrowers-on-aave-v3/12410)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3DFSFlashBorrow_20230403/AaveV3ETHDFSFlashBorrowActivation_20230403_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3DFSFlashBorrow_20230403/AaveV3ETHDFSFlashBorrowActivation_20230403.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "ADD-DFS-FLASHBORROWERS"
  },
  "ADD-OPV3WSTETH": {
    "title": "onboard WSTETH to Aave Optimism V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "add WSTETH to Aave Op V3 pool",
    "discussions": "https://governance.aave.com/t/arc-add-wsteth-to-aave-v3-on-optimism/10932",
    "created": "2023-02-17T00:00:00.000Z",
    "updated": "2023-02-17T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to onboard wstETH to the optimism v3 Liquidity Pool.\n\n## Motivation\nSupporting LSD diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Optimism or any entity to present this AIP.\n\nThe risk parameters provided introduce wstETH as a collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: wstETH\n\nContract Address: [0x1F32b1c2345538c0c6f582fCB022739c4A194Ebb](https://optimistic.etherscan.io/address/0x1F32b1c2345538c0c6f582fCB022739c4A194Ebb)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|NO|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|70%|\n|Liquidation Threshold|79%|\n|Liquidation Bonus|7.2%|\n|Reserve Factor|15%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|940|\n|Supply Cap|6000|\n|Debt Ceiling|N/A|\n|Base|0.25%|\n|Slope1|4.5%|\n|Uoptimal|45%|\n|Slope2|80%|\n\nThe proposal payload uses the [GenericListingEngine](https://optimistic.etherscan.io/address/0x7b8Fa4540246554e77FCFf140f9114de00F8bB8D#code) to perform a new asset listing with the following parameters:\n\n```solidity\nIGenericV3ListingEngine.Listing({\n      asset: WSTETH,\n      assetSymbol: 'wstETH',\n      priceFeed: WSTETH_USD_FEED,\n      rateStrategy: https://optimistic.etherscan.io/address/0x6ba97468e2e6a3711a6dd05f0075d48e878c910e,\n      enabledToBorrow: true,\n      stableRateModeEnabled: false,\n      borrowableInIsolation: false,\n      withSiloedBorrowing: false,\n      flashloanable: false,\n      ltv: 70_00,\n      liqThreshold: 79_00,\n      liqBonus: 7_20,\n      reserveFactor: 15_00,\n      supplyCap: 6_000,\n      borrowCap: 940,\n      debtCeiling: 0,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arc-add-wsteth-to-aave-v3-on-optimism/10932)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/optimism/AaveV3OPWSTETHPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/optimism/AaveV3OPWSTETHPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3OPWSTETHPayload: ProposalPayload](https://optimistic.etherscan.io/address/0x84893ee84e773e4a7a5738bd903dbe2a6e636b9e)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "ADD-OPV3WSTETH"
  },
  "AGD-RENEWAL-JAN-2023": {
    "title": "Renew Aave Grants DAO",
    "status": "Proposed",
    "author": "Bill (0xbilll) and Llama",
    "shortDescription": "Provide funding to expand the budget and scope of Aave Grants DAO",
    "discussions": "https://governance.aave.com/t/aave-grants-dao-update-renewal/11118",
    "created": "2023-01-18T00:00:00.000Z",
    "updated": "2023-01-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\nProvide Aave Grants DAO (AGD) with $3.25m for the …",
    "content": "\n\n## Simple Summary\n\nProvide Aave Grants DAO (AGD) with $3.25m for the next two quarters (Q1 and Q2 2023) to fund more projects that benefit AAVE.\n\n## Abstract\n\nSince launching in May 2021, Aave Grants DAO has awarded over $4,395,000 in grants to teams building on Aave or contributing to the ecosystem. Aave Grants has also been a key driver of growth by awarding over $120k in Aave bounties across ten different hackathons, hosting three rAAVEs, and making other sponsorships to help proliferate the ghost. We are proposing to renew the program for the next two quarters by providing $3.25 million dollars ($1.625 million per quarter).\n\n## Motivation\n\nAave Grants DAO is a community-led grants program, focused on growing a thriving ecosystem of contributors within Aave through funding ideas, projects and events that benefit the ecosystem. We aim to drive development on top of Aave and ensure a constant influx of talented builders to maintain Aave’s long term growth. We help build culture and community around the Aave ecosystem that in turn attracts the best contributors.\n\n## Test Cases\n\nThe full test of this proposal can be found [here.](https://github.com/llama-community/aave-proposals/blob/main/src/test/proposals/aave-grants-dao-renewal/ProposalPayloadE2E.t.sol)\n\n## Implementation\n\nThis proposal includes a $3.25M approval of funds from the AaveEcosystemReserve and CollectorContract to the grants DAO multisig.\nThe funds are divided as follows:\n\n\nThis will allow the grants DAO to withdraw funds as needed and let the V2Collector to continue to earn interest in the meantime. The proposal payload will target the contract AaveEcosystemReserveController and call the function `function transfer(address collector, IERC20 token, address recipient, uint256 amount)` and `approve(address collector, IERC20 token, address recipient, uint256 amount)`.\n\n## References\n\nForum Post: [https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289)\n\nSnapshot: [https://snapshot.org/#/aave.eth/proposal/0x194b68a5319b074065e38fcb0bd96e8e8b6ce15870844593e79750605a609109](https://snapshot.org/#/aave.eth/proposal/0x194b68a5319b074065e38fcb0bd96e8e8b6ce15870844593e79750605a609109)\n\n**Target Contracts**\n\nProposalPayload = [0xe4621dfd503a533f42bb5a45162ea3e5233acd5f](\nhttps://etherscan.io/address/0xe4621dfd503a533f42bb5a45162ea3e5233acd5f)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AGD-RENEWAL-JAN-2023"
  },
  "AIP-1": {
    "aip": 1,
    "title": "LEND/AAVE migration and activation of the Safety Module",
    "status": "Implemented",
    "author": "Marc Zeller (@marczeller)",
    "shortDescription": "<none>",
    "discussions": "https://governance.aave.com/t/initial-discussion-aave-reserve-emission-for-safety-and-ecosystem-incentives/85/60",
    "created": "2020-09-21T00:00:00.000Z",
    "updated": "2020-09-25T00:00:00.000Z",
    "preview": "## AIP rationale\n\nAs stated in the [Aavenomics …",
    "content": "\n\n## AIP rationale\n\nAs stated in the [Aavenomics paper](https://aave.com/Aavenomics.pdf), the AAVE asset is designed to become the center of gravity for Aave governance and the protocol.\n\n\nThe DeFi decentralized ethos has been mostly achieved with protocols on the financial side, creating an ecosystem of financial applications with users in control of their own assets. However, we believe that is only the halfway point of the decentralization objective. Users should also be be in control of the protocol. The AAVE asset is designed for this purpose. This AIP is the first binding step towards the community ownership of the Aave Protocol.\n\n\nThis AIP, if accepted by the community, will slowly deprecate the LEND asset in favour of the AAVE asset. As stated in the Aavenomics, this token upgrade will also create the Ecosystem Reserve (ER), the Safety Module (SM), and start the Safety Incentive (SI) rewards distribution. The Safety Module is designed as an additional line of defense for Aave liquidity providers and as a way for AAVE holders to \"stake\" their assets in exchange for a range of rewards.\n\n\nThis AIP's purpose is also to dedicate a part of the ER to a kickstart incentives for the Safety Module's first quarterly staker distribution.\n\n## AIP content in short\n\n- Migration of LEND -> AAVE asset with the migration contract\n- Activation of the quarterly plan of Safety Incentives (SI) allocation\n- Start of the Safety Module with initial SI rewards of 400 AAVE/day\n\n## Safety Incentives Schedule\n\nThe bootstrapping phase of the Safety Module will be a step-by-step process in 2 main phases:\n- Initial bootstrapping with launch of the Safety Module, the ability to stake and earn AAVE rewards, but no activation of the protocol protection (i.e slashing) and thus risk-free for stakers.\n- Activation of the Safety Module, a new line of defense for the Aave Protocol users.\n\nThe initial bootstrapping phase rationale is designed to have lower rewards and a risk-free environment to allow the majority of LEND holders to migrate at their own pace. This encourages a careful approach while interacting with critical migration and staking smart-contracts.\n\nAfter activation of the Safety Module, the Aave governance can adjust the Safety Incentive (SI) schedule and emissions rate.\n\nThe Safety Incentive's allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the ER is empty.\n\n## Mainnet addresses and relevant notes\n\nIf this AIP is validated by a community vote, the following addresses will be involved in the migration process :\n\n- [0x8a2efd9a790199f4c94c6effe210fce0b4724f52](https://etherscan.io/address/0x8a2efd9a790199f4c94c6effe210fce0b4724f52) AaveProtoGovernance : the governance contract\n- [0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9](https://etherscan.io/address/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9#code) AAVE token contract : the ERC20 AAVE token contract\n- [0x4da27a545c0c5b758a6ba100e3a049001de870f5](https://etherscan.io/address/0x4da27a545c0c5b758a6ba100e3a049001de870f5) StakedAave : The Staking contract for AAVE\n- [0x317625234562b1526ea2fac4030ea499c5291de4](https://etherscan.io/address/0x317625234562b1526ea2fac4030ea499c5291de4) LendToAaveMigrator : The migration contract\n- [0x95a4949f09415b12da789e144b2522956620d005](https://etherscan.io/address/0x95a4949f09415b12da789e144b2522956620d005) AaveGenesisPayloadProposal : Contract in charge of enforcement of the AIP outcome\n- [0xa133459b2502b0137e85a446fa8d4e300877a007](https://etherscan.io/address/0xa133459b2502b0137e85a446fa8d4e300877a007) AaveGenesisExecutor : Contract enforcing a 24h delay on enforcement of AIP outcome to allow the community to be prepared to migrate\n- [0x25f2226b597e8f9514b3f68f00f494cf4f286491](https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491#code) AaveIncentivesVault : Ecosystem Reserve\n\n\nThe migration process for every LEND holder will leverage the method `migrateFromLend()` with a simple `uint256` input of the amount. Non-technical users will have a migration portal available on the [Aave application](https://aave.com/)\n\nThe contracts are deployed to the Ethereum mainnet but are **not activated until the outcome of the current AIP vote**. Please refrain from trying to use them before activation, as it will result in a failed transaction.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-1"
  },
  "AIP-10": {
    "aip": 10,
    "title": "Adding xSushi on AAVE",
    "status": "WIP",
    "author": "0xMaki (@0xMaki), Joseph Delong (@dangerousfood)",
    "shortDescription": "Aave governance proposal to enable xSushi as a base asset",
    "discussions": "https://governance.aave.com/t/listing-proposal-add-xsushi/1794",
    "created": "2021-01-15T00:00:00.000Z",
    "updated": "2021-02-08T00:00:00.000Z",
    "preview": "## Simple Summary\nxSUSHI is the governance token of Sushiswap, a …",
    "content": "\n## Simple Summary\nxSUSHI is the governance token of Sushiswap, a community-led DEX with a current TVL of more than 1.1B.\n\n## Abstract\nAdd xSushi to the AAVE V2 market.\n\n## Motivation\nAave would be the first platform to support xSushi a yield bearing asset with over of 100m$ currently under utilized.\n\nAavengers could use their platform of predilection to borrow their existing xSushi.\n\nSupport community-led projects.\n\n## Specification\nxSushi is one of the two currently supported assets for Sushi governance (ETH/SUSHI SLP being the other one). We are currently not fully decentralized but the members of the Ops multisig and Treasury multisig are bound to respect all of the governance votes. We do plan to be a real DAO most likely leveraging Aragon v2 in 6 to 12 months depending on the progress made by community.\n\nxSushi is receiving 0.05% of all the swaps happening on Sushiswap and should also benefits from all of the future revenues streams from upcoming platforms such as Bento-Miso-Gusoku-Deriswap and more.\n\nThe current yield on this asset alone is hovering around 10-40% APY with over $100MM locked in the Sushibar making it an ideal productive asset as collateral.\n\n## Rationale\n\nThe rationale for adding xSushi to the AAVE V2 market is simple; xSushi is a popular yield bearing asset but is currently incapable of being utilized for borrowing or lending.\n\nSUSHI can currently be borrowed and lent on [cream.finance](https://app.cream.finance/). However, xSushi cannot be borrowed or lent on any platform currently. By allowing xSushi to be borrowed and lent on AAVE v2, this will allow xSushi holders to access the liquidity of their platform\n\n\nThe rationale fleshes out the specification by describing what motivated the design and why particular design decisions were made. It should describe alternate designs that were considered and related work, e.g. how the feature is supported in other languages. The rationale may also provide evidence of consensus within the community, and should discuss important objections or concerns raised during discussion.-->\n\n## Test Cases\n\n*see implementation*\n\n## Implementation\nAAVE does not use TWAP oracle and xSushi does not have sufficient liquidity on centralized exchanges we will calculate the xSushi using the existing oracle of SUSHI and applying a calculated exchange rate.\n\nThe price oracle for xSushi will calculate the price using a SUSHI price oracle multiplied by the exchange rate for SUSHI<>xSushi.\n\n`xSushiPrice = sushiPrice * exchangeRate`\n\nTo calculate the exchange rate we will check the SUSHI balance of the xSushi contract.\n\nAn example implementation of exchange rate calculation can be found below\n\n```js\nlet sushi = new ethers.Contract('0x6b3595068778dd592e39a122f4f5a5cf09c90fe2', abi, provider)\n\nlet totalSushiStakedinXSushi = await sushi.methods.balanceOf('0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272').call()\n\nlet xSushi = new ethers.Contract('0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272', abi, provider)\n\nlet totalXSushiSupply = await xSushi.methods.totalSupply().call()\n\nlet exchangeRate = totalSushiStakedinBar.div(totalXSushiSupply)\n```\n\nAt the request of the AAVE team we have included a convenience contract for returning the exchange rate of Sushi -> xSushi exchange rate.\n\n[Exchange Rate contract](https://etherscan.io/address/0xE8061286f2975EF38c8F70607eD839Fc9C0f0090#readContract)\n[Exchange Rate contract repo](https://github.com/sushiswap/xsushi-exchange-rate)\n\nValues from the `getExchangeRate()` method are returned as `uint256` values with a pecision of `10**18`\n\nLastly, xSushi is explicitly convertible for SUSHI at the exchange rate described above. Fees are paid as SUSHI to xSushi holders and collected into a pool of SUSHI, where each xSushi token represents a proportional share in the pool size. In essence SUSHI fees paid are accumulated to the xSushi which are not redeemable without the destruction of the underlying xSushi.\n\nSince debts incurred on AAVE would require that the debt be repaid in xSushi, the fees that are accumulated are safe from being harvested.\n\n\n## Audits/Security Reviews\n[Peckshield & Quantstamp](https://docs.defisafety.com/finished-reviews/sushiswap-process-quality-audit#audits)\n\n[**AAVE Community xSushi Risk Assement**](https://governance.aave.com/t/listing-proposal-add-xsushi/1794/16)\n\n![Screenshot 2021-01-05 at 19.56.10](https://aws1.discourse-cdn.com/standard21/uploads/aave/optimized/1X/e35ebb4c429ea6e1162d1fd6faf7d7b624287a14_2_690x184.png)\n\nSushiSwap is a DEX forked of Uniswap that grew very fast, now at $1.6B of TVL, thanks to generous liquidity mining incentives. It is now part of the Yearn conglomerate with many new upcoming features.\n\nxSUSHI is the staked SUSHI that receives .05% of the fees with 10 to 40% APY a great property for a collateral. The redeeming process from xSUSHI to SUSHI is permissionless allowing the analysis to focus on SUSHI.\n\n[**SUSHI Smart contract**](https://ethplorer.io/address/0x6b3595068778dd592e39a122f4f5a5cf09c90fe2) **Risk: B-**\n\nSUSHI was launched late August by a fork of the Uniswap Exchange. Shortly after launch, the key developer stole the development funds, eventually returning them. The network managed secure support from some industry leaders and has grown fast in these few month reaching two dozen users and over a billion transactions.\n\n**SUSHI Counterparty Risk: B**\n\nSushi is a permissionless blockchain protocol where token holders vote on incentives and upgrades. Anyone can create new Sushi markets.\n\n[**SUSHI Market**](https://www.coingecko.com/en/coins/sushi) **Risk: C +**\n\nSUSHI has a good market capitalisation with a high volume. The price has suffered from extreme volatility since inception, suffering from large drops in value which is problematic for a collateral, requiring prudent parameters. This was driven by internal drama which also deeply affected community trust, now on the mend.\n\n### Risk Parameters ~ New (also proposed for SNX)\n\nLTV 25%\n\nLiquidation Threshold 45%\n\nLiquidation Bonus 15%\n\nReserve Factor 35%\n\n### Variable Interest Rate Model ~ Collaterals\n\n![Screenshot 2020-12-15 at 19.44.31](https://aws1.discourse-cdn.com/standard21/uploads/aave/optimized/1X/db265d003d9c9d4afa45b1fcc6aa6d59a7527206_2_690x444.png)\n\nUOptimal 45%\n\nR_0 0%\n\nR_s1 7%\n\nR_s2 300%\n\n## References\n[Classic UI (deprecated 2021-1-22)](https://sushiswap.fi/)\n[SushiSwap Lite](https://lite.sushiswap.fi/)\n[SushiSwap.fi](https://lite.sushiswap.fi/)\n[Sushi token 0x6b3595068778dd592e39a122f4f5a5cf09c90fe2](https://etherscan.io/address/0x6b3595068778dd592e39a122f4f5a5cf09c90fe2)\n[xSushi token 0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272](https://etherscan.io/address/0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272)\n[Sushi Governance forum](forum.sushiswapclassic.org)\n[Help and FAQ](docs.sushiswap.fi)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AIP-10"
  },
  "AIP-11": {
    "aip": 11,
    "title": "desactivation of Aave V1 stable rate borrowing",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller), Emilio Frangella (@The3D_)",
    "shortDescription": "Disable Aave V1 Stable Rates",
    "discussions": "https://governance.aave.com/t/aave-protocol-v1-v2-migration-tool-and-transition-plan/2053",
    "created": "2021-04-02T00:00:00.000Z",
    "updated": "2021-04-02T00:00:00.000Z",
    "preview": "## AIP rationale\n\nThe Aave Protocol V2 was launched in Dec 2020 and …",
    "content": "\n\n## AIP rationale\n\nThe Aave Protocol V2 was launched in Dec 2020 and is now concentrating the majority of the Aave protocol Liquidity\nAave V1 users have the option to upgrade their position seamlessly into V2 with the native Aave migration tool\n\nWith significant reserves in, the community has the opportunity to implement a plan to transition the remaining reserves from V1 to v2.\nThe community has the opportunity to bring about this change to ease the borrowing pressure on V1, to address high transaction fees that exist now, and may increase further upon the implementation of Berlin hardfork.\nThe migration can benefit not only Aave users, but also the Aave ecosystem as a whole because it will allow protocols integrating with Aave to have additional stablecoins liquidity available(due to the ecosystem wide stablecoin liquidity crush).\n\nBesides the beneficial effects on the migration procedure, disabling the stable rate borrowing overcomes the friction generated by the inefficient lending rate oracle V1, which currently proposes rates that are too low for the current market conditions. This has generated a consistent amount of stable rate debt, which results in frictions for the V1 liquidity providers and integrators that still rely on Aave V1 for their deposits.\n\nIf this proposal is approved by the Aave governance, new stable rates loans positions will be disabled for Aave V1.\n\nThe rebalancing mechanism will also be updated to an enforced swap to variable rates. Which means, in case of extremely high borrowing pressure on the stablecoins reserves, users at stable rate will be migrated to variable until rebalancing conditions are not satisfied anymore.\n\n\n## AIP content in short\n\nDeactivation of the ability to open new stable rate borrowing positions on Aave V1 and update of the rebalance mechanism\n\n## Implementations details\n\nExecutes the proposal deployed at\n\nhttps://etherscan.io/address/0x6a46c03c861cab74c8a213983b7eb295234c16b3#code\n\nThe proposal executes the following:\n\n- Updates the LendingPool implementation to \n\n  https://etherscan.io/address/0xDB9217fad3c1463093fc2801Dd0a22C930850A61#code\n\n- Updates the LendingPoolCore implementation to\n\n  https://etherscan.io/address/0x2847A5D7Ce69790cb40471d454FEB21A0bE1F2e3#code\n\n  These contract updates are needed to update the implementation of the rebalanceStableRate() function\n\n- Execute disableReserveStableBorrowRate() in all the assets listed on the protocol V1\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-11"
  },
  "AIP-12": {
    "aip": 12,
    "title": "Adding AMPL on AAVE",
    "status": "Proposed",
    "author": "Ahmed Naguib Aly (@ahnaguib), Nithin Ottilingam (@nithinkrishna), Brandon Iles (@brandoniles)",
    "shortDescription": "Aave governance proposal to enable AMPL as a borrow asset",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-ampl/854",
    "created": "2021-01-12T00:00:00.000Z",
    "updated": "2021-07-16T00:00:00.000Z",
    "preview": "## AIP rationale\n\nAmple is the first rebasing currency of DeFi. It …",
    "content": "\n\n## AIP rationale\n\nAmple is the first rebasing currency of DeFi. It is an uncollateralized financial primitive with an elastic supply that adjusts each day according to demand in the marketplace. Like Bitcoin, Ample is non-dilutive but it has a long-term unit of account that unlocks safe denomination of debt.\n\n## References\n\n- Forum proposal: https://governance.aave.com/t/proposal-add-support-for-ampl/854\n- Project: https://www.ampleforth.org/\n- Whitepaper: https://www.ampleforth.org/papers/\n- Source code for the system(s) that interact with the proposed collateral: https://github.com/ampleforth/uFragments, https://github.com/ampleforth/market-oracle\n- Ethereum addresses contracts: https://github.com/ampleforth/uFragments#ampleforth\n- Audits both procedural and smart contract focused: https://github.com/ampleforth/ampleforth-audits\n- Communities:\n  * Telegram: https://t.me/Ampleforth\n  * Twitter: https://twitter.com/AmpleforthOrg\n  * Discord: https://discord.gg/mptQ49m, https://discord.gg/T7XRSf8q\n\n## Paragraph Summary\nAmple is the first rebasing currency of DeFi. It is an uncollateralized financial primitive with an elastic supply that adjusts each day according to demand in the marketplace. Ample targets the 2019 USD. Like Bitcoin, Ample is non-dilutive but it has a long-term unit of account that unlocks safe denomination of debt. The goal of Ampleforth is to create a building block for a safer, more resilient financial ecosystem.\n\nBeing able to borrow and lend AMPL would enable holders to:\n\n- Utilize a new, low-correlated collateral asset which could reduce risk\n- Decrease exposure to rebases in exchange for income from interest\n- Use a non-collateralized asset that “[borrows like a stablecoin](https://medium.com/ampleforth/elastic-finance-lending-213e02de0583)\"\n- Create leveraged AMPL trades and unlock derivatives\n- Create interest bearing AMPL that can be staked in other protocols\n- Increase exposure to AMPL & farming\n\n## Motivation\nAMPL total supply and balances change once every 24 hours (at 2am UTC) based on market price. The supply change factor is the same for all holders. Because of that, lending and borrowing AMPL behaves differently from fixed supply tokens.\n\nThe desired behavior is for the borrow amount (loan) to stay the same after a rebase. The unborrowed tokens deposited in the Aave protocol still get exposed to rebase just like any other contract wallet. This means aAMPLs \"partially rebase\", in accordance with the utilization ratio.\n\nThe AMPL AToken functionally behaves similarly to every other AToken. It maintains a 1:1 peg with the underlying AMPL.\n\n### Specifications\n\n1. What is the link between the author of the AIP and the Asset?\n\nCo-founder, developer\n\n2. Provide a brief high-level overview of the project and the collateral token\nSee Summary\n\n3. Explain positioning of token in the AAVE ecosystem: which market?\n\nThe asset will be listed in the current AAVE V2 market.\n\n4. Provide a brief history of the project and how it overcame stressed conditions\n\nAmpleforth launched in July, 2019. Since then, Ample has executed over 550 days of rebases. The network was subject to extreme growth and volatility following the launch of the Geyser liquidity mining program in July 2020. It has shown resilience with a lifetime median price of $1.00 and average price of $1.02 (vs target price of $1.02). There are currently over 22K holders and is a top 100 currency by Market Cap.\n\nOnchain network history viewable on [Dashboard](https://www.ampleforth.org/dashboard/).\n\n5. How is the asset currently used?\n\nAmple aims to be a financial building block that supports a robust and stable financial ecosystem. Borrowing and lending is a critical layer of this stack. [Current roadmap](https://www.ampleforth.org/roadmap/).\n\n6. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\nAmple has developed deep liquidity on AMMs like Uniswap, SushiSwap, Mooniswap, and a Smart Pool on Balancer through its liquidity mining program.\n\nhttps://www.coingecko.com/en/coins/ampleforth#markets\n\n7. Social channels data (Size of communities, activity on Github)\n\nLinks above\n\n8. Risk Assessment and Parameter suggestions\n\nAMPL has been evaluated as low technical risk because it doesn't have any potential of infinite or uncontrolled minting.\n\nGiven the novel mechanism of rebasing, it will only be used as a borrowing currency for the time being. An evalution of whether to give it collateral status will be performed afterward.\n\nA 3rd party Audit report from Peckshield can be found [here](https://github.com/aave/protocol-v2/blob/50290685aa3b68eea18f4a908748aafb05db96ab/audits/PeckShield-Audit-Report-aAMPL-v1.0.pdf).\n\nAfter some recommendations from Aave devs, we made small updates to the implementation. This included no behavioral changes but included using a different math library and method of initializating configuration. We then ran a second round of audits with Peckshield that raised no new issues.\n\nInternal testing was performed with a mainnet fork.\n\nWe launched an [Immunefi Bug Bounty](https://immunefi.com/bounty/ampleforth/) for the aToken with a competitive $100K reward for critical vulnerabilities. This has also raised no issues.\n\n### Technical Specifications\n\nWe implement a custom AToken, StableDebtToken and VariableDebtToken for AMPL. The StableDebtToken and VariableDebtToken implementations make no functional changes to the generic implementation. When the debt tokens are minted and burned, it performs some additional book-keeping to keep track of the totalScaledAMPL (fixed AMPL denomination, ie Gons) borrowed at any-time. The new getAMPLBorrowData method returns the totalScaledAMPL and totalScaledSupply which are used for AAmplToken math.\n\nGeneric AToken has a private balance and public balance. The public balance returned by balanceOf is multiplied by an interest rate factor. The aAMPL works the same way but the AAmplInternal balance is multiplied by another factor, which accounts for the underlying AMPL rebasing and the amount of AMPL unborrowed.\n\n### Code\nAAMPL token address: 0x6fBC3BE5ee5273598d1491D41bB45F6d05a7541A\nCode verified [here](https://etherscan.io/address/0x6fBC3BE5ee5273598d1491D41bB45F6d05a7541A#code)\n\nSteps the proposal will execute:\n1. Start a vote to add aAMPL as a new asset.\n\n### Test Cases\n- [Colab Notebook](https://colab.research.google.com/drive/1a4zd7UL-U5Xrme9b0X5B39nJzjrFwfG1?usp=sharing) of test cases\n- Unit tests included with code change provide full coverage for all borrow, repay, and rebase flows.\n\n### Security Considerations\n- Standard technical risks of smart contracts apply to the AToken implementation.\n- Market risk resulting from first borrow/lending market for a rebasing currency.\n",
    "basename": "AIP-12"
  },
  "AIP-13": {
    "aip": 13,
    "title": "Add renFIL support to Aave",
    "status": "Proposed",
    "author": "Corbin Page (@corbinpage)",
    "shortDescription": "Aave governance proposal to enable renFIL as a borrow asset",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-renfil-filecoin/1059",
    "created": "2021-02-03T00:00:00.000Z",
    "updated": "2021-03-13T00:00:00.000Z",
    "preview": "## Simple Summary\n\n\nAdd depositing and borrowing (not collateral) …",
    "content": "\n\n\n## Simple Summary\n\n\nAdd depositing and borrowing (not collateral) support for renFIL to the Aave market. renFIL is a wrapped version of [Filecoin](https://filecoin.io/) using [Ren Protocol](https://renproject.io/).\n\n## Abstract\n\n\n[Filecoin](https://filecoin.io/) brings decentralized storage to DeFi, and [renFIL](https://renproject.io/) allows all types of new decentralized applications to be built to further the space. But these applications need a robust lending market to thrive, so storage miners can borrow renFIL/FIL to stake and FIL holders can earn a return on their holdings.\n\nThis proposal describes adding depositing and borrowing (not collateral) support for renFIL to the Aave market to unlock these new applications, expose the Filecoin community to Aave, and create a large new market on the protocol. [Ren Protocol](https://renproject.io/) was chosen as the tokenization service because it is already managing large bridges in production, including [$301 million in renBTC](https://www.coingecko.com/en/coins/renbtc) as of this writing. Collateral support for renFIL may be added later, but we recommend waiting for more price stability of FIL and renFIL before enabling.\n\n## Motivation\n\n\nFilecoin, and by extension, renFIL is unlike any other digital asset currently available in the Aave market, as it allows the purchase of hosting space on the permissionless Filecoin network. As a result, being able to lend and borrow renFIL will unlock many new DeFi applications, including:\n\n* Storage mining syndicates\n* Data markets\n* Shared UIs/images/content\n* Lossless capital hosting\n\nJust see the recent [EthGlobal<>Protocol Labs Hackathon](https://hack.ethglobal.co/hackfs/showcase) and [Filecoin Launchpad](https://www.filecoinlaunchpad.co/)for hints of what is possible at the intersection of Filecoin+DeFi. The Filecoin community is massive and growing everyday, however, many of the participants are unfamiliar with Aave and DeFi. Adding renFIL to Aave would dramatically increase support for these efforts, would bring Filecoin users/developers into the Aave ecosystem, and allow capital, yield, and value to accrue to Aave participants.\n\n## Specification\n\n\n### Project\nFilecoin is a distributed storage network based on a blockchain mechanism. Filecoin miners can elect to provide storage capacity for the network, and thereby earn units of the Filecoin cryptocurrency (FIL) by periodically producing cryptographic proofs that certify that they are providing the capacity specified. In addition, Filecoin enables parties to exchange FIL currency through transactions recorded in a shared ledger on the Filecoin blockchain. Rather than using Nakamoto-style proof of work to maintain consensus on the chain, however, Filecoin uses proof of storage itself: a miner’s power in the consensus protocol is proportional to the amount of storage it provides.\n\nFilecoin was founded in 2015 by [Juan Benet](https://twitter.com/juanbenet), has been backed by Sequoia Capital, Andreessen Horowitz, and Union Square Ventures, and its mainnet went live on October 15, 2020. The network is governed by the Filecoin Foundation and the Filecoin Foundation for Decentralised Web.\n\n## Rationale\n\n\nThe REN token is already supported in the Aave market, and renBTC is one of the most popular cross-chain tokens today. In unifying the Filecoin and DeFi ecosystems, Ren protocol is a natural bridge and has the technical expertise and experience to get the job down securely and safely.\n\n\n\n## Implementation\n\n\nThe Filecoin price oracle will be served via [ChainLink](https://chain.link/), which includes both [FIL/ETH and FIL/USD feeds](https://docs.chain.link/docs/ethereum-addresses).\n\nThe renFIL token will only be used for depositing and lending, not as collateral. The following strategy params are proposed:\n\n```\nIReserveParams = {\n  optimalUtilizationRate: new BigNumber(0.8).multipliedBy(oneRay).toFixed(),\n  baseVariableBorrowRate: '0',\n  variableRateSlope1: new BigNumber(0.07).multipliedBy(oneRay).toFixed(),\n  variableRateSlope2: new BigNumber(3).multipliedBy(oneRay).toFixed(),\n  stableRateSlope1: '0',\n  stableRateSlope2: '0',\n  baseLTVAsCollateral: '0',\n  liquidationThreshold: '0',\n  liquidationBonus: '0',\n  borrowingEnabled: true,\n  stableBorrowRateEnabled: false,\n  reserveDecimals: '18',\n  aTokenImpl: eContractid.AToken,\n  reserveFactor: '3500'\n};\n```\n\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n\n```\n    New interest bearing asset deployed on main:\n    Interest bearing aRENFIL address: 0x5CAF29fD8efbe4ED0cfc43A8a211B276E9889583\n    Variable Debt variableDebtRENFIL address: 0x4B20f007d0c1567Ca8a6e80B8a8EE19Ac59C6a08\n    Stable Debt stableDebtRENFIL address: 0xf22b80D58a7cCDEd772E0997AE90a6C77940B051\n    Strategy Implementation for RENFIL address: 0xb140cb1306B396c658A5438602b6857842E1E98a\n```\n\n### Test Cases\n\n\n## Audits/Security Reviews\n[Ren Protocol audits from ChainSecurity, ConsenSys Diligence, and Trail of Bits](https://github.com/renproject/ren/wiki/Audits)\n\n[Filecoin audits and bug bounty](https://security.filecoin.io/)\n\n[AAVE Community renFIL Risk Assement](https://governance.aave.com/t/proposal-add-support-for-renfil-filecoin/1059/17?u=corbpage)\n\n![renFIL Risk Screenshot](../assets/AIP-add_renFIL_support/renFIL_risk_screenshot.png)\n\n[**RenFIL Smart contract Risk**](https://ethplorer.io/address/0xd5147bc8e386d91cc5dbe72099dac6c9b99276f5): **C**\n\nRenVM is a byzantine fault-tolerant network that is able to securely in a decentralized manner do ECDSA threshold key generation and signing via sMPC, which allows RenVM to securely manage private keys of different assets like Bitcoin and Filecoin, and wrap these assets on smart-contract chains. Since launch, RenVM has processed around $1.5B in total volume of Bitcoin, Filecoin, Zcash, Bitcoin cash going to and from Ethereum. The smart contract risks of RenFIL are mitigated by those of RenBTC which has been battle tested by the markets.\n\nTechnically, renFIL is a proxied token standard ERC with some features on top:\n\n* Mechanism of exchange rate (similar to Aave slashing)\n* Permit for approvals\n* Recovery of other tokens sent to the contract\n\n**RenFIL Counterparty Risk: C**\n\nThere is a proxy admin which can update all the logic of the contract with a 7 days timelock controller by a multisig, controlled by the team. Even with 7 days, it may be impossible to mitigate the consequences of a contract upgrade with minting for example.\n\nFurthermore there is an EOA (Externally Owned Account) with permissions to mint, burn, change the exchange rate and decide which tokens sent by mistake to the renFIL contract are recoverable.\n\nThis results in the capability to burn tokens of a particular address (potentially the ones contained in aToken) and the change of the implementation under the proxy.\n\n[RenFIL Market 1](https://www.coingecko.com/en/coins/renfil): **Risk B (based on FIL)**\n\nRenFIL market capitalisation is unknown with very little liquidity in the markets. The redemption process is permissionless enabling smooth liquidations into the liquidity of FIL.\n\n**Risk Parameters**\n\nGiven the centralisation of RenFIL it can only be listed as borrow asset.\n\nReserve Factor 35%\n\n**Variable Interest Rate Model** \n\nUOptimal 80% (since not a collateral)\n\nR_0 0%\n\nR_s1 7%\n\nR_s2 300%\n\n![renFIL Interest Rate Model](../assets/AIP-add_renFIL_support/renFIL_risk_graph.png)\n\n## References\n* [Filecoin Website](https://filecoin.io/)\n* [Filecoin Spec](https://spec.filecoin.io/)\n* [Ren Protocol](https://renproject.io/)\n* [renFIL Token](https://etherscan.io/token/0xD5147bc8e386d91Cc5DBE72099DAC6C9b99276F5)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AIP-13"
  },
  "AIP-14": {
    "aip": 14,
    "title": "Enable borrowing on renFIL",
    "status": "Proposed",
    "author": "Corbin Page (@corbinpage)",
    "shortDescription": "Enable borrowing for the renFIL asset",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-renfil-filecoin/1059",
    "created": "2021-04-19T00:00:00.000Z",
    "updated": "2021-04-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\n\nAIP-13 added a wrapped version of …",
    "content": "\n\n## Simple Summary\n\n\nAIP-13 added a wrapped version of [Filecoin](https://filecoin.io/) (renFIL) to Aave, and this AIP will finalize it by enabling borrowing of the asset.\n\n## AIP rationale\n\nOver the past 6 months, [AIP-13](https://github.com/aave/aip/blob/Pending-AIPs/content/aips/AIP-13.md\n) has been proposed, debated, and ultimately passed on [April 19th](https://app.aave.com/governance/8-QmY4AYSTrxVvqTprSjwuaTiECzrWEs2JJFwTx6UNpYMepW) to allow deposits and borrowing (but not collateral use) on renFIL, a wrapped Filecoin token using Ren protocol. The discussion and trade-offs can be [found on the governance forum here](https://governance.aave.com/t/proposal-add-support-for-renfil-filecoin/1059).\n\nThis AIP finalizes the previous submission to configure the renFIL asset as a borrowable currency on Aave.\n\n## Implementations details\n\nThe proposal will:\n- Enable borrowing on renFIL\n- Target the lendingPoolConfigurator: https://etherscan.io/address/0x311bb771e4f8952e6da169b425e7e92d6ac45756\n- Call its enableBorrowingOnReserve(asset, enableStableBorrow) with argument (0xD5147bc8e386d91Cc5DBE72099DAC6C9b99276F5, false)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-14"
  },
  "AIP-15": {
    "aip": 15,
    "title": "Upgrade Aave V1 repayment for migration tool",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller), Emilio (@The-3D)",
    "shortDescription": "Aave v1 LendingPool implementation upgrade",
    "discussions": "https://governance.aave.com/t/aave-protocol-v1-v2-migration-tool-and-transition-plan/2053",
    "created": "2021-04-21T00:00:00.000Z",
    "updated": "2021-04-21T00:00:00.000Z",
    "preview": "## AIP rationale\n\nDuring the last months, some steps have been taken …",
    "content": "\n\n## AIP rationale\n\nDuring the last months, some steps have been taken via governance to promote migration of liquidity from the version 1 of the protocol to the v2.\n\nProgressively, some changes have been needed on the v1 contracts and configuration to be in line with the migrations ethos, and this proposal helps by improving the mechanism of repayment on behalf in the v1 LendingPool smart contract.\n\n\n## AIP content in short\n\nUpgrade Aave V1 lendingPool implementation Contract\n\n## Implementations details\n\nCall setLendingPoolImpl(newLendingPoolImplementation) with newLendingPoolImplementation being the smart contract on `0xC1eC30dfD855c287084Bf6e14ae2FDD0246Baf0d`\n\nContract reference : https://etherscan.io/address/0xC1eC30dfD855c287084Bf6e14ae2FDD0246Baf0d#code\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-15"
  },
  "AIP-16": {
    "aip": 16,
    "title": "introduce Liquidity Incentives for Aave v2",
    "status": "Proposed",
    "author": "Anjan Vinod (@Anjan-ParaFi)",
    "shortDescription": "Aave V2 LM upgrade",
    "discussions": "https://governance.aave.com/t/proposal-introduce-liquidity-incentives-for-aave-v2/2340/27",
    "created": "2021-04-22T00:00:00.000Z",
    "updated": "2021-04-22T00:00:00.000Z",
    "preview": "## Motivation\n\nWe believe that a well designed LM program can …",
    "content": "\n\n## Motivation\n\nWe believe that a well designed LM program can accomplish the following:\n\nGrow lending and borrowing activity in targeted markets: With almost every major DeFi protocol launching a liquidity mining program, we believe it would be advantageous for Aave to utilize part of the Ecosystem Reserve to drive lending and borrowing activity across markets. Distributing AAVE to borrowers and lenders acts as an added incentive to attract more capital. The distribution can become more targeted over time. For example, certain markets may need more AAVE than others based on liquidity, utilization, and maturity of the market.\n\nBroader distribution and protocol decentralization: Rewarding AAVE to users of the protocol improves the distribution of the AAVE token. This gets AAVE into the hands of more users, further decentralizing the protocol.\n\nDeprecating Aave v1: Due to high gas fees and a lack of incentive to migrate, Aave v1 still contains approximately 40% of the value locked in the broader Aave protocol. By introducing liquidity mining rewards only on Aave v2, liquidity providers and borrowers will naturally migrate toward the optimized version. Declining liquidity on Aave v1 will facilitate a gradual deprecation of this iteration of the protocol, allowing more development activity to be directed at Aave v2.\n\nThis program is being proposed as a beta to further investigate how the inclusion of liquidity mining rewards will benefit the Aave ecosystem. From a supply perspective, this distribution results in only 5% of the fully diluted AAVE supply released each year. This enables Aave to experiment with liquidity mining rewards while saving the majority of the ecosystem reserves for other growth initiatives and grants. If this AIP passes, the Aave community can reflect on total supply/borrow and utilization by market to further refine the distribution program.\n\nThe forum [poll](https://governance.aave.com/t/proposal-introduce-liquidity-incentives-for-aave-v2/2340/27) closed with 62% of participants supportive of introducing rewards.\n\n## AIP rationale\n\n2,200 stkAAVE per day will be allocated pro-rata across supported markets based on the dollar value of the borrowing activity in the underlying market. While Aave has seen success without rewards so far, this program would attempt to supercharge its growth at a relatively low cost to the treasury and AAVE holders.\n\nThis distribution strategy rewards markets based on borrow demand. Markets with higher dollar value borrowed receive a higher share of the daily stkAAVE rewards. stkAAVE will be allocated at a 50/50 ratio between lenders and borrowers across stablecoin markets. In WBTC and ETH markets, the ratio between lenders and borrowers will be 95/5 to discourage riskier borrowing activity.\n\nstkAAVE will be rewarded instead of AAVE to align long-term incentives, disincentivize speculative farmers, and allow users to earn an underlying yield on top of the AAVE they earn. This helps align LPs by giving them more governance weight upfront and secure the protocol by increasing the amount of AAVE staked in the Safety Module. LPs then immediately earn a staking yield on their vested AAVE.\n\nstkAAVE requires a 10 day cooldown period. The cooldown period must be started before LPs can unstake their AAVE. After the cooldown period, users have a 2 day window to unstake.\n\nTo simplify the implementation and allow the community to analyze the distribution first, this proposal does not include a vesting component. As we approach the target end date for the LM program, we encourage the community to explore any vesting structures for stkAAVE.\n\nWe propose 7/15/21 as the target end date for this liquidity mining program. A mid-July end date gives the community 3 months of activity to analyze before voting to end, continue, or adjust the LM program.\n\n\n## AIP content in short\n\nThe purpose of this AIP is to introduce liquidity mining rewards for Aave v2.\n\nThis AIP would distribute 2,200 Staked AAVE (stkAAVE) per day, representing around 1M$ in rewards distributed daily to lenders and borrowers. Users will receive stkAAVE.\n\n2,200 stkAAVE per day will be allocated pro-rata across the following markets based on the dollar value of the borrowing activity in the underlying market:\n\n![Aave](https://raw.githubusercontent.com/aave/aip/Pending-AIPs/content/assets/AIP-16/aip16-img.png)\n\n\n$ Value as of 3/22/21\n\nThis program is structured as a beta, with the opportunity to track protocol activity and refine the distribution in the future.\n\nThe distribution has a target end date of 7/15/21. The community will be able to review the results of the LM program and adjust any parameters accordingly.\n\n## Abstract\n\nDistribute 2,200 stkAAVE daily from the [Ecosystem Reserve](https://docs.aave.com/aavenomics/incentives-policy-and-aave-reserve) to borrowers and lenders\n\nEcosystem Reserve contract : https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491#code\n\n## Implementations details\n\nProposal contract:\n\nhttps://etherscan.io/address/0x5778DAee2a634acd303dC9dC91e58D57C8FFfcC8#code\n\nThe proposal will update the aDAI/GUSD/USDC/USDT/WBTC/WETH implementations and the variableDebt DAI/GUSD/USDC/USDT/WBTC/WETH implementation to set the Incentives controller to https://etherscan.io/address/0x5778DAee2a634acd303dC9dC91e58D57C8FFfcC8. The incentive controller will receive 198000 AAVE from the Aave ecosystem reserve https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491. \n\nThe proposal sets the following emissions per second (in wei):\n\n    emissions[0] = 1706018518518520; //aDAI\n    emissions[1] = 1706018518518520; //vDebtDAI\n    emissions[2] = 92939814814815; //aGUSD\n    emissions[3] = 92939814814815; //vDebtGUSD\n    emissions[4] = 5291203703703700; //aUSDC\n    emissions[5] = 5291203703703700; //vDebtUSDC\n    emissions[6] = 3293634259259260; //aUSDT\n    emissions[7] = 3293634259259260; //vDebtUSDT\n    emissions[8] = 1995659722222220; //aWBTC\n    emissions[9] = 105034722222222; //vDebtWBTC\n    emissions[10] = 2464942129629630; //aETH\n    emissions[11] = 129733796296296; //vDebtWETH\n\nThe proposal will set the emission end date to 90 days from the moment the proposal is executed.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-16"
  },
  "AIP-17": {
    "aip": 17,
    "title": "Aave Grants DAO",
    "status": "Proposed",
    "author": "Shreyas Hariharan (@hello-shreyas)",
    "shortDescription": "Introduce Aave Grants DAO",
    "discussions": "https://governance.aave.com/t/arc-aave-community-grants-program/3642",
    "created": "2021-04-23T00:00:00.000Z",
    "updated": "2021-04-23T00:00:00.000Z",
    "preview": "## Simple Summary\n\nIntroduce the Aave Grants DAO (AGD) to fund ideas …",
    "content": "\n\n## Simple Summary\n\nIntroduce the Aave Grants DAO (AGD) to fund ideas submitted by the Aave community.\n\n## Abstract\n\nWe propose starting a community-led grants DAO to fund ideas submitted by the Aave community, with a focus on empowering a wider network of community developers. The pilot program will be over two quarters. The grants budget will be $1 million per quarter and the operating budget will be $250,000 over two quarters. The operating budget will be used to pay the lead, reviewers, lawyer, and other administrative costs to set up the grants program. A committee of 8 members, including one lead, will oversee the grants program. \n\nIf this AIP is approved, 2,809 AAVE ($1.25 million) will be transferred from the [Ecosystem Reserve](https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491) to the [grants DAO multisig](https://gnosis-safe.io/app/#/safes/0x89C51828427F70D77875C6747759fB17Ba10Ceb0/balances). The remaining $1 million will be funded in the beginning of the second quarter of the grants program.\n\n## Motivation\n\nAave has an ecosystem reserve of $1.2B or 2.7m AAVE as of 4/27/21, which is available to fund growth and community initiatives, part of which could be used to fund grants. However, it is currently not easy for the community to allocate from the reserve to fund proposals.\n\nTo promote inclusivity and a more visible and transparent avenue for funding development in the Aave ecosystem, while maintaining the decentralized nature of the ecosystem, we propose a community-led grants program called Aave Grants DAO.\n\nThe goal of the program is to provide resources to grow the Aave ecosystem in a way that can scale over time. There are many great ideas for improving the Aave protocol bubbling up in the Discord, community forum and other places. We hope to initiate a community-led, transparent process for connecting those developers/creators/innovators with resources needed to go from idea to funded development.\n\nGiven the difficulty of decentralizing grants administration, we propose establishing a committee which has the power to administer grants on a discretionary basis. The focus will be on disbursing grant funding effectively and quickly to individuals and teams working to improve the Aave ecosystem.\n\n## Rationale\n\nOur proposal is inspired by the grants programs of Compound and Uniswap, which have both received approvals to deploy $1m and $750k per quarter, respectively.\n\nWe propose to run the pilot grants program over two quarters. We request a max grants budget of $2m and a max operating budget of $250k. The operating budget will be used to pay the lead, reviewers, lawyer, and other administrative costs to set up the grants program.\n\nThere will be two types of grants that the grants committee can approve:\n1. Rapid grants: < $100k, simple process to apply for a grant to AGD, relatively quick grant decision\n2. Community grants: $100k-$500k, initial application followed by posting proposal on governance forum, committee can decide to approve these grants based on feedback from community\n\nContributors can also seek grants over $500k but they will not go through the committee. They will have to be posted on Aave’s governance forum and approved through an on-chain vote.\n\nThe expenses will be priced in USD terms at the beginning of each quarter. The reviewers will ensure that all unspent funds will be returned to the Ecosystem Reserve at the conclusion of the pilot. If the program is underfunded because AAVE’s token price falls significantly, the committee may request the underfunded amount from governance. After running the pilot program for two quarters, the community can vote to continue, modify, or discontinue the program.\n\nApplications will be reviewed and funded on a rolling basis. The applications approved and funded within each quarter will form a funding round which will be tracked, supported and documented.\n\nDocumentation of results will be made available to the community at the end of each round, at which point we will solicit feedback from the community. The idea is to start with a rough MVP and evolve through community feedback. We expect to learn a lot about how to do this right in the first 2 quarters and anticipate making changes to the grants program over time through subsequent proposals.\n\n## Committee Members\n\nWe propose a committee of 8 members: 1 lead and 7 reviewers. The lead will be the organizational backbone of the program and ensure that things move smoothly and efficiently. The lead will likely dedicate a significant amount of time to the program.\n\nReviewers will process applications, ensure that the lead is acting in good faith and is effective in their role, and will operate a 4 of 7 multisig which disburses funds to grantees. The reviewers will also hold the program accountable to its goals and objectives and return any excess funds to the Aave Ecosystem Reserve. Reviewers are likely to dedicate a smaller amount of time to the program.\n\nBoth the lead and the reviewers will serve for a period of two quarters. After two quarters, the grants program and the committee member positions will be up for renewal. This will be put up on the governance forum for a discussion and subsequent on-chain vote.\n\nMembers may be replaced during the pilot program, for example, if they find they are not able to dedicate sufficient time to the program. We aim to be as transparent as possible and get feedback on the Aave forum if there are any changes to the committee during the program.\n\nThe committee is composed as follows:\n\nLead: [Shreyas Hariharan](https://twitter.com/HelloShreyas) - Llama\n\nShreyas is the founder of Llama, which helps DeFi protocols and DAOs manage their treasury. He has actively worked on treasury spending, allocation, and reporting. He is working on a treasury strategy for Uniswap and serving as a reviewer for Uniswap grants. As an Aave community member and token holder, he is excited to help grow the Aave ecosystem through the grants program.\n\nReviewers:\n\n1. [Aleks Larsen](https://twitter.com/_alekslarsen) - Blockchain Capital\n2. [Jose Maria Macedo](https://twitter.com/ZeMariaMacedo) - Delphi Digital\n3. [Imran Khan](https://twitter.com/lmrankhan) - DeFi Alliance\n4. [Maggie Love](https://twitter.com/melove_07) - W3BCLOUD and SheFi\n5. [Corbin Page](https://twitter.com/corbpage) - ConsenSys Codefi\n6. [Nick Cannon](https://twitter.com/inkymaze) - Gauntlet\n7. [Calvin Chu](https://twitter.com/calchulus) - Independent\n\n## Budget\n\nWe request a max grants budget of $2m to distribute grants and a max operating budget of $250k over two quarters to pay the lead, reviewers, lawyer, and other administrative costs to set up the grants program. This will be funded by the Aave Ecosystem Reserve.\n\nPayments to the lead will be approved by the reviewers and made at the end of every month (i.e., if the program begins on 4/30/21, the lead will be paid on 5/30/21, and the again on 6/30/21 and 7/30/21 based on hours worked). Payments to reviewers will also be made every month based on hours worked.\n\nAny changes to the AGD including renewal of the program at the end of 2 quarters, total quarterly budget and committee compensation will require full quorum.\n\n## Committee Compensation\n\nWe suggest compensation for the lead roughly in line with the initial Uniswap and Compound proposals - $100/hr for a maximum of 40 hrs/week. This compensation will be allocated to the AGD multisig from the Aave Ecosystem Reserve as part of the overall funding for the program.\n\nThe time commitment for the reviewers is likely to be far lower. The compensation for reviewers will be $100/hr for a maximum of 5 hrs/week.\n\n## Priorities\n\nTo help inform the types of grants which are most likely to get funded, we highlight the following target areas:\n\n1. Protocol development (including core Aave protocol development, development of higher layer protocols which use the Aave protocol)\n2. Applications and integrations (front-ends and other applications that use the Aave protocol)\n3. Developer tooling\n4. Community (marketing and educational)\n5. Committees, sub-committees, and DAOs that serve the Aave ecosystem\n6. Code audits\n7. Events and hackathons\n8. Bounties\n\n## What does success look like?\n\nWe will evaluate the success of the program against the following criteria:\n\nMeasurable criteria:\n\n1. Growth in the number of grants applications received quarter-over-quarter\n2. Growth in the number of projects, ideas, and events funded\n3. Growth in community engagement (e.g. increased activity on forums, Discord, etc.)\n4. Growth in Aave pools driven by applications funded via grants (e.g. increased TVL, borrow activity, and unique addresses due to apps funded by grants)\n\nSubjective criteria:\n\n1. Improved sentiment and goodwill within the community\n2. Improvement to the Aave protocol’s brand and positioning in the market\n\n## Timeline / Process\n\nWe will organize grant recipients into two 3-month funding rounds. Applications will be accepted on a rolling basis and any grants disbursed during a given 3-month period become part of the corresponding round. Round 1 will be for three months from the day the grants proposal has been approved. For example, if the proposal is approved on 4/30/2021, Round 1 of the grants program will be from 4/30/2021 to 7/30/2021 and Round 2 of the grants program will be from 7/30/2021 to 10/30/2021.\n\nIf approved, starting immediately after a proposal is ratified, AGD will begin accepting applications on a rolling basis. The grants committee will determine on how funding is to be disbursed (e.g. milestones, upfront, etc.) on a case-by-case basis. In general, the goal will be to align long-term incentives with the interests of the Aave community and AAVE holders.\n\nAt the end of each round, the committee is responsible for sharing all the grant recipients along with amounts and descriptions as part of a transparent quarterly review process. The end of the Round 2 marks the end of the pilot. At that point, the community will decide based on the results of the first two rounds whether or not to continue funding AGD (in the same or an amended form).\n\nMost grants will have 1-2 milestones and recipients will receive about half the grant upfront and half on the completion of a milestone. For more complex projects or larger grants, there may be several milestones and payments could be split across these milestones. AGD will get progress updates from teams and assess the completion of these milestones. This ensures downside protection for the AGD in case the project is unsuccessful or needs to pivot.\n\nThe grants will primarily be focused on projects working to improve the Aave protocol. However, a small portion of the budget (5-10%) may be allocated to select projects with a wider scope (e.g. ETH scalability).\n\nIf AGD has distributed all grants but has more promising projects to fund, it can propose increasing the budget to governance. However, it is entirely up to the Aave community to vote on whether to increase the budget.\n\n## Implementation\n\nIf this AIP is approved, 2,809 AAVE ($1.25 million) will be transferred from the [Ecosystem Reserve](https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491) to the [grants committee multisig](https://gnosis-safe.io/app/#/safes/0x89C51828427F70D77875C6747759fB17Ba10Ceb0/balances). $1 million will fund the first quarter of Aave grants and $250,000 will cover two quarters of operating expenses for the program. The remaining $1 million will be funded in the beginning of the second quarter of the grants program.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-17"
  },
  "AIP-18": {
    "aip": 18,
    "title": "Aavenomics quarterly upgrade Q2 2021",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller)",
    "shortDescription": "Aave quarterly upgrade Q2 2021",
    "discussions": "https://governance.aave.com/t/arc-fees-rewards-how-to-improve-the-aave-token-value/830",
    "created": "2021-04-29T00:00:00.000Z",
    "updated": "2021-04-29T00:00:00.000Z",
    "preview": "## AIP Rationale\n\nThe bootstrap of the LEND to AAVE migration …",
    "content": "\n\n## AIP Rationale\n\nThe bootstrap of the LEND to AAVE migration process and the creation of the Safety Module was configured to set the final day\nof emission for the 9th of May 2021. The following AIP moves forward the end date of the emission for the AAVE and AAVE/ETH Safety module to continue with the safety incentives program estabilished within the Aavenomics framework. The date will be set 100 years in the future, to effectively disable the emission date as control mechanism and allow the safety incentives to be controlled only using the emission per second (if there will be consensus around ending the AAVE safety incentives, it will be controlled by setting the emission per second to 0).\nAs a consequence of how the incentives system work and the duration of this vote (which will require high consensus, 10 days vote and\n7 days timelock) the emission of AAVE incentives will stop on Sunday 9th, but it will restart from where it left if the vote passes (participants of the safety module will not lose any reward as long as they keep staking while the proposal is executed).\n\n## AIP Content in short\n\nExtend the end date of the incentives for the Aave Safety module (stkAAVE and stkABPT) 100 years in the future.\n\n## Relevant links\n\n AIP-7 implementing the last quarter Aavenomics quarterly schedule: https://app.aave.com/governance/2-QmVrTta734LkhPcbAXLDcob6gk9NFwiEpggQRYHZx8Mr16\n* Community-led main Governance thread on the quarterly schedule plan: https://governance.aave.com/t/arc-fees-rewards-how-to-improve-the-aave-token-value/830\n* Aavenomics proposal : https://aave.com/aavenomics\n\n\n## Implementation details\n\n[needed]\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-18"
  },
  "AIP-19": {
    "aip": 19,
    "title": "Whitelist Curve Liquidity Mining Claim",
    "status": "Proposed",
    "author": "Julien Bouteloup (@bneiluj)",
    "shortDescription": "Whitelist Curve Liquidity Mining Claim",
    "discussions": "https://governance.aave.com/t/proposal-introduce-liquidity-incentives-for-aave-v2/2340",
    "created": "2021-05-03T00:00:00.000Z",
    "updated": "2021-05-03T00:00:00.000Z",
    "preview": "## AIP rationale\n\nWith the results of AIP-16, A liquidity mining …",
    "content": "\n\n## AIP rationale\n\nWith the results of AIP-16, A liquidity mining program started on the Aave V2 protocol.\n\nMany protocol took this opportunity to reinforce their synergies with Aave and deposit liquidity on Aave on behalf of their users.\n\nFor some protocols based on immutable contracts, participating in the Liquidity mining program requires some slight governance intervention on both sides.\n\nCurve.finance is one of them, they implemented via a community work the compability with the Aave liquidity for their Aave and sAave pools : https://dao.curve.fi/vote/ownership/45\n\nIt's now up to the Aave community to strengthten this synergy on Aave side allowing Curve users depositing into Aave to collect both CRV & StkAAVE rewards.\n\n# AIP content in short\n\n* Set Curve contract as claimers in the incentives controller contract.\n\n# Relevant Links\n\n* AIP-16 implementing liquidity mining on Aave V2: https://app.aave.com/governance/11-Qmf1JeXiw8BDUoKJ89VmUJ8wy22D2udqL4HxprCG7DZ5zG\n* Curve governance vote: https://dao.curve.fi/vote/ownership/45\n\n\n## Implementations details\n\ncall `setClaimer()` for Curve contracts on `INCENTIVES_CONTROLLER_PROXY_ADDRESS` \n\nCurve aPool contract : https://etherscan.io/address/0x96D7BC17912e4F320c4894194564CF8425cfe8d9\n\nCurve sPool contract : https://etherscan.io/address/0xe5f41acad47849c6eb28b93913ca81893fb5a2a6\n\nLink to incentives controller proxy : https://etherscan.io/address/0xd784927Ff2f95ba542BfC824c8a8a98F3495f6b5#readProxyContract\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-19"
  },
  "AIP-2": {
    "aip": 2,
    "title": "Bootstrap of the AAVE Governance Fund",
    "status": "Implemented",
    "author": "Emilio Frangella (@The3D_)",
    "shortDescription": "<none>",
    "discussions": "https://governance.aave.com/t/proposal-to-stop-the-lend-burning-and-start-building-an-aave-governance-treasury/1012",
    "created": "2020-11-05T00:00:00.000Z",
    "updated": "2020-11-05T00:00:00.000Z",
    "preview": "## AIP rationale\n\nThe Aave protocol V1 included the possibility to …",
    "content": "\n\n## AIP rationale\n\nThe Aave protocol V1 included the possibility to burn LEND tokens by collecting flashloan premiums and borrowing fees. Up until now, 2.5M LEND have been burned, which will not be converted to AAVE.\nAs a result of the migration, the LEND liquidity has shrunk considerably, which makes it very hard to buy LEND on dexes for the burning.\n\nThe LEND burner currently holds around 20K of funds, distributed across all the different Aave V1 reserves (mostly stablecoins). The burner contract is here https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n\nThis AIP proposes to stop the LEND burning. Instead, the idea is to collect the fees accrued by AAVE V1 to bootstrap a protocol fund. \n\n## AIP content in short\n\n- Deprecation of the current TokenDistributor contract\n- Implementation of the following strategy instead of burning:\n  \n  1. Remove the assets conversion to LEND and subsequent burning\n  2. The assets are moved to the AAVE Collector contract, under direct control of the AAVE governance (https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c)\n\n- The implementation will keep the current redistribution of the referral fees (20% of the total) to continue with the referral distribution as until now.\n\n## Implementation details\n\n- Upgrade of the TokenDistributor contract https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n- Modify the distribute() function as follows:\n\n  1. Remove LEND burning\n  2. Move the assets to 0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\nDistribution to the current referral fees wallet will be kept.\n  \n## Proposal data\n\nAIP2 Payload:\n\nhttps://etherscan.io/address/0x4b7c3e3ea48f80a78487067cd08b9a8430eb8eb5\n\nNew TokenDistributor Implementation:\n\nhttps://etherscan.io/address/0x62C936a16905AfC49B589a41d033eE222A2325Ad\n\nAave Collector contract:\n\nhttps://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-2"
  },
  "AIP-20": {
    "aip": 20,
    "title": "Safety Incentives Implementation",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller)",
    "shortDescription": "Allow Safety Module AAVE transfer",
    "discussions": "https://governance.aave.com/t/proposal-introduce-liquidity-incentives-for-aave-v2/2340",
    "created": "2021-05-07T00:00:00.000Z",
    "updated": "2021-05-07T00:00:00.000Z",
    "preview": "## AIP rationale\n\nAs a complementary final action following the AIP …",
    "content": "\n\n## AIP rationale\n\nAs a complementary final action following the AIP 18,\n\nThis proposal extends the ability for the Safety Module contracts (stkAAVE and stkABPT) to transfer the AAVE rewards out of the Aave Ecosystem Reserve for the next year onwards (200750 AAVE each, 401500 AAVE for both staking contracts).\n\nDoing so will allow continuation of the safety incentives for at least one year.\n\nThis will remove the need for periodic quarterly review of the emission scheme, changing the approach to an on demand emission review when the community deems necessary. Only one yearly review will be required.\n\n\n# ARC content in short\n\n* With the AIP-18 and this proposal, Safety Incentives are maintained until a change is implemented for the next year.\n\n# Relevant Links\n\n* AIP-19 postponing the end of safety incentives: https://app.aave.com/governance/14-QmTYMox4aBpyQH53LwMzTuJY2z7Df7ANUSakeeeWWUoXmJ\n* Aavenomics : https://docs.aave.com/aavenomics/\n\n## Implementations details\n\nexecutes approve(0x4da27a545c0c5B758a6BA100e3a049001de870f5, 200750) and\napprove(0xa1116930326D21fB917d5A27F1E9943A9595fb47, 200750) on the Aave ecosystem reserve 0x25f2226b597e8f9514b3f68f00f494cf4f286491. https://etherscan.io/address/0x4da27a545c0c5B758a6BA100e3a049001de870f5 is the stkAAVE contract and https://etherscan.io/address/0xa1116930326D21fB917d5A27F1E9943A9595fb47 is the stkABPT address.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-20"
  },
  "AIP-21": {
    "aip": 21,
    "title": "Set Reserve Factors for GUSD and CRV",
    "status": "Proposed",
    "author": "Shreyas Hariharan (@helloshreyas)",
    "shortDescription": "Update CRV and GUSD reserveFactor",
    "discussions": "https://docs.aave.com/aavenomics/",
    "created": "2021-05-17T00:00:00.000Z",
    "updated": "2021-05-17T00:00:00.000Z",
    "preview": "## AIP rationale\n\nThe reserveFactor allows the FeeCollector smart …",
    "content": "\n\n## AIP rationale\n\nThe reserveFactor allows the FeeCollector smart contract to receive a part of interests paid by takers of liquidity, each asset on AAve has it's own reserveFactor set.\n\nAIP-5 and AIP-6 creators didn't set a reserve factor for GUSD and CRV, which means protocol is not receiving anything from the outstanding debt on these assets.\n\nThis AIP purpose is to update the reserveFactor of the assets GUSD and CRV.\n\n- GUSD from 0% to 10%\n\n- CRV from 0% to 20%\n\n# ARC content in short\n\n* Set ReserveFactor for GUSD to 10% and CRV to 20%\n\n# Relevant Links\n\n* AIP-5 CRV Listing https://app.aave.com/governance/0-QmNfU4FMdQriJVQeqQTNxgY63iSJVh8yCJf8aFDkQDjaLQ\n\n* AIP-6 GUSD Listing  https://app.aave.com/governance/1-QmQ5tK5cgVE9nws1NCSqd5gn4sxiEvWra3G4mXHZg8pnMR\n\n* Aavenomics : https://docs.aave.com/aavenomics/\n\n## Implementations details\n\ncall setReserveFactor(0x056fd409e1d7a124bd7017459dfea2f387b6d5cd, 1000)\ncall setReserveFactor(0xD533a949740bb3306d119CC777fa900bA034cd52, 2000)\n\nOn the lending pool configurator contract \n\nhttps://etherscan.io/address/0x311bb771e4f8952e6da169b425e7e92d6ac45756\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-21"
  },
  "AIP-22": {
    "aip": 22,
    "title": "Add RAI to Aave V2",
    "status": "Proposed",
    "author": "Stefan Ionescu (@stefanionescu)",
    "shortDescription": "Create a new Aave V2 market for the RAI stablecoin",
    "discussions": "https://discord.gg/zCQYcFPEsE",
    "created": "2021-05-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\nReflexer Labs has designed a new type of stable …",
    "content": "\n\n## Simple Summary\n\nReflexer Labs has designed a new type of stable asset called RAI, an ETH backed stablecoin with a moving peg. RAI aims to become an autonomous, crypto native and stable unit of account for the DeFi industry.\n\n## Abstract\n\nRAI is an asset backed only by ETH, governance-minimized, and programmed to maintain its own price stability without needing to peg to an external price reference like the USD. We believe these qualities make RAI ideal initially as an alternative to pegged-coins for use in DeFi as collateral and as a stable reserve asset, especially for programs where resilience is critical.\n\n## Motivation\n\nIntroducing more trustless, stable assets into Aave money markets will benefit both Aave and the ecosystem as a whole. The addition of RAI will diversify the protocol’s exposure to stable assets beyond traditional dollar-pegged stablecoins and provide enough bandwidth to grow the protocols TVL.\n\nCurrently, more than $4.56B worth of stable asset liquidity on Aave V1 and V2 is centralised (USDC, USDT, TUSD, BUSD, GUSD) while only $1.25B (~25%) is decentralised (DAI, sUSD). While this isn’t inherently a negative, introducing more decentralised, stable assets adds to Aave’s composability and resilience.\n\nRAI also stands to benefit from being able to expand its utility and liquidity across the largest lending protocol in the space, allowing for more experimentation to occur in the ongoing journey towards entirely trustless and decentralized stable-credit.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n\nCo-founder of Reflexer.\n\n2. Provide a brief high-level overview of the project and the token\n\nRAI is a decentralized non-pegged ETH-back stable asset meant to act as pristine collateral in DeFi.\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\nOther stablecoins are either centralized or pegged to the dollar. RAI is neither of those and aligns perfectly with the ethos of trust-minimized finance.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?\n\nRAI launched in February and has amassed over $100M in liquidity with $300M in value locked. RAI is governance minimised by design, as well as currently moving towards a grants DAO.\n\n5.How is the asset currently used?\n\nRAI is currently used as a trust-minmized alternative to other stablecoins. The goal is to drive adoption of RAI to be used as collateral in money markets, other synthetic assets, and more.\n\n6. Emission schedule\n\nThere is no emission schedule. Similar to DAI, RAI minted on demand when users lock ETH into the protocol.\n\n7. Token & protocol permissions and upgradability\n\nRight now the protocol is almost fully upgradeable. This includes anything from oracles, the contract that collects stability fees, the contract that liquidates positions, the one that auctions collateral etc. This is managed through a multisig with a 6 hour delay on any governance action. Managed by the Reflexer core team. The multisig manages the full system and will do so until rai is gov minimized.\n\nOn the other hand, the contract that keeps track of debt and collateral in all Safes (CDPs) cannot be upgraded.\n\n8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n    Market Cap: $67M\n    24h Volume: $8M\n    Volatility: Very Low\n    Maturity: Early-Mid\n\n9. Social channels data (Size of communities, activity on Github)\n\n10K followers on Twitter, 4.7K members on Discord, Github is highly active.\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\n    Date of Deployment: February 13th, 2021\n    Number of Transactions: 40,000+\n    Number of Holders: 2,000+\n\n## Rationale\n\nThe decision to design RAI as it is today came from the desire to achieve three main goals.\n\n1. DeFi Lego\n\n- Fork of MakerDAO’s Multi-Collateral DAI (MCD)\n- Governance-minimized in the Long Run\n- Algorithmic (PI controller) interest rates\n\n2. Self-stabilizing asset-backed credit facility\n\n- Like MakerDAO, users can unlock credit from their ETH\n- Unlike MakerDAO, debt/credit is not fixed at $1. Rather, it fluctuates based on supply and demand\n- RAI’s PI controller updates the system’s moving peg to balance demand for debt vs. credit\n\n3. Reserve asset for DeFi, alternative to pegged coins\n\n- More decentralized than dollar coins like USDC & USDT\n- Independent of USD inflationary monetary policy\n- Avoids being targeted by dollar coin regulation like the “Stable Act”\n- Backed by pure ETH, no centralized collateral\n\n## Implementation\n\nThe RAI price oracle will be served via [ChainLink](https://chain.link/), which includes the [RAI/ETH feed](https://docs.chain.link/docs/ethereum-addresses).\n\nRAI will only be used for depositing and lending, not as collateral. The following params are proposed:\n\n\n  - Strategy: rateStrategyStableTwo\n  - Base LTV As Collateral: 0\n  - Liquidation Threshold: 0\n  - Liquidation Bonus: 0\n  - Borrowing Enabled: true\n  - Stable BorrowRate Enabled: false\n  - Reserve Decimals: 18\n  - Reserve Factor: 2000\n\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n\n- Interest bearing aRAI: 0xe0065ea37791d336D78fcA0e870D04f700395B8d\n- Variable Debt variableDebtRAI: 0x2cDA07B4a6D9064292DD8d624883f07c27eE01B7\n- Stable Debt stableDebtRAI: 0xf37E202E587c6f63FD70F35C24Eb7f818CC5d01A\n- Strategy Implementation for RAI: 0xA7d4df837926cD55036175AfeF38395d56A64c22\n\n\n## Audits/Security Reviews\n\n[OpenZeppelin Audit for the Core Contracts](https://github.com/reflexer-labs/geb-audits/tree/master/open-zeppelin/core-contracts)\n\n[Quantstamp Audits for Periphery Contracts](https://github.com/reflexer-labs/geb-audits/tree/master/quantstamp/helper-contracts)\n\n[Solidified Audit for Periphery Contracts](https://github.com/reflexer-labs/geb-audits/tree/master/solidified/helper-contracts)\n\n**RAI Smart Contract Risk**: **C-**\n\nRAI has been on Mainnet Ethereum for a bit more than 100 days.\n\n**RAI Counterparty Risk**: **C-**\n\nCurrently the RAI protocol can be paused or modified by a multisig. The protocol is meant to be governance minimized by end of summer 2022 according to [this public roadmap](https://docs.reflexer.finance/ungovernance/governance-minimization-guide#4-governance-minimization-levels).\n\nRAI currently has 2,063 holders who performed more than 50,000 transfers.\n\n**RAI Market Risk**: **C**\n\nThe current RAI market cap is 33,126,214 USD. The average 24H trading volume in the past month has been 8,786,384,63 USD. RAI's normalized volatility over the last month is 1.49%.\n\n## References\n\nWhitepaper - https://github.com/reflexer-labs/whitepapers/blob/master/English/rai-english.pdf\n\nWebsite - https://reflexer.finance/\n\nTwitter - https://twitter.com/reflexerfinance\n\nDocs - https://docs.reflexer.finance/\n\nGithub - https://github.com/reflexer-labs\n\nToken Contract - https://etherscan.io/token/0x03ab458634910aad20ef5f1c8ee96f1d6ac54919\n\n## Test Cases\n\n## Implementation\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-22"
  },
  "AIP-23": {
    "aip": 23,
    "title": "Add BarnBridge (BOND) to Aave",
    "status": "Proposed",
    "author": "Anjan Vinod (ParaFi Capital)",
    "shortDescription": "Create an Aave v2 market for the BOND token",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-bond-barnbridge/4486",
    "created": "2022-09-06T00:00:00.000Z",
    "updated": "2023-06-06T00:00:00.000Z",
    "preview": "## Simple Summary\n\nWe are proposing to add BarnBridge (BOND) to Aave …",
    "content": "\n\n## Simple Summary\n\nWe are proposing to add BarnBridge (BOND) to Aave as collateral.\n\n## Abstract\n\nBarnBridge is building a suite of applications that allows users to mitigate risk across various use cases throughout DeFi. These applications rely on differentiated user profiles, referred to as tranches, in order to create markets for risks such as interest rate fluctuations and asset price volatility. Currently, SMART Yield on Ethereum mainnet has some $290M in TVL, while SMART Exposure and SMART Alpha are slated for Q3 of 2021. The BOND token is used to govern the BarnBridge DAO and allocate protocol resources.\n\n## Motivation\n\nBarnBridge is one of a handful of DAOs noted for its sizable allocation of its own native asset (see: open-orgs.info). It currently holds over 30% of the total BOND supply.\n\nAdding BOND to Aave would provide a mechanism through which the DAO could finance growth, decreasing the need for excessive token distributions. Example use cases include: funding projects building on top of BarnBridge applications, paying salaries to key protocol participants, and hosting bug bounties that earn yield until paid out.\n\nBarnBridge earns fee revenues from both deposits of underlying assets and redemptions of derivative assets. By adding BOND as collateral, the DAO and individual BOND holders can borrow against their position, increasing stablecoin demand and utilization on Aave v2. Additionally, BOND holders can lend out their position for a yield on Aave v2. Given BarnBridge’s direct role as an Aave liquidity provider, the addition of BOND to Aave v2 creates more synergies between Aave and BOND holders.\n\nTo start, it may make sense for BOND to have a conservative LTV and liquidation threshold which can be fine tuned further down the line.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n  \n  - Seed investor in BarnBridge\n\n2. Provide a brief high-level overview of the project and the token\n  \n  - BarnBridge is a risk tokenizing protocol. It aims to reduce the risks associated with DeFi, such as inflation risk, market price risk, and cash-flow volatility   risk. By letting users select a risk profile, BarnBridge can redistribute risk via tokenized, liquid tranches. BarnBridge does this with its SMART Yield, SMART   Exposure, and SMART Alpha products, all of which address a specific DeFi risk category.\n\n  - BOND token is a governance token that powers the BarnBridge DAO protocol. BOND is an ERC-20 token. Token holders have the ability to govern the network by       staking their holdings in return for the right to participate in on-chain voting and make decisions on the protocol development.\n\n  - BOND total supply: 10,000,000 (minting function is disabled).\n  - Token contract address: [`0x0391D2021f89DC339F60Fff84546EA23E337750f`](https://etherscan.io/address/0x0391D2021f89DC339F60Fff84546EA23E337750f)\n\n3. Explain positioning of token in the Aave ecosystem. Why would it be a good borrow or collateral asset?\n  \n  - By adding BOND as collateral, the DAO and individual BOND holders can borrow against their position, increasing stablecoin demand and utilization on Aave v2. Additionally, BOND holders can lend out their position for a yield on Aave v2. Given BarnBridge’s direct role as an Aave liquidity provider, the addition of BOND to Aave v2 creates more synergies between Aave and BOND holders. BarnBridge currently provides ~$180M in liquidity to Aave v2 and will be launching a similar integration on Polygon in July.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?\n  \n  - BarnBridge was founded in September 2020. Since that time, BarnBridge succeed in launching the BarnBridge DAO and delivering a SMART Yield product which currently holds $280M+ in TVL with $178M providing to Aave. With the upcoming SMART Yield and SMART Exposure launch on Polygon, followed by the product we call SMART Secret and SMART Alpha (later) BarnBridge will be a full-established protocol with plenty of products and potentially with 1B+ in TVL after all our products launch.\n\n5. How is the asset currently used?\n  \n  - BOND token is currently used for:\n\n     - Staking in BarnBridge DAO to get exposure to voting rights in the DAO.\n     - Liquidity providing on Uniswap, Sushiswap, and Bancor.\n     - Lending on Cream finance.\n\n6. Emission schedule\n  \n  ![BarnBridge BOND emission schedule](../assets/AIP-23/emission.png)\n\n7. Token & protocol permissions and upgradeability\n  \n  - Protocol is upgraded by the BarnBridge DAO.  We used the Diamond Standard on a couple parts of the protocol so we could do seamless upgrades.  A users token \"power\" determines their vote weight and control they have in the DAO.\n\n8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n  \n  - Market cap: $96M\n  - 24h Volume: $5.7M\n  - Volatility: high\n  - Exchanges: Coinbase, Uniswap, Bancor, Gemini\n\n9. Social channels data (Size of communities, activity on Github)\n  \n  - Twitter: 19.4K\n  - Discord: 6.2K\n  - Medium: 4.1K\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n  \n  - Transactions: 116K\n  - Token holders: 6.3k\n\n## Rationale\n\nBarnBridge will continue to grow as a distributor of Aave v2 stablecoin markets as its SMART Yield integration gains further traction. There are currently ~$180M worth of stablecoins deposited into Aave v2 through SMART Yield. This liquidity is provided without any expectation of being used, meaning BarnBridge is a pure liquidity provider for Aave. BarnBridge is also actively building an integration with Aave’s Polygon market. Future BarnBridge products, including SMART Alpha senior tranches for assets like wBTC and ETH, stand to provide Aave with relatively safer collateral given their ability to mitigate price drawdowns. \n\n## Test Cases\n\nTest cases for an implementation are mandatory for AIPs but can be included with the implementation.\n\n## Implementation\n\n### Contracts\n\n- Interest bearing aBOND address: [`0x170375B4aD477133a36B4961D9bcA6D5BF9C8389`](https://etherscan.io/address/0x170375B4aD477133a36B4961D9bcA6D5BF9C8389)\n- Variable Debt variableDebtBOND address: [`0x21D0366D1D678fCf276954b7D651B9dfeE104D82`](https://etherscan.io/address/0x21D0366D1D678fCf276954b7D651B9dfeE104D82)\n- Stable Debt stableDebtBOND address: [`0xb98EF546D1057f9750511FE16cBCC7Eb0FB6451F`](https://etherscan.io/address/0xb98EF546D1057f9750511FE16cBCC7Eb0FB6451F)\n- Strategy Implementation for BOND address: [`0x273358d06Ca3862bf3C0691d1C8B4B4d3E906458`](https://etherscan.io/address/0x273358d06Ca3862bf3C0691d1C8B4B4d3E906458)\n\n### Price oracle\n\nThe BOND price oracle will be served via [ChainLink](https://chain.link/), which includes the [BOND/ETH](https://docs.chain.link/docs/ethereum-addresses) feed, [here](https://etherscan.io/address/0xdd22A54e05410D8d1007c38b5c7A3eD74b855281).\n\n### Interest model\n\n- LTV 25%\n- Liquidation Threshold 35%\n- Liquidation Bonus 15%\n- Reserve Factor 35%\n\nInterest Rate Model\n\n- UOptimal 45%\n\nVariable:\n\n- R_0 0%\n- R_s1 7%\n- R_s2 300%\n\nStable:\n\n- R_s1 10%\n- R_s2 300%\n\n\n![BarnBridge BOND Aave interest rates](../assets/AIP-23/rate.png)\n\n## References\n\n- *Website*: https://www.BarnBridge.com\n- *DAPP*: https://app.barnbridge.com/\n- *Whitepaper*: https://github.com/BarnBridge/BarnBridge-Whitepaper\n- *Project Management Portal*: https://github.com/BarnBridge/BarnBridge-PM\n- *Youtube*: https://www.youtube.com/c/BarnBridge\n- *Twitter*: https://twitter.com/Barn_Bridge\n- *BOND token contract*: https://etherscan.io/address/0x0391D2021f89DC339F60Fff84546EA23E337750f\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-23"
  },
  "AIP-24": {
    "aip": 24,
    "title": "Add PAX to Aave V2",
    "status": "WIP",
    "author": "Charles Rodiger (@charlie-paxos)",
    "shortDescription": "Create a new Aave V2 market for the PAX stablecoin",
    "discussions": "https://governance.aave.com/t/arc-add-paxos-standard-pax-collateral-borrow-support/3739",
    "created": "2021-06-29T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP is to list PAX for lend/borrow support …",
    "content": "\n\n## Simple Summary\n\nThis AIP is to list PAX for lend/borrow support on Aave.  Paxos Standard (PAX) is one of largest regulated USD-backed stablecoins, and listing on Aave will provide users a highly trustworthy crypto asset to lend and borrow. PAX is issued by a NYDFS regulated financial institution - Paxos Trust Company - and the token itself is also regulated by NYDFS. This oversight ensures PAX is 100% backed by US Dollars or short term government securities (e.g. “t-bills”) at all times (attestations). PAX users are assured to always access their dollars - all PAX reserves are held fully segregated and bankruptcy remote in US bank accounts, which only Paxos-issued tokens can claim. PAX is also the only coin to have received a successful SOC-II audit. We think transparency is a hallmark of DEFI, and PAX’s transparency and trustworthiness will be beneficial for the community. We are excited at the prospect of listing PAX on Aave.\n\n## Abstract\n\nPaxos Standard (PAX) was launched in 2018 and is a USD stablecoin that is 100% backed by US dollars or short term government securities held bankruptcy remote. Paxos issues PAX, and both the company and token are regulated by the NY DFS. Full PAX attestations are completed monthly and posted to www.paxos.com/attestations.\n\nPAX is used in a variety of use cases including as a means of payment for other blockchain-based assets, a trustworthy store-of-value, settlement outside of traditional banking hours, and being lent / borrowed on known CeFi institutions like BlockFi and Celsius. PAX is included in MakerDAO’s pool and is available for trading on DeFi Apps, including Curve and Uniswap. Paxos would like to extend PAX’s functionality through inclusion in Aave’s lend/borrow markets.  Collateral support could be proposed in future AIPs.\n\n\n## Motivation\n\nPaxos would like to extend PAX’s functionality in the DeFi space through a listing on Aave. We believe adding PAX will provide users a highly trustworthy crypto asset to lend and borrow. PAX is valuable not only due to its transparency and trustworthiness, but also the range of use cases it supports, including store-of-value, settlement, trading, and peer-to-peer transfer.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n\nSoftware Engineer employed at Paxos. Paxos Trust Company is a qualified custodian and trust company regulated by NY DFS and is the sole issuer of the PAX token.\n\n2. Provide a brief high-level overview of the project and the token\n\nPAX is the most secure, highest regulated stablecoin available. Token was launched in 2018 to facilitate many blockchain-based use-cases such as payments and stable digital storage.\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\nPAX is valuable to borrow due to its trustworthiness and range of use cases including store of value, settlement, trading, and peer to peer transfer. PAX is also very liquid and can be created and redeemed directly through Paxos, or can be used to trade on CeFi and DeFi exchanges. Paxos additionally plans to request collateral status at a future date.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?\n\nPAX was launched on September 10th, 2018. PAX is included in MakerDAO’s pool and is available for trading on DeFi Apps Curve and Uniswap, as well as traded on many different centralized exchanges.\n\n5. How is the asset currently used?\n\nPAX shares the typical use-cases for USD stablecoins.\n\n6. Emission schedule\n\nPAX tokens are minted/burned based on client demand. The process for minting and burning has been approved by the NYDFS and is regularly audited by a third party. Full monthly attestations are available on the Paxos website. Market cap fluctuates as users purchase and redeem PAX.\n\n7. Token & protocol permissions and upgradability\n   \n   *All of the following roles are held by multi-sig addresses.*\n   1. Controlling the token supply - The supplyController address can mint and burn the token based on the actual movement of USD in and out of the reserve based on requests for the purchase, conversion and redemption of PAX.\n   2. Contract Owner - Can pause/unpause the contract and propose a new owner.\n   3. Asset Protection Role - As required by our regulators, we have introduced a role for asset protection to freeze or seize the assets of a criminal party when required to do so by law, including by court order or other legal process.\n   4. Upgradeability Proxy - To facilitate upgradeability on the immutable blockchain we follow a standard two-contract delegation pattern: a proxy contract represents the token, while all calls not involving upgrading the contract are delegated to an implementation contract. The proxy used here is AdminUpgradeabilityProxy from ZeppelinOS.\n   \n\n8. Market data as of July 6th, 2021 (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n* [Market Cap](https://etherscan.io/token/0x8e870d67f660d95d5be530380d0ec0bd388289e1): $837M\n* [24h Volume](https://www.coingecko.com/en/coins/paxos-standard): $64M\n* Volatility: ~0\n* [Exchanges](https://www.coingecko.com/en/coins/paxos-standard#markets): Binance, itBit, Bitfinex, Coinsbit, Atomars, etc\n* Maturity: Late\n\n9. Social channels data as of July 6th, 2021 (Size of communities, activity on Github)\n\n[Paxos Twitter](https://twitter.com/PaxosGlobal): 23k followers\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\n* Date of Deployment: September 8th, 2018\n* Number of Transactions: 3,186,000+\n* Number of Holders: 109,500+\n\n## Implementation\n\nThe PAX price oracle will be served via [Chainlink](http://chain.link) as a [PAX/ETH feed](https://data.chain.link/ethereum/mainnet/crypto-eth/pax-eth).\n\nPAX will be used for depositing and lending. The following parameters are proposed:\n\n- Strategy: rateStrategyStableThree\n- Base LTV As Collateral: 0%\n- Liquidation Threshold: 0%\n- Liquidation Bonus: 0%\n- Borrowing Enabled: true\n- Stable BorrowRate Enabled: false\n- Reserve Decimals: 18\n- Reserve Factor: 10%\n\nDeployed Contract Implementations:\n- Interest bearing aPAX address: 0xBcbD94007425001E9e2AEc764D799f83a257f050\n- Variable Debt variableDebtPAX address: 0x7b4E77aa7062cE6b8a8A75514F6D2aD987c0d854\n- Stable Debt stableDebtPAX address: 0x9C3440F4aACA3312b632bE4A07C0f97B15c31c8b\n- Strategy Implementation for PAX address: 0x404d396fc42e20d14585A1a10Cd64BDdC6C6574A\n\n## Audits/Security Reviews\n\n[ChainSecurity Audit for the Initial Core Contracts](https://github.com/paxosglobal/pax-contracts/blob/master/audit-reports/ChainSecurity_Audit_Report.pdf)\n\n[Nomic Labs Audit for the Initial Core Contracts](https://github.com/paxosglobal/pax-contracts/blob/master/audit-reports/Nomic_Labs_Audit_Report.pdf)\n\n[Trail of Bits Audit for the Initial Core Contracts](https://github.com/paxosglobal/pax-contracts/blob/master/audit-reports/Trail_of_Bits_Audit_Report.pdf)\n\n*After these audits, we upgraded the backing PAX contract to mirror that of BUSD and PAXG (minus on-chain fees). Some audits for the current contract format can be found below:*\n\n[CertiK Audit for the Upgraded Core Contracts](https://github.com/paxosglobal/paxos-gold-contract/blob/master/audit-reports/paxg-audits/CertiK_Verification_Report_for_Paxos.pdf)\n\n[ChainSecurity Audit for the Upgraded Core Contracts](https://github.com/paxosglobal/paxos-gold-contract/blob/master/audit-reports/paxg-audits/ChainSecurity_PAXOS-GOLD.pdf)\n\n**PAX Smart Contract Risk**: **A**\n\nPAX has been on the Ethereum Mainnet since 2018, and has had 3,000,000+ transactions.\n\n**PAX Counterparty Risk**: **A-**\n\nPAX issuance is controlled by Paxos, which is a centralized, regulated entity. Paxos is regulated by the NY Department of Financial Services (DFS), and possesses a national trust bank charter from the OCC. Paxos is the most regulated stablecoin issuer.\nThere are 100,000+ holders of PAX.\n\n**PAX Market Risk**: **B+**\n\nThe current PAX market cap is $819,632,517 USD. The average 24H trading volume in the past month has been 55,559,061 USD. PAX's normalized volatility over the last month is 0.004.\n\n**PAX Overall Risk**: **A-**\n\n![PAX Risk Analysis](../assets/AIP-24/aip25-img.png?raw=true \"PAX Risk Analysis\")\n\n## References\n\nWhitepaper - https://www.paxos.com/wp-content/uploads/2019/02/PAX_Whitepaper.pdf\n\nWebsite - https://paxos.com\n\nTwitter - https://twitter.com/PaxosGlobal\n\nDocs - https://www.paxos.com/pax/\n\nGithub - https://github.com/paxosglobal\n\nToken Contract - https://etherscan.io/address/0x8e870d67f660d95d5be530380d0ec0bd388289e1\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "AIP-24"
  },
  "AIP-25": {
    "aip": 25,
    "title": "Extend Liquidity Incentives for Aave v2",
    "status": "Proposed",
    "author": "Anjan Vinod (@Anjan-ParaFi)",
    "shortDescription": "Extend Aave LM Rewards",
    "discussions": "https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852",
    "created": "2021-07-21T00:00:00.000Z",
    "updated": "2021-07-21T00:00:00.000Z",
    "preview": "**Liquidity Mining Extension**\n\nGiven the liquidity mining program …",
    "content": "\n\n**Liquidity Mining Extension**\n\nGiven the liquidity mining program will end this week, this AIP will extend the current program by 4 weeks. This extension should give the community enough time to [debate](https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/15) any changes to the liquidity mining program without any interruption for Aave borrowers and lenders.\n\nThe same stkAAVE distribution will be used.\n\n**Liquidity Mining v1**\n\nLiquidity mining incentives were introduced for Aave v2 on 4/26/21.\n\n2,200 stkAAVE per day will be allocated pro-rata across supported markets based on the dollar value of the borrowing activity in the underlying market. stkAAVE was distributed over AAVE to further align users with the Aave Protocol and increase the amount of AAVE staked in the safety module.\n\n**Liquidity Mining Recap**\n\n-   Value Distributed: During the liquidity mining campaign, 198,000 stkAAVE will be distributed to borrowers and lenders on Aave v2, using ~7% of the Ecosystem Reserve. This equates to $82MM in rewards (AAVE VWAP since LM program started).\n\n-   TVL: v2 TVL rose from $7.8 billion to a high of $14.4 billion in mid-May. Stablecoin liquidity accounts for more than 60% of total Aave v2 liquidity.\n\n-   V1 to V2 liquidity migration: v1 liquidity decreased from $2.5 billion to $372MM since the liquidity mining program started. 40% of Aave liquidity was deployed in v1 before the LM rewards started. Aave v1 liquidity now accounts for less than 3% of all liquidity on Aave. This allows the community to remain focused on v2 and upcoming money markets.\n\n-   Growth in dollar value supplied and borrowed: The USDC and DAI markets experienced the largest increase in dollar value supplied and borrowed. Note - many users on these markets have recursively levered their position to maximize yields. Recursive leverage accounts for ~32% of all deposits on v2. This compares to ~40% on Aave’s Polygon market.\n\n-   Reserve Growth: Aave reserves help provide the first layer of protection for borrowers and lenders. Since liquidity mining rewards launched, Aave’s v2 reserves have grown by [~$7MM](https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c).\n",
    "basename": "AIP-25"
  },
  "AIP-26": {
    "aip": 26,
    "title": "Raise Maximum Interest Rate on AMPL Market",
    "status": "Proposed",
    "author": "Ahmed Naguib Aly (@ahnaguib), Nithin Ottilingam (@nithinkrishna), Brandon Iles (@brandoniles)",
    "shortDescription": "Raise maximum interest rate to better balance incentives between the borrow and deposit sides of the market.",
    "discussions": "https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996",
    "created": "2021-07-26T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposes raising the maximum AMPL interest …",
    "content": "\n\n## Simple Summary\n\nThis proposes raising the maximum AMPL interest rate to better balance incentives between the borrow and deposit sides of the market.\n\n## Motivation\n\nFollowing [API-12](https://governance.aave.com/t/proposal-add-support-for-ampl/854/8), [AMPL borrowing & depositing](https://app.aave.com/reserve-overview/AMPL-0xd46ba6d942050d489dbd938a2c909a5d5039a1610xb53c1a33016b2dc2ff3653530bff1848a515c8c5) went live on the AAVE v2 market [date=2021-07-24 time=20:22:00 timezone=\"UTC\"].\n\nSince then, there has been a near 100% utilization rate of deposited assets. This suggests the maximum cap of the interest rate curve is not able to reach a high enough value to effectively balance incentives between the borrow side and depositing side of the marketplace.\n\n![Deposit and Borrow APY on AAVE, 7/24/21](../assets/AIP-26/apys.png \"Deposit and Borrow APY on AAVE, 7/24/21\")\n\nWhile the AMPL spot market is currently in a relatively extreme condition, the AAVE borrowing market should be able to perform efficiently in all market scenarios.\n\n## Specification\n\nWe suggest the following parameters for AAVE's default [interest rate model](https://docs.aave.com/risk/liquidity-risk/borrow-interest-rate#interest-rate-model):\n\n- Optimal utilization = 75%\n- Slope1 = 2%\n- Slope2 = 10,000%\n\nThis leads to a piecewise linear curve with two parts and three defining points:\n\n- Borrow Interest(0) = 0% APY\n- Borrow Interest(75) = 2% APY\n- Borrow Interest(100) = 10002 % APY\n\n## Rationale\n\nA higher cap of the borrow interest rate will allow the marketplace to have a more sustainable equilibrium.\n\nSince this will result in overall higher fees coming into the system, in tandem we also suggest lowering the reserve factor from 20% to 10% to incentivize more depositors. This would be submitted as a separate AIP to decouple these two decisions.\n\nWe believe a nonlinear interest curve is healthiest long-term and could likely be used by many other assets as well, however this work can be discussed more in the future.\n\n## Implementation\n\nA deployment of the existing implementation of the Interest Strategy will be used, with the following parameters:\n\n    optimalUtilizationRate: new BigNumber(0.75).multipliedBy(oneRay).toFixed(),\n    baseVariableBorrowRate: new BigNumber(0).multipliedBy(oneRay).toFixed(),\n    variableRateSlope1: new BigNumber(0.02).multipliedBy(oneRay).toFixed(),\n    variableRateSlope2: new BigNumber(100).multipliedBy(oneRay).toFixed(),\n\n[https://etherscan.io/address/0x509859687725398587147Dd7A2c88d7316f92b02#readContract](https://etherscan.io/address/0x509859687725398587147Dd7A2c88d7316f92b02#readContract)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-26"
  },
  "AIP-27": {
    "aip": 27,
    "title": "Lower Reserve Factor for AMPL",
    "status": "Proposed",
    "author": "Ahmed Naguib Aly (@ahnaguib), Nithin Ottilingam (@nithinkrishna), Brandon Iles (@brandoniles)",
    "shortDescription": "Lower AMPL reserve factor",
    "discussions": "https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996",
    "created": "2021-07-27T00:00:00.000Z",
    "requires": "AIP-26",
    "preview": "## Simple Summary\n\nThis is a sibling proposal to AIP-26 and proposes …",
    "content": "\n\n## Simple Summary\n\nThis is a sibling proposal to AIP-26 and proposes lowering the AMPL reserve factor from 20% to 10%.\n\n## Motivation\n\nFollowing [API-12](https://governance.aave.com/t/proposal-add-support-for-ampl/854/8), [AMPL borrowing & depositing](https://app.aave.com/reserve-overview/AMPL-0xd46ba6d942050d489dbd938a2c909a5d5039a1610xb53c1a33016b2dc2ff3653530bff1848a515c8c5) went live on the AAVE v2 market [date=2021-07-24 time=20:22:00 timezone=\"UTC\"]. Since then, there has been a near 100% utilization rate of deposited assets.\n\nThe reserveFactor allows the FeeCollector smart contract to receive part of the interest paid by takers of liquidity. Each asset on Aave has its own reserveFactor.\n\nAIP-26 raises the maximum borrowing rate for AMPL and would result in more fees coming into the system. This AIP proposes (in tandem) lowering the AMPL reserve factor from 20% to 10%. This shares more of the revenue with AMPL suppliers to further incentivize deposits.\n\n# Relevant Links\n\n- AIP-12 AMPL Listing: https://app.aave.com/governance/18-QmZZ7JqvEx99u7dMNFPBBnew3BgepLCmXRMrNi8y5ndpXn\n- AIP-26: https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996\n- Aavenomics: https://docs.aave.com/aavenomics/\n\n## Implementation\n\ncall setReserveFactor(0xd46ba6d942050d489dbd938a2c909a5d5039a161, 1000)\n\nOn the lending pool configurator contract\n\nhttps://etherscan.io/address/0x311bb771e4f8952e6da169b425e7e92d6ac45756\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-27"
  },
  "AIP-28": {
    "aip": 28,
    "title": "Polygon Cross-chain Governance Test",
    "status": "Proposed",
    "author": "Steven Valeri (@stevenvaleri)",
    "shortDescription": "Test the Aave Polygon governance bridge contract prior to setting it as owner of the Aave Polygon market",
    "discussions": "N/A",
    "created": "2021-07-30T00:00:00.000Z",
    "updated (*optional)": "N/A",
    "requires (*optional)": "N/A",
    "preview": "## Simple Summary\n\nThe intention of this AIP is to test a …",
    "content": "\n\n## Simple Summary\n\nThe intention of this AIP is to test a cross-chain transaction workflow that would enable the Ethereum based smart contract for governance for the Aave Protocol (the \"Aave Ethereum Governance\") to control the deployment of the Aave Protocol on Polygon (the \"Aave Polygon market\"). The proposal is written as a transaction that would make updates to a **mock** Aave Polygon market. If approved, the transaction would trigger a cross-chain message, flowing from Aave's Ethereum Governance, to a new contract - the `PolygonBridgeExecutor`. The `PolygonBridgeExecutor` would store the proposed market updates for a delay window, and then allow for the updates to be executed on the **mock** Aave Polygon market.\n\nThis proposal will allow testing the end-to-end crosschain transaction workflow for Polygon market governance using both the Ethereum and Polygon mainnet contracts in a way that cannot be replicated in another manner. This test will support the case in the future to transfer ownership of the Aave Polygon Market to Aave's Ethereum  governance.\n\n**In-Scope:**\nA test of the governance cross-chain bridge functionality on a **mock** Aave Polygon market.\n\n**Out-of-Scope:**\nTransferring ownership of the Aave Polygon Market to the Aave Ethereum Governance \n\n## Abstract\n\nTest an implementation of a cross-chain governance workflow, allowing Aave's Ethereum Governance to execute a transaction updating a **mock** Aave market deployed on Polygon.\n\n## Motivation\n\nBefore anyone in the community or otherwise can make a proposal to transfer ownership of the Aave Polygon market to a cross-chain bridge workflow, it is necessary that any smart contracts be tested as thoroughly as possible. This AIP is a `real world` test using the Aave Ethereum Governance contract to test the cross-chain bridge contracts on a **mock** Aave Polygon Market. The main reasons for testing to this extent are:\n\n+ Cross-chain / bridge transactions are relatively new and complex\n+ The risk of this workflow being deployed and not operating correctly would have a HIGH impact\n\nThe transfer of ownership of the Aave Polygon Market to Aave's Ethereum Governance is **not** in-scope of this AIP, but understanding the motivation behind that desired change is important to understanding the motivation for this test.\n\nThe current owner of the Aave Polygon Market a multi-sig wallet due to the time needed to build a cross-chain governance platform, as well as ensuring security for a new deployment on a new network.\n\nGiven the overarching goal that any deployment of the Aave Protocol be owned by decentralized governance, transferring ownership of the Aave Polygon market contracts to Aave Ethereum Governance, is an important next step. Additionally, we have developed and deployed a cross-chain governance platform aimed at providing a broad solution for cross-chain governance. After appropriate testing (including this AIP) and auditing of the cross-chain bridge contract, anyone can create a future AIP to remove the multi-sig over the Aave Polygon market and transfer ownership of those smart contracts to Aave Ethereum Governance.\n\n## Specification\n\nA detailed specification of the crosschain-bridge contract and workflow is outlined in the repo here\n\nhttps://github.com/Aave/governance-crosschain-bridges\n\nFor this test specifically, the test would flow from Aave Ethereum Governance, through a cross chain transaction to the `PolygonBridgeExecutor` contract. Then after a delay, the proposal would be executed on Polygon to make updates to the **mock** Aave Polygon market.\n\nThe general flow of this test will be\n\n1. Propose cross-chain test transactions (Aave governance-v2)\n2. Vote on cross-chain test transactions (Aave governance-v2)\n3. Queue test transactions\n4. Execute cross-chain test transactions\\\n4a. Execute transaction from Aave Governance (Aave governance-v2)\\\n4b. Bridge the test transactions to Polygon  (Polygon fxPortal and Polygon Inherent Bridge Functionality)\\\n4c. Receive bridged message on Polygon       (Polygon fxPortal and Polygon Inherent Bridge Functionality)\\\n4d. Queue transactions for execution in PolygonBridgeExecutor (Aave governance-crosschain-bridges)\\\n5. Wait for delay\n6. Execute queued transactions in the PolygonBridgeExecutor   (Aave governance-crosschain-bridges)\\\n6a. Turn off borrowing for the **mock** Dai reserve\\\n6b. Transfer POOL_ADMIN rights to a dummy address\\\n6c. Transfer ownership of the **mock** Aave market to a dummy address\\\n7. Confirm the expected updates have been made on **mock** Aave market\n\n## Rationale\n\nThis AIP will not make any actual changes in the current Aave Polygon market ecosystem or in any other deployment of the Aave Protocol. It is merely a test of a contract and workflow that, in the future, could enable the Aave Ethereum Governance to control the Aave Polygon Market.\n\nTesting the contracts that enable this cross-chain bridging as thoroughly as possible, including via this proposed test are rationale, despite their cost, given the critical role the cross-chain bridging will play if deployed and used for cross-chain governance.\n\n## Test Cases\n\nA full suit of tests with 100% coverage is included in the repo https://github.com/Aave/governance-crosschain-bridges. The cross-chain workflow has also successfully been tested on the Goerli-Mumbai test networks.\n\n## Implementation\n\nA mock implementation of this proposed test can be found here:\n\nhttps://github.com/Aave/governance-crosschain-bridges/tree/feat/mainnet-test\n\nAfter setting up the repository: \n\n`npm run hardhat mock-mainnet-proposal-delegate`\nruns on Ethereum fork to makes sure everything is encoded correctly to be submitted for the proposal\n\n\n`npm run hardhat mock-Polygon-test-delegate`\nset a .env variable `Polygon_FORK = \"true\"` to run the test updating the Polygon market via the mainnet PolygonBridgeExecutor on a Polygon fork\n\nTwo helper contracts have been deployed to support this proposal. `PolygonMessageSender` has been deployed on Ethereum and `PolygonMarketUpdate` has been deployed on Polygon.\n\nThis proposal, if executed, calls the function sendMessage() on the `PolygonMessageSender` contract on Ethereum mainnet via a delegatecall. The sendMessage function encodes a delegatecall to the function executeUpate() on the contract `MarketUpdate` deployed on the Polygon network and then sends that encoded action to the `PolygonBridgeExecutor` on the Polygon network via Polygon's FxPortal. When that action is received in the PolygonBridgeExecutor, it will be queued. After a delay, that action can be executed, calling the function executeUpate() which will make three updates to a mock aave market deployed on Polygon:\n\n1. disable the mock dai reserve via the LendingPoolConfigurator contract\n2. Set the pool admin to the address `0x000000000000000000000000000000000000dEaD` via the LendingPoolAddressesProvider contract\n3. Transfer ownership of the pool to the address `0x0000000000000000000000000000000000000001` via the LendingPoolAddressesProvider contract\n\n**Related Contracts:**\n\n*Ethereum PolygonMessageSender Contract*\nPolygonMessageSender: `0xf442C0faE2E9A157cD0202BD63bf9b932D3aa4C8` \\\nhttps://etherscan.io/address/0xf442C0faE2E9A157cD0202BD63bf9b932D3aa4C8#code \\\n\n*Polygon FxPortal Bridge Contracts*\\\nFxRoot: `0xfe5e5D361b2ad62c541bAb87C45a0B9B018389a2` \\\nhttps://etherscan.io/address/0xfe5e5D361b2ad62c541bAb87C45a0B9B018389a2#code \\\nStateSender: `0x28e4F3a7f651294B9564800b2D01f35189A5bFbE` \\\nhttps://etherscan.io/address/0x28e4f3a7f651294b9564800b2d01f35189a5bfbe#code \\\nFxChild: `0x8397259c983751DAf40400790063935a11afa28a` \\\nhttps://polygonscan.com/address/0x8397259c983751DAf40400790063935a11afa28a#code\n\n*Polygon Bridge Executor Contracts*\\\nPolygonBridgeExecutor: `0x60966EA42764c7c538Af9763Bc11860eB2556E6B`\\\nhttps://polygonscan.com/address/0xd63b6b5e0f043e9779c784ee1c14ffcbffb98b70#code\n\n*Polygon Market Update*\\\nMarketUpdate: `0x5b494b94faf0bb63254dba26f17483bcf57f6d6a` \\\nhttps://polygonscan.com/address/0x5b494b94faf0bb63254dba26f17483bcf57f6d6a#code\n\n*Mock Polygon Market Contracts*\\\nLendingPoolAddressProviderAddress = `0x240de965908e06a76e1937310627b709b5045bd6`\\\nhttps://polygonscan.com/address/0x240de965908e06a76e1937310627b709b5045bd6#code \\\nLendingPoolConfiguratorAddress (proxy)= `0xd63B6B5E0F043e9779C784Ee1c14fFcBffB98b70` \\\nhttps://polygonscan.com/address/0xd63b6b5e0f043e9779c784ee1c14ffcbffb98b70#writeContract#code \\\nLendingPoolConfiguratorAddress (implementation)= `0xADA061366575324945c7a097F829349acA6C9aB9` \\\nhttps://polygonscan.com/address/0xADA061366575324945c7a097F829349acA6C9aB9#code\n\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-28"
  },
  "AIP-29": {
    "aip": 29,
    "title": "Add FRAX to Aave V2",
    "status": "Proposed",
    "author": "Jason Huan (@jasonhuan_)",
    "shortDescription": "Create a new Aave V2 market for the FRAX stablecoin",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-frax/2621",
    "created": "2021-08-25T00:00:00.000Z",
    "preview": "## Simple Summary\n\nFrax is the first algorithmic-stablecoin …",
    "content": "\n\n## Simple Summary\n\nFrax is the first algorithmic-stablecoin protocol, backed through on-chain collateral and algorithmically. Frax has two tokens, the FRAX stablecoin pegged at $1 and the FXS governance + seigniorage token, and aims to be a decentralized crypto-native unit of account with the upcoming Frax Price Index (FPI). FRAX has stayed at $1 for its entire existence, being the only non-traditional stablecoin to keep its peg perfectly in 8 months of release.\n\n## Abstract\n\nThe FRAX stablecoin is partially backed with on-chain collateral and partially backed algorithmically, according to a collateral ratio (CR) parameter that the system adjusts according to market conditions. In Frax v2, the protocol is able to mint FRAX into lending markets using [Algorithmic Market Operations](https://docs.frax.finance/amo/overview) (AMOs), smart contracts which have the ability to print FRAX up to certain thresholds adjustable by governance.\n\n## Motivation\n\nAs the value of Aave's TVL increases, borrow liquidity for stablecoins against volatile assets lent to Aave is one of the key benefits that is offered to lenders of the protocol. The flow of newly minted stablecoins to their decentralized lending market destination such as Aave is not always direct, and may face market inefficiencies through layers of actors.\n\nBy [deploying an AMO for Aave](https://docs.frax.finance/amo/frax-lending), the Frax protocol is able to mint FRAX to be borrowed by lenders of Aave, and thus offer an active and competitive alternative to other stablecoins such as USDC, USDT, and DAI. By allowing for responsive stablecoin liquidity, we aim to benefit lenders and the Aave ecosystem as a whole.\n\nAdditionally, With no collateral factor, there is 0 risk for Aave's money market in terms of the FRAX peg. Furthermore, if the FRAX peg broke and fell below $1, Aave borrowers would have less debt in dollar terms.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n\n\t- Co-founder of Frax.\n\n2. Provide a brief high-level overview of the project and the token\n\n\t- FRAX is the world's first fractionally-algorithmic stablecoin, stabilized with parts on-chain collateral and parts algorithmically.\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\n\t- Frax's AMOs are able to mint FRAX into the Aave lending market, allowing for highly competitive stablecoin borrowing rates for lenders.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?\n\n\t- FRAX launched at the end of 2020 and currently has over $300M in circulating FRAX. FRAX has never once broken the peg of $1, even through sharp market downturns such as in March 2021. Frax's governance token FXS has maintained governance functionality since inception through a fork of Compound's GovernorAlpha.\n\n5. How is the asset currently used?\n\n\t- FRAX is currently used as a stablecoin in decentralized exchanges and other lending markets such as Rari's Fuse Protocol, where it is currently the most-borrowed and most-supplied stablecoin in several pools through Frax's AMOs.\n\n6. Emission schedule\n\n\t- There is no emission schedule; FRAX is mintable by anyone anytime by depositing corresponding amounts of collateral and FXS into the system's contracts.\n\n7. Token & protocol permissions and upgradability\n\n\t- The protocol is highly modular in terms of system parameters such as oracle addresses and AMO additions. The core contracts such as the token contract itself are non-proxy deployed and permissioned through governance's 2-day timelock, with a backup multisig admin address managed by the core Frax team.\n\n8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n    - Market Cap: $307M\n    - 24h Volume: $15M\n    - Volatility: Extremely Low\n    - Maturity: Early-Mid\n\n9. Social channels data (Size of communities, activity on Github)\n\n\t- 13K followers on Twitter, 6.2K members on Telegram, Github is updated frequently.\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\n    - Date of Deployment: December 20th, 2020\n    - Number of Transactions: 110,000+\n    - Number of Holders: 1,600+\n\n## Rationale\n\nFrax's design rationale came as a synthesis of a crypto-native stablecoin with capital efficiency, allowing it to perform algorithmic market operations while managed by on on-chain DAO. As Frax expands, it can compound on its own network effects by being a highly liquid routing asset on DEXes and a default borrowing option for many lending market pools. To keep decentralization at the forefront, the USDC collateral is spread out through other lending markets and DEXes, and is planned to be rotated to ETH and ETH-equivalent collateral as the protocol matures. Furthermore, the Frax Price Index (FPI) allows for a shift away from the USD unit-of-account into the first major stable crypto-native unit-of-account.\n\n## Implementation\n\nThe FRAX price oracle will be served via [ChainLink](https://chain.link/), which includes the [FRAX/ETH feed](https://docs.chain.link/docs/ethereum-addresses).\n\nFRAX will only be used for depositing and lending and not as collateral, with a Loan-to-Value (LTV) value of 0%. The other parameters are as such:\n\n\n  - Strategy: rateStrategyStableTwo\n  - Base LTV As Collateral: 0\n  - Liquidation Threshold: 0\n  - Liquidation Bonus: 0\n  - Borrowing Enabled: true\n  - Stable BorrowRate Enabled: false\n  - Reserve Decimals: 18\n  - Reserve Factor: 2000\n\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n\n- Interest bearing aFRAX address: 0x6efD37b3015AeA0E19418f98661488A4D2D3C377\n- Variable Debt variableDebtFRAX address: 0x08FFf652bEF777634585707B17627c9274E3dB11\n- Stable Debt stableDebtFRAX address: 0x7E3Ddfceef69bEC3A38Fc9AE8D7A8c46D7788C6b\n- Strategy Implementation for FRAX address: 0xb0a73aC3B10980A598685d4631c83f5348F5D32c\n\n## Audits/Security Reviews\n\n[Trail of Bits Audit](https://github.com/trailofbits/publications/blob/master/reviews/FraxFinance.pdf)\n\n[CertiK Audit](https://www.certik.org/projects/fraxfinance)\n\n**Note that the risk assessment was performed in May 2021, when FRAX's market cap was $110M**\n\n**FRAX Smart Contract Risk**: **C**\n\nFrax has been live on the Ethereum mainnet for over 8 months.\n\n**FRAX Counterparty Risk**: **C+**\n\nCurrently the Frax protocol can be paused or modified by a multisig. The protocol is meant to be governance minimized with a gradual transition to DAO + comptrollers.\n\n**FRAX Market Risk**: **B**\n\nThe current FRAX market cap is over $307,000,000 USD. The average 24H trading volume in the past month has been over $14,000,000 USD. FRAX's volatility is negligible on Curve and Uniswap v3.\n\n**FRAX Overall Risk**: **B-**\n\n## References\n\nWhitepaper - https://github.com/FraxFinance/frax-solidity/blob/master/frax_whitepaper_v1.pdf\n\nWebsite - https://frax.finance/\n\nTwitter - https://twitter.com/fraxfinance\n\nDocs - https://docs.frax.finance/\n\nGithub - https://github.com/FraxFinance\n\nToken Contract - https://etherscan.io/token/0x853d955aCEf822Db058eb8505911ED77F175b99e\n\n## Test Cases\n\n## Implementation\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AIP-29"
  },
  "AIP-3": {
    "aip": 3,
    "title": "V1 upgrades for seamless transition to AAVE v2",
    "status": "Implemented",
    "author": "Marc Zeller (@marczeller)",
    "shortDescription": "<none>",
    "discussions": "https://governance.aave.com/t/aip-3-upgrade-aave-v1-lendingpool-contract-for-seamless-migration-to-v2/1383",
    "created": "2020-11-11T00:00:00.000Z",
    "updated": "2020-11-11T00:00:00.000Z",
    "preview": "## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are …",
    "content": "\r\n\r\n## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are deposited in the Aave protocol reserve, several community members currently use these assets as collateral in loans and would like to migrate both from LEND to AAVE and from V1 to V2 in the future.\r\nOutside of the situation of the aLEND holders, having a Flashloan-powered migration tool usable for every asset available on V1 to allow seamless migration from v1 to v2 would significantly ease the process of upgrading the liquidity to the new version of AAVE.\r\n\r\nTo allow these new features, small modifications of the `repay()` method are needed to upgrade the efficiency of the process and allow v2 flashloans to access it.\r\n\r\n## AIP content in short\r\n\r\n- upgrade of `lendingPool` v1 smart-contract `repay()` method\r\n  \r\n  This AIP expected effect will be the increase of migrated LEND and faster & easier transition to Aave V2 of V1 liquidity of all assets alongside an increased volume of Flashloans.\r\n\r\n\r\n## Implementation details\r\n\r\n- Upgrade of the LendingPool contract https://etherscan.io/address/0x017788dded30fdd859d295b90d4e41a19393f423#code\r\n- Modify the repay() function as follows:\r\nOn LendingPool.sol, line 617, replace `onBehalfOf` with `msg.sender`\r\n\r\nThe upgrade having a minimum impact on v1 and is particularly simple on the technical side, for this reason, internal review by the Aave genesis team has been considered sufficient to validate it.\r\nthis upgrade details can be found in the Aave public github repo :\r\n\r\n- modification code : https://github.com/aave/aave-protocol/pull/28/\r\n\r\n- AIP 3 Proposal payload: https://etherscan.io/address/0x3f0cfa3cad621c3651faf9de014489e20e5bf9d1\r\n  \r\n## Copyright\r\n\r\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\r\n",
    "basename": "AIP-3"
  },
  "AIP-32": {
    "aip": 32,
    "title": "Extend Liquidity Incentives for Aave v2",
    "status": "Proposed",
    "author": "Anjan Vinod (@Anjan-ParaFi)",
    "shortDescription": "Extend Liquidity Incentives for Aave v2",
    "discussions": "https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852",
    "created": "2021-08-19T00:00:00.000Z",
    "updated (*optional)": "2021-08-19T00:00:00.000Z",
    "preview": "## **AAVE AIP 32**\n\n**Liquidity Mining V1**\n\nLiquidity mining …",
    "content": "\n## **AAVE AIP 32**\n\n**Liquidity Mining V1**\n\nLiquidity mining incentives were introduced for Aave v2 on 4/26/21.\n\n2,200 stkAAVE per day were allocated pro-rata across supported markets based on the dollar value of the borrowing activity in the underlying market. stkAAVE was distributed over AAVE to further align users with the Aave Protocol and increase the amount of AAVE staked in the safety module.\n\n![AAVE](../assets/AIP-32/v1-program.png)\n\nLiquidity Mining Recap (as of 7/15/21)\n\n-   Value Distributed: During the liquidity mining campaign, 198,000 stkAAVE will be distributed to borrowers and lenders on Aave v2, using ~7% of the Ecosystem Reserve. This equates to $82MM in rewards (AAVE VWAP since LM program started).\n\n-   TVL: v2 TVL rose from $7.8 billion to a high of $14.4 billion in mid-May. Stablecoin liquidity accounts for more than 60% of total Aave v2 liquidity.\n\n-   V1 to V2 liquidity migration: v1 liquidity decreased from $2.5 billion to $372MM since the liquidity mining program started. 40% of Aave liquidity was deployed in v1 before the LM rewards started. Aave v1 liquidity now accounts for less than 3% of all liquidity on Aave. This allows the community to remain focused on v2 and upcoming money markets.\n\n-   Growth in dollar value supplied and borrowed: The USDC and DAI markets experienced the largest increase in dollar value supplied and borrowed. Note - many users on these markets have recursively levered their position to maximize yields. Recursive leverage accounts for ~32% of all deposits on v2. This compares to ~40% on Aave’s Polygon market.\n\n-   Reserve Growth: Since liquidity mining rewards launched, Aave’s v2 reserves have grown by [~$7MM](https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c).\n\n\nChange in v2 markets from 4/26/21 to 7/15/21\n\n![AAVE](../assets/AIP-32/v1-recap.png)\n\n**Liquidity Mining V2**\n\nAave's liquidity mining program is ending in the next few days.\n\nWe have seen several adjustments discussed in the forums including adding/removing new assets, allocating rewards based on health factors, additional vesting for stkAAVE rewards, and discouraging recursive borrowing. However, after discussing with several Aave community members and developers, these changes would require a heavy technical lift and potentially layer on a centralized distribution plan.\n\nWe are open to these changes in the future but to avoid a disruption to the liquidity mining program, we propose the following program for the next 3 months:\n\nThis proposal [passed on Snapshot](https://snapshot.org/#/aave.eth/proposal/QmeHAwW7XwUD3vqYLMRPF8MJiXkj2nnbRg1ae7mZ1SNQdm) with 91.7k AAVE voting in favor.\n\n![AAVE](../assets/AIP-32/v2-program.png)\n\n**Rationale**\n\nDecrease in Daily stkAAVE Distributed\n\nThis program would decrease the liquidity mining distribution by 9%, saving $7.1MM for the Aave Ecosystem Reserve during the 3 month program.\n\nNew Assets\n\nThe goal of this program is to create a more inclusive liquidity mining program with the option to further refine the distribution once live.\n\nStablecoins remain the highest value asset for Aave v2. This program distributes 40% of the stkAAVE distribution to the USDC market given the USDC market size and utilization. The USDT distribution has been lowered and allocated to other stablecoin markets including DAI, RAI, PAX, TUSD, and sUSD. The DAI allocation has been increased to account for higher utilization and encourage more deposits.\n\nWe believe incentivizing several centralized and decentralized stablecoin markets will help build a more robust stablecoin ecosystem in Aave v2. As new stablecoins are onboarded to Aave, the Aave community can choose to include them in the distribution. The allocations across new markets will likely need fine tuning as we analyze borrow/lend activity.\n\nWBTC and ETH allocations have been decreased and re-distributed to DeFi tokens listed on Aave.\n\nSeveral tokens including LINK, YFI, xSUSHI, UNI, MKR, and BAL have also been included. The rewards for all of these markets are weighted 100% to lenders.\n\nSimilar to the first version of Aave’s liquidity mining program, we believe the distribution parameters will need to be further refined once borrow/lend activity is available.\n",
    "basename": "AIP-32"
  },
  "AIP-33": {
    "aip": 33,
    "title": "Add FEI to Aave V2",
    "status": "Proposed",
    "author": "Joey Santoro (@joeysantoro), Brianna Montgomery (@bpm6867)",
    "shortDescription": "Create a new Aave V2 market for the FEI stablecoin",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-fei-as-a-lending-currency/4542",
    "created": "2021-06-16T00:00:00.000Z",
    "updated": "N/A",
    "preview": "## Simple Summary\n\nFei Protocol issues a decentralized, scalable USD …",
    "content": "\n\n## Simple Summary\n\nFei Protocol issues a decentralized, scalable USD stablecoin called FEI. FEI aims to become a widely used decentralized stablecoin that reduces centralization risk throughout DeFi.\n\n## Abstract\n\nFEI is backed by protocol owned reserves used to provide liquidity and stabilize the peg. The Fei community is committed to using decentralized reserve assets and oracles to have FEI be as decentralized as possible. FEI is an ideal candidate to be included on Aave to provide more decentralized stablecoin alternatives.\n\nAdditionally, Fei Protocol will be committing 25m FEI to bootstrap the market and 4M TRIBE in incentives for borrowing for at least the first 6 months.\n\n## Motivation\n\nBeing the liquidity protocol, Aave understands the need for robust capital efficient liquidity in creating healthy markets. DAI and sUSD being the current available options for decentralized stablecoins is good but likely insufficient longer term. Having more options like FEI will improve liquidity and optionality for protocols which are committed to decentralization.\n\nFEI brings with it substantial liquidity in the form of the $500m ETH-FEI pair on Uniswap V2. This can allow ETH leverage traders a capital efficient way to benefit from Aave liquidity and FEI liquidity. The yield paid by these traders will attract more FEI liquidity to Aave, benefiting both ecosystems.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n@Brianna is a core team member at Fei Labs focused on ecosystem development.\n\n2. Provide a brief high-level overview of the project and the token\nFEI is a decentralized and scalable stablecoin for DeFi.\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\nIf listed, FEI would be one of the most decentralized stablecoins on Aave. The Fei DAO can support FEI markets on Aave by providing FEI liquidity, approved via snapshot for 25 million. Traders will have the ability to tap into the large FEI-ETH liquidity on Uni V2 ($561 million) as well as any future protocol owned or incentivized liquidity pools.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?\n\nFei Protocol launched in April 2021 with a DAO since day one, and currently has over $643 million in liquidity. Fei aligns itself with the top communities and teams in the space, including Aave, with a similar decentralization ethos. There has been a large voter turnout during important community and team lead proposals that supported stabilizing the peg after the initial launch of the protocol.\n\n5. How is the asset currently used?\nFEI is currently being used in interest rate markets, including Fuse, and soon to be CREAM. FEI is growing and finding utilization in other financial service offerings in the broader DeFi ecosystem: synthetics, option platforms, exchanges and AMM’s, etc.\n\n6. Emission schedule\n\nThere is no emission schedule.\n\n7. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?\nContracts within the Fei protocol have the ability to mint and burn FEI through processes that support stabilization around the 1 USD price target. The DAO controlled by TRIBE holders has the ability to mint FEI and appoint other Minter and Burner contracts.\n\nThe FEI contract itself is not upgradeable.\n\nAn additional role, the Guardian, can pause the minting of FEI. The Fei Core Team holds this role in a multi-sig, with the intention of either renouncing the role or transitioning to a community held multi-sig. More information can be read in our docs: https://docs.fei.money/governance/fei-guardian 1\n\n6. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n\tMarket Cap: $527,000,000\n\t24h Volume: $70,000,000\n\tVolatility: Low\n\tExchanges: Uniswap V2, Uniswap V3, Gate.io 1, MXC, Virgox, BiKi, etc. As reported by CoinGeicko 3.\n\tMaturity: Early-Mid\n\n9. Social channels data (Size of communities, activity on Github)\n27K followers on Twitter, 2 17k members in Discord 3, Github\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\tDate of Deployment: March 28, 2021\n\tNumber of Transactions: 81,798\n\tNumber of Holders: 4,089\n\n## Rationale\nBecause FEI is an earlier stage project the proposal is only for depositing. The use of rateStrategyStableTwo, reserve factor, and disabled stable borrowing is appropriate for similar stablecoins per https://docs.aave.com/risk/asset-risk/risk-parameters.\n\n## Implementation\n\nThe FEI price oracle will be served via [ChainLink](https://chain.link/), which includes the [FEI/ETH feed](https://docs.chain.link/docs/ethereum-addresses).\n\nFEI will only be used for depositing, not as collateral. The following params are proposed:\n\n\n  - Strategy: rateStrategyStableOne\n  - Base LTV As Collateral: 0\n  - Liquidation Threshold: 0\n  - Liquidation Bonus: 0\n  - Borrowing Enabled: true\n  - Stable BorrowRate Enabled: false\n  - Reserve Decimals: 18\n  - Reserve Factor: 2000\n\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n\n- Interest bearing aFEI: 0xAcF35Af93a65904C50ED93dfb010bAAdEBb4ccF0\n- Variable Debt variableDebtFEI: 0x1B669D5034143E272b5Ff548f2878735A2F3505A\n- Stable Debt stableDebtFEI: 0x1DdcF68f4C2600CBE534212765F964342a2faf02\n- Strategy Implementation for FEI: 0xF0bA2a8c12A2354c075b363765EAe825619bd490\n\nAdditionally the Fei Smart Contracts team contributed an ERC-20 compatibile incentives controller contract to the Aave codebase so other teams can add rewards in their native token: https://github.com/aave/incentives-proposal/pull/5 \n\n- TRIBE Incentives Controller Implementation: 0xff865335401f12b88fa3ff5a3a51685a7f224191\n- and proxy: 0xDee5c1662bBfF8f80f7c572D8091BF251b3B0dAB\n\n## References\n\nWebsite - https://fei.money/\n\nTwitter - https://twitter.com/feiprotocol\n\nDocs - https://docs.fei.money/\n\nGithub - https://github.com/fei-protocol\n\nToken Contract - https://etherscan.io/token/0x956F47F50A910163D8BF957Cf5846D573E7f87CA\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AIP-33"
  },
  "AIP-35": {
    "aip": 35,
    "title": "Adjust interest rate to account for APY over-approximation",
    "status": "Proposed",
    "author": "Ahmed Naguib Aly (@ahnaguib)",
    "shortDescription": "Adjust interest rate to account for APY over-approximation",
    "discussions": "https://governance.aave.com/t/arc-update-ampl-interest-rate-curve-to-account-for-over-approximation-in-compounded-interest/5350",
    "created": "2021-07-26T00:00:00.000Z",
    "preview": "## Simple Summary\n\n- Update interest rate on AMPL market to account …",
    "content": "\n\n## Simple Summary\n\n- Update interest rate on AMPL market to account for over-approximation in compounded interest computation.\n- Make use of the exponential curve due to the over-approximation to set higher max APY.\n\n\n## Motivation\n\nIn AAVEs MathUtils an over-approximation in the application of the interest rate for computing compounded interest was discovered. \n\n### In [calculateCompoundedInterest](https://github.com/aave/protocol-v2/blob/baeb455fad42d3160d571bd8d3a795948b72dd85/contracts/protocol/libraries/math/MathUtils.sol#L45) method\n\nPeriodic rate (per second) is computed as:\n\nuint256 ratePerSecond = rate / SECONDS_PER_YEAR;\n\nin comparison to the exact computation.\n\n![|281x35](https://github.com/aave/aip/blob/debf98b7ebe21b2964b3dc03843854c78709d813/content/assets/AIP-35/rate_per_second.png?raw=true)\n\nderived from:\n\n![|269x48](https://github.com/aave/aip/blob/debf98b7ebe21b2964b3dc03843854c78709d813/content/assets/AIP-35/apy_formula.jpeg?raw=true)\n\nThe deviation in the applied interest rate causes a small over-approximation for APYs <10%, but grows exponentially as can be seen below.\n\n|Expected APY|Effective APY|Expected daily rate|Effective daily rate|\n| --- | --- | --- | --- |\n|4.00%|4.08%|0.01%|0.01%|\n|5.00%|5.13%|0.01%|0.01%|\n|10.00%|10.52%|0.03%|0.03%|\n|50.00%|64.87%|0.11%|0.14%|\n|100.00%|171.83%|0.19%|0.27%|\n|200.00%|638.91%|0.31%|0.55%|\n|1000.00%|2202543.09%|0.68%|2.78%|\n|10000.00%|2.69E+43%|1.30%|31.52%|\n\nThis difference is especially noticeable in the AMPL market, where the configured interest rate can go up to 10,002% at max utilization.\n\nThe AAVE Genesis team has been made aware and they will publish more guidance on the discrepancy.\n\n## Specification\n\nAs mentioned in AIP-26, a nonlinear - logistic or exponential - interest curve is more suited for \nAMPL's market and potentially other assets on AAVE's platform.\n\nThe over-approximation mentioned above results in an exponential curve which allows for defining a \nmore suitable interest curve for AMPL. We propose the following parameters, which produces the curve below.\n\n* Optimal utilization = 80%\n* Base rate = 1%\n* Slope1 = 2%\n* Slope2 = 750%\n\n\n![|624x384](https://github.com/aave/aip/blob/debf98b7ebe21b2964b3dc03843854c78709d813/content/assets/AIP-35/curve.png?raw=true \"Chart\")\n\n##### APY table above 80% Utilization:\n\n|Utilization|APY|\n|---|---|\n|80.00%|3.05%|\n|81.00%|49.93%|\n|82.00%|118.15%|\n|83.00%|217.40%|\n|84.00%|361.82%|\n|85.00%|571.94%|\n|86.00%|877.67%|\n|87.00%|1322.50%|\n|88.00%|1969.72%|\n|89.00%|2911.43%|\n|90.00%|4281.60%|\n|91.00%|6275.19%|\n|92.00%|9175.85%|\n|93.00%|13396.29%|\n|94.00%|19536.98%|\n|95.00%|28471.63%|\n|96.00%|41471.48%|\n|97.00%|60386.14%|\n|98.00%|87906.81%|\n|99.00%|127949.14%|\n|100.00%|186210.38%|\n\n                                           \n##### The part of the curve under 80% Utilization:    \n\n**![|624x325](https://github.com/aave/aip/blob/debf98b7ebe21b2964b3dc03843854c78709d813/content/assets/AIP-35/curve_under_optimal.png?raw=true \"Chart\")**\n\n## Rationale\n\n1. Accounting for the over-approximation of the existing Slope2=10,000% interest curve requires reducing the slope2 parameter.\n2. Taking advantage of the exponential curve allows for:\n  a. Setting a higher optimal utilization rate.\n  b. Setting a higher maximum APY to reduce the potential for\n     utilization being at 100% for extended periods without creating a too steep of an interest rate increase right above the optimal utilization rate.\n\n\n## Implementation\n\nA deployment of the existing implementation of the Interest Strategy will be used, with the following parameters:\n\n    optimalUtilizationRate: new BigNumber(0.8).multipliedBy(oneRay).toFixed(),\n    baseVariableBorrowRate: new BigNumber(0).multipliedBy(oneRay).toFixed(),\n    variableRateSlope1: new BigNumber(0.02).multipliedBy(oneRay).toFixed(),\n    variableRateSlope2: new BigNumber(7.5).multipliedBy(oneRay).toFixed(),\n\n[https://etherscan.io/address/0x84d1FaD9559b8AC1Fda17d073B8542c8Fb6986dd#readContract](https://etherscan.io/address/0x84d1FaD9559b8AC1Fda17d073B8542c8Fb6986dd#readContract)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-35"
  },
  "AIP-37": {
    "aip": 37,
    "title": "Update to the Liquidity Mining Distribution",
    "status": "Proposed",
    "author": "Anjan Vinod (@Anjan-ParaFi)",
    "shortDescription": "Update to the Liquidity Mining Distribution",
    "discussions": "https://governance.aave.com/t/arc-extend-aave-liquidity-mining-rewards/4852/72",
    "created": "2021-09-10T00:00:00.000Z",
    "updated (*optional)": "2021-09-10T00:00:00.000Z",
    "preview": "## **AAVE AIP 37**\n\nUpdate to the Liquidity Mining Distribution\n\nThe …",
    "content": "\n## **AAVE AIP 37**\n\nUpdate to the Liquidity Mining Distribution\n\nThe latest liquidity mining proposal went live on August 24th.\n\nA misconfiguration was found in the latest liquidity mining distribution: new assets added to the program are **not receiving rewards**. This AIP fixes the misconfiguration, increasing the rewards proportionally for those assets by taking into account when they should have started receiving rewards and the execution timestamp of this update.\n\nThe new emission rate will be determined by the formula listed in this AIP’s [payload](https://etherscan.io/address/0xC5Dc99a421e3FB9d64c7B5BBb47a5e072370eDE8#code). The new emission rate will go live once this AIP is executed.\n",
    "basename": "AIP-37"
  },
  "AIP-4": {
    "aip": 4,
    "title": "Activation of Aave Protocol Governance V2",
    "status": "Implemented",
    "author": "Marc Zeller (@marczeller)",
    "shortDescription": "<none>",
    "discussions": "https://governance.aave.com/t/arc-activation-of-aave-protocol-governance-v2/1717",
    "created": "2020-12-11T00:00:00.000Z",
    "updated": "2020-12-11T00:00:00.000Z",
    "preview": "## AIP rationale\n\nAave V2 governance is inspired by delegation-based …",
    "content": "\n\n## AIP rationale\n\nAave V2 governance is inspired by delegation-based governance models already on the market, while introducing 3 key innovations and a new layer of resilience:\n\nThe introduction of a new concept in DeFi governance - the **segregation between voting and proposition power** to increase control and ownership of voting rights for AAVE holders.\nAAVE holders will have the choice between delegating proposal creation power to specialized actors while holding their voting rights; or even delegating them to another entity.\n\n**Voting strategies** - The AAVE token exists and is used in the Aave ecosystem in a variety of ways. Through different voting strategies, AAVE in different forms can be used to vote and create proposals. In the initial implementation both AAVE and stkAAVE holders will have voting and proposal creation rights. Voting strategies can be upgraded at any time through a governance proposal to include other forms of AAVE (i.e. aAAVE, staked AAVE/ETH AMM shares, etc.)\n\n**Multiple executor entities** - Different components of the ecosystem might have different needs for consensus and security. For example, changing the AAVE token logic itself might have a large impact on the ecosystem and is something that requires higher consensus than adjusting a risk management parameter. The Aave governance V2 splits the control of different entities within the Aave ecosystem between different executors with different execution delays (timelocks) and different consensus parameters. At the beginning there will be two different executors:\n\n**a.** Executor 1 (short timelock) will control the whole Aave Protocol v1, the token distributor used in v1, the contract collecting the v1 fees, the AAVE Reserve Ecosystem and any change in this timelock itself. Once the break-in period for Aave V2 is completed, this timelock will also control the current Aave V2 market and all the future markets instantiated by the Aave Genesis Team.\n\n- admin : Aave Governance v2\n- delay : 1 day\n- grace period : 5 days\n- proposition threshold: 0.5%\n- voting duration: 3 days\n- vote differential: 0.5%\n- Approval quorum: 2%\n\n**b.** Executor 2 (long timelock) will control the upgradeability of the AAVE token, stkAAVE, any change in v2 governance parameters and any change in the parameters of this timelock itself.\n\n- admin: Aave Governance v2\n- delay: 7 days\n- grace period: 5 days\n- proposition threshold: 2%\n- voting duration: 10 days\n- vote differential: 15%\n- Approval quorum: 20%\n\nThe Guardian - As long as a large majority of AAVE tokens are in a centralised exchange, it’s impossible to prevent a STEEM-like governance attack where a centralised entity would use its users’ assets to take over a decentralised protocol through governance. As a security measure to avoid such a scenario, a temporary 5/10 multisig is given a power of veto to cancel proposals in case malicious code is introduced through an AIP. Those entities have been chosen within the AAVE community to be globally distributed, and they cover safety skill sets through governance, code, and economic analysis. Guardians can be changed later through election.\nThe current multisig signers are : James Vaugh (Fire Eyes/Metacartel), Anthony Sassano (SET protocol/ETHhub/Daily Gwei), Mariano Conti (ex MakerDAO head of smart contracts), Tarun Chitra (Gauntlet), DeFiSaver, Zerion, Parafi Capital, Framework Venture, Arthur0x and the Aave Genesis Team\nSome of the expected short-term outcomes of this implementation are new actors creating proposals for token additions, risk parameter upgrades or new liquidity market creation.\n\n## AIP content in short\n\n- Implementation of the Aave Governance v2 smart contract\n- Implementation of voting delegation and proposal power delegation\n- Implementation of voting strategies with the inclusion of AAVE and StkAAVE\n- Addition of voting and proposition power delegations on AAVE and SktAAVE\n- Implementation of Executor entities\n- Implementation of the Guardian\n\n\n## Implementation details\n\nCreating a Governance V1 Proposal vote with the proposal executor at https://etherscan.io/address/0xd194b24913806fc885f1fecd3e776f8449e5e24a#code\n\nIf the proposal passes:\n\na. The new Aave Token logic implementation will be https://etherscan.io/address/0xc13eac3b4f9eed480045113b7af00f7b5655ece8#code which includes the new delegation capabilities.\n\nb. The new StakeToken logic implementation will be https://etherscan.io/address/0xc0d503b341868a6f6b6e21e0780aa57fdbbca53a#code which includes the new delegation capabilities.\n\nc. The upgradeability permissions over the AAVE and stkAAVE tokens will be moved to the long executor on https://etherscan.io/address/0x61910ecd7e8e942136ce7fe7943f956cea1cc2f7#code\n\nd. All the permissions on V1 of the protocol will be moved to the short executor.\n\ne. The permissions over the contract of the Ecosystem’s Reserve will be moved the short executor on https://etherscan.io/address/0xee56e2b3d491590b5b31738cc34d5232f378a8d5#code\n\nAt this point, the Governance V2 on https://etherscan.io/address/0xec568fffba86c094cf06b22134b23074dfe2252c#code  will be operative, accepting submission of new proposals\n  \n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-4"
  },
  "AIP-5": {
    "aip": 5,
    "title": "Adding CRV on AAVE",
    "status": "Implemented",
    "author": "Charlie (@charlie_eth), Julien (@bneiluj)",
    "discussions": "https://governance.aave.com/t/listing-proposal-add-crv-curve-dao-token/1395",
    "shortDescription": "Aave governance proposal to enable CRV as a base asset",
    "created": "2020-12-14T00:00:00.000Z",
    "updated": "2020-12-14T00:00:00.000Z",
    "preview": "## AIP rationale\n\nCurve is an exchange liquidity pool on Ethereum …",
    "content": "\n\n## AIP rationale\n\nCurve is an exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading. It is the second biggest DEX on Ethereum and the third biggest protocol by TVL.\n\n## References \n\n- Forum proposal and poll \nhttps://governance.aave.com/t/listing-proposal-add-crv-curve-dao-token/1395\nhttps://governance.aave.com/t/proposal-add-support-for-crv-curve-dao-token/774\n\n- Project: https://www.curve.fi/\n- whitepaper: https://www.curve.fi/stableswap-paper.pdf\n- document portal, \nhttps://curve.readthedocs.io/en/latest/\n- source code for the system(s) that interact with the proposed collateral: https://github.com/curvefi/curve-contract, https://github.com/curvefi/curve-dao-contracts\n- Ethereum addresses contracts: https://www.curve.fi/contracts\n- audits both procedural and smart contract focused: https://www.curve.fi/audits\n- communities:\n\n* Telegram: https://t.me/curvefi\n* Twitter: https://twitter.com/curvefinance\n* Discord: https://discord.gg/rgrfS7W\n* Youtube Channel: http://www.youtube.com/c/CurveFinance\n\n## Paragraph Summary \n\nCurve is an exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading. It is the second biggest DEX on Ethereum and the third biggest protocol by TVL.\nThe CRV token is a governance token which also allows liquidity providers to boost their rewards on the platform as well as receive a share of trading fees on the Curve platform. Curve has recently reached over $10B in cumulative volume.\nUsers who vote lock their tokens (CRV => veCRV) receive a share of trading fees on the platform as well as a boost on their provided liquidity.\n\n## Motivation \nShort description of the proposed technical solution\n\n### Specifications \n\n1. What is the link between the author of the AIP and the Asset? \n\nTeam member/llama master\n\n2. Provide a brief high-level overview of the project and the collateral token \nSee Summary\n\n3. Explain positioning of token in the AAVE ecosystem: which market? \n\nThe asset will be listed in the current AAVE V2 market.\n\n4. Provide a brief history of the project and how it overcame stressed conditions \n\nCurve was created in early 2020 and was the second protocol to reach $1B in TVL. It is currently the second biggest DEX on Ethereum.\n\n5. How is the asset currently used? \n\nLending/governance/profit sharing\n\n6. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity) \n\nhttps://www.coingecko.com/en/coins/curve-dao-token#markets\n\n7. Social channels data (Size of communities, activity on Github) \n\nLinks above\n\n8. Risk Assessment and Parameter suggestions \n\nHere is an analysis based on Aave’s Asset Risk Framework 3 to quantify CRV’s risks and the resulting model parameters suggestions\n\n## CRV’s Overall Risk is B-\n\n<p align=\"center\">\n  <img src=\"https://aws1.discourse-cdn.com/standard21/uploads/aave/original/1X/a381a8ece9bf0c2bba9b971856320c4d0e5815b4.png\" />\n</p>\n\nThe table below shows the key metrics used for the analysis as well as the risk scores using data from CoinGecko as of 15/12/2020\nCRV is the governance token of the Curve DAO behind the Curve Stablecoin Exchange the third biggest DEX on Ethereum with $1B of TVL. Curve offers an optimised model for stablecoin trading and revenue sharing incentives with fees from the >$10B in cumulative trading volume\n\n## CRV Smart Contract Risk: B-\nCRV token was introduced to Curve in August 2020 through liquidity mining. The code has 3 audits from ToB, Quantstamp and MixBytes. It is central in the DAO operations enabling stakers to vote and boost their yields with the locking of CRV. This model has generated half a billion transactions in half a year, with around 15,000 holders\n\n## CRV Counterparty Risk: B\nThe Curve DAO operates as a fully decentralised organisation with community proposals and votes. The ecosystem is funded by fees of the Curve Exchange generated by the $40m of daily volume\n\n## CRV Market Risk: C\nCurve is one of the leading DeFi projects. The token is available on top exchanges with nearly $100m market capitalisation and nearly as much average daily volume though a large share of CRV’s supply is locked. CRV experienced volatility in the last month with the rest of the market having yet to recover\nCRV’s risk profile is close to YFI’s leading to the same model parameters\n\n## Risk Parameters\n\n- LTV 40%\n- Liquidation Threshold 55%\n- Liquidation Bonus 15%\n- Reserve Factor 20%\n\n## Variable Interest Rate Model\n\n<p align=\"center\">\n  <img src=\"https://i.imgur.com/chSyDxc.png\" />\n</p>\n\n\nCRV fits the profile of a collateral asset, with the need for a conservative borrow rate model with a low optimal utilisation to protect collateral liquidity\n\n- UOptimal 45%\n- R_0 0%\n- R_s1 7%\n- R_s2 300%\n\n### Code \nThe code is part of the standard Aave protocol deployment (the AToken, Debt tokens and interest rate strategy) therefore no audits are needed. The code can be found here https://github.com/aave/protocol-v2/tree/master/contracts/protocol/tokenization\n\n### Test Cases \nBeing a standard ERC20, the Aave protocol test cases already cover everything needed to support CRV.\n\n### Security Considerations\nThe CRV token doesn’t have any specific behavior (eg. rebasing, balance increasing) and doesn’t offer meta governance functionalities since it requires locking to participate in the governance. Therefore, the standard AToken contract and corresponding debt tokens, already used for the majority of assets listed in Aave, can be also used for CRV. No auditing of the code is required.\n\n",
    "basename": "AIP-5"
  },
  "AIP-6": {
    "aip": 6,
    "title": "Adding GUSD on AAVE",
    "status": "Implemented",
    "author": "Gemini (@Gemini)",
    "shortDescription": "<none>",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-gemini-gusd/384",
    "created": "2020-12-23T00:00:00.000Z",
    "updated": "2020-12-23T00:00:00.000Z",
    "preview": "## Simple Summary\nThe Gemini dollar is a cryptographic token that is …",
    "content": "\n## Simple Summary\nThe Gemini dollar is a cryptographic token that is issued by Gemini, strictly pegged 1:1 to the U.S. dollar, and built on the Ethereum network according to the ERC20 standard for tokens.\n\n\n## Abstract\nAdd GUSD to the AAVE V2 market.\n\n## Motivation\nGUSD is an additional fiat on-ramp into the DeFi ecosystem that will help diversify fiat sources inside of AAVE markets.\n\n## Specification\nGUSD can be exchanged for USD at a fixed 1:1 rate on the Gemini exchange. I have personally tested this out and was impressed with the results: withdraw of GUSD from Gemini exchange was sent within 1 minute using fast gas, and deposit back into Gemini was credited within ~17 block confirmation. It should be possible for liquidators (who are willing/able to KYC) to flip GUSD collateral directly through Gemini for the time being. GUSD also has a few trading pairs on other centralized exchanges such as OKEx, HitBTC, and ZB. I plan on submitting a proposal to create a GUSD Curve pool in the near future as well, if this is supported by veCRV voters the on-chain liquidity for GUSD should improve substantially.\n\n## Rationale\nBenefits for Aave:\n\nDiversification of centralized assets: GUSD relies on a different issuer and custodian compared to USDC, TUSD, USDT, or BUSD. Credit, custody, or regulatory risks may be less correlated across these assets, which could reduce risk to Aave security module stakers.\nNew DeFi on/off ramp: Gemini has good linkage with US bank wire and ACH networks, comparable to Coinbase as a fiat ramp.\nWhile Coinbase have played nice so far, it’s dominance in regulated crypto liquidity and USDC on/off ramp has huge influence over the space. I see Gemini and GUSD as a viable competitor. From an industrial economics standpoint, Aave and other Defi protocols like Maker may benefit from breaking down monopolies of their key counter-parties.\n\n## Risk Analysis\n\nThe Risk Team has applied Aave’s Risk Framework to GUSD leading to an overall risk rating of B-\n\nGUSD is issued by Gemini Trust Company. It has been created for practical use in innovative applications, among which to facilitate Gemini’s institutional solutions and exchange operations.\n\nGUSD Smart contract Risk: C+\n\nGUSD was launched in September 2018 – at the same time then USDC – yet it has only experienced 120k blockchain transactions.\n\nThe GUSD smart contract only supports 2 decimals meaning that interest accrual can only occur for more than 1 cent.\n\nUSDC Counterparty Risk: C+ cannot use as collateral (centralisation D-)\n\nAs it is backed by real US dollars, GUSD is centralised. Moreover it has few holders with most of the transactions off-chain on the centralised Gemini environment.\n\nAn independent accountant’s audit report is published at the end of each month on the website. GUSD is regulated bringing trust to the token. Still, the infrastructure is based on the Ethereum blockchain where regulators have little power.\n\nGUSD Market Risk: B -\n\nGUSD has a small market capitalisation at less than 20m with a small trading volume. The price has diverged from 1 a few times in the last 3 months with up to 3% price variation.\nGiven the reduced market capitalization and the possibility of market price manipulation, the oracle will fix the price of GUSD to $1. This does not bring additional risk because the asset cannot be used as collateral and even if the market price swings considerably, the asset is still redeemable 1:1 for USD. The risk team will reevaluate the asset periodically to validate the viability of an actual market based oracle as the GUSD supply grows.  \n\nRisk Parameters ~ BUSD sUSD\nNot a collateral\nReserve Factor 10%\n\nVariable Interest Rate Model ~ BUSD sUSD\nUOptimal 80%\n\nR_0 0%\n\nR_s1 4%\n\nR_s2 100%\n\n## References\n\n- *Whitepaper*: https://gemini.com/static/dollar/gemini-dollar-whitepaper.pdf\n- *Website*: https://gemini.com/dollar\n- *Twitter*: https://twitter.com/Gemini\n- *Source Code*: https://github.com/gemini/dollar\n- *GUSD token contract*: https://etherscan.io/token/0x056fd409e1d7a124bd7017459dfea2f387b6d5cd\n- *Accountant’s reports at bottom of page*: https://gemini.com/dollar#reports\n- *Trail of bits contract audit*: https://gemini.com/static/dollar/gemini-dollar-trailofbits-audit.pdf\n\n## Copyright\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-6"
  },
  "AIP-7": {
    "aip": 7,
    "title": "Aavenomics Quarterly Upgrade",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller)",
    "discussions": "https://governance.aave.com/t/arc-aavenomics-quarterly-upgrade/1631",
    "created": "2021-01-05T00:00:00.000Z",
    "updated": "2021-01-05T00:00:00.000Z",
    "shortDescription": "This AIP will increase the responsibility of AAVE stakers for their service of protecting the Aave protocol by the formal activation of the slashing and adjust the emission accordingly",
    "preview": "## AIP rationale\n\nOn the 25th of September 2020, with the results of …",
    "content": "\n\n## AIP rationale\n\nOn the 25th of September 2020, with the results of AIP-1, the Aave protocol kickstarted its initial phase of Aavenomics and Safety Incentives with a scheduled distribution of 400 AAVE per day to Safety module stakers.\n\nWith the implementation of the Aave Protocol V2 and the soft deadline of first-quarter reached, this proposal will allow an upgrade of the reserve emission model for the Safety module.\n\nThis AIP will increase the responsibility of AAVE stakers for their service of protecting the Aave protocol by the formal activation of the slashing.\n\nThe slashing officially enforces the currently implicit responsibility and risk of the participation in the stakings modules of Aave. In the worst-case scenario of critical failure, an amount to be decided will be slashed from stakers deposits.\n\nIn this phase 0 of the slashing, the auction mechanism will not be automatized yet and if a slash were to happen it would be done through governance and direct compensation.\n\n\n## AIP content in short\n\n- Increasing the Safety Incentives: As the possibility of slashing will now be formally introduced, staking reward should reflect the risk. Hence we propose to increase the Safety Incentives to 550 AAVE per day\n- Slashing %: The maximum slashing amount is set to 30%\n\n\n## Implementation details\n\nThe payload to be executed is available at\n\nhttps://etherscan.io/address/0x4ab8ba929e4cc780cb82be34eea29a9ea7a58049#code\n\nThe payload will upgrade the Aave reserve contract to a new implementation\n\nhttps://etherscan.io/address/0xa335e2443b59d11337e9005c9af5bc31f8000714#code\n\nAnd introduce a reserve controller, with the rights of approving transfers/transferring assets out of the Aave Reserve, under control of the Aave governance short executor\n\nhttps://etherscan.io/address/0x1e506cbb6721b83b1549fa1558332381ffa61a93#code\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-7"
  },
  "AIP-8": {
    "aip": 8,
    "title": "Adding BAL on AAVE",
    "status": "Proposed",
    "author": "Coopahtroopa (@coopahtroopa), MonetSupply(@monet-supply), Mubrais (@mubaris)",
    "shortDescription": "Enable BAL as a base asset in Aave V2",
    "discussions": "https://governance.aave.com/t/proposal-add-support-for-bal/1787",
    "created": "2021-01-25T00:00:00.000Z",
    "updated": "2021-01-27T00:00:00.000Z",
    "preview": "## Simple Summary\n\nBAL is the governance token of …",
    "content": "\n\n## Simple Summary\n\nBAL is the governance token of [Balancer](https://pools.balancer.exchange/#/explore), a programmable liquidity and asset managment protocol with over [$800M in TVL](https://defipulse.com/balancer) according to DeFi Pulse.\n\n## Abstract\n\nAdd [BAL](https://etherscan.io/token/0xba100000625a3754423978a60c9317c58a424e3d) to the AAVE V2 market.\n\nBalancer is a DEX that uses a constant function market maker formula to allow liquidity pools with multiple tokens, custom allocations and fees. Smart pools in Balancer can be used for programmable liquidity. \n\nTraders can swap between any of the tokens listed on Balancer in exchange for a swap fee (paid to liquidity providers) and slippage based upon the relative trade size. \n\nBAL is the governance token of the Balancer exchange, entitling holders (including those providing BAL liquidity on Balancer) to vote on proposals. BAL also receives preferential treatment in the Balancer exchange liquidity mining program.\n\nBalancer is responsible for the creation of [Snapshot](https://snapshot.page/#/), and currently leading a number of [governance intiatives](https://snapshot.page/#/balancer/proposal/QmXQpKyw1BvYgZtvC2KGqrDezWBfSUBEKK77Kx866yBLYf) to reward active contributions to the protocol.\n\n## Motivation\n\nAs Balancer gears up for the launch of Balancer V2, composability becomes key for the Balancer ecosystem.\n\nAt the time of writing, BAL has a market cap of $230M.\n\nApart from the BAL liquidity on Balancer, BAL is also listed on FTX, Coinbase, Binance, Gemini and other centralized exchanges.\n\nAdding BAL to Aave will be the first major lending/borrowing market for the asset, and one that sets precedent for future exploration of Balancer Pool Token (BPT) markets similar to [Aave V1 Uniswap Markets](https://medium.com/aave/the-uniswap-market-is-live-on-aave-protocol-12b5a4cc5e2).\n\nAave leverages Balancer for it's [Safety Module](https://docs.aave.com/aavenomics/safety-module), meaning this partnership further cements the relationship between the two protocols.\n\n*\"The advantage of using Balancer against other AMM solutions is clear when we factor in the possibility of dynamically adjusting the weighting towards AAVE. This allows for the creation of a market and the provision of liquidity whilst maintaining exposure to AAVE. Holding AAVE/ETH liquidity with uneven weights is very close to simply holding AAVE, with the benefits of earning trading fees on top of it.\"*\n\n\n## Benefits for Aave\nBalancer has an increasingly active community which would bring more users and liquidity to Aave.\n\nBAL earns native rewards through liquidity mining, currently yielding upwards of 80%+ APY with limited impermanent loss. This has generated strong borrowing demand for BAL on CREAM, with deposit rates often above 10%.\n\nWith deposit rates so high, it becomes super cost effective for people to borrow funds with BAL as collateral, often times with an effective negative borrowing rate!\n\n## Specification\nBAL will continue to see increased governance activity in the coming months.\n\nAdding BAL to the Aave V2 markets will provide strong borrowing demand, generating protocol fees and allowing for further governance participation.\n\n## Rationale\n\nBalancer and Aave are natural partners. Aave leverages Balancer for it's Safety Module and it only seems natural that BAL should be listed on Aave given the depth of the AAVE liquidity Balancer today.\n\nThis proposal opens design space for future lending use-cases, both on Balancer's end and on Aave's for more niche specific liqudity pool markets.\n\n## Additional Resources\n\nWhitepaper - https://balancer.finance/whitepaper 1  \nWebsite - https://balancer.finance 1  \nTwitter - https://twitter.com/BalancerLabs  \nBlog - https://balancer.finance/blog-feed  \nDocumentation - https://docs.balancer.finance  \nSource Code - https://github.com/balancer-labs 2  \nBAL Token Contract - https://etherscan.io/address/0xba100000625a3754423978a60c9317c58a424e3d#code 1  \n\n\n## Audits/Security Reviews\n[Trail of Bits, Conesnsys Dilligence and Open Zeppelin.](https://docs.balancer.finance/core-concepts/security/audits)  \n\n[AAVE Community x BAL Risk Assesment](https://governance.aave.com/t/proposal-add-support-for-bal/1787/6?u=coopahtroopa)  \n\n![](https://i.imgur.com/lrXmHFD.png)  \n\n**BAL Smart contract Risk: B-**\n\nSince it's launch in June BAL has reached half a million transactions driven by liquidity mining distribution program which may lead to inflation. The smart contract has been well battle tested, audited twice and has a good test coverage.\n\n**BAL Counterparty Risk: B**\n\nBalancer is a permissionless DEX with a large community of BAL holders that vote on proposals. Anyone can create a custom Balancer Pool.\n\n**BAL Market Risk: C +**\n\nThe BAL token has experience less volatility than the rest of the DeFi market since its inception but remains quite volatile. The token is traded on the top centralized exchanges with good volume.\n\n**Risk Parameters**\n\n- LTV 55%\n- Liquidation Threshold 60%\n- Liquidation Bonus 10%\n- Reserve Factor 20%\n\nVariable Interest Rate Model ~ Collaterals\n\n![](https://i.imgur.com/35kPGuC.png)\n\n- UOptimal 45%\n- R_0 0%\n- R_s1 7%\n- R_s2 300%\n\n## References\n[Coingecko](https://www.coingecko.com/en/coins/balancer)  \n[Pool management - Balancer 1](https://pools.balancer.exchange/#/explore?type=shared&token=0xba100000625a3754423978a60c9317c58a424e3d)  \n[Pools Vision 1](http://pools.vision/)  \n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-8"
  },
  "AIP-9": {
    "aip": 9,
    "title": "Activation of the Aave Balancer Pool Liquidity Staking",
    "status": "Proposed",
    "author": "Marc Zeller (@marczeller), Hadrien Charlanes (@dhadrien)",
    "shortDescription": "Activate Staking for Aave Balancer Pool",
    "discussions": "https://governance.aave.com/t/arc-aavenomics-quarterly-upgrade/1631",
    "created": "2021-01-27T00:00:00.000Z",
    "updated": "2021-02-01T00:00:00.000Z",
    "preview": "## AIP rationale\n\nAs stated in the [Aavenomics …",
    "content": "\n\n## AIP rationale\n\nAs stated in the [Aavenomics paper](https://aave.com/Aavenomics.pdf), the AAVE asset is designed to become the center of gravity for Aave governance and the protocol safety, The Safety Incentives (SI) allocation is designed to incentivize the lines of defenses of the Aave protocol.\n\nAIP-1 was the first step of the activations of the lines of defenses of the Aave Protocol with the activation of the safety module, for the Safety to be as efficient as possible, it is required to reach significant liquidity of the AAVE asset on a Decentralized AMM.\n\nThis AIP aims at incentivizing the Liquidity providing for the AAVE asset on a specificaly designed smart pool of the Balancer protocol to make the AAVE asset more liquid on-chain by activation Safety Incentives (SI) for BPT tokens stakers.\n\nABPT (Aave Balancer Pool Token) tokens can be obtained by providing liquidity to the AAVE/ETH Balancer smart pool at a 80/20 ratio. The contract of the ABPT can be found [here](https://etherscan.io/address/0x41a08648c3766f9f9d85598ff102a08f4ef84f84).\n\nThis AIP, if accepted by the community, will start the Safety Incentive (SI) rewards distribution for ABPT stakers at the rate of 550 AAVE/day. The contract of the stkABPT can be found [here](https://etherscan.io/address/0xa1116930326d21fb917d5a27f1e9943a9595fb47).\n\nThe Safety Module is designed as an additional line of defense for Aave protocol liquidity providers and Both highliquidity and Safety module reserve can mitigate the possibility of bad debt in the occurence of a shortfall event.\n\n## AIP content in short\n\n- Start of the Safety Incentives for ABPT stakers with initial SI rewards of 550 AAVE/day.\n\n## Safety Incentives Schedule\n\nIf the community accepts the current AIP, the Safety Incentives will add 550 AAVE/day to the ABPT tokens Stakers.\n\nFor a total of 1100 AAVE/day Safety Incentives allocation.\n\nThe Safety Incentive's allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the ER is empty.\n\n## Implementations details\n\nThe implementation of the AIP consist in three actions: \n- Transfer proxy ownerships of [ABPT](https://etherscan.io/address/0x41a08648c3766f9f9d85598ff102a08f4ef84f84) and [stkABPT](https://etherscan.io/address/0xa1116930326d21fb917d5a27f1e9943a9595fb47) to the Long Timelocked Governance Executor.\n- Configure [stkABPT](https://etherscan.io/address/0xa1116930326d21fb917d5a27f1e9943a9595fb47) to reward stakers for 550 AAVE per day.\n- Approve 550 AAVE per day for 3 months allowance from Reserve for [stkABPT](https://etherscan.io/address/0xa1116930326d21fb917d5a27f1e9943a9595fb47) rewards.\n\nIf this AIP is validated by a community vote, the following addresses will be involved in the execution process :\n\n- [AIP9 Proposal Payload](https://etherscan.io/address/0xd08E12367A7D68CAA8ff080D3A56b2dc6650709b#contracts)\n- [ABPT](https://etherscan.io/address/0x41a08648c3766f9f9d85598ff102a08f4ef84f84)\n- [stkABPT](https://etherscan.io/address/0xa1116930326d21fb917d5a27f1e9943a9595fb47)\n- [Aave Reserve Controller](https://etherscan.io/address/0x1E506cbb6721B83B1549fa1558332381Ffa61A93)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "AIP-9"
  },
  "AIP-ADD-OP-TO-AAVE-V3": {
    "title": "Add OP to Aave V3 on Optimism",
    "author": "Ben Jones",
    "shortDescription": "Add OP as collateral asset to Aave V3 on Optimism",
    "discussions": "https://governance.aave.com/t/arc-add-op-as-collateral-to-aave-v3/9087",
    "created": "2022-10-04T00:00:00.000Z",
    "updated": "2022-12-07T00:00:00.000Z",
    "preview": "## Author\n\nFounder of OP Labs and a director at Optimism Foundation\n …",
    "content": "\n\n## Author\n\nFounder of OP Labs and a director at Optimism Foundation\n\n## Forum post\n\n[Proposal to add OP as collateral on Aave V3 (On Optimism)](https://governance.aave.com/t/arc-add-op-as-collateral-to-aave-v3/9087)\n\n## Summary\n\nThe proposal seeks to onboard the OP token as a collateral asset in Aave V3 on Optimism.\nThe Optimism Foundation could also seed incentives while the initial liquidity of the pool is bootstrapped.\n\n## Risk Parameters\n\nThe complete technical and risk parameters:\n\n- Loan-to-value: 30.00%\n- Liquidation threshold: 40.00%\n- Liquidation bonus: 10.00%\n- Price feed: OP/USD | Chainlink\n- A/S/V tokens (aToken/Variable/Stable): Standard implementation\n- Interest rate strategy: N/A\n- Borrowing enabled: No\n- Stable borrowing Enabled: No\n- Reserve Factor: 20.00%\n- Liquidation Protocol Fee: 10.00%\n- Debt Ceiling: 2M\n- Borrowable in Isolation: No\n- Supply Cap: 20M\n- Borrow Cap: N/A\n- eMode (efficiency mode): No\n- Unbacked Mint Cap: 0\n- Siloed Borrowing: N/A\n\n## Specifications\n\n**What is the link between the author of the AIP and the Asset?**\n\nCofounder of Optimism and a director at the Optimism Foundation\n\n**Provide a brief high-level overview of the project and the token**\n\nOptimism is an EVM equivalent L2 scaling solution. The OP token is a governance token for the Optimism Collective.\nOP holders are currently able to vote on various decisions impacting the Collective, including the grants, protocol upgrades, inflation adjustments, and other fundamental changes.\nThe Collective is committed to an iterative governance system that will evolve dynamically over time.\nOptimism hopes to use the launch of this token to establish a deeper partnership between the Optimism and Aave communities.\nThis proposal would enable OP as collateral on AAVE V3 on Optimism.\n\n**Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?**\n\nWith the recent release of the OP token, we want to bolster initial growth for Aave V3 on Optimism. This will benefit the Aave community by creating a vibrant ecosystem around Aave V3, while being a strong first use case for OP.\n\nAave would be one of the first platforms to support OP as collateral. The OP token is one of the first and leading rollup technology ecosystem tokens, so the Aave community would be supporting the scaling of Ethereum and onboard the cohort of users coming with it.\nL2s being the home for AAVE v3 could also gain a lot from this synergy.\n\nOverall, the use cases will create the opportunity to continue growing liquidity and usage of the Aave v3 pools on Optimism.\n\n**Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?**\n\nInitially launched at the end of 2021, Optimism is an EVM equivalent L2 scaling solution. Optimism currently supports 100+ dapps and over $500m in on-chain value.\nOptimism drastically improves Ethereum’s scalability while retaining its security through rollup technology - having already saved its users over $1B in gas fees.\n\n**How is the asset currently used?**\n\nIt is used for governance on Optimism.\n\n**Emission schedule**\n\nAt genesis there was an initial total supply of 4,294,967,296 OP tokens. The total token supply is set to inflate at a rate of 2% per year, unless changed through governance.\n\n**Token (& Protocol) permissions (minting) and upgradability.**\n\n**Is there a multisig? What can it do? Who are the signers?**\n\nThere is a multisig. It coontrols all funds in the chain. Members are anonymous in order to make the multisig more difficult to compromise.\n\n## Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n- Market Cap: ~$202M\n- 24h Volume: >$150M\n- Volatility: Low\n- Exchanges: Uniswap, Velodrome, Sushi\n- Maturity: Launched 5/31/21\n- Communities:\n- Discord - https://discord-gateway.optimism.io/\n- Twitter - https://twitter.com/OptimismFND\n- Mirror - https://optimism.mirror.xyz/\n- Twitch - https://www.twitch.tv/optimismpbc\n\n- Date of deployment: May 31, 2021\n- Number of transactions: 12M\n- Number of holders: ~134k\n\n## Security Considerations\n\nOP has undergone audits. Constant internal reviews are performed to ensure OP’s economic and technical safety.\n\nThe protocol currently has around $936.43M TVL.\n\n## Other links\n\nContract addresses: [0x4200000000000000000000000000000000000042](https://optimistic.etherscan.io/address/0x4200000000000000000000000000000000000042)\n\nChainlink Oracle: [0x0D276FC14719f9292D5C1eA2198673d1f4269246](https://optimistic.etherscan.io/address/0x0D276FC14719f9292D5C1eA2198673d1f4269246) (Optimism)\n\n## Proposal's technical implementation\n\nThis asset listing will be executed via Aave's cross-chain governance module, described here: [https://github.com/aave/governance-crosschain-bridges](https://github.com/aave/governance-crosschain-bridges).\n\nProposal Payload on Optimism: [0x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF](https://optimistic.etherscan.io/address/0x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF#code)\n\nBGD Labs has provided support on the technical aspects of the listing and Certora has reviewed the proposal's payload.\n",
    "basename": "AIP-ADD-OP-TO-AAVE-V3"
  },
  "AIP-CONFIG-ISO-MODE-BORROWAABLE-ASSETES-V3-ETH": {
    "title": "Configure Isolation Mode Borrowable Assets on V3 Ethereum",
    "shortDescription": "Configure Isolation Mode Borrowable Assets on V3 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @Maltmark)",
    "discussions": "https://governance.aave.com/t/arfc-configure-isolation-mode-borrowable-assets-v3-ethereum/12420/1",
    "created": "2023-3-28",
    "preview": "# Simple Summary\n\nAt the time of the launch of V3 Ethereum, no …",
    "content": "\n\n# Simple Summary\n\nAt the time of the launch of V3 Ethereum, no assets were configured as borrowable in Isolation Mode. In this proposal, Chaos Labs recommends enabling all stablecoins listed on V3 Ethereum as borrowable in isolation mode 3.\n\n# Motivation\n\nThe motivation to list the stablecoins as borrowable assets in Isolation Mode is similar to previous deployments and is derived mainly from the low volatility of those assets. Given that Isolation Mode assets are susceptible to high volatility, we find it paramount to maintain the other side of the position stable in order to reduce liquidations and resulting bad debt.\nThe respective governance forum discussion is linked below:\n\n- [[ARFC] - Configure Isolation Mode Borrowable Assets - V3 Ethereum](https://governance.aave.com/t/arfc-configure-isolation-mode-borrowable-assets-v3-ethereum/12420/1)\n\n# Implementation\n\nWe recommend listing USDC, USDT, DAI, and LUSD as assets allowed for borrowing in Isolation Mode on Ethereum V3.\n\nThis proposal aims to implement a single AIP, which will simply call setBorrowableInIsolation() on the list of assets (USDC, DAI, USDT, LUSD) on the PoolConfigurator contract.\n\n# References\n\n- [Forum Post](https://governance.aave.com/t/arfc-configure-isolation-mode-borrowable-assets-v3-ethereum/12420/1)\n- [Tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3ETHIsoMode_20230330/AaveV3ETHIsoMode_20230330_Test.t.sol)\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3ETHIsoMode_20230330/AaveV3ETHIsoMode_20230330.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-CONFIG-ISO-MODE-BORROWAABLE-ASSETES-V3-ETH"
  },
  "AIP-DISABLE-AGEUR-BORROW-V3-POLYGON": {
    "title": "Disable agEUR borrows on Aave v3 Polygon",
    "shortDescription": "Following the recent exploit on Euler, temporarily disable agEUR borrows on aave v3 polygon",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-disable-borrow-of-ageur-on-aave-v3-polygon/12275",
    "created": "2023-03-13T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to to disable borrows of agEUR on the …",
    "content": "\n\n# Simple Summary\n\nA proposal to to disable borrows of agEUR on the Aave V3 Polygon market.\n\n# Motivation\n\nFollowing the recent exploit on Euler, Angle Protocol has announced [having $17.6M of USDC deposited into the protocol](https://twitter.com/AngleProtocol/status/1635293731082612738), leading them to pause the protocol and to uncertainty around the collateralization of agEUR.\n\n**agEUR is not listed as collateral on Aave V3 Polygon and is only borrowable, with utilization currently at nearly 100%**. Still, we think it is reasonable to disable further asset borrowing as an immediate and temporary measure until the backing is restored 1:1.\n\nWe continue to follow the situation closely as it develops and will update recommendations and actions accordingly.\n\n# Specification\n\nTicker: agEUR\n\nContract Address: 0xE0B52e49357Fd4DAf2c15e02058DCE6BC0057db4\n\nThe proposal payload simply executes setReserveBorrowing(false) on the [Aave V3 Polygon LendingPoolConfigurator](https://polygonscan.com/address/0x8145edddf43f50276641b55bd3ad95944510021e) for agEUR.\n\n# References\n\n- [Forum Post](https://governance.aave.com/t/arfc-disable-borrow-of-ageur-on-aave-v3-polygon/12275)\n\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolFreezeAGEURBorrow.sol)\n\n- [Tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolFreezeAGEURborrow.t.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-DISABLE-AGEUR-BORROW-V3-POLYGON"
  },
  "AIP-FREEZE-DPI-V2-ETH": {
    "title": "Freeze DPI on V2 Ethereum",
    "shortDescription": "Freeze DPI on V2 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-add-dpi-to-v3-ethereum-and-freeze-on-v2-ethereum/12354",
    "created": "2023-3-20",
    "preview": "# Simple Summary\n\nA proposal to to freeze DPI on the Aave V2 …",
    "content": "\n\n# Simple Summary\n\nA proposal to to freeze DPI on the Aave V2 Ethereum market.\n\n# Motivation\n\nDPI is an index token redeemable for a basket of ERC-20s. Due to an extremely low market cap and trading volumes, combined with centralization considerations, we recommend freezing DPI on Aave V2.\nThrough 2021 DPI held a market cap between $100M and $200M with daily trading volumes in the $Ms. However, throughout 2022 the market cap has decreased drastically, staying between $10M-$30M for the past three months, with daily trading volume rarely crossing the $200K mark. On top of the low market cap and low trading volume, there is also implied centralization risk of DPI compared with the direct holding of the basket of underlying assets.\nThe respective governance forum discussion is linked below:\n\n- [[ARFC] - Add DPI to V3 Ethereum and Freeze on V2 Ethereum](https://governance.aave.com/t/arfc-add-dpi-to-v3-ethereum-and-freeze-on-v2-ethereum/12354)\n\n# Specification\n\nTicker: DPI\n\nContract Address: 0x1494CA1F11D487c2bBe4543E90080AeBa4BA3C2b\n\nThe proposal payload simply executes setReserveBorrowing(false) on the Aave V2 Ethereum LendingPoolConfigurator for DPI.\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-add-dpi-to-v3-ethereum-and-freeze-on-v2-ethereum/12354)\n\n[Tests](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/tests/AaveV2FreezeDPIPayloadTest.t.sol)\n\n[Proposal payload implementation](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/AaveV2FreezeDPIPayload.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-FREEZE-DPI-V2-ETH"
  },
  "AIP-SUPPLY-CAPS-ARBITRUM-V3-20230330": {
    "title": "Supply/Borrow Cap Updates V3 Arbitrum",
    "shortDescription": "Update Supply and Borrow Caps on Aave V3 Arbitrum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-03-30-2023/12532",
    "created": "2023-3-30",
    "preview": "# Simple Summary\n\nA proposal to adjust three (3) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust three (3) total risk parameters, including Supply Cap and Borrow Cap, across two (2) Aave V3 Arbitrum assets.\n\n# Motivation\n\nThe objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have reached high utilization of either cap. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology\n\nThe respective governance forum discussion is linked below:\n\n- [[ARFC] Chaos Labs Supply and Borrow Cap Updates - 03.30.2023](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-03-30-2023/12532)\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n### Arbitrum\n\n| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |\n| ----- | ------------------ | ---------------------- | ------------------ | ---------------------- |\n| WBTC  | 2,100              | 4,200                  | 1,115              | No Change              |\n| WETH  | 45,000             | 70,000                 | 11,165             | 22,000                 |\n\n# References\n\nForum Post: [Arbitrum Post](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-03-30-2023/12532)\n\nTest: [Arbitrum Test](https://github.com/bgd-labs/aave-proposals/blob/master/src/AaveV3ArbSupplyCapsUpdate_20230330/AaveV3ArbSupplyCapsUpdate_20230330_test.t.sol)\n\nProposal payload implementation: [Arbitrum Payload](https://github.com/bgd-labs/aave-proposals/blob/master/src/AaveV3ArbSupplyCapsUpdate_20230330/AaveV3ArbSupplyCapsUpdate_20230330.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-SUPPLY-CAPS-ARBITRUM-V3-20230330"
  },
  "AIP-SUPPLY-CAPS-POLYGON-ARBITRUM-V3": {
    "title": "Supply/Borrow Cap Updates V3 Polygon and Arbitrum",
    "shortDescription": "Update Supply and Borrow Caps on Aave V3 Polygon and Arbitrum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-supply-and-borrow-caps-update-wsteth-v3-arbitrum/12309",
    "created": "2023-3-17",
    "preview": "# Simple Summary\n\nA proposal to adjust five (5) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust five (5) total risk parameters, including Supply Cap and Borrow Cap, across three (3) Aave V3 Polygon and Arbitrum assets.\n\n# Motivation\n\nThe objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have reached high utilization of either cap. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology\n\nThe respective governance forum discussion is linked below:\n\n- [[ARFC] - Supply and Borrow Caps Update - wstETH - V3 Arbitrum](https://governance.aave.com/t/arfc-supply-and-borrow-caps-update-wsteth-v3-arbitrum/12309)\n- [[ARFC] - Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon - 2023.03.16](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310)\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n### Arbitrum\n\n| Asset  | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |\n| ------ | ------------------ | ---------------------- | ------------------ | ---------------------- |\n| wstETH | 2,400              | 4,650                  | 190                | 400                    |\n\n### Polygon\n\n| Asset   | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |\n| ------- | ------------------ | ---------------------- | ------------------ | ---------------------- |\n| MAI     | 1,100,000          | 2,200,000              | 600,000            | 1,200,000              |\n| stMATIC | 15,000,000         | 21,000,000             | N/A                | N/A                    |\n\n# References\n\nForum Posts: [Arbitrum](https://governance.aave.com/t/arfc-supply-and-borrow-caps-update-wsteth-v3-arbitrum/12309), [Polygon](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-2023-03-16/12310)\n\nTests: [Arbitrum-stETH](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/arbitrum/AaveV3ArbwstETHSupplyCapsPayloadTest-Mar16.t.sol), [Polygon-MAI/stMATIC](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolCapsPayloadTest-Mar17.t.sol)\n\nProposal payload implementation: [Arbitrum-stETH](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbwstETHSupplyCapsPayload-Mar16.sol), [Polygon-MAI/stMATIC](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolCapsPayload-Mar17.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "AIP-SUPPLY-CAPS-POLYGON-ARBITRUM-V3"
  },
  "B01EDD555D47-AIP-ECOSYSTEM-RESERVE-VOTING-LVL2-PROPOSAL": {
    "title": "Use AAVE Ecosystem Reserve to vote YES on proposal to adjust Level 2 Governance requirements",
    "status": "Proposed",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Update of the AAVE Ecosystem Reserve to allow one-time voting YES a proposal to adjust Level 2 Governance requirements",
    "discussions": "https://governance.aave.com/t/rfc-aave-governance-adjust-level-2-requirements-long-executor/8693",
    "created": "2022-09-16T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal upgrades the implementation of the …",
    "content": "\n\n## Simple Summary\n\nThis proposal upgrades the implementation of the AAVE Ecosystem Reserve, allowing for a one-time YES vote with the voting power held, in order to \"vote boost\" the [proposal to upgrade the Level 2 Executor requirements](https://github.com/bgd-labs/aip/blob/feat/lvl2-proposals/content/aips/656A6D889F89-AIP-GOV-LVL2-EXECUTOR-PROPOSAL.md).\n\n\n## Motivation\nAll context/motivation of this proposal is extensively explained on the [Aave Governance forum thread](https://governance.aave.com/t/rfc-aave-governance-adjust-level-2-requirements-long-executor/8693)\n\n\n## Specification\nThis proposal exclusively upgrades the implementation of the AAVE Ecosystem Reserve, keeping the exact same logic, but changing the `initialize()` function to include a one-time YES vote on another Aave governance proposal passed as input. The implementation of this can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/AaveEcosystemReserveV2.sol#L779).\n\n**This proposal will be created via a fully decentralized smart contract (so-called Autonomous Proposal). This is especially important in this case, as it will assure that the proposal id on which to vote YES will be exactly the proposal to upgrade Level 2 requirements**\n\n\n## Security\n\n- An extensive suite of tests can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/test)\n\n- We have executed a diff between the current implementation of the [AAVE Ecosystem Reserve in production](https://etherscan.io/address/0x1aa435ed226014407fa6b889e9d06c02b1a12af3#code) and the new implementation, to verify that the changes and exclusively the ones expected. The diff can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/diffs/AaveEcosystemReserveV2-diff.md).\n\n- SigmaPrime has audited the changes, and implemented an [independent test suite](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/audits/sigmap/tests), complementary to BGD's. The audit report can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/sigmap/SigmaPrime.md).\n\n- Certora has reviewed the changes, and implemented an [independent test suite](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/certora/specs/executor.spec), complementary to BGD's. The audit report can be found [HERE](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/audits/certora/report/Security%20Review%20of%20Aave%20Governance%20V2%20Update.pdf).\n\n## Implementation\n\nSmart contracts can be found [here](https://github.com/bgd-labs/aave-gov-level-2-update/tree/main/src/contracts). Especifically for what concerns this proposal:\n\n- New AAVE Ecosystem Reserve [https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/AaveEcosystemReserveV2.sol](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/AaveEcosystemReserveV2.sol)\n- Proposal payload [https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/ProposalPayloadAaveEcosystemReserveWithVoting.sol](https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/ProposalPayloadAaveEcosystemReserveWithVoting.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "B01EDD555D47-AIP-ECOSYSTEM-RESERVE-VOTING-LVL2-PROPOSAL"
  },
  "BAL-INTEREST-RATE-UPDATES": {
    "title": "BAL Interest Rate Curve Upgrades",
    "discussion": "https://governance.aave.com/t/arfc-bal-interest-rate-curve-upgrade/10484",
    "shortDescription": "Upgrade the BAL interest rate curve across Ethereum v2, Polygon v3, and Polygon v2 Liquidity Pools",
    "author": "Llama, DeFi_Consulting, scottincrypto",
    "created": "2023-02-01T00:00:00.000Z",
    "preview": "# Summary\n\n[Llama](https://twitter.com/llama) presents a proposal to …",
    "content": "\n\n# Summary\n\n[Llama](https://twitter.com/llama) presents a proposal to amend BAL interest rate parameters on the Aave Ethereum v2, Polygon v3 and Polygon v2 Liquidity Pools.\n\n# Abstract\n\nThere is currently a high demand for borrowing BAL (borrow rate = 46.7% on Polygon v3) across all Reserves. This proposal will improve the capital efficiency of the BAL pools by increasing the SupplyCap, BorrowCap, and Uoptimal parameters. \n\nThe interest rate curves across all Aave deployments will be the same, with Polygon v3 expected to offer higher returns relative to Polygon v2 and hopefully entice users to migrate to v3. This proposal is expected to increase Aave’s BAL-denominated revenue whilst offering users greater capital efficiency.\n\nDue to incentives offered by Aura Finance and others, strong borrowing demand is expected to continue in light of increased borrowing costs. For example, depositing BAL into Aura Finance’s staking contract generates [42.2%](https://app.aura.finance/) at the time of writing.\n\n# Motivation\n\nDue to strong borrowing demand for BAL, the reserve utilization often exceeds the Uoptimal parameter on active reserves, causing the borrowing rate to be volatile. The chart below shows the volatility in BAL borrowing rates on the only non-frozen BAL reserve, Polygon v3.\n\n![](https://i.imgur.com/uq7xpvB.png)\n\nBy increasing the Uoptimal parameter, a greater portion of the BAL reserve can be borrowed by users without experiencing such volatility borrowing rates, providing the BorrowCap is accommodative. This proposal will improve the capital efficiency of the reserves by increasing the Uoptimal parameter from 45% to 80%.\n\nDue to the high borrowing demand for BAL, which often exceeds 20%, it is fair to conclude that the borrowing rate for BAL is set too low. This proposal introduces a Base 3.0% and increases the Slope1 parameter from 7.0% to 14.0%. The borrowing cost at the Uoptimal point is 17.0% (Base + Slope1) on the proposed curve compared to 7.0% on the existing curve.\n\n![](https://i.imgur.com/faD4z5r.png)\n\nWith Aave receiving 20% of all fee revenue, this will lead to increased BAL nominated revenue. \n\nIn addition to the interest rate curve changes, this proposal will also increase the BorrowCap from 156.3K BAL to 256.140K BAL. Revising the BorrowCap higher will enable users to benefit from the increased the Uoptimal parameter. Do note, the BorrowCap figure was provided by Chaos Labs. \n\n# Specification\n\nThe below table shows the current and proposed changes to the BAL Interest Rate on Ethereum v2, Polygon v2 and Polygon v3.\n\n|Parameter|Current (%)|Proposed (%)|\n| --- | ---: | ---: |\n|Uoptimal|45|80|\n|Base|0|3|\n|Slope1|7|14|\n|Slope2|300|150|\n|Reserve Factor|20|20|\n\nThe below shows the proposed changes to the Borrow Cap on Polygon v3.\n\n|Polygon Parameter| Units |\n| --- | --- | \n| Supply Cap | 284,600 (no change)|\n| Borrow Cap | 256,140 |\n\nBorrow Cap is calculated: \n(Uoptimal + 0.1) x SupplyCap\n(0.8+0.1) x 284,600 = 256,140\n\n# Implementation\n\nTest cases can be found [here](https://github.com/llama-community/aave-bal-interest-rate-updates/blob/main/src/test/ProposalPayloadE2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-bal-interest-rate-updates/tree/main/src)\n\nProposal Payload deployed address can be found [here] (https://etherscan.io/address/0x3b6532efb7a60711f8f3fa77a589a726c836f4cf)\nProposal Payload for Polygon deployed address can be found [here] (https://polygonscan.com/address/0x98bc9dfa3cecb37f1bdeadc6e774d39082756b19)\n\nInterest Rate Strategy deployed address can be found [here](https://etherscan.io/address/0x04c28D6fE897859153eA753f986cc249Bf064f71)\nInterest Rate Strategy deployed address for Polygon v2 can be found [here](https://polygonscan.com/address/0x80cb7e9E015C5331bF34e06de62443d070FD6654)\nInterest Rate Strategy deployed address for Polygon v3 can be found [here](https://polygonscan.com/address/0x4b8D3277d49E114C8F2D6E0B2eD310e29226fe16)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "BAL-INTEREST-RATE-UPDATES"
  },
  "BUSD-OFFBOARDING-PLAN-AIP": {
    "title": "BUSD Offboarding Plan",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "BUSD Offboarding Plan",
    "discussions": "https://governance.aave.com/t/arfc-busd-offboarding-plan/12170",
    "created": "2022-03-09T00:00:00.000Z",
    "updated": "2022-03-09T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposes to change the InterestRate …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposes to change the InterestRate Strategy the BUSD reserve on the Aave V2 Ethereum pool and increase ReserveFactor\n\n## Motivation\n\nRecently, Paxos stopped minting BUSD due to recent developments with the SEC. This means that the circulating supply of BUSD will trend towards zero over time. As a result, it is necessary to implement an offboarding plan for BUSD on the Aave V2 Ethereum market.\n\nThe current APR cost of the plan, if enforced today, would be 101.25% for current borrowers, signaling them to repay without significant impact on their positions. If the reserve utilization reaches 100%, the resulting APR cost will be 210%.\n\nThe ACI has analyzed the vBUSD debt token holders and found that most top positions are relatively active addresses and are expected to manage their positions actively.\n\nThis AIP aims to provide a smooth transition for Aave V2 BUSD users, while also providing a clear path for the offboarding of BUSD on Aave.\n\n## Specification\n\nTicker: BUSD (BUSD)\n\nContract Address: 0x4Fabb145d64652a948d72533023f6E7A623C7C53\n\nThe offboarding plan will be carried out With the current AIP with the following parameters:\n\n- Decrease uOptimal from 80% to 20%.\n- Increase reserveFactor from 10% to 99.9%.\n- Increase base rate from 0% to 3%.\n- Increase slope 1 from 4% to 7%.\n- Increase slope 2 from 100% to 200%.\n\n```solidity\ncontract AaveV2BUSDPayload is IProposalGenericExecutor {\n  address public constant INTEREST_RATE_STRATEGY = 0x67a81df2b7FAf4a324D94De9Cc778704F4500478;\n  uint256 public constant RESERVE_FACTOR = 99_90; \n  function execute() external {\n    AaveV2Ethereum.POOL_CONFIGURATOR.setReserveInterestRateStrategyAddress(\n      AaveV2EthereumAssets.BUSD_UNDERLYING,\n      INTEREST_RATE_STRATEGY\n    );\n    AaveV2Ethereum.POOL_CONFIGURATOR.setReserveFactor(\n      AaveV2EthereumAssets.BUSD_UNDERLYING,\n      RESERVE_FACTOR\n    );\n  }\n}\n```\n\n## References\n\n- [Tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV2BUSDETHPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV2BUSDPayload.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "BUSD-OFFBOARDING-PLAN-AIP"
  },
  "C21F601D0D3F-AIP-BALANCER-WHITELIST-CLAIM-STKAAVE": {
    "title": "Whitelist Balancer’s Liquidity Mining Claim",
    "author": "Llama, Matthew Graham, Dan Hepworth",
    "shortDescription": "Whitelist Balancer’s Liquidity Mining Claim",
    "discussions": "https://governance.aave.com/t/arc-whitelist-balancer-s-liquidity-mining-claim/9724",
    "created": "2022-10-10T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis proposal enables Balancer DAO to retrieve the …",
    "content": "\n\n# Simple Summary\n\nThis proposal enables Balancer DAO to retrieve the stkAAVE Liquidity Mining incentives distributed to Linear Pools in the Balancer Boosted Aave Pool.\n\n# Abstract\n\nBalancer DAO seeks to retrieve around 1,500 stkAAVE from several Linear Pools. Balancer DAO accrued this stkAAVE after it deposited liquidity into Aave while Liquidity Mining incentives were being distributed [1,2]. \n\nThe proposal is to implement the changes required to enable Balancer DAO to retrieve the stkAAVE from the Linear Pools within the Balancer Boosted Aave Pool.\n\n# Motivation\n\nThree Linear Pools within the Balancer Boosted Aave Pool have accrued around 1,500 stkAAVE from Liquidity Mining rewards, [3]. \n\nThe Linear Pool holds the aTokens and receives the stkAAVE liquidity mining rewards but can not call the `claimRewards` function or manage any stkAAVE if it was received.\n\nThe Linear Pools unable to call `getUnclaimedRewards()` with [0xba12222222228d8ba445958a75a0704d566bf2c8](https://etherscan.io/address/0xba12222222228d8ba445958a75a0704d566bf2c8) are detailed below:\n\n1. [0x02d60b84491589974263d922d9cc7a3152618ef6](https://etherscan.io/address/0x02d60b84491589974263d922d9cc7a3152618ef6)\n2. [0xd093fa4fb80d09bb30817fdcd442d4d02ed3e5de](https://etherscan.io/address/0xd093fa4fb80d09bb30817fdcd442d4d02ed3e5de)\n3. [0xf8fd466f12e236f4c96f7cce6c79eadb819abf58](https://etherscan.io/address/0xf8fd466f12e236f4c96f7cce6c79eadb819abf58)\n\nAave enables other addresses to claim on behalf of smart contracts using the `claimOnBehalfOf()` function. \n\n# Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Llama Github [here](https://github.com/llama-community/aave-stkaave-retrieval)\n\nThe Proposal Payload does the following:\n1. Sets the claimer of the Balancer DAO contract's stkAAVE rewards to be the Retrieval Contract.\n\nThe retrieval contract does the following:\n1. It can only be called by the Balancer Multisig: [0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f](https://etherscan.io/address/0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f).\n2. It claims the stkAAVE rewards on behalf of the Balancer DAO: [0xba12222222228d8ba445958a75a0704d566bf2c8](https://etherscan.io/address/0xba12222222228d8ba445958a75a0704d566bf2c8) from aDAI, aUSDC, and aUSDT Balancer Linear Pools.\n3. It transfers the stkAAVE rewards to the Balancer Multisig: [0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f](https://etherscan.io/address/0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f).\n\nSnapshot and forum discussion can be found at reference [6] and [7].\n\n## Test Cases\n\nThis proposal has been tested and peer reviewed by Bored Ghost Developing [5], including simulations on mainnet of the whole proposal lifecycle.\n\nTest cases can be found at reference [8].\n\n## Implementation\n \nPayload Implementation and Retrieval Contract can be found at reference [9] & [10] respectively.\n\n## Deployed Contracts\n1. Proposal Payload = [0x9e0f13a2298a879c7834d84c2967fccc7fa42df8](https://etherscan.io/address/0x9e0f13a2298a879c7834d84c2967fccc7fa42df8)\n2. Retrieval Contract = [0x0e2d46fe246eb926d939a10efa96fb7d4eb14bb3](https://etherscan.io/address/0x0e2d46fe246eb926d939a10efa96fb7d4eb14bb3)\n\n# References\n\n1. [https://docs.balancer.fi/products/balancer-pools/boosted-pools#linear-pools](https://docs.balancer.fi/products/balancer-pools/boosted-pools#linear-pools)\n2. [https://governance.aave.com/t/arc-continue-liquidity-mining-program-on-aave-v2-ethereum-market-and-introduce-liquidity-mining-on-aave-arc-market/7189](https://governance.aave.com/t/arc-continue-liquidity-mining-program-on-aave-v2-ethereum-market-and-introduce-liquidity-mining-on-aave-arc-market/7189)\n3. [https://app.balancer.fi/#/pool/0x7b50775383d3d6f0215a8f290f2c9e2eebbeceb20000000000000000000000fe](https://app.balancer.fi/#/pool/0x7b50775383d3d6f0215a8f290f2c9e2eebbeceb20000000000000000000000fe)\n4. [https://etherscan.io/address/0x10a19e7ee7d7f8a52822f6817de8ea18204f2e4f](https://etherscan.io/address/0x10a19e7ee7d7f8a52822f6817de8ea18204f2e4f)\n5. [https://twitter.com/bgdlabs](https://twitter.com/bgdlabs)\n6. [https://snapshot.org/#/aave.eth/proposal/0xdaa660ea59f8678748d6f133d7d7ed70b941798aa9a0044a16a1285d09e26bf5](https://snapshot.org/#/aave.eth/proposal/0xdaa660ea59f8678748d6f133d7d7ed70b941798aa9a0044a16a1285d09e26bf5)\n7. [https://governance.aave.com/t/arc-whitelist-balancer-s-liquidity-mining-claim/9724](https://governance.aave.com/t/arc-whitelist-balancer-s-liquidity-mining-claim/9724)\n8. [https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/test/StkAaveRetrievalE2E.t.sol](https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/test/StkAaveRetrievalE2E.t.sol)\n9. [https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/ProposalPayload.sol](https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/ProposalPayload.sol)\n10. [https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/StkAaveRetrieval.sol](https://github.com/llama-community/aave-stkaave-retrieval/blob/main/src/StkAaveRetrieval.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "C21F601D0D3F-AIP-BALANCER-WHITELIST-CLAIM-STKAAVE"
  },
  "C80DBB8511E8-AIP-OPTIMIZING-ETH-RATES": {
    "title": "Optimizing ETH rates",
    "status": "Proposed",
    "author": "Samyak Jain (@smykjain)",
    "shortDescription": "Optimizing ETH rates to meet borrow demands & increase ETH revenue generation",
    "discussions": "https://governance.aave.com/t/optimize-rate-curve-for-eth-improve-revenue-generation/7571",
    "created": "2022-03-23T00:00:00.000Z",
    "updated (*optional)": "2022-03-23T00:00:00.000Z",
    "preview": "## Simple Summary\nOptimizing ETH rates on Aave v2 ethereum mainnet …",
    "content": "\n\n## Simple Summary\nOptimizing ETH rates on Aave v2 ethereum mainnet to meet the borrowing demands generated from the inclusion of stETH collateral.\n\n\n## Motivation\n\nWith the inclusion of new collateral type stETH the borrowing of ETH has increased to an all time high (4-6x more utilization) it is now critical to adjust rates to continue growth under current conditions.\n\nCurrently, stETH earns ~3.9% APR from staking rewards, while still being used as collateral in Aave, which allows users to go leverage on stETH while borrowing ETH. This is only sensible to do when ETH borrow rates are lower than stETH rewards. With the current interest modals the utilization has reached up to 19% (an all time high) and can grow further to about 24%. With the above updates it will allow utilization to go up to 70%. Yeilding good returns to users and a 3-4x increase in ETH revenue for the Aave protocol.\n\nFollow the forum post [here](https://governance.aave.com/t/optimize-rate-curve-for-eth-improve-revenue-generation/7571) for more detailed description on calcualations, benefits & risks.\n\n## Specification\n\nProposed updated to ETH rates:\n\n- OPTIMAL_UTILIZATION_RATE = **70** (previously: 65)\n- EXCESS_UTILIZATION_RATE = **30** (previously: 35)\n- baseVariableBorrowRate = **0** (previously: 0)\n- variableRateSlope1 = **3** (previously: 8)\n- variableRateSlope2 = **100** (previously: 100)\n- stableRateSlope1 = **4** (previously: 10)\n- stableRateSlope2 = **100** (previously: 100)\n\n\n## Rationale\nCurrent stETH rewards are 4%. Staking rewards on ETH via Lido are still relatively high and stETH still has the capacity to accept another $4.5B of ETH. This increase in stETH supply would only reduce the rewards by 0.3%, meaning there is at least 1.5M ETH (~$4-5B USD) that could get staked. For Aave, it represents $4-5B in borrowings of ETH (more significant than any borrowing market that currently exists across any token)\n\n**Projected rates at current a 3% borrowing rate:**\n\n- Utilization: 24.5% [very low utilization leading to less revenue generation]\n- Borrowing rate: 3.02%\n- Supplying rate: 0.66% [low incentives for new lenders to come in]\n\n**Projected rates at 3% borrow rate and 70% utilization:**\n\n- Utilization: 70% [good revenue for governance]\n- Borrow rate: 3%\n- Supplying rate: 1.9% [decent for new lenders to come in or to get a discount for stable coin borrowing against ETH]\n\nSee Governance Post [here](https://governance.aave.com/t/optimize-rate-curve-for-eth-improve-revenue-generation/7571) for more detailed description on calcualations, benefits & risks.\n\n## Implementation\n\n[Here](https://etherscan.io/address/0xEc368D82cb2ad9fc5EfAF823B115A622b52bcD5F#code) is the new rate strategy.\n[Here](https://etherscan.io/address/0x49e4db0a4d63c73bae75747ee12ab63bbdda3207#code) is the execution payload.\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "C80DBB8511E8-AIP-OPTIMIZING-ETH-RATES"
  },
  "C8A2BBD97C9C-AIP-ADD-ENS-TO-AAVE-V2": {
    "title": "Add ENS to Aave V2",
    "status": "Proposed",
    "author": "Fire Eyes DAO (@fireeyesdao)",
    "shortDescription": "List ENS as collateral and borrowing asset on the Aave V2 pool",
    "discussions": "https://governance.aave.com/t/arc-add-ens-as-collateral/6342",
    "created": "2022-02-24T00:00:00.000Z",
    "preview": "## Simple Summary\n\nENS (Ethereum Name Service) is an critical piece …",
    "content": "\n\n\n## Simple Summary\n\nENS (Ethereum Name Service) is an critical piece of infrastructure for the Ethereum ecosystem with over 400,000 names registered and hundreds of intergrations across the ecosystem.\n\n$ENS is the governance token providing ownership over the ENS protocol. $ENS governs the direction of the ENS treasury as well as controlling crucial protocol parameters via the ENS registrar controller.\n\nThis proposal looks to onboard $ENS as a collateral asset to Aave.\n\n## Motivation\n\nFollowing conversations with Aave and ENS communities, we’ve found that ENS is a prime candidate for Aave, already having gathered over $1B in circulating market cap and millions of dollars in liquidity across the ecosystem.\n\nThe addition of ENS to Aave will unlock additional liquidity and optionality for all ENS holders.\n\n## Specification\n\nThis proposal initialises the ENS reserve, enables variable borrowing, sets a reserve factor and configures the reserve as collateral. As needed, it also connects a price source on the AaveOracle.\n\n## Test Cases\n\nAll the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.\n\n## Implementation\n\n- [ProposalPayload](https://etherscan.io/address/0xf42d0a1b03c0795021272a4793cd03dcb97581d3#code)\n- [aENS implementation](https://etherscan.io/address/0xB2f4Fb41F01CdeF7c10F0e8aFbeB3cFA79d1686F#code)\n- [Variable Debt ENS implementation](https://etherscan.io/address/0x2386694b2696015dB1a511AB9cD310e800F93055#code)\n- [Stable Debt ENS implementation](https://etherscan.io/address/0x5746b5b6650dd8d9b1d9d1bbf5e7f23e9761183f#code)\n- [Interest rate strategy](https://etherscan.io/address/0xb2eD1eCE1c13455Ce9299d35D3B00358529f3Dc8#code) \n- [EnsUsdToEnsEth price feed](https://etherscan.io/address/0xd4641b75015E6536E8102D98479568D05D7123Db#code)\n- LTV: 50%\n- Liquidation threshold: 60%\n- Liquidation bonus: 8%\n- Reserve Factor: 20%\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "C8A2BBD97C9C-AIP-ADD-ENS-TO-AAVE-V2"
  },
  "CAPS_PLUS_RISK_STEWARD": {
    "title": "Caps Plus Risk Steward",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Grant RISK_ADMIN roles to the CapsPlusRiskStewards on the respective networks",
    "discussions": "https://governance.aave.com/t/bgd-risk-steward-phase-1-capsplusrisksteward/12602",
    "created": "2023-05-23T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis governance proposal grants the `RISK_ADMIN` …",
    "content": "\n\n## Simple Summary\n\nThis governance proposal grants the `RISK_ADMIN` role to a `CapsPlusRiskStewards` smart contract on each network with an active instance of Aave v3.\nOnce the `CapsPlusRiskStewards` has received the `RISK_ADMIN` role, the `RISK_COUNCIL` can adjust asset borrow/supply caps upwards without voting overhead. The `RISK_COUNCIL` is a Gnosis Safe controlled by the DAOs risk-providers (Gauntlet, Chaos Labs).\n\n## Motivation\n\nDuring the last months, for the broad majority of proposals regarding caps updates, the support of the community has been almost unanimous, with 1 or 2 exceptions.\nThe rationale of this is pretty clear: caps updates usually simply depend on the “green light” from the risk providers (Gauntlet, Chaos Labs)\nAs both providers have historically been in agreement with the updates proposed, the community has just followed that recommendation by supporting on-chain.\n\nTherefore, it seems that the community has important voting overhead in this scenario, which could be almost completely automated and simplified. It is quite common to have a proposal with unanimous support on day 1 of voting but given all other time considerations, execution is 3 to 5 days after.\n\nThis proposal gives the necessary `RISK_ADMIN` role to the `CapsPlusRiskSteward` introduced in this [governance forum thread](https://governance.aave.com/t/bgd-risk-steward-phase-1-capsplusrisksteward/12602).\nAfter execution, the `RISK_COUNCIL` will be able to perform cap increases through the `CapsPlusRiskStewards` under the following conditions for each asset listed:\n\n- the cap can only be adjusted upwards\n- the cap can never be increased by more than 100%\n- the cap can only be adjusted once every 5 days\n\n## Specification\n\nThis proposal's payload executes `ACL_MANAGER.addRiskAdmin(STEWARD)` where `STEWARD` is the `CapsPlusRiskStewards` pre-deployed on the respective network.\n\n## Security procedures\n\nThe `CapsPlusRiskStewards` is [unit tested](https://github.com/bgd-labs/aave-helpers/blob/master/src/test/riskstewards/CapsPlusRiskSteward.t.sol).\n\nThe proposal execution is simulated [within the tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RiskSteward_20230404/AaveV3RiskSteward_20230404_Test.t.sol).\n\n## Deployed Contracts\n\n- CapsPlusRiskSteward:\n  [arbitrum](https://arbiscan.io/address/0xADf86b537eF08591c2777E144322E8b0Ca7E82a7#code#F1#L1),\n  [avalanche](https://snowtrace.io/address/0xd2c92b5a793e196ab11dbefbe3af6bdded6c3dd5#code#F1#L1),\n  [mainnet](https://etherscan.io/address/0x82dcCF206Ae2Ab46E2099e663F70DeE77caE7778#code#F1#L1),\n  [metis](https://andromeda-explorer.metis.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731/contracts#address-tabs),\n  [optimism](https://optimistic.etherscan.io/address/0x5E76E98E0963EcDC6A065d1435F84065b7523f39#code#F1#L1),\n  [polygon](https://polygonscan.com/address/0xc5de989E0D1BF605d19478Fdd32Aa827a10b464f#code#F1#L1)\n- Payloads:\n  [arbitrum](https://arbiscan.io/address/0xe79ca44408dae5a57ea2a9594532f1e84d2edaa4#code#F1#L1),\n  [avalanche](https://snowtrace.io/address/0x7e1f23bdfc7287af276f77b5a867e85cf0377a31#code#F1#L1),\n  [mainnet](https://etherscan.io/address/https://etherscan.io/address/0x90127a46207e97e4205db5ccc1ec9d6d43633fd4#code#F1#L1),\n  [metis](https://andromeda-explorer.metis.io/address/0xd91d1331db4F436DaF47Ec9Dd86deCb8EEF946B4/contracts#address-tabs),\n  [optimism](https://optimistic.etherscan.io/address/0xA3e44d830440dF5098520F62Ebec285B1198c51E#code#F1#L1),\n  [polygon](https://polygonscan.com/address/0x4C0633Bf70fB2bB984A9eEC5d9052BdEA451C70A#code#F1#L1)\n\n## References\n\n- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0xc882bf5f0f0f801591bfd5f0273388ea154654220f472aa4a06fd1fe6b94bb53)\n- [Discussion: CapsPlusRiskSteward](https://governance.aave.com/t/bgd-risk-steward-phase-1-capsplusrisksteward/12602/1)\n- [Discussion: caps update framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/4)\n- [Discussion: fast track process](https://governance.aave.com/t/arc-v3-supply-borrow-cap-management-fast-track-process/8045)\n- [Code: ProposalPayload](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RiskSteward_20230404/AaveV3RiskSteward_20230404.sol)\n- [Code: Payload Tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3RiskSteward_20230404/AaveV3RiskSteward_20230404_Test.t.sol)\n- [Code: CapsPlusRiskSteward](https://github.com/bgd-labs/aave-helpers/blob/master/src/riskstewards/CapsPlusRiskSteward.sol)\n- [Code: CapsPlusRiskSteward Tests](https://github.com/bgd-labs/aave-helpers/blob/master/src/test/riskstewards/CapsPlusRiskSteward.t.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CAPS_PLUS_RISK_STEWARD"
  },
  "CBETH_ETH_CAP_UPDATE": {
    "title": "increase supply cap for cbETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "increase supply cap for cbETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3/11869",
    "created": "2023-02-20T00:00:00.000Z",
    "updated": "2023-02-20T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to increase cbETH supply cap on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.\n\nSupply cap is suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: cbETH\n\nContract Address: 0xbe9895146f7af43049ca1c1ae358b0541ea49704\n\n|Risk Parameter|Value|\n| --- | --- |\n|Supply Cap|20K|\n\n\n\n```solidity\ncontract AaveV3EthCbETHCapsPayload is IProposalGenericExecutor {\n  address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;\n\n  uint256 public constant CBETH_SUPPLY_CAP = 20_000;\n\n  function execute() external {\n    IPoolConfigurator configurator = AaveV3Ethereum.POOL_CONFIGURATOR;\n\n    configurator.setSupplyCap(CBETH, CBETH_SUPPLY_CAP);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3/11869)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/cbethV3EthCapsPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthCBETHCapsPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3EthCbETHCapsPayload: ProposalPayload](https://etherscan.io/address/0x4e3728f85818780451e1f44fa3689c85a1229801)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CBETH_ETH_CAP_UPDATE"
  },
  "CBETH_ETH_SUPPLY_CAP_UPDATE": {
    "title": "increase supply cap for cbETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "increase supply cap for cbETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3/11869",
    "created": "2023-03-07T00:00:00.000Z",
    "updated": "2023-03-07T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to increase cbETH supply cap on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.\n\nSupply cap is suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: cbETH\n\nContract Address: 0xbe9895146f7af43049ca1c1ae358b0541ea49704\n\n|Risk Parameter| Current Value| Proposed Value|\n| --- | --- | --- |\n|Supply Cap|20K| 30K|\n\n\n\n```solidity\ncontract AaveV3EthCbETHCapsPayload is IProposalGenericExecutor {\n  address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;\n\n  uint256 public constant CBETH_SUPPLY_CAP = 30_000;\n\n  function execute() external {\n    IPoolConfigurator configurator = AaveV3Ethereum.POOL_CONFIGURATOR;\n\n    configurator.setSupplyCap(CBETH, CBETH_SUPPLY_CAP);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3/11869)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/cbethV3EthSupplyCapsPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthCBETHSupplyCapsPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CBETH_ETH_SUPPLY_CAP_UPDATE"
  },
  "CBETH_ETH_SUPPLY_CAP_UPDATE_20230320": {
    "title": "increase supply cap for cbETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "increase supply cap for cbETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3-20230317/12334",
    "created": "2023-03-20T00:00:00.000Z",
    "updated": "2023-03-20T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to increase cbETH supply cap on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.\n\nSupply cap is suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: cbETH\n\nContract Address: 0xbe9895146f7af43049ca1c1ae358b0541ea49704\n\n|Risk Parameter| Current Value| Proposed Value|\n| --- | --- | --- |\n|Supply Cap|20K| 30K|\n\n\n\n```solidity\ncontract AaveV3EthCbETHCapsPayload is IProposalGenericExecutor {\n  address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;\n\n  uint256 public constant CBETH_SUPPLY_CAP = 30_000;\n\n  function execute() external {\n    IPoolConfigurator configurator = AaveV3Ethereum.POOL_CONFIGURATOR;\n\n    configurator.setSupplyCap(CBETH, CBETH_SUPPLY_CAP);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-supply-cap-for-cbeth-aave-ethereum-v3-20230317/12334)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/cbethV3EthSupplyCapsPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthCBETHSupplyCapsPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CBETH_ETH_SUPPLY_CAP_UPDATE_20230320"
  },
  "CBETH_ETH_SUPPLY_CAP_UPDATE_20230329": {
    "title": "increase supply cap for cbETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "increase supply cap for cbETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-increase-cbeth-supply-cap-03-26/12480",
    "created": "2023-03-29T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to increase cbETH supply cap on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.\n\nSupply cap is suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: cbETH\n\nContract Address: [0xbe9895146f7af43049ca1c1ae358b0541ea49704](https://etherscan.io/address/0xbe9895146f7af43049ca1c1ae358b0541ea49704)\n\n|Risk Parameter| Current Value| Proposed Value|\n| --- | --- | --- |\n|Supply Cap|30K| 60K|\n\n\n\n```solidity\ncontract AaveV3EthCBETHSupplyCapUpdate_20230328 is AaveV3PayloadEthereum {\n  function capsUpdates() public pure override returns (IEngine.CapsUpdate[] memory) {\n    IEngine.CapsUpdate[] memory capsUpdate = new IEngine.CapsUpdate[](1);\n\n    capsUpdate[0] = IEngine.CapsUpdate({\n      asset: AaveV3EthereumAssets.cbETH_UNDERLYING,\n      supplyCap: 60_000,\n      borrowCap: EngineFlags.KEEP_CURRENT\n    });\n\n    return capsUpdate;\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-cbeth-supply-cap-03-26/12480)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3ETHCBETHSupplyCapUpdate_20230328/AaveV3EthCBETHSupplyCapUpdate_20230328_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3ETHCBETHSupplyCapUpdate_20230328/AaveV3EthCBETHSupplyCapUpdate_20230328.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CBETH_ETH_SUPPLY_CAP_UPDATE_20230329"
  },
  "CBETH_ETH_V3_EMODE_ACTIVATION_AIP": {
    "title": "Activate Emode for cbETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Activate Emode for cbETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-activate-emode-for-cbeth-aave-ethereum-v3/12074",
    "created": "2023-03-10T00:00:00.000Z",
    "updated": "2023-03-10T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to activate emode for cbETH on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting LSDs diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\ncbETH is currently the second largest ETH Liquid staking derivative of the V3 market.\n\nAllowing the activation of emode has a clear use-case for leveraged strategies based on cbETH as collateral to both “long” cbETH currently at a small discount on secondary markets and increased staking yield via loops strategies.\n\nWith the current supply and borrowing caps, this activation can be done while keeping a conservative approach.\n\nThe ACI does not have any link nor is paid by Coinbase or any entity to present this AIP.\n\n## Specification\n\nTicker: cbETH\n\nContract Address: 0xbe9895146f7af43049ca1c1ae358b0541ea49704\n\n|Risk Parameter| Current Value| Proposed Value|\n| --- | --- | --- |\n|Emode Category|0| 1 |\n\n\n\n```solidity\ncontract AaveV3EthCBETHEmodeActivation is IProposalGenericExecutor {\n  address public constant CBETH = AaveV3EthereumAssets.cbETH_UNDERLYING;\n\n  uint8 public constant EMODE_CATEGORY = 1;\n\n  function execute() external {\n    AaveV3Ethereum.POOL_CONFIGURATOR.setAssetEModeCategory(CBETH, EMODE_CATEGORY);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-activate-emode-for-cbeth-aave-ethereum-v3/12074)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3EthCBETHEmodeActivationTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthCBETHEmodeActivation.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CBETH_ETH_V3_EMODE_ACTIVATION_AIP"
  },
  "CCE7B8AF0848-AIP-ADD-GUNI-TO-AMM-MARKET": {
    "title": "Add G-UNI to Aave V2 AMM Market",
    "status": "Proposed",
    "author": "Gelato Newtork (@gelatodigital)",
    "shortDescription": "Create a new collateral type to Aave's AMM Market with G-UNI stablecoin LP tokens",
    "discussions": "https://governance.aave.com/t/arc-add-gelato-s-g-uni-erc20-uniswap-v3-positions-as-collateral-to-aave-s-amm-market/5687/5",
    "created": "2021-11-07T00:00:00.000Z",
    "preview": "## Simple Summary\n\nAdd Gelato’s G-UNI DAI/USDC and G-UNI USDC/USDT …",
    "content": "\n\n## Simple Summary\n\nAdd Gelato’s G-UNI DAI/USDC and G-UNI USDC/USDT pools as collateral to Aave’s AMM market with these parameters:\n\nCollateral: **yes**\nLTV: **60%**\nLiquidation Threshold: **70%**\nLiquidation Bonus: **15%**\nReserve Factor: **10%**\n\n## Abstract\n\nG-UNI is an ERC20 wrapper around Uniswap v3 LP NFTs which can be used to make liquidity provision on Uniswap v3 fungible and its fee reinvestment process automated. It basically turns Uniswap V3s liquidity positions into Uniswap v2 like ERC20 tokens. \n\nTwo G-UNI Pools have been deployed with Uniswap V3 Positions in highly concentrated ranges (centered around 1:1) on the 0.01% fee tier of both DAI/USDC and USDC/USDT markets. Add liquidity to these pools and earn auto compounded LP fees on these high volume uniswap v3 stablecoin pairs, just by holding the G-UNI LP Token. Because of the fungible nature of these G-UNI tokens which represent proportions of a shared Uniswap V3 position, they are a simple solution for lending and borrowing markets to onboard Uniswap V3 LP as a collateral type.\n\n## Motivation\n\nBased on several discussions with Aave stakeholders and Uniswap v3 Liquidity providers, we believe that the G-UNI DAI / USDC and USDC / USDT pool tokens would provide great value to Aave users as an efficient way of utilizing their USDC, DAI and USDT collateral to borrow other tokens while earning compounding trading fees on Uniswap v3. Moreover, this would enable Aave users to go leverage on their Uniswap v3 positions and potentially 50x the liquidity they provide and thus significantly increase their fees earned.\n\n## Specifications\n\n1. What is the link between the author of the AIP and the Asset?\n\nGelato is the development team behind G-UNI\n\n2. Provide a brief high-level overview of the project and the token\n\nThe token is a wrapper around stablecoin pairs on Uniswap v3, it only uses Gelato’s network of keepers to automate fee compounding\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\nG-UNI would enable Aave users to go leverage on their Uniswap v3 positions and potentially 50x the liquidity they provide and thus significantly increase their fees earned.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?\n\nG-UNI was deployed to Mainnet in June 2021 and since then projects such as Instadapp, MakerDAO, Float and Rari have integrated it. We worked a lot to understand the inner mechanism of Uniswap v3 and did 2 external audits to ensure the smart contracts we are using are secure.\n\n5. How is the asset currently used?\n\nAs Collateral in MakerDAO or for Liquidity mining incentives in projects such as Float or Fei for example.\n\n6. Emission schedule\n\nNo emission\n\n7. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?\n\nAll pools will be immutable, as the upgradability key will or already has been burned.\n\n8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\nVolume corresponds to the volume of DAI, USDC and USDT on Uniswap v3\n\n9. Social channels data (Size of communities, activity on Github)\n\nOver 20k on Twitter and 16k on Telegram\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\nDeployed quite recently, around 50 transactions for the pools, only a couple of holders right now, but will most likely change with MakerDAO having integrated it\n\n## Implementation\n\nThe payload to list the two G-UNI Pools as collateral types on the AMM market and to configure their price oracles is deployed at this contract address: [0x67e4EDE946b3d76c4C505566eB821a1470507d2d](https://etherscan.io/address/0x67e4ede946b3d76c4c505566eb821a1470507d2d#code)\n\nTo execute the action governance simply calls `execute()` method (with no arguments) on the above contract address.\n\nOn execution both pools will be listed with the parameters in \"Simple Summary\" and with borrowing of G-UNI disabled.\n\n## References\n\n* [source code](https://github.com/gelatodigital/g-uni-v1-core)\n* [G-UNI docs](https://docs-g-uni.gelato.network/)\n* [about gelato](https://gelato.network)\n* [gelato whitepaper](https://drive.google.com/drive/folders/1M6i1sa-dRhodw08MCLseytHTdkeFweBH)\n* Ethereum addresses contracts\n  - [G-UNI DAI / USDC](https://etherscan.io/address/0x50379f632ca68d36e50cfbc8f78fe16bd1499d1e)\n  - [G-UNI USDC / USDT](https://etherscan.io/address/0xd2eec91055f07fe24c9ccb25828ecfefd4be0c41)\n* ChainLink Oracle\n  - [DAI](https://etherscan.io/address/0xaed0c38402a5d19df6e4c03f4e2dced6e29c1ee9)\n  - [USDC](https://etherscan.io/address/0x8fffffd4afb6115b954bd326cbe7b4ba576818f6)\n  - [USDT](https://etherscan.io/address/0x3e7d1eab13ad0104d2750b8863b489d65364e32d)\n* G-UNI Oracles\n  - [G-UNI DAI/USDC Oracle](https://etherscan.io/address/0x7843ea2e3e60b24cc12b56c5627adc7f9f0749d6#code)\n  - [G-UNI USDC/USDT Oracle](https://etherscan.io/address/0x399e3bb2bbd49c570aa6edc6ac390e0d0acbbd5e#code)\n* [audits](https://drive.google.com/drive/folders/1AGg9HvaRM8SKlONRCv2rehlNkn5UwqJZ?usp=sharing)\n* Communities\n  - [Discord](https://discord.gg/ApbA39BKyJ)\n  - [Telegram](https://t.me/therealgelatonetwork)\n  - [Twitter](https://twitter.com/gelatonetwork)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "CCE7B8AF0848-AIP-ADD-GUNI-TO-AMM-MARKET"
  },
  "CERTORA-CONTINUOUS-FORMAL-VERIFICATION.2022-23": {
    "title": "Certora Continuous Formal Verification",
    "author": "Shelly Grossman (@shellygr)",
    "shortDescription": "A continuation of proposal 66 to improve the security of smart contracts built on top of Aave using a combination of formal verification and manual code review.",
    "discussions": "https://governance.aave.com/t/security-and-agility-of-aave-smart-contracts-via-continuous-formal-verification/10181",
    "created": "2022-11-08T00:00:00.000Z",
    "preview": "## Simple Summary\n\nIn the last six months, Certora has improved the …",
    "content": "\n\n## Simple Summary\n\nIn the last six months, Certora has improved the security of the Aave protocol and played a significant role in increasing the security community’s involvement in Aave’s development. We want to continue to improve Aave’s security and enable agile development of new products. This proposal will give a brief overview of Certora and formal verification, outline what we’ve accomplished in the last six months, and discuss our goals for ensuring Aave’s security.\n\n## Abstract\n\nCertora is a security company focused on delivering tools that enable developers to mathematically prove the correctness of DeFi protocols. In the last six months, Certora worked closely with the Aave community, Aave developers, BGD labs, and external communities, including The Secureum 1, to guarantee the security of the Aave protocol and enable massive innovation.\n\nWe engaged twenty external security researchers who, along with our team of security engineers and researchers, helped Aave safely develop 16 new products and list 12 new tokens. A total of 51 smart contracts were reviewed which contained over 25,000 lines of Solidity code. One critical and two high-severity bugs were prevented using the hundreds of correctness rules written by the community and the Certora team.\n\nAs we continue our collaboration, we plan to improve on the current proposal in five significant ways: \n1. Allocate more resources\n2. Improve the Certora Prover\n3. Develop new open source technology for automatically checking rules written by the community \n4. Drastically improve the collaboration with auditors and the security research community, and \n5. Develop a monitoring framework for checking the CVL rules before every transaction.\n\n## Motivation\n\nWe propose to continue the current engagement. Below are the highlights of what we will accomplish:\n\n- Allocate six R&D personnel to lead the community in specification development for the Aave protocol.\n- Write specifications and verify new Aave products and listed tokens.\n- Provide free access to our SaaS tooling (Certora Prover) to members of the Aave community.\n- Develop and improve our technology to address needs raised by the Aave verification efforts. We will continue to provide new tools to the Aave community as they are developed.\n- Develop our education materials and be available to the community to help them learn to use our tools.\n- Continue to grow Aave’s security community and incentivize the best of this community to engage with Aave more closely. We propose to award several fellowships to the best security researchers to work closely with Aave and Certora. We have identified leading candidates who contributed to this year’s program.\n- Certora will collaborate with Sigma Prime to help them use the Certora Prover as part of their - ongoing security review 1. We will also collaborate with other third parties such as Secureum, who are working to ensure the security of Aave and building the Aave community. Additionally, Code4rena and Spearbit security researchers are proficient in rule writing. For example, Kurt Barry, who works as an independent security researcher through Spearbit, was able to find a 4 year old bug in the MakeDao tool using the Certora Prover. Therefore, for major code revisions, we will conduct Code4rena competitions for finding bugs and writing correctness rules\n\n## Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Certora's Github [here](https://github.com/Certora/aave-certora-nov22-proposal)\n\nThe Proposal Payload does the following:\n1. Creates a 12-month stream of 1,890,000 aUSDC ($1.89M) to the Certora beneficiary address.\n2. Creates a 12-month stream of 9958 AAVE ($810,000) to the Certora beneficiary address.\nWe've used the 30 days average AAVE price, to calculate the amount of AAVE tokens that corresponds to the $810,000 sum in the proposal. The json file with the price data used is available \n[here](https://github.com/Certora/aave-certora-nov22-proposal/blob/main/data/aave-30d-price-coingecko.json)\n\n\n## Test Cases\n\nThe Proposal Payload has been tested and peer-reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs), including simulations on mainnet of the whole proposal lifecycle.\n\nLink to Test Cases: [Here](https://github.com/Certora/aave-certora-nov22-proposal/tree/main/src/test)\n\n## Implementation\n\nLink to Payload Implementation: [Here](https://github.com/Certora/aave-certora-nov22-proposal/blob/main/src/ProposalPayload.sol)\n\n**Deployed Contracts** ProposalPayload = 0x2D2b1Bf70d98ae9A8CC9A3d7a49C2d321eCC6C04\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CERTORA-CONTINUOUS-FORMAL-VERIFICATION.2022-23"
  },
  "CHAOS-LABS-1INCH-LISTING-ETH-V3-20230517": {
    "title": "Add 1INCH to Aave V3 Ethereum",
    "shortDescription": "Add 1INCH to Aave V3 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-add-1inch-to-aave-v3-ethereum/13043",
    "created": "2023-5-17",
    "preview": "## Simple Summary\n\nThis proposal presents Aave with the opportunity …",
    "content": "\n\n## Simple Summary\n\nThis proposal presents Aave with the opportunity to onboard 1INCH to the Etheruem Aave V3 Market.\n\n## Motivation\n\nAs part of the community efforts on the V2 to V3 migration, Chaos Labs proposed a [multi-phased plan](https://governance.aave.com/t/temp-check-ethereum-v2-to-v3-migration/12636) to promote V3 adoption. As per this plan, Chaos Labs proposes to list 1INCH on Aave V3 on Ethereum. 1INCH is currently listed on V2 Ethereum with borrow disabled.\n\nAs the proposed assets in the migration plan are traded with relatively low market cap and trading volume, we have taken a prudent approach in setting borrow caps to account for no more than 1% of the average daily trading volume. The supply cap was derived using our supply cap methodology with the V2 data (simulation results can be seen in the image below). Additionally, we have adjusted the IR Slope1 to reflect the changes in interest rates over the past months and adjusted the liquidation bonus levels to the current liquidity levels in DEXs.\n\n## Specification\n\nTicker: 1INCH\n\nContract Address: 0x111111111117dC0aa78b770fA6A738034120C302\n\n| Risk Parameter                     | Value      |\n| ---------------------------------- | ---------- |\n| Isolation Mode                     | Yes        |\n| Borrowable                         | Yes        |\n| Collateral Enabled                 | Yes        |\n| Supply Cap (1INCH)                 | 22,000,000 |\n| Borrow Cap (1INCH)                 | 720,000    |\n| Debt Ceiling                       | $4,500,000 |\n| Loan To Value                      | 57.00%     |\n| Liquidation Threshold              | 67.00%     |\n| Liquidation Bonus                  | 7.50%      |\n| Liquidation Protocol Fee           | 10.00%     |\n| Variable Base                      | 0.00%      |\n| Variable Slope1                    | 9.00%      |\n| Variable Slope2                    | 300.00%    |\n| Uoptimal                           | 45.00%     |\n| Reserve Factor                     | 20.00%     |\n| Stable Borrowing                   | Disabled   |\n| Stable Slope1                      | 13.00%     |\n| Stable Slope2                      | 300.00%    |\n| Base Stable Rate Offset            | 3.00%      |\n| Stable Rate Excess Offset          | 5.00%      |\n| Optimal Stable To Total Debt Ratio | 20.00%     |\n| Flahloanable                       | Yes        |\n| Siloed Borrowing                   | No         |\n| Borrowed in Isolation              | No         |\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-add-1inch-to-aave-v3-ethereum/13043)\n\n[Test](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Eth1INCHListing_20230517/AaveV3Eth1INCHListing_20230517_Payload_Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3Eth1INCHListing_20230517/AaveV3Eth1INCHListing_20230517_Payload.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CHAOS-LABS-1INCH-LISTING-ETH-V3-20230517"
  },
  "CHAOS-LABS-AAVE-V2-COVERAGE": {
    "title": "Chaos Labs Aave v2 Coverage",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel, @osadeh)",
    "shortDescription": "Chaos Labs expands its engagement with Aave to support v2 markets",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-aave-v2-coverage/11012",
    "created": "2022-12-21T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal outlines a 5-month engagement for …",
    "content": "\n## Simple Summary\n\nThis proposal outlines a 5-month engagement for Chaos Labs to expand the scope of its engagement with Aave to include proactive risk analysis and management of the v2 markets while encouraging and supporting a safe migration to the upcoming Ethereum v3 deployment.\n\n---\n## Motivation\nThis proposal acts as a mandate from the Aave community to engage with Chaos for the work defined on the Aave governance forum [here](https://governance.aave.com/t/arc-chaos-labs-aave-v2-coverage/11012) and pre-approved by the Aave community via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0xd4df8cd3ef68f787d08cd0f8c529471ed48d70ebc15a562a39dbc0196a9f8e47).\n\nBased on the work done to date in a short time frame and the amount of work ahead to transition from v2 to v3 on Ethereum, Chaos Labs is proposing to extend the scope of the original engagement to support parameter optimization on v2 as well as conduct relevant risk analyses during the transition planning.\n\nOur priority with this added scope would be to methodically update parameters, protect existing user funds, and mitigate new potential risk factors on v2 while ensuring the capital efficiency of v3 is a more attractive option for new users.\n\nThis includes topics and considerations such as:\n\n- Methodically amending asset parameters to incentivize new users to open accounts on v3\n- Initiating coordination with third-party protocols building on top of v2 to assist in transition planning, communications, and timing\n- Helping analyze incentive (both treasury- and parameter-managed) schemes to incite account transitions\n- Continued analysis of the impact of market events and risk scenarios for the DAO\n\nThis work will be in conjunction with our existing v3 responsibilities and should not materially impact timelines for delivery during the coming months.\n\nDuration: We propose this engagement to start immediately after the proposal execution, for a 5-month period. The intent is to bridge the transition from v2 to v3 during this period with a finite end date and not continue on indefinitely. If there is still material TVL on v2 at the end of this period, we will discuss the appropriate next steps and maintenance/monitoring expectations with the community.\n\n---\n## Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Chaos Labs Github [here](https://github.com/ChaosLabsInc/aave-v2-payloads).\n\nIn summary, the proposal creates a 5-month stream of 175,000 aUSDC and 1242 AAVE ($75,000 using 30 day TWAP, calculated on day of proposal) starting on proposal execution to the Chaos-controlled address.\n\nThe Proposal Payload has been tested and peer-reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs), including simulations on mainnet of the whole proposal lifecycle.\n\n---\n## References\n\n- [Forum Post](https://governance.aave.com/t/arc-chaos-labs-aave-v2-coverage/11012)\n\n\n- [Tests](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/tests/V2CoveragePaymentPayload.t.sol)\n- [Proposal payload implementation](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/V2CoveragePaymentPayload.sol)\n- [Deployed proposal payload](https://etherscan.io/address/0x8922235734ec69e956977e2ea9774de8f614053a)\n\n---\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "CHAOS-LABS-AAVE-V2-COVERAGE"
  },
  "CHAOS-LABS-ENS-LISTING-ETH-V3-20230517": {
    "title": "Add ENS to Aave V3 Ethereum",
    "shortDescription": "Add ENS to Aave V3 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-add-ens-to-aave-v3-ethereum/13044",
    "created": "2023-5-17",
    "preview": "## Simple Summary\n\nThis proposal presents Aave with the opportunity …",
    "content": "\n\n## Simple Summary\n\nThis proposal presents Aave with the opportunity to onboard ENS to the Etheruem Aave V3 Market.\n\n## Motivation\n\nAs part of the community efforts on the V2 to V3 migration, Chaos Labs proposed a [multi-phased plan](https://governance.aave.com/t/temp-check-ethereum-v2-to-v3-migration/12636) to promote V3 adoption. As per this plan, Chaos Labs proposes to list ENS on Aave V3 on Ethereum. ENS is currently listed on V2 Ethereum with borrow disabled.\n\nAs the proposed assets in the migration plan are traded with relatively low market cap and trading volume, we have taken a prudent approach in setting borrow caps to account for no more than 1% of the average daily trading volume. The supply cap was derived using our supply cap methodology with the V2 data (simulation results can be seen in the image below). Additionally, we have adjusted the IR Slope1 to reflect the changes in interest rates over the past months and adjusted the liquidation bonus levels to the current liquidity levels in DEXs.\n\n## Specification\n\nTicker: ENS\n\nContract Address: 0xC18360217D8F7Ab5e7c516566761Ea12Ce7F9D72\n\n| Risk Parameter                     | Value      |\n| ---------------------------------- | ---------- |\n| Isolation Mode                     | Yes        |\n| Borrowable                         | Yes        |\n| Collateral Enabled                 | Yes        |\n| Supply Cap (ENS)                   | 1,000,000  |\n| Borrow Cap (ENS)                   | 40,000     |\n| Debt Ceiling                       | $3,900,000 |\n| Loan To Value                      | 39.00%     |\n| Liquidation Threshold              | 49.00%     |\n| Liquidation Bonus                  | 8.00%      |\n| Liquidation Protocol Fee           | 10.00%     |\n| Variable Base                      | 0.00%      |\n| Variable Slope1                    | 9.00%      |\n| Variable Slope2                    | 300.00%    |\n| Uoptimal                           | 45.00%     |\n| Reserve Factor                     | 20.00%     |\n| Stable Borrowing                   | Disabled   |\n| Stable Slope1                      | 13.00%     |\n| Stable Slope2                      | 300.00%    |\n| Base Stable Rate Offset            | 3.00%      |\n| Stable Rate Excess Offset          | 5.00%      |\n| Optimal Stable To Total Debt Ratio | 20.00%     |\n| Flahloanable                       | Yes        |\n| Siloed Borrowing                   | No         |\n| Borrowed in Isolation              | No         |\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-add-ens-to-aave-v3-ethereum/13044)\n\n[Test](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthENSListing_20230517/AaveV3EthENSListing_20230517_Payload_Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthENSListing_20230517/AaveV3EthENSListing_20230517_Payload.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CHAOS-LABS-ENS-LISTING-ETH-V3-20230517"
  },
  "CHAOS-LABS-RISK-PARAMS-ETH-20230529": {
    "title": "Risk Parameter Updates Aave V3 Ethereum",
    "shortDescription": "Risk Parameter Updates Aave V3 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-ethereum-2023-05-18/13128",
    "created": "2023-5-29",
    "preview": "## Simple Summary\n\nA proposal to adjust fourteen (14) total risk …",
    "content": "\n\n## Simple Summary\n\nA proposal to adjust fourteen (14) total risk parameters, including Loan-to-Value, Liquidation Threshold, and Liquidation Bonus, across six (6) Aave V3 Ethereum assets.\n\n## Motivation\n\nChaos Labs’ Parameter Recommendation Platform runs hundreds of thousands of agent-based off-chain and on-chain simulations to examine how different Aave V3 risk parameters configurations would behave under adverse market conditions - and find the optimal values to maximize protocol borrow usage while minimizing losses from liquidations and bad debt.\n\n_Note: As a general guideline, we limit the proposed changes by +-3% for all parameters as a high/low bound for a given proposal. This ensures more controlled changes and allows us to analyze their effect on user behavior before recommending further amendments to the parameters if the optimal configuration is outside this range._\n\nPlease find more information on the parameter recommendation methodology [here](https://community.chaoslabs.xyz/aave/recommendations/methodology).\n\nYou can also view the simulation results and breakdown for the different assets by clicking on them on this [page](https://community.chaoslabs.xyz/aave/recommendations).\n\nThe output of our simulations reveals an opportunity to increase LTVs and LTs for WBTC, WETH, WSTETH, LINK, DAI and USDC on V3 Ethereum, resulting in improved capital efficiency of the system, with a negligible effect on the projected VaR (95th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours) and EVaR (Extreme VaR, the 99th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours)\n\nSimulating all changes jointly yields a projected borrow increase of ~$3.6M, with no increase in VaR and Extreme VaR compared to simulations with the current parameters.\n\n## Specification\n\n| Asset  | Parameter             | Current | Recommended | Change |\n| ------ | --------------------- | ------- | ----------- | ------ |\n| WETH   | Liquidation Threshold | 82.5%   | 83%         | +0.5%  |\n| WETH   | Loan-to-Value         | 80%     | 80.5%       | +0.5%  |\n| WBTC   | Liquidation Threshold | 75%     | 78%         | +3%    |\n| WBTC   | Loan-to-Value         | 70%     | 73%         | +3%    |\n| WBTC   | Liquidation Penalty   | 6.25%   | 5%          | -1.25% |\n| DAI    | Liquidation Threshold | 77%     | 80%         | +3%    |\n| DAI    | Loan-to-Value         | 64%     | 67%         | +3%    |\n| USDC   | Liquidation Threshold | 76%     | 79%         | +3%    |\n| USDC   | Loan-to-Value         | 74%     | 77%         | +3%    |\n| LINK   | Liquidation Threshold | 65%     | 68%         | +3%    |\n| LINK   | Loan-to-Value         | 50%     | 53%         | +3%    |\n| LINK   | Liquidation Penalty   | 7.5%    | 7%          | -0.5%  |\n| WSTETH | Liquidation Threshold | 79.5%   | 80%         | +0.5%  |\n| WSTETH | Loan-to-Value         | 68.5%   | 69%         | +0.5%  |\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-ethereum-2023-05-18/13128)\n\n[Test](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthRiskParams_20230529/AaveV3EthRiskParams_20230529_Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthRiskParams_20230529/AaveV3EthRiskParams_20230529.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CHAOS-LABS-RISK-PARAMS-ETH-20230529"
  },
  "CHAOS-LABS-RISK-PARAMS-POLY-23-04": {
    "title": "Risk Parameter Updates Aave V3 Polygon",
    "shortDescription": "Risk Parameter Updates Aave V3 Polygon",
    "author": "Chaos Labs (@ori-chaoslabs)",
    "discussions": "https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-polygon-2023-04-23/12828/2",
    "created": "2023-4-27",
    "preview": "## Simple Summary\n\nA proposal to adjust nine (9) total risk …",
    "content": "\n\n## Simple Summary\n\nA proposal to adjust nine (9) total risk parameters, including Loan-to-Value, Liquidation Threshold, and Liquidation Bonus, across four (4) Aave V3 Polygon assets.\n\n## Abstract\n\nThis proposal acts as a mandate from the Aave community to engage with Chaos for the work defined on the Aave governance forum [here](https://governance.aave.com/t/updated-proposal-chaos-labs-risk-simulation-platform/10025) and pre-approved by the Aave community via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0xad105e87d4df487bbe1daec2cd94ca49d1ea595901f5773c1804107539288b59).\n\n## Motivation\n\nChaos Labs’ Parameter Recommendation Platform runs hundreds of thousands of agent-based off-chain and on-chain simulations to examine how different Aave V3 risk parameters configurations would behave under adverse market conditions - and find the optimal values to maximize protocol borrow usage while minimizing losses from liquidations and bad debt.\n\n*Note: As a general guideline, we limit the proposed changes by +-3% for all parameters as a high/low bound for a given proposal. This ensures more controlled changes and allows us to analyze their effect on user behavior before recommending further amendments to the parameters if the optimal configuration is outside this range.*\n\nPlease find more information on the parameter recommendation methodology [here](https://community.chaoslabs.xyz/aave/recommendations/methodology).\n\nYou can also view the simulation results and breakdown for the different assets by clicking on them on this [page](https://community.chaoslabs.xyz/aave/recommendations).\n\nThe output of our simulations reveals an opportunity to increase LTVs and LTs for WBTC, DAI, LINK and wMATIC on V3 Polygon, resulting in improved capital efficiency of the system, with no effect on the projected VaR (95th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours) and EVaR (Extreme VaR, the 99th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours)\n\nSimulating all changes jointly yields a projected borrow increase of ~400,000$, with no increase in VaR and Extreme VaR compared to simulations with the current parameters.\n\n## Specification\n\n| Asset | Parameter | Current | Recommended | Change |\n| --- | --- | --- | --- | --- |\n| WBTC | Liquidation Threshold | 75% | 78% | +3% |\n| WBTC | Loan-to-Value | 70% | 73% | +3% |\n| DAI | Liquidation Threshold | 80% | 81% | +1% |\n| DAI | Loan-to-Value | 75% | 76% | +1% |\n| LINK | Liquidation Threshold | 65% | 68% | +3% |\n| LINK | Loan-to-Value | 50% | 53% | +3% |\n| wMATIC | Liquidation Threshold | 70% | 73% | +3% |\n| wMATIC | Loan-to-Value | 65% | 68% | +3% |\n| wMATIC | Liquidation Penalty | 10% | 7% | -3% |\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-polygon-2023-04-23/12828)\n\n[Test](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3PolRiskParams_20230423/AaveV3PolRiskParams_20230423_Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3PolRiskParams_20230423/AaveV3PolRiskParams_20230423.sol)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CHAOS-LABS-RISK-PARAMS-POLY-23-04"
  },
  "CHAOS-LABS-RISK-PLATFORM-PROPOSAL": {
    "title": "Chaos Labs Risk Platform Proposal",
    "status": "Proposed",
    "author": "Omer Goldberg (@arieg419)",
    "shortDescription": "Chaos Labs will build risk tooling to support Aave v3.",
    "discussions": "https://governance.aave.com/t/updated-proposal-chaos-labs-risk-simulation-platform/10025",
    "created": "20222-10-20",
    "preview": "## Simple Summary\n\nThis proposal outlines a 12-month engagement for …",
    "content": "\n\n## Simple Summary\n\nThis proposal outlines a 12-month engagement for Chaos Labs to build and utilize risk and simulation tooling to help optimizations and protect Aave v3 markets.\n\n## Abstract\n\nThis proposal acts as a mandate from the Aave community to engage with Chaos for the work defined on the Aave governance forum [here](https://governance.aave.com/t/updated-proposal-chaos-labs-risk-simulation-platform/10025) and pre-approved by the Aave community via Snapshot [here](https://snapshot.org/#/aave.eth/proposal/0xad105e87d4df487bbe1daec2cd94ca49d1ea595901f5773c1804107539288b59).\n\n## Motivation\n\nChaos Labs is eager to collaborate with Aave to ensure it maintains its position as a best-in-class DeFi protocol with one of the most serious and intentional risk operations. Aave v3 has over $1b in locked TVL and will shortly be launching on Ethereum, drastically increasing the assets controlled and the users engaging with it. Chaos has previously built a [v3 Risk Dashboard](http://aave.chaoslabs.xyz/ccar) to help monitor these positions and is excited to expand that capability using its proprietary on-chain simulation engine.\n\nChaos Labs will focus on risk management and parameter recommendations for all v3 markets.\n\nThis includes:\n\n- Borrow & lending caps recommendations\n- Collateral factors recommendations\n- Interest rates recommendations\n- Asset listing risk analytics & tooling\n- Open-sourced agent access\n- Extending the AAVE v3 Risk Analytics App\n- Community Risk Calls\n\nWhile incorporating feedback from the community, we have committed to building trust between the Aave community and Chaos Labs. To this end, the payment streams will not start until 6 months after AIP approval with two incentive-based payments not included in this proposal but will be submitted after delivery. The DAO may terminate our engagement after 6 months prior to this stream initializing.\n\n## Specification\n\nA full specification of the payload contract and tests enabling this mandate can be found on the Chaos Labs Github [here](https://github.com/ChaosLabsInc/aave-chaos-v3-risk-proposal).\n\nIn summary, the proposal creates a 6-month stream of 500,000 aUSDC ($0.5 Million) to the Chaos-controlled address starting at block height equivalent to the 6-month anniversary of on-chain approval.\n\n## Test Cases\n\nThe Proposal Payload has been tested and peer-reviewed by [Bored Ghost Developing](https://twitter.com/bgdlabs), including simulations on mainnet of the whole proposal lifecycle.\n\nLink to Test Cases: [Here](https://github.com/ChaosLabsInc/aave-chaos-v3-risk-proposal/tree/main/src/test)\n\n## Implementation\n\nLink to Payload Implementation: [Here](https://github.com/ChaosLabsInc/aave-chaos-v3-risk-proposal/blob/main/src/ProposalPayload.sol)\n\n**Deployed Contracts** ProposalPayload = 0x691B41805f7Ef2D7De6165bC42295b035a31600D\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CHAOS-LABS-RISK-PLATFORM-PROPOSAL"
  },
  "COLLECTOR-V2-ASSET-CONSOLIDATION": {
    "title": "Ethereum v2 Collector Contract Consolidation",
    "author": "Llama, DeFi_Consulting, efecarranza, dydymoon",
    "shortDescription": "Consolidate the assets held within the v2 Collector Contract",
    "discussion": "https://governance.aave.com/t/arfc-ethereum-v2-collector-contract-consolidation/10909",
    "created": "2023-01-17T00:00:00.000Z",
    "updated": "2023-01-18T00:00:00.000Z",
    "preview": "# Summary\n@llamaxyz proposes consolidating the Aave v2 Collector …",
    "content": "\n\n# Summary\n@llamaxyz proposes consolidating the Aave v2 Collector Contract holdings by swapping a portion of the long tail assets to USDC and redeeming assets from the Aave AMM deployment.\n\n# Abstract\nThe Aave v2 Collector Contract has accumulated a holding in several assets over time. Assets from the v1, v2, RWA, ARC, and AMM depoloyments all accumulate in the Ethereum v2 Collector Contract. This proposal is the first of several intended to consolidate the various Collector Contracts and Treasury holdings.\n\nThis proposal seeks to consolidate 17 assets in the v2 Ethereum Collector Contract to USDC and redeem ammTokens for the underlying assets.\n\n# Motivation\nThe DAO is currently accumulating over 60 assets in the v2 Collector Contract from various Aave deployments. Many of these holdings are of small economic value, are undercollateralized assets, or exhibit volatile pricing behaviour. Upon consolidating the DAO’s assets into USDC, which most of the DAO’s costs are denominated in, Llama intends to present the community with recommendations for deploying a portion of the larger holdings.\n\nThe AMM Liquidity Pool, v2, attracts very little capital and usage relative to other deployments. A number of the assets are frozen and, with v3 being deployed on Ethereum soon, it makes sense for the DAO to relocate this capital away from from the v2 AMM deployment. This proposal enables the following ammTokens, aAmmDAI, aAmmUSDC, aAmmUSDT, aAmmWBTC, and aAmmWETH to be redeemed periodically by calling a contract. Any actor will be able to interact with the contract via Etherscan. Llama, or anyone else, can redeem these ammTokens periodically with the underlying asset to be held within the v2 Collector Contract.\n\n# Specification\nThie following assets held within the Ethereum v2 Collector Contract are to be converted to USDC via swap contract.\n\n![long-tail asssets](https://i.imgur.com/2WY7n0o.png)\n\nUsers will be able to deposit USDC and receive the tokens mentioned in the table above, plus a small premium. The premium is expected to reimburse the cost incurred from swapping the applicable token to USDC along with associated gas costs. The methodology enables actors to support Aave in swapping one asset for another by creating an arbitrage opportunity in a decentralized manner.\n\nThe following assets are to be redeemed from the AMM deployment.\n\n![amm assets](https://i.imgur.com/e1WHaaM.png)\n\n# Implementation\nThe below outlines at a high level the flow of events this proposal will achieve:\n\nRedeem aTokens and ammTokens for underlying asset\nDeploy a Swap Contract whereby actors can deposit USDC and receive a selected token stated in the above table at the Chainlink Oracle price + premium\nv2 Collector Contract receives USDC\nTest cases can be found [here](https://github.com/llama-community/aave-v2-collector-consolidation/blob/main/src/test/ProposalPayloadE2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-v2-collector-consolidation/blob/main/src/ProposalPayload.sol)\n\nProposal Payload = [0xBefcd01681224555b74eAC87207eaF9Bc3361F59](https://etherscan.io/address/0xBefcd01681224555b74eAC87207eaF9Bc3361F59)\n\n# Copyright\nCopyright and related rights waived via CC0.\n",
    "basename": "COLLECTOR-V2-ASSET-CONSOLIDATION"
  },
  "COLLECTORS_UNIFICATION": {
    "title": "Aave v2/v3 Collectors unification",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Unification of collector contract across all Aave deployments",
    "discussions": "https://governance.aave.com/t/bgd-aave-v2-v3-collectors-unification/12434",
    "created": "2023-04-05T00:00:00.000Z",
    "updated": "2023-04-05T00:00:00.000Z",
    "preview": "## Simple Summary\nTechnical upgrade to align the implementation and …",
    "content": "\n\n\n## Simple Summary\nTechnical upgrade to align the implementation and architecture of Aave’s ecosystem Collector contracts across all networks.\n\n## Motivation\n\nThe Aave ecosystem, and more precisely its liquidity protocol (v1/v2/v3) collect fees in a decentralized way, which later on are used for example to fund grants, pay different service providers, or pursue different other strategies.\n\nAll these actions are controlled by the Aave Governance V2 smart contracts (or cross-chain governance), and due to technical reasons regarding upgradeable contracts, usually they are triggered by interacting with another contract called Controller of Collector, which simply acts as a layer of indirection with the Collector itself.\n\nBut in practice, this current organization has some points of improvement:\n\n- The codebase of the Collector is different across instances of Aave. The most updated version is the one on Ethereum, with others for example not supporting streaming, just because of legacy reasons.\n- The pattern of Controller of Collector <> Collector can be simplified and unified with other parts of the ecosystem.\n\nSometimes, this lack of technical unification creates overhead (both operational and of understanding) on contributors, specifically those interacting with the “treasury” side of the protocol like Llama, so we present this proposal to improve the system.\n\n## Specification\n\nThe smart contract used as the implementation of the Aave v2 & v3 Collector (a common proxy for both) is the most updated of the ecosystem, activated on https://app.aave.com/governance/proposal/71/, and mainly adding streaming capabilities.\n\n- UpgradeAaveCollectorPayload: this proposal payload will deploy the most up-to-date version of the collector and set it as the implementation for the existing proxy for all v3 deployments. Moreover, it will change not optimal \"Controller of Collector\" pattern to a more commonly used \"ProxyAdmin\".\n\nCurrently, apart from Ethereum, Polygon, and Avalanche are the only networks with both instances of Aave v2 and v3.\n\n- MigrateV2CollectorPayload: This proposal will redirect all future fee collection of the v2 pools to v3’s Collector by updating the AToken implementation. For both Polygon and Avalanche v2, instances, before redirecting fee collection to the v3’s Collector, the proposal will send there all the accrued fees plus rewards incentives on those.\n\nThis proposal will be an approval for the Avalanche part, and both payloads will be executed there separately by the Aave Guardian. For other networks, the execution will happen through this proposal.\n\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/bgd-aave-v2-v3-collectors-unification/12434)\n- [tests](https://github.com/bgd-labs/aave-collector-unification/tree/main/tests) \n- Contracts:\n  - [Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/src/contracts/Collector.sol)\n  - [AaveMigrationCollector](https://github.com/bgd-labs/aave-collector-unification/blob/main/src/contracts/payloads/AaveMigrationCollector.sol) \n  - [AToken](https://github.com/bgd-labs/protocol-v2/blob/update-atoken-revision/contracts/protocol/tokenization/AToken.sol)\n\n## Security Considerations\n\nThe previous upgrade of the Collector contract, which is currently active on Mainnet, was [reviewed by Certora](https://github.com/bgd-labs/aave-ecosystem-reserve-v2/tree/release/final-proposal/certora). Our policy was to have minimum deviaton from this version.\n\n- **Code diffing**: Comparing the codebase of all existing Collectors with the consolidated one, to not have any unexpected logic included or missing.\n\n- **Storage diffing**: Comparing the storage layout of versions, to verify that there is no misalignment between them, which could create important problems. Generated diffs:\n  - [Mainnet Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/diffs/mainnet_layout_diff.md)\n  - [Polygon Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/diffs/polygon_layout_diff.md)\n  - [Optimism Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/diffs/optimism_layout_diff.md)\n  - [Arbitrum Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/diffs/arbitrum_layout_diff.md)\n  - [Avalanche Collector](https://github.com/bgd-labs/aave-collector-unification/blob/main/diffs/avalanche_layout_diff.md)\n\n- **E2E tests**: we are checking that the main actions available on the Collector can be performed (e.g. transfer, approve) on networks, and additionally we check that updated permissions are set correctly.\n\n## Deployed Contracts\n\nCollector Unification\n\n| Chain | Collector | Payload |\n| --- | --- | --- |\n| Ethereum | https://etherscan.io/address/0x80f2c02224a2e548fc67c0bf705ebfa825dd5439 | https://etherscan.io/address/0x7fc3fcb14ef04a48bb0c12f0c39cd74c249c37d8 |\n| Polygon | https://polygonscan.com/address/0x230e0321cf38f09e247e50afc7801ea2351fe56f | https://polygonscan.com/address/0xa9f30e6ed4098e9439b2ac8aea2d3fc26bcebb45 |\n| Optimism | https://optimistic.etherscan.io/address/0x230e0321cf38f09e247e50afc7801ea2351fe56f | https://optimistic.etherscan.io/address/0xa9f30e6ed4098e9439b2ac8aea2d3fc26bcebb45 |\n| Arbitrum | https://arbiscan.io/address/0x981ab570ac289938f296b975c524b66fbf1b8774 | https://arbiscan.io/address/0x05225cd708bca9253789c1374e4337a019e99d56 |\n| Avalanche | https://snowtrace.io/address/0xbdd1458a6d399c88d4509275e4463485c6c86ef3 | https://snowtrace.io/address/0x0620a1325e64ebfa3a272b020b47583766d9bc25 |\n\nV2 Funds Transfer\n\n| Chain | MigrationCollector | AToken | Payload |\n| --- | --- | --- | --- |\n| Polygon | https://polygonscan.com/address/0xfd858c8bc5ac5e10f01018bc78471bb0dc392247 | https://polygonscan.com/address/0x80f2c02224a2e548fc67c0bf705ebfa825dd5439 | https://polygonscan.com/address/0xc383aac4b3dc18d9ce08ab7f63b4632716f1e626 |\n| Avalanche | https://snowtrace.io/address/0x4752c92085db240e1d9d5653e663a6225d14fcc7 | https://snowtrace.io/address/0x44b4221c950fcf23a40e68dea29fed0bb88893a9 | https://snowtrace.io/address/0x9e9b953a3be8ca196fb7eee4660a5830da0d06de |\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "COLLECTORS_UNIFICATION"
  },
  "CRV-BAD-DEBT-REPAYMENT": {
    "title": "Repay Excess CRV Debt on Ethereum v2",
    "author": "Llama, DeFi_Consulting, efecarranza, dydymoon",
    "discussion": "https://governance.aave.com/t/arfc-repay-excess-crv-debt-on-ethereum-v2/10955",
    "shortDescription": "Purchase CRV and recapitalise CRV Reserve",
    "created": "2023-01-20T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis AIP will procure CRV with aUSDC from the …",
    "content": "\n\n# Simple Summary\n\nThis AIP will procure CRV with aUSDC from the Collector Contract for the purpose of repaying the excess debt in the CRV Reserve on the Ethereum v2 liquidity pool.\n\n# Abstract\nThere are approximately 2,677,749 units of CRV of excessive debt in the Ethereum v2 CRV Reserve. At 96.0 cents per unit, a total of 2,570,639.04 USD, in the form of CRV tokens, is required to recapitalise the protocol.\n\nTo recapitalise the protocol, this proposal will acquire enough CRV to repay the excess debt, plus a buffer. This proposal will complete the acquisition from the existing aUSDC holdings. A total of 2,700,000 units of CRV will be procured, with an approved budget of 3,105,000 units of aUSDC. A price ceiling of $1.15 per unit of CRV has been set in the contract.\n\nAave currently holds 5.26M units of aUSDC in the Ethereum Collector Contract and a further 0.36M units of USDC which will be deposited into Aave v2.\n\n# Motivation\n\nThere is currently around 2,677,749 units of excessive debt in the CRV Reserve on the Ethereum v2 deployment. As the excess debt is nominated in CRV tokens, the excessive debt must be repaid in CRV.\n\nThis proposal follows on from the community discussion, linked here, whereby the community decided to use the aUSDC and USDC holding to acquire the CRV required to repay the excessive debt.\n\n# Holdings Summary Table\n\nHolding\t$ Value\t% of Excessive Debt\naUSDC\t5,255,944.02\t204.46\nUSDC\t359,693.90\t13.99\nExcessive Debt\t2,570,639.04\t100\nThe table shows there is in total 218.45% more aUSDC and USDC relative to the excessive debt value in the Ethereum Collector Contract, ethereum:0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c.\n\n# Specification\n\nDeposit the USDC held in the Ethereum Collector Contract and use the aUSDC holding to acquire 2,700,000 units of CRV via a swap contract. A 10 bps premium to the CRV/USD Chainlink Oracle is to be applied.\n\nCRV/USD Oracle: 0xCd627aA160A6fA45Eb793D19Ef54f5062F20f33f\n\nEstimated Premium: 2,570,639.04 * 0.0010 = $2,570.64\nA $15,000 swap via ParaSwap at 14 gwei + depositing into the swap contract is estimated to cost $12 - $15, 10 bps is $15.\n\nA cap of $3,105,000 will be placed on swap contract. This is a defined ceiling which limits the amount of funds allocated for acquiring CRV on market. A price cap of $1.15 has also been set within the contract. The $1.15 ceiling is 19.79% higher than the spot price.\n\nAny actor interacting with the swap contract will have the ability to deposit CRV and receive aUSDC.\n\n# Implementation\n\nDeploy a swap contract exchanging aUSDC for CRV with an approved budget of 3,105,000 units of aUSDC.\n\nTo repay the excess debt, the repay function will be used. This function requires CRV as an input and the address the bad debt has accumulated within.\n\npool.repay(crv, total bad debt, variableInterest, Address)\n\nCRV: ethereum:0xD533a949740bb3306d119CC777fa900bA034cd52\nTotal Excessive Debt: 2,570,639.04 units of CRV\nAddress: 0x57e04786e231af3343562c062e0d058f25dace9e\n\nTest cases can be found [here](https://github.com/llama-community/aave-repay-excess-crv-debt/blob/main/src/test/ProposalPayloadE2E.t.sol)\n\nPayload Implementation can be found [here](\n\nProposal Payload = [0xaa7ef2f9b31fa26e802ca9b3e33990ada4143fb9](https://etherscan.io/address/0xaa7ef2f9b31fa26e802ca9b3e33990ada4143fb9)\n\n# Copyright\n\nCopyright and related rights waived via CC0.\n",
    "basename": "CRV-BAD-DEBT-REPAYMENT"
  },
  "CRV-INTEREST-RATES": {
    "title": "CRV Interest Rate Curve Upgrade",
    "discussions": "https://governance.aave.com/t/arfc-crv-interest-rate-curve-upgrade/11337",
    "shortDescription": "Upgrade the CRV interest rate curve across Ethereum v2, Polygon v3, and Polygon v2 Liquidity Pools",
    "author": "Llama",
    "created": "2023-02-27T00:00:00.000Z",
    "preview": "# Simple Summary\n\nLlama presents a proposal to update the CRV …",
    "content": "\n\n# Simple Summary\n\nLlama presents a proposal to update the CRV interest rate parameters on the Aave Ethereum v2, Polygon v3, and Polygon v2 Liquidity Pools.\n\n# Abstract\n\nThe CRV SupplyCap on the Polygon v3 deployment is currently at 100% with borrowing costs of 5.02% with a Utilization of 31.51% relative to a 45% Uoptimal value, [1]. This proposal intends to increase the CRV SupplyCap on Polygon v3 deployment, improve the capital efficiency of each liquidity pool, and increase the amount of revenue generated across the various CRV reserves.\n\nCapital efficiency is improved on active reserves by increasing the Uoptimal value. Revenue is increased by introducing a Base interest rate, increasing the Slope1 and aligning the Reserve Factor to 20% across all pools. \n\nThis AIP is expected to lead more CRV revenue and significantly reduce the amount of free CRV in active reserves.\n\n# Motivation\n\nWith the CRV reserve on Polygon reaching its SupplyCap, this is an ideal time to implement an upgrade that addresses the SupplyCap and Interest Rate parameters. \n\nThe current CRV Interest Rate reflects the original parameters implemented when the liquidity pools were deployed. The Interest Rate Parameters do not take into consideration the alternative use cases for CRV and consequently, Aave has missed out on revenue from the sustained borrowing demand.\n\nLlama expects the sustained borrowing demand to continue due to Curve's veTokenomics presenting several opportunities for CRV borrowers to earn yield. \n\nIn this proposal, the Uoptimal parameter is to be increased from 45% to 70%, which improves the capital efficiency of active reserves.\n\n![](https://i.imgur.com/BhKxsuS.png)\n\n![](https://i.imgur.com/GZNc30u.png)\n\nSpecific to the Polygon v3 deployment, increasing the Uoptimal parameter from 45% to 70% will lead to an increase in the BorrowCap, which is a function of the SupplyCap and Uoptimal parameter.\n\nBorrowCap = SupplyCap * (Uoptimal + 0.1)\n\nThe new SupplyCap parameter has been prepared by Chaos Labs, 1,125.24K. This generates a new Borrow Cap of 900.19K, [2].\n\n![](https://i.imgur.com/VDtUak2.png)\n\nThe interest rate at the current Optimal point is 7%.\n\n![](https://i.imgur.com/g0jtJql.png)\n\nThis proposal recommends introducing a Base and increasing the Slope1 parameter to 3% and 14% respectively.  This will lead to a substantial change to the current curve. Over time, we will monitor the reserve and amend the Slope1 parameter to optimize for risk exposure and revenue generation.\n\nThe graphic below shows the changes in the interest rate.\n\n![](https://i.imgur.com/WMT8KMn.png)\n\nThe Reserve Factor on Polygon v3 is to be increased from 10% to 20%, bringing it in line with all other Aave deployments.\n\n# Specification\n\nThe below table shows the current and proposed changes to the CRV Reserve on Polygon v3, Polygon v2 and Ethereum v2.\n\n**Polygon v3 - Active**\n\n|Parameter|Current|Proposed|\n| --- | --- | --- |\n|SupplyCap|937,700 units|1,125,240 units|\n|BorrowCap|640,440 units|900,190 units|\n|Uoptimal|45.00%|70.00%|\n|Variable Base|0.00%|3.00%|\n|Variable Slope1|7.00%|14.00%|\n|Variable Slope2|300.00%|300.00%|\n|Reserve Factor|10.00%|20.00%|\n|Stable Borrowing|Disabled|Disabled|\n|Stable Slope1|0.00%|8.00%|\n|Stable Slope2|0.00%|300.00%|\n|Base Stable Rate Offset|2.00%|3.00%|\n|Stable Rate Excess Offset|5.00%|5.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|20.00%|\n\n**Polygon v2 - Frozen**\n\n|Parameter|Current |Proposed|\n| --- | --- | --- |\n|Uoptimal|45.00%|45.00%|\n|Base|0.00%|3.00%|\n|VariableSlope1|7.00%|14.00%|\n|VariableSlope2|300.00%|300.00%|\n|StableSlope1|10.00%|17.00%|\n|StableSlope2|300.00%|300.00%|\n|Reserve Factor|20.00%|20.00%|\n\n**Ethereum v2 - Frozen**\n\n|Parameter|Current|Proposed|\n| --- | --- | --- |\n|Uoptimal|45.00%|45.00%|\n|Base|0.00%|3.00%|\n|VariableSlope1|7.00%|14.00%|\n|VariableSlope2|300.00%|300.00%|\n|StableSlope1|10.00%|17.00%|\n|StableSlope2|300.00%|300.00%|\n|Reserve Factor|20.00%|20.00%|\n\n# Implementation\n\n**Polygon v3**\n\nTest cases can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/test/ProposalPayloadV3E2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/ProposalPayloadPolygon.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer-v3/tree/main/script)\n\nProposal Payload deployed address can be found [here](https://polygonscan.com/address/0x3b6532efb7a60711f8f3fa77a589a726c836f4cf)\n\nInterest Rate Strategy deployed address can be found [here](https://polygonscan.com/address/0xBefcd01681224555b74eAC87207eaF9Bc3361F59)\n\n**Polygon v2**\n\nTest cases can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/test/ProposalPayloadV2E2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/ProposalPayloadPolygon.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer/tree/main/script)\n\nProposal Payload deployed address can be found [here](https://polygonscan.com/address/0x3b6532efb7a60711f8f3fa77a589a726c836f4cf)\n\nInterest Rate Strategy deployed address can be found [here](https://polygonscan.com/address/0x334c59E5a50932a3C34AC39AB12131C648Cc1aE8)\n\n**Ethereum v2**\n\nTest cases can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/test/ProposalPayloadV2E2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-crv-interest-rate-updates/blob/main/src/ProposalPayload.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer/tree/main/script)\n\nProposal Payload deployed address can be found [here](https://etherscan.io/address/0xbacbe678e2c59343024fd5755262c7b0f77867d1)\n\nInterest Rate Strategy deployed address can be found [here](https://etherscan.io/address/0x5E6EFF5bEFe97c8b87BEa94F6e9940156CC47027)\n\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arfc-crv-interest-rate-curve-upgrade/11337), [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0x56aaf192f5cad8277b0e7c82abad030c62bb8fcfe4f2640ce5b896ab04397c20) and [Risk Service Provider feedback](https://governance.aave.com/t/arfc-crv-interest-rate-curve-upgrade/11337/9).\n\n# References\n\n1. https://app.aave.com/reserve-overview/?underlyingAsset=0x172370d5cd63279efa6d502dab29171933a610af&marketName=proto_polygon_v3\n2. https://governance.aave.com/t/aave-v3-borrow-caps-methodology/10925\n3. https://creativecommons.org/publicdomain/zero/1.0/\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "CRV-INTEREST-RATES"
  },
  "DFS-FLASHBORROWERS-PART-II": {
    "title": "DeFi Saver Aave V3 FlashBorrowers Whitelist Part II",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "DeFi Saver Aave V3 FlashBorrowers Whitelist Part II",
    "discussions": "https://governance.aave.com/t/arfc-add-defi-saver-to-flashborrowers-on-aave-v3/12410",
    "created": "2023-05-24T00:00:00.000Z",
    "preview": "## Simple Summary\nThis proposal presents Aave governance with the …",
    "content": "\n\n## Simple Summary\nThis proposal presents Aave governance with the opportunity to whitelist DeFi Saver as part of FlashBorrowers of Aave V3 on Optimism liquidity pool.\n\n## Motivation\nDeFi Saver has a long-standing history of synergies with the Aave Protocol, being one of the first third-party integrations of Aave V1 in 2020.\n\nCurrently, every flashloan has a 9 bps fee that rewards liquidity providers in Aave. While flashloans were created by Aave, the ecosystem as a whole has replicated this feature, and most protocols do not implement any fees.\n\nThe ACI does not support waiving the fees for flashloans in general, as we firmly believe that users’ funds used, even in the context of a single transaction, should be rewarded.\n\nHowever, some strategic use cases of V3, such as emode, are very fee-sensitive as they mobilize high leverage. Waiving the DeFi Saver flashloan fees is expected to make these strategies more convenient and profitable, leading to increased borrow volume and thus increased Aave DAO revenue.\n\nThis proposal presents Aave governance with the opportunity to whitelist DeFi Saver as a part of FlashBorrowers of Aave V3 Optimism liquidity pool.\n\nThis AIP present Aave with the same code as [AIP-196](https://app.aave.com/governance/proposal/196/) but due to  a failed execution of the Optimism payload on the OP side of the cross-chain governance bridge, we are resubmitting it.\nCode stays unchanged.\n\n## Specification\n\nThis AIP aims to implement a single payload, which will simply call addFlashBorrower() on the ACL_MANAGER contract.\n\n```solidity\n\ncontract AaveV3OptDFSFlashBorrowActivation is IProposalGenericExecutor {\n  address public constant FL_AAVE_V3 = 0xfbcF23D2BeF8A2C491cfa4dD409D8dF12d431c85;\n  address public constant FL_ACTION = 0xE668197A175E7A2143222a028470c6ABBBD183F6;\n\n  function execute() external {\n    AaveV3Optimism.ACL_MANAGER.addFlashBorrower(FL_AAVE_V3);\n    AaveV3Optimism.ACL_MANAGER.addFlashBorrower(FL_ACTION);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-defi-saver-to-flashborrowers-on-aave-v3/12410)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3DFSFlashBorrow_20230403/AaveV3ETHDFSFlashBorrowActivation_20230403_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3DFSFlashBorrow_20230524/AaveV3DFSFlashBorrow_20230524.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "DFS-FLASHBORROWERS-PART-II"
  },
  "E96287A0963D-AIP-ADD-TERRA-USD-(UST)-TO-AAVE-V2": {
    "title": "Add Terra USD (UST) to AAVE v2",
    "status": "Proposed",
    "author": "Anjan Vinod (@anjan_vinod), Adam Cader (@adamcader_)",
    "shortDescription": "Create an Aave market for UST",
    "discussions": "https://governance.aave.com/t/add-support-for-terra-usd-ust/6003",
    "created": "2021-12-08T00:00:00.000Z",
    "updated": "N/A",
    "preview": "​\n## Simple Summary\n​\nTerraUSD (UST) is an algorithmic, …",
    "content": "\n​\n## Simple Summary\n​\nTerraUSD (UST) is an algorithmic, seigniorage-based stablecoin. UST’s market capitalization has grown to almost $8.5B since its inception in October 2020. UST is designed such that each UST can be redeemed for $1 of LUNA and vice versa. This mechanism has kept the price close to the peg. \n \nAdding UST to Aave should drive additional stablecoin liquidity and borrow demand to the protocol. This proposal recommends a 0% collateral factor for UST.\n​\n## Abstract\n​\nThe version of UST added will be USTw (Wormhole UST). The Terra ecosystem is migrating from the centralized Shuttle Bridge to the decentralized Wormhole V2 bridge.\n​\nThe UST peg is maintained through an open market arbitrage system facilitated by Terra’s market module. An explanation of the contraction system is outlined below:\n​\nIf 1 UST is trading at .99 USD, users can buy 1 UST for .99 USD. Users then utilize Terra Station’s market swap function to trade 1 UST for 1 USD of Luna. The swap burns 1 UST and mints 1 USD of Luna. Users profit .01 UST from the swap. This arbitrage continues, and UST is burned to mint Luna until the price of UST rises back to 1 USD.\n​\nThe reverse works if 1 UST is trading above 1.00 USD. Through this system, UST has been able to maintain its peg within a relatively tight range.\n​\n​\n## Motivation\n​\nUST is supported by major Ethereum and Terra dApps including Curve, Uniswap, Sushi, Mirror, and Anchor. We believe there will be strong demand to borrow and lend UST given its stability and liquidity profile. UST will likely drive additional stablecoin liquidity and borrow demand to AAVE.\n​\nFinally, Terra has begun its migration from its centrally held bridge to Wormhole. This move should decrease the risks associated with UST while improving its network effects as it reaches more chains in the future.\n​\n## Specification\n​\n1. What is the link between the author of the AIP and the Asset?\n​\nParaFi Capital is an active AAVE governance participant, submitting AIPs to list stable assets including FEI, and modifying liquidity mining incentives. ParaFi is also a user of AAVE and UST.\n​\n2. Provide a brief high-level overview of the project and the token\n​\nUST is part of the Terra ecosystem, started by the Terra Form Labs team. UST has been live since October 2020 and has become the largest decentralized stablecoin. The number of unique holders of UST has grown substantially over the past few months, and we expect that figure to grow as UST launches on more chains.\n​\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n​\nUST’s on-chain and off-chain liquidity profile have improved significantly this year. Additionally, UST’s stability has improved, especially during market dislocations. We believe UST will drive more stablecoin liquidity and borrow demand to Aave. \n​\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are they live?). How did it overcome some of the challenges it faced?\n​\nTerra is a blockchain protocol and stablecoin ecosystem centered around fiat-pegged, seigniorage style stablecoins. Terra was developed by Terra Form Labs. The Terra ecosystem supports dozens of DeFi and metaverse applications. \n \nThe wormhole Terra contracts have been developed by Certus One (part of Jump Crypto) and audited by Kudelski. The wormhole v2 contracts are in active development.\n​\n5. How is the asset currently used?\n​\nUST can be used in dozens of applications across Terra, Ethereum, and Solana.\n​\n6. Emission schedule\n​\nThere is no emission schedule. The supply of UST is expanded or contracted to maintain the $1 peg.\n​\n7. Token (& Protocol) permissions (minting) and upgradability. Is there a multisig? What can it do? Who are the signers?\n​\nAs mentioned above, we believe the main concern with adding UST is its centralized bridge solution - this changes with Wormhole.\n \nThe Wormhole Network underpins the bridge with a validator set that observes the chains it’s connected on. The Network is governed by 19 guardians that watch connected chains and sign message observations. Users deposit funds onto the token bridge from where their tokens are originating (e.g. UST on Terra) and the action is deconstructed into a message which is sent to the Wormhole Network who validates it and produces a signed message. The signed message is sent to the output token bridge (e.g. USTw on Ethereum) which verifies it and sends the user the wrapped bridge tokens.\n​\nGiven the track record of UST, we believe the addition of UST would pose low risk to the Aave ecosystem.\n​\n6. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n​\nMarket cap: $8.5B total\n24 hour volume: $100M+\nVolatility: Link to volatility data: https://governance.aave.com/t/add-support-for-terra-usd-ust/6003/19\nExchanges: Curve, Sushiswap, Uniswap, Balancer, Kucoin, Bittrex, Terraswap, Coinbase, MEXC, Gemini, Bitfinex\n​\n9. Social channels data (Size of communities, activity on Github)\n​\nCommunities: 240k followers on Twitter, 25k in Telegram, 16k in Discord\n​\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\t\n\tContracts date of deployments, number of transactions, number of holders for tokens\n\tNo. of transactions: 417,173\n\tNo. of holders: 21,707\n​\n## Rationale\nTo mitigate concerns, a 0% collateral factor will allow UST to be supplied or borrowed - not used as collateral. This limits the risk for Aave and its users in other markets. As the wormhole contracts continue to be used and UST gains further adoption, the collateral factor can be increased. The use of rateStrategyStableTwo, reserve factor, and disabled stable borrowing is similar to other stablecoins per: https://docs.aave.com/risk/asset-risk/risk-parameters.\n​\n## Implementation\n​\nThe UST price oracle will be served via [ChainLink](https://chain.link/), which includes the [UST/ETH feed](https://docs.chain.link/docs/ethereum-addresses). The Chainlink UST/ETH Price Feed Proxy contract address is 0xa20623070413d42a5C01Db2c8111640DD7A5A03a. \n​\nUST will only be used for depositing, not as collateral. The following params are proposed:\n​\n​\n - Strategy: rateStrategyStableTwo\n - Base LTV As Collateral: 0\n - Liquidation Threshold: 0\n - Liquidation Bonus: 0\n - Borrowing Enabled: true\n - Stable BorrowRate Enabled: false\n - Reserve Decimals: 6\n - Reserve Factor: 2000\n​\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n​\n- Interest bearing aUST: 0x6C35faC782Be2Db776cdF777196a47916806892b\n- Variable Debt variableDebtUST: 0xd8aBEdc9CE320752e77C4A8706E64212EdE834B9\n- Stable Debt stableDebtUST: 0x107ed1832647436a0D39F09e65f4aA920242C0BB\n- Strategy Implementation for UST: 0x0dEDCaE8Eb22A2EFB597aBde1834173C47Cff186\n- Incentive Controller: 0x036cA61C1977c6EA52222Db81F725fDBd70eFBd7\n\n\nThe Incentive Controller was added in anticipation of LUNA incentives to UST borrowers/lenders being proposed by the community and thus for future engineering simplicity.\n​\n## References\n​\nWebsite - https://terra.money\n​\nTwitter - https://twitter.com/terra_money and https://twitter.com/wormholecrypto\n​\nDocs - https://docs.terra.money/ and https://docs.wormholenetwork.com/wormhole/\n​\nGithub - https://github.com/terra-money and https://github.com/certusone/wormhole\n​\nToken Contract - https://etherscan.io/token/0xa693B19d2931d498c5B318dF961919BB4aee87a5\n​\n## Copyright\n​\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "E96287A0963D-AIP-ADD-TERRA-USD-(UST)-TO-AAVE-V2"
  },
  "EACB2C901249-AIP-SEBA-BANK-WHITELISTER-ON-AAVE-ARC": {
    "title": "Add SEBA Bank as a whitelister on Aave Arc",
    "status": "Proposed",
    "author": "Diego Garcia (@diego-g)",
    "shortDescription": "Proposal to add SEBA Bank, a licensed and supervised Swiss Bank, as a “whitelister” on the Aave Arc market.",
    "discussions": "https://governance.aave.com/t/arc-adding-seba-bank-as-a-whitelister-to-aave-arc/6661",
    "created": "2022-01-31T00:00:00.000Z",
    "preview": "## Simple Summary\n\nSEBA Bank asks the Aave Governance community to …",
    "content": "\n\n## Simple Summary\n\nSEBA Bank asks the Aave Governance community to approve the appointment, adoption, and authorization of SEBA Bank AG, a licensed and supervised Swiss Bank, as a “whitelister” on the Aave Arc market.\n\n## Abstract\n\nSEBA is a licensed and supervised Swiss Bank providing a seamless and secure bridge between digital and traditional assets. The interest of SEBA’s clients and prospects for crypto earning products has grown substantially overtime. The launch of Aave Arc with its permissioned layer represents a great opportunity for them to access DeFi yields while remaining compliant with their regulatory obligations. At SEBA, we believe that this will directly benefit the Aave community with institutional liquidities accelerating growth in TVL and in protocol revenues.\n\nThe Aave Governance reviews and approves Whitelisters that will conduct the requisite level of due diligence on Aave Arc participants. As a Swiss digital asset bank, we believe that SEBA is ideally positioned to provide those investors with the flexible and fully regulated platform that they need to bridge new liquidities in Aave Arc. We have performed a detailed analysis and documented it [here](https://governance.aave.com/t/arc-adding-seba-bank-as-a-whitelister-to-aave-arc/6661) for the consideration of the Aave Governance community.\n\n## Motivation\n\nWith an increasing demand from institutional investors for accessing new opportunities in the DeFi space, SEBA has positioned DeFi at the heart of its strategy by developing a suite of products and services in relation with decentralized finance. Recently, SEBA has integrated several DeFi tokens into its proprietary institutional-grade cold storage custody solution, including AAVE.\n\nBeyond innovation and transparency brought by permissionless DeFi, SEBA is a strong believer that Aave Arc represents a thoughtful response to a growing institutional demand, which is subject to anti-money laundering (AML) and combatting the financing of terrorism (CFT) regulations in various jurisdictions. In line with that vision and with innovation at the center of its values, SEBA believes it fulfills the key attributes to perform the role of Whitelister in Aave Arc.\n\n## Specification\n\n[Reference](https://github.com/aave/aip/blob/9da687033ae0536377b822c9196dd783be0e3e65/content/aips/4C7076AA6CC7-AIP-FIREBLOCKS-WHITELISTER-ON-AAVE-ARC.md#specification) to standard.\n\n## Rationale\n\nThe Aave community voted on the [Snapshot proposal](https://snapshot.org/#/aave.eth/proposal/QmNfumVDA2GkmyA3xWC12HhDFGBUybSAHUpvygqkMnV34V) with Yes 324K AAVE (100%) and No 3.3 AAVE (0%).\n\n## Implementation\n### Proposal\n\nThe proposal executes a single call to the [PermissionManager](https://etherscan.io/address/0xF4a1F5fEA79C3609514A417425971FadC10eCfBE) contract to add [SEBA](https://etherscan.io/address/0xC5eeEd1a811b77d64A37d94CF0363bA716375FDd) as PermissionAdmin in Aave ARC market:\n`IPermissionManager(0xF4a1F5fEA79C3609514A417425971FadC10eCfBE).addPermissionAdmins([0xC5eeEd1a811b77d64A37d94CF0363bA716375FDd]);`\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "EACB2C901249-AIP-SEBA-BANK-WHITELISTER-ON-AAVE-ARC"
  },
  "ETH-V2-INTEREST-RATE-UPDATE": {
    "title": "Aave v2 ETH Interest Rate Curve Update",
    "author": "Llama, Matthew Graham, Fermin Carranza and Dydymoon",
    "shortDescription": "Amend Aave v2 Ethereum ETH Interest Rate Curve",
    "discussions": "https://governance.aave.com/t/arc-eth-interest-rate-curve-update/10580",
    "created": "2022-12-13T00:00:00.000Z",
    "preview": "# Simple Summary\n\nLlama recommends amending the ETH interest rate …",
    "content": "\n\n# Simple Summary\n\nLlama recommends amending the ETH interest rate parameters on the Aave Ethereum v2 and v3 Liquidity Pool.\n\n# Abstract\n\nWith Aave v3 about to be deployed and a wstETH and ETH eMode likely, the ETH Interest Rate Curve should be adjusted such that the looped recursive strategy breaks even within Slope 1, where the Interest Rate changes are less volatile.\n\nThe new interest rate curve has an Interest Rate of 5.75% at the Uoptimal point, which is 25 bps more than stETH yield at the time of writing. This proposal will lead to improved capital efficiency of the ETH Reserve and will generate more revenue for the DAO when compared to replicating the existing v2 Interest Rate curve on v3 with the introduction of an ETH eMode Category.\n\nFor the existing v2 market, Llama suggests adopting the same Interest Rate parameters that are being being proposed on v3. This will enable the ETH yields across the markets to somewhat equalize, leading to higher utilization of the ETH Reserve and more revenue for the DAO.\n\n# Motivation\n\nBy changing the Interest Rate at the Uopotimal point from 3% to 5.75%, when an eMode for ETH and wstETH is created on Aave v3, the recursive strategy will break even prior to reaching the Uoptimal utilization within the Reserve. This is a desirable feature as the volatility of the Interest Rate on Slope 1 is less than Slope 2.\n\n\nBy setting the Slope 1 parameter at 5.75% (25 bps greater than the current annual wstETH yield), utilization in the Reserve is not expected to reach the Uoptimal level for any prolonged period of time.\n\nBy reducing the Slope 2 parameter from 100 to 80, the gradient of the second part of the yield curve increases due to an increase in Uoptimal from 70% to 80%. This is subtle and can be seen in the chart below. The Base Rate for the existing Interest Rate and proposed Interest Rate is unchanged at 0%.\n\nWith the recommended new Interest Rate curve for the v3 deployment, it is reasonable to expect the yield across the v2 and v3 deployment to be arbitraged. If the yield on the v3 deployment converges to the wstETH rate, then this will shift the v2 Reserve utilization beyond the Uoptimal level set at 3%. \n\nLlama recommendeds changing the v2 Interest Rate to match the v3 deployment Interest Rate. This way, both v2 and v3 Reserves will experience utilization along the Slope 1 portion of the Interest Rate curve whilst also benefiting from improved capital efficiency.\n\nThe graphic below shows the changes in the interest rate.\n\n![](https://i.imgur.com/uTjXDPz.png)\n\nThis proposal increases the Reserve Factor from 10% to 15%, directing 15% of the interest paid to Aave DAO. When combined with the Interest Rate changes, the v2 deployment will generate an estimated $13.1k per day, up from around $5.5k per day. \n\nPrior to this proposal, due the implementation of AIP-68, Aave DAO is earning less revenue from the ETH Reserve post-merge despite utilization within the Reserve [increasing](https://governance.aave.com/t/optimize-rate-curve-for-eth-improve-revenue-generation/7571) significantly over that time.\n\n# Specification\n\nThe below table shows the current and proposed changes to the ETH Reserve on Ethereum v2 and Ethereum v3 when deployed.\n\n| Parameter      | Current Variable (%) | Proposed Variable (%) | Current Stable (%) | Proposed Stable (%)   |\n| -------------- | ----------- | ------------ | -- | -- |\n| Uoptimal       | 70          | 80           | 70 | 80 |\n| Base           | 0           | 0            | 3.0| 3.0|\n| Slope1         | 3.0         | 5.75         | 4.0| 4.0|\n| Slope2         | 100         | 80           |100 | 80 |\n| Reserve Factor | 10          | 15           | 10 | 15 |\n\n# Implementation\n\nTest cases can be found [here](https://github.com/llama-community/aave-interest-rate-update/blob/main/src/test/ProposalPayloadE2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/llama-community/aave-interest-rate-update/blob/main/src/ProposalPayload.sol)\n\nProposal Payload = [0x98bc9dfa3cecb37f1bdeadc6e774d39082756b19](https://etherscan.io/address/0x98bc9dfa3cecb37f1bdeadc6e774d39082756b19#code)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "ETH-V2-INTEREST-RATE-UPDATE"
  },
  "F93E2038F139-AIP-BAL-AAVE-TOKEN-SWAP": {
    "title": "Strategic Investment Part 1 - BAL <> AAVE Token Swap",
    "status": "Proposed",
    "author": "Matthew Graham (@Matthew_Graham_), Elad Mallel (@eladmallel), Rajath Alex (@0xrajath)",
    "shortDescription": "BAL <> AAVE Token Swap",
    "discussions": "https://governance.aave.com/t/arc-strategic-partnership-with-balancer-part-1/7617",
    "created": "2022-06-05T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThe Aave DAO is to perform a token swap with …",
    "content": "\n\n## Simple Summary\n\nThe Aave DAO is to perform a token swap with Balancer DAO. The Aave DAO is to acquire 200,000 BAL tokens for 16907.28 AAVE tokens based on a 90 day moving average exchange rate of 1 AAVE for 11.8292250604 BAL tokens. \n\nUpon completion of the transaction the BAL tokens will be received into the mainnet Reserve Factor (RF).\n\n\n## Abstract\n\nThis AIP only performs the very first step in creating a veBAL holding for the Aave DAO. This AIP performs only the token swap with Balancer by exchanging AAVE from the Ecosystem Reserve for 200,000 BAL tokens.\n\nThis is the initial transaction that will then allow for the 200,000 BAL tokens plus the aBAL tokens in the Reserve Factor (redeemed for BAL) are to be paired with sufficient ETH and deposited into the Balancer V2 BAL:ETH (80:20) pool. The B-80BAL-20WETH Liquidity Provider position will then be locked up for 1 year. \n\nInitially, the veBAL will be used to vote BAL rewards to pools which support aTokens that create TVL for Aave and/or AAVE liquidity pools.\n\n\n## Motivation\n\nAave and Balancer have a long history of working together. The AAVE : ETH (80/20) Balancer V1 pool BPT is accepted within the Aave Safe Module and the newly created Balancer Boosted Pools drive TVL to Aave markets, [1](https://pools.balancer.exchange/#/pool/0xc697051d1c6296c24ae3bcef39aca743861d9a81/).\n\nWhen the AAVE : ETH (80/20) Balancer V1 pool is moved to Balancer V2 and integrated into Aave’s Safety Module, the veBAL tokens can be used to vote BAL rewards to the newly created AAVE : ETH (80/20) Balancer V2 pool.\n\nIn addition, the veBAL can be used to vote BAL rewards to Balancer Boosted Pools which utilise Aave markets in the background to create yield for passively held liquidity, [2](https://app.balancer.fi/#/pool/0x7b50775383d3d6f0215a8f290f2c9e2eebbeceb20000000000000000000000fe). There are likely to be many more Balancer Boosted Pools that utilise aTokens in the future and the veBAL votes can be used to help bootstrap these pools by directing BAL rewards to those pools. Using veBAL to vote for BAL rewards to pools that strengthen Aave is a strategic advantage of deploying the BAL tokens into the BAL:ETH pool.\n\nBy exchanging AAVE for BAL, the tokenswap reflects the ongoing collaboration and shared vision through governance in each other’s community. The token exchange is significant enough for Aave to become just outside of the Top 50 BAL tokens holder, based on etherscan BAL holder rankings, [3](https://etherscan.io/token/0xba100000625a3754423978a60c9317c58a424e3d#balances). Balancer will become a Top 80 AAVE holder, [4](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9#balances). Each community will have influence in the other’s governance process, enabling them to best represent their interests and to collaborate.\n\nAave will likely be one of the first movers in the upcoming BAL wars and will gain a strategic advantage to bootstrap new Balancer Boosted Pools which lead to tokens being deposited in Aave markets to earn yield. This has the benefit of creating TVL and Revenue for Aave.\n\nThe initial sizing to acquire 200,000 BAL was something that was reached via discussions with the Balancer community and happens to be the same size as the recent Tribe DAO and Balancer token swap, [5](https://tribe.fei.money/t/fip-33-swap-between-balancer-dao-and-fei-dao/3555).\n\n\n## Test Cases\n\n* The full test of the Proposal Payload can be found here: https://github.com/llama-community/aave-balancer-swap\n* The full test of the Swap contract can be found here: https://github.com/llama-community/bal-aave-token-swap\n\n## Implementation\n\nCode Implementation of the OTC swap contract and AAVE proposal payload for AAVE Governance : https://github.com/llama-community/aave-balancer-swap\n\nThe full implementation consists of 4 steps:\n1. Deploy the Swap contract (`OtcEscrowApprovals`). The Swap contract contains a `swap()` function that trustlessly executes a token swap between the AAVE Ecosystem Reserve + AAVE Mainnet Reserve Factor and Balancer treasury for the pre-determined and pre-approved token amounts.\n2. Balancer treasury approves the Swap contract to transfer the 200,000 BAL tokens on its behalf.\n3. Deploy the Proposal Payload contract (`ProposalPayload`). \n4. The Proposal Payload contract contains an `execute()` function that:\n* Approves the Swap contract contract through the AAVE Ecosystem Reserve Controller to transfer 16907.28 AAVE from the AAVE Ecosystem Reserve. \n* Calls the `swap()` function on the Swap contract to execute the swap. \n\nSteps 1, 2 and 3 are intended to be pre-requisites to the actual implementation of this proposal which is Step 4.\n\n**Deployed Contracts**\n* OtcEscrowApprovals = [0x5AE986d7ca23fc3519daaa589E1d38d19BA42a47](https://etherscan.io/address/0x5ae986d7ca23fc3519daaa589e1d38d19ba42a47)\n* ProposalPayload = [0xc730008C64783a283988b0fA3b5eE6b6F997922A](https://etherscan.io/address/0xc730008c64783a283988b0fa3b5ee6b6f997922a)\n\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "F93E2038F139-AIP-BAL-AAVE-TOKEN-SWAP"
  },
  "FIX-PROPOSAL-224-POLYGON-V2": {
    "title": "Fix rate strategies issue on Aave v2 Polygon",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Applies correct interest rate strategies to fix the issue caused by 224 proposal",
    "discussions": "https://governance.aave.com/t/arfc-aave-v2-interest-rate-curve-recommendations-from-gauntlet-2023-04-21/12846/11",
    "created": "2023-05-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal fixes an issue created by proposal …",
    "content": "\n\n## Simple Summary\n\nThis proposal fixes an issue created by proposal 224 on WETH, WTBC, USDT and WMATIC of Aave v2 Polygon, by connecting new rate strategy contracts with exactly the same approved parameters on 224, but this time fully compatible with v2 Polygon.\n\n## Motivation\n\nProposal 224 updated the interest rate strategies of different assets on Aave v2 Ethereum and Polygon. Even if this worked perfectly fine on Ethereum, due to legacy reasons, Aave v2 Polygon requires slightly different interface on the rates strategy contracts, for them to be compatible with the LendingPool.\nThe new rate strategies connected on proposal 224 for WETH, WMATIC, WBTC and USDT lacked this compatibility, which doesn't allow for user actions to be performed, when involving those assets.\nEven if not putting any funds at risk, this is a problem for users and integrators of Aave v2 Polygon, so this new proposal applies a patch.\n\n## Specification\n\nThis is a cross-chain governance proposal, targeting Aave v2 Polygon.\n\nUpon execution, the proposal will:\n\n- call `POOL_CONFIGURATOR.setReserveInterestRateStrategyAddress(ASSET)` for each of the assets WETH, WBTC, WMATIC and USDT, on Aave v2 Polygon\n\n## Security and additional considerations\n\nThe following verification/test have been made on this proposal:\n\n- Diff reports on configuration parameters of all Aave v2 Polygon listed assets: everything should be exactly the same as before, as parameters don't change; only the Solidity code of the interest rate strategies.\n\n- Diff reports on the Solidity code of the new interest rate strategies, to check that compared with the current interest rate strategies of the affected assets (wrong), the new ones have an extra function, which is the required by the LendingPool:\n\n```\nfunction calculateInterestRates(\n    address reserve,\n    address aToken,\n    uint256 liquidityAdded,\n    uint256 liquidityTaken,\n    uint256 totalStableDebt,\n    uint256 totalVariableDebt,\n    uint256 averageStableBorrowRate,\n    uint256 reserveFactor\n  ) external view override returns (uint256, uint256, uint256)\n```\n\n- Post-execution actions tests, more specifically supplying liquidity on WETH, WBTC, WMATIC and USDT. The revert() caused by proposal 224 boils down to `ReserveLogic.updateInterestRates()`, function used on all pool actions to retrieve the current rate from the rate strategy. `deposit()` working implies the logic of calling the new rate strategy works for all actions.\n\n## References\n\n**Proposal 224 creating the problem**\n\n[https://app.aave.com/governance/proposal/224/](https://app.aave.com/governance/proposal/224/)\n\n**Disclosure of the issue**\n\n[https://governance.aave.com/t/arfc-aave-v2-interest-rate-curve-recommendations-from-gauntlet-2023-04-21/12846/11](https://governance.aave.com/t/arfc-aave-v2-interest-rate-curve-recommendations-from-gauntlet-2023-04-21/12846/11)\n\n**Tests**\n\n[https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2PolygonIR_20230519/AaveV2PolygonIR_20230519.t.sol](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2PolygonIR_20230519/AaveV2PolygonIR_20230519.t.sol)\n\n**Diffs**\n\n[https://github.com/bgd-labs/aave-proposals/tree/main/src/AaveV2PolygonIR_20230519/current-new.md](https://github.com/bgd-labs/aave-proposals/tree/main/src/AaveV2PolygonIR_20230519/current-new.md)\n\n\n**Proposal payload (Polygon)**\n\n[https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2PolygonIR_20230519/AaveV2PolygonIR_20230519.sol](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2PolygonIR_20230519/AaveV2PolygonIR_20230519.sol)\n\n[Payload: 0x7e1f23bdFc7287AF276F77B5A867e85cf0377a31](https://polygonscan.com/address/0x7e1f23bdFc7287AF276F77B5A867e85cf0377a31#code)\n\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "FIX-PROPOSAL-224-POLYGON-V2"
  },
  "FREEZE-AGEUR-V3-POLYGON": {
    "title": "Freeze agEUR on Aave v3 Polygon",
    "author": "BGD Labs (@bgd-labs)",
    "shortDescription": "Following the Midas protocol incident, temporarily freeze agEUR",
    "discussions": "https://governance.aave.com/t/jeur-incident-plan-of-action/11379",
    "created": "2022-01-18T00:00:00.000Z",
    "updated": "2022-01-18T00:00:00.000Z",
    "preview": "## Simple Summary\n\nFollowing the exploit on Midas Protocol, slightly …",
    "content": "\n\n## Simple Summary\n\nFollowing the exploit on Midas Protocol, slightly affecting the collateralization of agEUR, this proposal temporarily freezes agEUR. \n\n## Motivation\n\nEven if agEUR collateralization doesn't seem threatened by the loss on Midas protocol exploit, it is important for the community to decide if a freezing should be executed, for caution.\n\n## Specification\n\nThis is a cross-chain governance proposal for Aave v3 Polygon.\nThe proposal payload simply executes `setReserveFreeze()` on the [Aave v3 Polygon PoolConfigurator](https://polygonscan.com/address/0x8145eddDf43f50276641b55bd3AD95944510021E) for agEUR.\n\n## References\n\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/polygon/AaveV3PolFreezeAGEUR.sol)\n- [Tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/polygon/AaveV3PolJEURAGEURFreeze.t.sol)\n- [Deployed payload](https://polygonscan.com/address/0x7b8fa4540246554e77fcff140f9114de00f8bb8d#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "FREEZE-AGEUR-V3-POLYGON"
  },
  "FREEZE-BUSD-V2-ETH": {
    "title": "Freeze BUSD on Aave v2 ETH",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Freeze BUSD on Aave v2 ETH",
    "discussions": "https://governance.aave.com/t/arfc-freeze-busd-on-aave-v2/11842",
    "created": "2022-02-21T00:00:00.000Z",
    "updated": "2022-02-21T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposes to freeze the BUSD reserve on …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposes to freeze the BUSD reserve on the Aave V2 Ethereum pool \n\n## Motivation\n\nWhile BUSD is not an asset with borrowing power, and recent development does not present risks of excess debt, From Feb 2023, the circulating supply of this asset will eventually go toward zero.\n\nAs there’s no real prospect of growth and the inability to mint new BUSD might hurt peg arbitrage opportunity and asset peg. It seems that the most reasonable path for Aave is to freeze this reserve and invite users to switch to another stablecoin among the diversity present in Aave.\n\n## Specification\n\nTicker: BUSD (BUSD)\n\nContract Address: 0x4Fabb145d64652a948d72533023f6E7A623C7C53\n.\nThe proposal payload simply executes `freezeReserve()` on the [Aave v2 Ethereum LendingPoolConfigurator]https://etherscan.io/address/0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756) for BUSD.\n\n## References\n\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/mainnet/AaveV2EthFreezeBUSD.sol)\n- [Tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV2EthBUSDFreezeTest.t.sol)\n- [Deployed payload](https://etherscan.io/address/0x9c4bf756e2d8da301121b036958f6b3fcd0fe801#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "FREEZE-BUSD-V2-ETH"
  },
  "FREEZE-JEUR-V3-POLYGON": {
    "title": "Freeze jEUR on Aave v3 Polygon",
    "author": "BGD Labs (@bgd-labs)",
    "shortDescription": "Following the Midas protocol incident, temporarily freeze jEUR",
    "discussions": "https://governance.aave.com/t/jeur-incident-plan-of-action/11379",
    "created": "2022-01-18T00:00:00.000Z",
    "updated": "2022-01-18T00:00:00.000Z",
    "preview": "## Simple Summary\n\nFollowing the exploit on Midas Protocol, slightly …",
    "content": "\n\n## Simple Summary\n\nFollowing the exploit on Midas Protocol, slightly affecting the collateralization of jEUR, this proposal temporarily freezes jEUR. \n\n## Motivation\n\nIt is important for the community to decide if a freezing should be executed, for caution, given that a meaningful amount of the jEUR supply (5-10%) seems to be affected.\n\n## Specification\n\nThis is a cross-chain governance proposal for Aave v3 Polygon.\nThe proposal payload simply executes `setReserveFreeze()` on the [Aave v3 Polygon PoolConfigurator](https://polygonscan.com/address/0x8145eddDf43f50276641b55bd3AD95944510021E) for jEUR.\n\n## References\n\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/polygon/AaveV3PolFreezeJEUR.sol)\n- [Tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/polygon/AaveV3PolJEURAGEURFreeze.t.sol)\n- [Deployed payload](https://polygonscan.com/address/0x165e90bd0a41d08fa1891ccdcee315d7b83b3419#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "FREEZE-JEUR-V3-POLYGON"
  },
  "GHST-SOFT-FREEZE-AIP": {
    "title": "GHST Polygon V3 Soft Freeze",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "GHST Polygon V3 Soft Freeze",
    "discussions": "https://governance.aave.com/t/arfc-ghst-polygon-v3-soft-freeze/12192",
    "created": "2023-03-07T00:00:00.000Z",
    "updated": "2023-03-07T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP presents the Aave governance with an …",
    "content": "\n\n## Simple Summary\nThis AIP presents the Aave governance with an opportunity to change GHST risk parameters for Aave Polygon V3 Liquidity pool.\n\n## Motivation\n\nGHST is the native asset of the Aavegotchi ecosystem. This ARFC proposes new risk parameters for GHST following the deprecation of the \"Bonding Curve,\" which created a new risk profile for the asset and is expected to increase its volatility.\n\nPreviously, GHST was minted and burned on an ETH L1 bonding curve contract, which lowered its volatility. However, with the deprecation of the curve, a \"Soft Freeze\" of the GHST asset on Aave V3 Polygon is proposed to allow for a conservative reaction to this new risk profile.\n\nOnce the bonding curve is deprecated and more market data is available on the risk profile of GHST, Aave governance will have in a few weeks/months a stronger basis to assess and provide updated risk parameters for the GHST asset.\n\n## Specification\n\nTicker: GHST (GHST)\n\nContract Address: 0x385Eeac5cB85A38A9a07A70c73e0a3271CfB54A7\n\n| Risk Parameter | Current Value | Proposed Value |\n| --- | --- | --- |\n| Isolation Mode | NO | NO |\n| Enable Borrow | YES | NO |\n| Enable Collateral | YES | YES |\n| Loan To Value | 25% | 0% |\n| Liquidation Threshold | 45% | 45% |\n| Liquidation Bonus | 15% | 15% |\n| Reserve Factor | 20% | 20% |\n| Liquidation Protocol Fee | 10% | 10% |\n| Borrow Cap | 3.23M | 220k |\n| Supply Cap | 5.88M | 4.65M |\n| Debt Ceiling | N/A | N/A |\n\n```solidity\ncontract GHSTV3RiskParamPayload is IProposalGenericExecutor {\n  address public constant GHST = AaveV3PolygonAssets.GHST_UNDERLYING;\n  uint256 public constant GHST_SUPPLY_CAP = 4_650_000;\n  uint256 public constant GHST_BORROW_CAP = 220_000;\n  uint256 public constant GHST_LTV = 0;\n  uint256 public constant GHST_LIQ_THRESHOLD = 4500;\n  uint256 public constant GHST_LIQ_BONUS = 11500;\n  bool public constant GHST_BORROWING_ENABLED = false;\n\n  function execute() external {\n    AaveV3Polygon.POOL_CONFIGURATOR.setSupplyCap(GHST, GHST_SUPPLY_CAP);\n    AaveV3Polygon.POOL_CONFIGURATOR.setBorrowCap(GHST, GHST_BORROW_CAP);\n    AaveV3Polygon.POOL_CONFIGURATOR.setReserveBorrowing(GHST, GHST_BORROWING_ENABLED);\n    AaveV3Polygon.POOL_CONFIGURATOR.configureReserveAsCollateral({\n      asset: GHST,\n      ltv: GHST_LTV,\n      liquidationThreshold: GHST_LIQ_THRESHOLD,\n      liquidationBonus: GHST_LIQ_BONUS\n    });\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-ghst-polygon-v3-soft-freeze/12192)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/GHSTV3PolRiskParamPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/GHSTV3PolRiskParamPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "GHST-SOFT-FREEZE-AIP"
  },
  "LDO-EMISSION-ADMINS": {
    "title": "LDO - Reward Controller Access Request",
    "shortDescription": "Assign Emission_Admin role for LDO  to Lido DAO for the Ethereum, Arbitrum and Optimism v3 Liquidity Pools",
    "discussion": "https://governance.aave.com/t/arfc-ldo-emission-admin-for-ethereum-arbitrum-and-optimism-v3-liquidity-pools/11478",
    "author": "Llama, DeFi_Consulting, defijesus & efecarranza",
    "created": "2023-02-16T00:00:00.000Z",
    "preview": "# Simple Summary\n\nThis proposal is to enable Lido to distribute LDO …",
    "content": "\n\n\n# Simple Summary\n\nThis proposal is to enable Lido to distribute LDO rewards across the Aave v3 Ethereum, Arbitrum and Optimism Liquidity Pools. The `Emission_Admin` role for LDO on each network is to be assigned to a wallet controlled by the Lido DAO.\n\n# Abstract\n\nLido seeks to distribute LDO rewards across to the various Aave v3 deployments. To achieve this, the `EmissionManager` function assigns an owner to the `Emission_Admin` role for LDO on each respective Aave v3 deployment, [1,2].\n\nThe wallet with `Emission Admin` permission for LDO on each aave v3 deployment then controls the distribution of only LDO rewards across the respective Liquidity Pool.\n\n# Motivation\n\nEnable Lido DAO to distribute LDO rewards across the Ethereum, Arbitrum and Optimism v3 Liquidity Pools.\n\nThe Lido Liquidity Mining Committee (LMC) determines the emission rate and duration at which LDO  rewards are offered.\n\nTypically, the LMC meets and determines the next 30 days of LDO rewards on a rolling basis. This means each month, the committee will determine if to extend the LDO rewards, or change the amount of LDO being offered across the various Aave v3 Liquidity Pools.\n\n# Specification\n\nThe `EmissionManager`, a governance controlled contract, assigns the `Emission_Admin` role for a specified token, LDO on each respective network. \n\nThe `Emission_Admin` role controls the distribution of the specified token, LDO, across the specified Aave deployment.\n\nThe `Emission_Admin` can distribute LDO anywhere across the Aave v3 Ethereum, Arbitrum and Optimism Liquidity Pool.\n\n# Implementation\n\n\nSet `Emission_Admin` permission for LDO to the following Lido address: \n\n**Aave v3 Ethereum**\n- LDO Address Reward: [0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32](https://etherscan.io/address/0x5A98FcBEA516Cf06857215779Fd812CA3beF1B32)\n- LDO Address Admin: [0x87D93d9B2C672bf9c9642d853a8682546a5012B5](https://etherscan.io/address/0x87D93d9B2C672bf9c9642d853a8682546a5012B5)\n\n**Aave v3 Arbitrum**\n- LDO Address Reward: [0x13Ad51ed4F1B7e9Dc168d8a00cB3f4dDD85EfA60](https://arbiscan.io/address/0x13Ad51ed4F1B7e9Dc168d8a00cB3f4dDD85EfA60)\n- LDO Address Admin: [0x8C2b8595eA1b627427EFE4f29A64b145DF439d16](https://arbiscan.io/address/0x8C2b8595eA1b627427EFE4f29A64b145DF439d16)\n\n**Aave v3 Optimism**\n- LDO Address Reward: [0xFdb794692724153d1488CcdBE0C56c252596735F](https://optimistic.etherscan.io/address/0xFdb794692724153d1488CcdBE0C56c252596735F)\n- LDO Address Admin: [0x5033823F27c5f977707B58F0351adcD732C955Dd](https://optimistic.etherscan.io/address/0x5033823F27c5f977707B58F0351adcD732C955Dd)\n\n**Test Cases**\n\nArbitrum test cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/arbitrum/AaveV3ArbLDOEmissionAdminPayloadTest.t.sol).\n\nMainnet test cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3EthLDOEmissionAdminPayloadTest.t.sol).\n\nOptimism test cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/optimism/AaveV3OptLDOEmissionAdminPayloadTest.t.sol).\n\n**Payload Implementations**\n\nArbitrum Payload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbLDOEmissionAdminPayload.sol).\n\nMainnet Payload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthLDOEmissionAdminPayload.sol).\n\nOptimism Payload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/optimism/AaveV3OptLDOEmissionAdminPayload.sol).\n\n**Deployed Payloads**\n\nArbitrum Proposal Payload deployed address can be found [here](https://arbiscan.io/address/0x2cbf7856f51660aae066afababf9c854fa6bd11f).\n\nMainnet Proposal Payload deployed address can be found [here](https://etherscan.io/address/0x26366920975b24a89cd991a495d0d70cb8e1ba1f).\n\nOptimism Proposal Payload deployed address can be found [here](https://optimistic.etherscan.io/address/0x2cbf7856f51660aae066afababf9c854fa6bd11f).\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arfc-ldo-emission-admin-for-ethereum-arbitrum-and-optimism-v3-liquidity-pools/11478) and [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0xc28c45bf26a5ada3d891a5dbed7f76d1ff0444b9bc06d191a6ada99a658abe28).\n\n# References\n\n1. https://docs.aave.com/developers/guides/governance-guide/rewards#create-proposal\n2. https://github.com/aave/aave-v3-periphery/blob/master/contracts/rewards/interfaces/IEmissionManager.sol\n3. https://creativecommons.org/publicdomain/zero/1.0/\n\n# Copyright\n\nCopyright and related rights waived via CC0, [3].\n",
    "basename": "LDO-EMISSION-ADMINS"
  },
  "LT-LTV-UPDATES-V2-LONGTAIL-ASSETS-12-14-2022": {
    "title": "Risk Parameter Updates for Aave v2 Ethereum - LTs and LTVs for Long Tail Assets",
    "shortDescription": "Update Liquidation Threshold (LT) and Loan-To-Value (LTV) of ENS, MKR, SNX and CRV on AAVE v2 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-ethereum-lts-and-ltvs-for-long-tail-assets-2022-12-04/10926",
    "created": "2022-12-14T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust eight (8) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust eight (8) total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV), for four (4) assets on Aave V2 Ethereum.\n\n# Abstract\n\nFollowing recent market events, the AAVE community has decided to reduce the risk profile across many higher volatile assets by disabling borrow or freezing across v2 markets ([AIP-121](https://app.aave.com/governance/proposal/121/), [AIP-124](https://app.aave.com/governance/proposal/124/), and [AIP-125](https://app.aave.com/governance/proposal/125/))\n\nAfter mitigating the immediate risk to the protocol with the above AIPs, Chaos Labs is exploring the impact and trade-offs of decreasing the Liquidation Thresholds and LTVs of long-tail assets on Ethereum v2 (ENS, MKR, SNX, and CRV).\n\n# Motivation\n\nCapital efficiency reductions on v2 assets will further mitigate attack vectors, in part by increasing the capital required to wage a price manipulation attack on Aave. In addition, these changes will act as an effective motivation to shift usage to v3, where users can enjoy the benefits of E-mode with enhanced risk techniques and mitigation methodologies.\n\nAs Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. To best minimize this impact, we suggest reaching the desired settings by a series of incremental decreases, following the Risk-Off Framework previously approved by the community, with a reduction of up to 3% in any given AIP. In an attempt to avoid liquidations, Chaos Labs will communicate the planned amendments 7 days before their on-chain execution via all available avenues (Twitter, forums, Nansen Connect, and Blockscan Chat).\n\nThe respective data can be found in the governance forum discussion linked below:\n- [[ARC] - Risk Parameter Updates for Aave v2 Ethereum - LTs and LTVs for Long Tail Assets (2022.12.04)](https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-ethereum-lts-and-ltvs-for-long-tail-assets-2022-12-04/10926)\n\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n*Data from Mainnet snapshot captured on December 15th, 2022, 14:30 GMT\n\n\n\n![](../assets/LT-LTV-UPDATES-V2-LONGTAIL-ASSETS-12-14-2022/LONGTAIL-ASSETS-LT-LTVLRECS.png)\n\n\n# Implementation\nPayload implemendations can be found [here](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/LTTailDecemberPayload.sol)\n\nProposal payload - [0x33d7385B2BF82b2183aFc66dC84EA5f3F2D240D5](https://etherscan.io/address/0x33d7385b2bf82b2183afc66dc84ea5f3f2d240d5#code)\n\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LT-LTV-UPDATES-V2-LONGTAIL-ASSETS-12-14-2022"
  },
  "LT-LTV-UPDATES-V2-MKR-02-26-2023": {
    "title": "Risk Parameter Updates for MKR - Aave V2 Ethereum",
    "shortDescription": "Update Liquidation Threshold (LT) and Loan-To-Value (LTV) of MKR on AAVE v2 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-mkr-on-aave-v2-ethereum-2023-02-17/11948",
    "created": "2023-02-17T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust two (2) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust two (2) total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV), for one (1) asset on Aave V2 Ethereum.\n\n\n# Motivation\nThis proposal is a continuation of a series of proposals ([AIP-136](https://app.aave.com/governance/proposal/136/), [AIP-137](https://app.aave.com/governance/proposal/137/)) intended to reduce the viability of different attack vectors on V2 assets.\n\nAt Chaos Labs, we continuously monitor markets and utilize our [Asset Protection Tool](https://chaoslabs.xyz/posts/chaos-labs-asset-protection-tool) to assess potential attack vectors on the protocol and suggest parameter and configuration updates accordingly (Supply/Borrow Caps, Liquidation Threshold updates, freezing of assets, listing in isolation mode, etc.)\n\nCapital efficiency reductions on V2 assets will further mitigate attack vectors by increasing the capital required to wage a price manipulation attack on Aave. In addition, these changes will act as an effective motivation to shift usage to V3, where users can enjoy the benefits of enhanced risk mitigation mechanisms.\n\nAs Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to clarify the full implications to the community at each step. To minimize this impact, we suggest reaching the desired settings by a series of incremental decreases, following the Risk-Off Framework previously approved by the community, with a reduction of up to 3% in any given AIP.\n\nTo avoid liquidations, Chaos Labs will communicate the planned amendments before their on-chain execution via all available avenues (Twitter, forums, Nansen Connect, and Blockscan Chat).\n\nBelow, we share data to quantify the effect of the recommended reductions on protocol users.\n\nAt the time of this proposal, none of the current positions will be eligible for liquidation due to the proposed change.\n\n$MKR\nZero (0) accounts are eligible for liquidation.\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n| Asset | Parameter | Current | Recommended | Change |\n| --- | --- | --- | --- | --- |\n| MKR | Liquidation Threshold | 67% | 64% | -3% |\n| MKR | Loan-to-Value | 62% | 59% | -3% |\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-mkr-on-aave-v2-ethereum-2023-02-17/11948)\n\n[Tests](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/tests/MKRPayload-Feb26.t.sol)\n\n[Proposal payload implementation](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/MKRPayload-Feb26.sol)\n\n[Deployed proposal payload](https://etherscan.io/address/0x014b2fc091cad41f5d6a8eeb2fef27852f4a97e7#code) \n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LT-LTV-UPDATES-V2-MKR-02-26-2023"
  },
  "LT-LTV-UPDATES-V2-STABLES-12-14-2022": {
    "title": "Risk Parameter Updates for Aave v2 Ethereum - LT and LTV (DAI, USDC)",
    "shortDescription": "Update Liquidation Threshold (LT) and Loan-To-Value (LTV) of DAI and USDC on AAVE v2 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-ethereum-lt-and-ltv-2022-12-01/10897",
    "created": "2022-12-14T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust 4 total risk parameters, …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust 4 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV), for USDC and DAI markets on Aave V2 Ethereum.\n\n# Abstract\n\nFollowing recent market events, the AAVE community has decided to reduce the risk profile across many higher volatile assets by disabling borrow or freezing across v2 markets ([AIP-121](https://app.aave.com/governance/proposal/121/), [AIP-124](https://app.aave.com/governance/proposal/124/), and [AIP-125](https://app.aave.com/governance/proposal/125/))\n\nAfter mitigating the immediate risk to the protocol with the above AIPs, Chaos Labs is exploring the impact and trade-offs of decreasing the Liquidation Thresholds and LTVs of USDC and DAI. Reducing capital efficiency on v2 assets will mitigate attack vectors while also serving as effective motivation to shift usage to v3, where users can enjoy the benefits of E-mode with enhanced risk techniques and mitigation methodologies.\n\nAs Liquidation Threshold reductions may lead to user accounts being eligible for liquidations upon their approval, we want to make the full implications clear to the community at each step. To best minimize this impact, we suggest reaching the desired settings by a series of incremental decreases, following the [Risk-Off Framework](https://snapshot.org/#/aave.eth/proposal/bafkreigdmcfmwvnxfolpds4xkdicgrszgmknig7pz2r2t37tltupdpyfu4) previously approved by the community, with a reduction of up to 3% in any given AIP. In an attempt to avoid liquidations, Chaos Labs will communicate the planned amendments 7 days before their on-chain execution via all available avenues (Twitter, forums, Nansen Connect, and Blockscan Chat).\n\n\n# Motivation\n\nThe priority of this proposal is not to optimize markets (capital efficiency); but rather to focus on the security and risk mitigation of the protocol. It will be followed up with additional proposals to update risk parameters to reflect the current market conditions accurately.\n\nThe goal of this ARC is two-fold:\n\n- Reduce LTs → Reducing liquidation thresholds for USDC and DAI effectively reduces capital efficiency and increases the required capital for waging price manipulation attacks on Aave.\n- Encourage user migrations to v3 → This also begins to pave the way towards migrating to v3, where these assets can be utilized in E-mode.\n\nHowever, this is a significant change, and we wanted to present data to quantify and visualize the effect of such reductions on protocol users for community discussion. Specifically, we want to surface data around the liquidations this would trigger, as some are sizable and warrant a discussion of how these should be handled and if this is the most appropriate action forward.\n\nThe respective data can be found in the governance forum discussion linked below:\n- [[ARC] - Risk Parameter Updates for Aave v2 Ethereum - LT and LTV (2022.12.01)](https://governance.aave.com/t/arc-risk-parameter-updates-for-aave-v2-ethereum-lt-and-ltv-2022-12-01/10897)\n\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n*Data from Mainnet snapshot captured on December 15th, 2022, 14:30 GMT\n\n\n![](../assets/LT-LTV-UPDATES-V2-STABLES-12-14-2022/DAI-LT-LTV-RECS.png)\n\n\n![](../assets/LT-LTV-UPDATES-V2-STABLES-12-14-2022/USDC-LT-LTV-RECS.png)\n\n\n# Implementation\nPayload implemendations can be found below:\n- USDC - [LINK](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/DaiLTDecemberPayload.sol)\n- DAI - [LINK](https://github.com/ChaosLabsInc/aave-v2-payloads/blob/main/src/payloads/UsdcLTDecemberPayload.sol)\n\n\nProposal payloads can be found below: \n- USDC - [0xeca5bdf0C2b352cBE2D9A19b555E1EC269d4765C](https://etherscan.io/address/0xeca5bdf0c2b352cbe2d9a19b555e1ec269d4765c#code)\n- DAI - [0x60bCd1CaF97c3fCbC35Bf92A8852728420C34FB5](https://etherscan.io/address/0x60bcd1caf97c3fcbc35bf92a8852728420c34fb5#code)\n\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LT-LTV-UPDATES-V2-STABLES-12-14-2022"
  },
  "LUSDETHV3": {
    "title": "Add LUSD to Aave Ethereum V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Onboard LUSD on Aave Eth V3",
    "discussions": "https://governance.aave.com/t/arc-add-lusd-to-ethereum-v3-market/11522",
    "created": "2023-02-14T00:00:00.000Z",
    "updated": "2023-02-15T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to onboard LUSD to the Ethereum v3 Liquidity Pool.\n\n## Motivation\nSupporting stablecoin diversity diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Liquity or any entity to present this AIP.\n\nThe risk parameters provided introduce LUSD as a non-collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: LUSD\n\nContract Address: [0x5f98805A4E8be255a32880FDeC7F6728C6568bA0](https://etherscan.io/token/0x5f98805A4E8be255a32880FDeC7F6728C6568bA0)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|NO|\n|Enable Borrow|YES|\n|Enable Collateral|NO|\n|Loan To Value|N/A|\n|Liquidation Threshold|N/A|\n|Liquidation Bonus|N/A|\n|Reserve Factor|10%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|1,210k|\n|Supply Cap|3,000K|\n|Debt Ceiling|N/A|\n|Base|0%|\n|Slope1|4%|\n|Uoptimal|80%|\n|Slope2|87%|\n\nThe proposal payload uses the [GenericListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code) to perform a new asset listing with the following parameters:\n\n```solidity\nIGenericV3ListingEngine.Listing({\n      asset: LUSD,\n      assetSymbol: 'LUSD',\n      priceFeed: LUSD_USD_FEED,\n      rateStrategy: 0x349684Da30f8c9Affeaf21AfAB3a1Ad51f5d95A3,\n      enabledToBorrow: true,\n      stableRateModeEnabled: false,\n      borrowableInIsolation: false,\n      withSiloedBorrowing: false,\n      flashloanable: true,\n      ltv: 0,\n      liqThreshold: 0,\n      liqBonus: 0,\n      reserveFactor: 10_00,\n      supplyCap: 3_000_000,\n      borrowCap: 1_210_000,\n      debtCeiling: 0,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arc-add-lusd-to-ethereum-v3-market/11522)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV3EthLUSDPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/mainnet/AaveV3EthLusdPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3EthLUSDPayload: ProposalPayload](https://etherscan.io/address/0x9d4948be10dce66c0f584a6c42fd7d985786b439#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LUSDETHV3"
  },
  "LUSD_ETH_V3_CAP_UPDATE": {
    "title": "Supply and Borrow Caps Update - LUSD - v3 Ethereum",
    "shortDescription": "Increase supply and borrow caps for LUSD on Aave Ethereum V3",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-supply-and-borrow-caps-update-lusd-v3-ethereum/12289",
    "created": "2023-03-15T00:00:00.000Z",
    "preview": "# Summary\n\nA proposal to increase the LUSD supply cap to 6M and the …",
    "content": "\n\n# Summary\n\nA proposal to increase the LUSD supply cap to 6M and the borrow cap to 2.4M.\n\n# Motivation\n\nLUSD is currently at ~96% of its supply cap and ~89% of its borrow cap on Aave V3 Ethereum. This increase in supply and borrow has happened over the past few days following the de-peg events of several stablecoins, including LUSD.\n\nGiven the on-chain liquidity levels, current conservative caps set, and the fact that LUSD is a non-collateral asset, we recommend doubling the supply and borrow cap.\n\nThe proposal represents a 100% increase from the current caps, making this ARFC compliant with the “direct-to-AIP” framework.\n\n# Specification\n\nTicker: LUSD (LUSD)\n\nContract Address: [0x5f98805A4E8be255a32880FDeC7F6728C6568bA0](https://etherscan.io/address/0x5f98805A4E8be255a32880FDeC7F6728C6568bA0)\n\n| Parameter  | Current | Proposed |\n| ---------- | ------- | -------- |\n| Supply Cap | 3M      | 6M       |\n| Borrow Cap | 1.2M    | 2.4M     |\n\n# References\n\n- [Forum Post](https://governance.aave.com/t/arfc-supply-and-borrow-caps-update-lusd-v3-ethereum/12289)\n\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthLusdCapsPayload-Mar15.sol)\n\n- [Tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3EthLusdCapsPayload-Mar15.t.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LUSD_ETH_V3_CAP_UPDATE"
  },
  "LUSD_OP_V3": {
    "title": "Add LUSD to Aave Optimism V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative, Alyra Promo Satoshi",
    "shortDescription": "Onboard LUSD on Aave OP V3",
    "discussions": "https://governance.aave.com/t/arfc-add-lusd-to-optimism-v3-market/12113",
    "created": "2023-03-28T00:00:00.000Z",
    "updated": "2023-03-28T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to onboard LUSD to the Optimism v3 Liquidity Pool.\n\n## Motivation\nSupporting stablecoin diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Liquity or any entity to present this AIP.\n\nThe risk parameters provided introduce LUSD as a non-collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: LUSD\n\nContract Address: [0xc40f949f8a4e094d1b49a23ea9241d289b7b2819](https://optimistic.etherscan.io/address/0xc40f949f8a4e094d1b49a23ea9241d289b7b2819)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|NO|\n|Enable Borrow|YES|\n|Enable Collateral|NO|\n|Loan To Value|N/A|\n|Liquidation Threshold|N/A|\n|Liquidation Bonus|N/A|\n|Reserve Factor|10%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|1,210k|\n|Supply Cap|3,000K|\n|Debt Ceiling|N/A|\n|Base|0%|\n|Slope1|4%|\n|Uoptimal|80%|\n|Slope2|87%|\n\nThe proposal payload uses the IEngine to perform a new asset listing with the following parameters:\n\n```solidity\nIEngine.Listing({\n      asset: LUSD,\n      assetSymbol: 'LUSD',\n      priceFeed: LUSD_USD_FEED,\n      rateStrategyParams: Rates.RateStrategyParams({\n        optimalUsageRatio: _bpsToRay(80_00),\n        baseVariableBorrowRate: 0,\n        variableRateSlope1: _bpsToRay(4_00),\n        variableRateSlope2: _bpsToRay(87_00),\n        stableRateSlope1: _bpsToRay(4_00),\n        stableRateSlope2: _bpsToRay(87_00),\n        baseStableRateOffset: _bpsToRay(1_00),\n        stableRateExcessOffset: _bpsToRay(8_00),\n        optimalStableToTotalDebtRatio: _bpsToRay(20_00)\n      }),\n      enabledToBorrow: EngineFlags.ENABLED,\n      stableRateModeEnabled: EngineFlags.DISABLED,\n      borrowableInIsolation: EngineFlags.DISABLED,\n      withSiloedBorrowing: EngineFlags.DISABLED,\n      flashloanable: EngineFlags.DISABLED,\n      ltv: 0,\n      liqThreshold: 0,\n      liqBonus: 0,\n      reserveFactor: 10_00,\n      supplyCap: 3_000_000,\n      borrowCap: 1_210_000,\n      debtCeiling: 0,\n      liqProtocolFee: 0,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-lusd-to-optimism-v3-market/12113)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPNewListings_20230327/AaveV3OPNewListings_20230327_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPNewListings_20230327/AaveV3OPNewListings_20230327.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "LUSD_OP_V3"
  },
  "MAIPOLYV3CAPUPDATE": {
    "title": "Update MAI Caps Aave Polygon V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Update MAI Caps Aave Polygon V3 pool",
    "discussions": "https://governance.aave.com/t/arfc-increase-borrow-cap-for-mai-aave-polygon-v3/11547",
    "created": "2023-02-16T00:00:00.000Z",
    "updated": "2023-02-16T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to update MAI supply & borrow caps on the Polygon v3 Liquidity Pool.\n\n## Motivation\n\nSupporting stablecoin diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by QiDAO or any entity to present this AIP.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: MiMATIC\n\nContract Address: [0xa3Fa99A148fA48D14Ed51d610c367C61876997F1](https://polygonscan.com/address/0xa3Fa99A148fA48D14Ed51d610c367C61876997F1)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Supply Cap|1,100K|\n|Borrow Cap|600k|\n\n\n\n```solidity\ncontract MAIV3PolCapsPayload is IProposalGenericExecutor {\n  address public constant MAI = 0xa3Fa99A148fA48D14Ed51d610c367C61876997F1;\n\n  uint256 public constant MAI_SUPPLY_CAP = 1_100_000;\n  uint256 public constant MAI_BORROW_CAP = 600_000;\n\n  function execute() external {\n    IPoolConfigurator configurator = AaveV3Polygon.POOL_CONFIGURATOR;\n\n    configurator.setSupplyCap(MAI, MAI_SUPPLY_CAP);\n    configurator.setBorrowCap(MAI, MAI_BORROW_CAP);\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-borrow-cap-for-mai-aave-polygon-v3/11547)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/MaiV3PolCapsPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/MaiV3PolCapsPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [MaiV3PolCapsPayload: ProposalPayload](https://polygonscan.com/address/0xe6e2e24643581c7118f6cf8fc30a8e236efb493e)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "MAIPOLYV3CAPUPDATE"
  },
  "MAI_ARB_V3": {
    "title": "Add MAI to Aave Arbitrum V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Onboard MAI on Aave ARB V3",
    "discussions": "https://governance.aave.com/t/arfc-add-mai-to-arbitrum-aave-v3-market/12759",
    "created": "2023-04-26T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposal presents Aave with the opportunity to onboard MAI to the Arbitrum v3 Liquidity Pool.\n\n## Motivation\n\nSupporting stablecoin diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by QiDAO or any entity to present this AIP.\n\nThe risk parameters provided introduce MAI as a collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: MAI\n\nContract Address: [0x3F56e0c36d275367b8C502090EDF38289b3dEa0d](https://arbiscan.io/address/0x3F56e0c36d275367b8C502090EDF38289b3dEa0d)\n\nRisk Parameter|Value|\n|---|---|\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES (in isolation mode)|\n|Loan To Value|75%|\n|Liquidation Threshold|80%|\n|Liquidation Bonus|5%|\n|Reserve Factor| 20%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|2,400k|\n|Supply Cap|4,800k|\n|Debt Ceiling|1,200k|\n|Base|0%|\n|Slope1|4%|\n|Uoptimal|80%|\n|Slope2|75%|\n\nThe proposal payload uses the IEngine to perform a new asset listing with the following parameters:\n\n```solidity\nIEngine.Listing({\n      asset: MAI,\n      assetSymbol: 'MAI',\n      priceFeed: MAI_USD_FEED,\n      rateStrategyParams: Rates.RateStrategyParams({\n        optimalUsageRatio: _bpsToRay(80_00),\n        baseVariableBorrowRate: 0,\n        variableRateSlope1: _bpsToRay(4_00),\n        variableRateSlope2: _bpsToRay(75_00),\n        stableRateSlope1: _bpsToRay(4_00),\n        stableRateSlope2: _bpsToRay(75_00),\n        baseStableRateOffset: _bpsToRay(1_00),\n        stableRateExcessOffset: _bpsToRay(8_00),\n        optimalStableToTotalDebtRatio: _bpsToRay(20_00)\n      }),\n      enabledToBorrow: EngineFlags.ENABLED,\n      stableRateModeEnabled: EngineFlags.DISABLED,\n      borrowableInIsolation: EngineFlags.DISABLED,\n      withSiloedBorrowing: EngineFlags.DISABLED,\n      flashloanable: EngineFlags.DISABLED,\n      ltv: 75_00,\n      liqThreshold: 80_00,\n      liqBonus: 7_50,\n      reserveFactor: 20_00,\n      supplyCap: 4_800_000,\n      borrowCap: 2_400_000,\n      debtCeiling: 1_200_000,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links for this proposal\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-mai-to-arbitrum-aave-v3-market/12759)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPARBMAIListings_20230425/AaveV3ARBMAIListing_20230425_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPARBMAIListings_20230425/AaveV3ARBMAIListing_20230425.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "MAI_ARB_V3"
  },
  "MAI_OP_V3": {
    "title": "Add MAI to Aave Optimism V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Onboard MAI on Aave OP V3",
    "discussions": "https://governance.aave.com/t/arfc-add-mai-to-optimism-aave-v3-pool/12765",
    "created": "2023-04-26T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposal presents Aave with the opportunity to onboard MAI to the Optimism v3 Liquidity Pool.\n\n## Motivation\n\nSupporting stablecoin diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by QiDAO or any entity to present this AIP.\n\nThe risk parameters provided introduce MAI as a collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: MAI\n\nContract Address: [0xdFA46478F9e5EA86d57387849598dbFB2e964b02](https://optimistic.etherscan.io/address/0xdFA46478F9e5EA86d57387849598dbFB2e964b02)\n\n|Risk Parameter|Value|\n|---|---|\n|Isolation Mode|YES|\n|Enable Borrow|YES|\n|Enable Collateral|YES (in isolation mode)|\n|Loan To Value|75%|\n|Liquidation Threshold|80%|\n|Liquidation Bonus|5%|\n|Reserve Factor|20%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|2,500k|\n|Supply Cap|7,600k|\n|Debt Ceiling|1,900k|\n|Base|0%|\n|Slope1|4%|\n|Uoptimal|80%|\n|Slope2|75%|\n\nThe proposal payload uses the IEngine to perform a new asset listing with the following parameters:\n\n```solidity\nIEngine.Listing({\n      asset: MAI,\n      assetSymbol: 'MAI',\n      priceFeed: MAI_USD_FEED,\n      rateStrategyParams: Rates.RateStrategyParams({\n        optimalUsageRatio: _bpsToRay(80_00),\n        baseVariableBorrowRate: 0,\n        variableRateSlope1: _bpsToRay(4_00),\n        variableRateSlope2: _bpsToRay(75_00),\n        stableRateSlope1: _bpsToRay(4_00),\n        stableRateSlope2: _bpsToRay(75_00),\n        baseStableRateOffset: _bpsToRay(1_00),\n        stableRateExcessOffset: _bpsToRay(8_00),\n        optimalStableToTotalDebtRatio: _bpsToRay(20_00)\n      }),\n      enabledToBorrow: EngineFlags.ENABLED,\n      stableRateModeEnabled: EngineFlags.DISABLED,\n      borrowableInIsolation: EngineFlags.DISABLED,\n      withSiloedBorrowing: EngineFlags.DISABLED,\n      flashloanable: EngineFlags.DISABLED,\n      ltv: 75_00,\n      liqThreshold: 80_00,\n      liqBonus: 5_00,\n      reserveFactor: 20_00,\n      supplyCap: 7_600_000,\n      borrowCap: 2_500_000,\n      debtCeiling: 1_900_000,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links for this proposal\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-mai-to-optimism-aave-v3-pool/12765)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPARBMAIListings_20230425/AaveV3OPMAIListing_20230425_test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/main/src/AaveV3OPARBMAIListings_20230425/AaveV3OPMAIListing_20230425.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "MAI_OP_V3"
  },
  "MATICX-RISK-PARAMETERS": {
    "title": "MaticX Risk Parameter & Interest Rate Upgrade",
    "discussion": "https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555",
    "shortDescription": "Update the MaticX reserve on Polygon v3 to enable borrowing, introduce a BorrowCap and increase the SupplyCap.",
    "author": "Llama, DeFi_Consulting, scottincrypto & efecarranza",
    "created": "2023-02-27T00:00:00.000Z",
    "preview": "# Summary\n\nLlama proposes upgrading the MaticX Reserve on Polygon to …",
    "content": "\n\n# Summary\n\nLlama proposes upgrading the MaticX Reserve on Polygon to facilitate an expansion of the MaticX/wMATIC loop strategy. \n\n# Abstract\n\nUtilisation of the MaticX reserve has been trending higher over time and with the introduction of deposit rewards, the SupplyCap has been reached and it now prohibites additional MaticX being deposited.\n\nIncreasing the SupplyCap enables the recursive MaticX/wMATIC strategy to grow beyond the current constraints. Enabling borrowing, with a reasonable BorrowCap and SD rewards, is expected to generate significant utilisation of the MaticX reserve. \n\nThis proposal facilitates the expansion of MaticX yield based strategies on Aave v3 Polygon by creating more favourable bootstrapping conditions. The introduction of liquidity mining rewards is expected to drive notable inflows and usage to the v3 deployment. \n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions on Aave v3 Polygon to facilitate the creation of several yield aggregation products. The below proposals details are applicable:\n\n* [Proposal to add MaticX to Aave v3 Polygon Market](https://governance.aave.com/t/proposal-to-add-maticx-to-aave-v3-polygon-market/79950)\n* [ARFC Aave v3 Polygon wMATIC Interest Rate Update](https://governance.aave.com/t/arfc-aave-v3-polygon-wmatic-interest-rate-update/10290)\n* [ARFC SD Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-sd-emission-admin-for-polygon-v3-liquidity-pool/10658)\n* [ARFC stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632)\n\nThis proposal is a continuation of the above work.\n\nIn support of the ongoing SD rewards distribution, this proposal seeks to increase the SupplyCap, enable borrowing and introduce a BorrowCap sufficient to create a notable deposit yield.\n\n![](https://i.imgur.com/GSWOAxP.png)\n\nDetailed analysis can be found on the governance forum, [here](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555).\n\n# Specification\n\nThe following risk parameters are being proposed and have been reviewed by [Gauntlet](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555/6).\n\n|Parameter|Current|Proposed Value|\n| --- | --- |---|\n|Loan To Value|50.00%|58.00%|\n|Liquidation Threshold|65.00%|67.00%|\n|Liquidation Bonus|10.00%|10.00%|\n|Liquidation Protocol Fee|0.00%|10.00%|\n|SupplyCap|6.0M units|8.6M units|\n|Borrowing|Disabled|Enabled|\n|BorrowingCap|0.00M units|5.20M units|\n\nWith borrowing to be enabled, the following interest rate parameters have been reviewed by Llama and Gauntlet.\n\n|Parameter|Proposed Value|\n| --- | --- |\n|Base|0.25%|\n|Uoptimal|45.00%|\n|Slope1|4.00%|\n|Slope2|150.00%|\n|Reserve Factor|20.00%|\n|Stable Borrowing |Disabled|\n|Stable Slope1 |0.50%|\n|Stable Slope2 |150.00%|\n|Base Stable Rate Offset |2.00%|\n|Stable Rate Excess Offset | 5.00%|\n|Optimal Stable To Total Debt Ratio | 20.00%|\n\n# Implementation\n\nTest cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolMaticXRiskParamsUpdatePayloadTest.t.sol)\n\nPayload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolMaticXRiskParamsUpdatePayload.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer/tree/main/script)\n\nProposal Payload deployed address can be found [here](https://polygonscan.com/address/0x46a1b7d4a2920270c7eb2c2db4df2259a109bcb4)\n\nInterest Rate Strategy deployed address can be found [here](https://polygonscan.com/address/0x6B434652E4C4e3e972f9F267982F05ae0fcc24b6)\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555), [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0x8abe6a2ae1134d6886f460d6648dc3a5d2f789e1b94e78f496e7f5ec5ff38697) and [Risk Service Provider feedback](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555/6).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "MATICX-RISK-PARAMETERS"
  },
  "MATICX-SUPPLY-CAP-03132023": {
    "title": "MaticX Supply Cap Increase Polygon v3",
    "discussions": "https://governance.aave.com/t/arfc-maticx-supplycap-increase-polygon-v3/12217",
    "shortDescription": "Increase Supply Cap MaticX on Polygon v3 from 8.6M units to 17.2M units.",
    "author": "Llama",
    "created": "2023-03-14T00:00:00.000Z",
    "preview": "# Summary\n\nThis publication proposes increasing the MaticX Supply …",
    "content": "\n\n# Summary\n\nThis publication proposes increasing the MaticX Supply Cap on Polygon v3 from 8.6M units to 17.2M units.\n\n# Abstract\n\nThe Supply Cap for MaticX was increased from 6.0M units to 8.6M units. Within 24 hours of the upgrade going through, the utilisation of the MaticX reserve has reached 99.25%.\n\nThis proposal seeks to increase the Supply Cap by 100% to 17.2M units. Increasing the Supply Cap will enable users to deposit MaticX, earn SD rewards and enter the recursive MaticX/wMATIC yield strategy. The 17.2M unit Supply Cap figure was prepared by Chaos Labs.  \n\nStader Labs is currently offering SD rewards to user who deposit MaticX. This proposal seeks to encourage Stader Labs to continue distributing SD rewards by increasing the Supply Cap and enabling more MaticX to be deposited into Aave. \n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions conducive to growing TVL and Revenue by facilitate the creation of several yield aggregation products. \n\nThe below details various proposals reflecting Llama's efforts to date:\n\n* [Proposal to add MaticX to Aave v3 Polygon Market](https://governance.aave.com/t/proposal-to-add-maticx-to-aave-v3-polygon-market/79950)\n* [ARFC Aave v3 Polygon wMATIC Interest Rate Update](https://governance.aave.com/t/arfc-aave-v3-polygon-wmatic-interest-rate-update/10290)\n* [ARFC SD Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-sd-emission-admin-for-polygon-v3-liquidity-pool/10658)\n* [ARFC stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632)\n* [ARFC MaticX Polygon v3 Upgrade](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555)\n\nAfter executing the [ARFC MaticX Polygon v3 Upgrade](https://governance.aave.com/t/arfc-maticx-polygon-v3-upgrade/11555) proposal, within 24hrs, the Supply Cap of 8.6M has nearly been reached.  \n\n![](https://i.imgur.com/3xB9WkV.png)\n\nIn order to enable the MaticX reserve to grow, the Supply Cap needs to be raised enabling more deposits into the reserve. Furthermore, Stader labs has indicated there are several large MaticX holders seeking to deposit into the MaticX reserve once the SupplyCap has been raised.\n\nWith reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) the preferred path forward is to implement several upgrades to gradually increase Aave's MaticX exposure over time. \n\nThis proposal will increase the Supply Cap from 8.6M units to  17.2M units. This figure was provided by Chaos Labs and has been discussed on the Aave Governance Forum. \n\n# Specification\n\n\n\nTicker: MaticX\n\nContract: [`polygon: 0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6`](https://polygonscan.com/token/0xfa68fb4628dff1028cfec22b4162fccd0d45efb6)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|8.6M units|17.2M units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-maticx-supplycap-increase-polygon-v3/12217)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolMaticXSupplyCap03132023PayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolMaticXSupplyCap03132023Payload.sol)\n* [Deployed Contracts](https://polygonscan.com/address/0x6b5af634e20eaa5fc85f9943913aa46a088ac29e)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "MATICX-SUPPLY-CAP-03132023"
  },
  "POOL_FREEZE_V1": {
    "title": "Freeze Aave V1",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Freeze all reserves on Aave v1 Ethereum and v1 Ethereum AMM",
    "discussions": "https://governance.aave.com/t/arc-strategy-on-sunsetting-of-aave-v1/9450",
    "created": "2022-12-05T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal will perform the next step in …",
    "content": "\n\n## Simple Summary\n\nThis proposal will perform the next step in sunsetting Aave v1 by freezing all reserves on the `Aave Ethereum v1` and `Aave Ethereum Amm V1` pool.\n\n## Motivation\n\nAave V1 was deployed on the Ethereum network back in January 2020, being the first step of everything that would come afterward on the Aave ecosystem. Since then, countless developments happened in the community, amongst them, 2 more iterations of the protocol: Aave v2 and Aave v3.\nAfter the deployment of Aave v2 Ethereum, almost 2 years ago (December 2020), the general approach of the community was to progressively sunset Aave v1, with steps like enabling a migration tool v1 → v2 and disabling stable borrowing on v1 (more information [here](https://governance.aave.com/t/aave-protocol-v1-v2-migration-tool-and-transition-plan/2053)).\nTherefore the next step that was decided upon in this [snapshot vote](https://snapshot.org/#/aave.eth/proposal/0xe4d1c311dcd4a4e392e0333494d3aac8a2521071097e85eeedc34994fa6ed72e) is to freeze all the `v1` reserves.\nWith this change in place, users can still repay & withdraw, but no longer supply and borrow.\n\n## Specification\n\nThe proposal fetches the `LendingPoolCore` and `LendingPoolConfigurator` from the respective [Aave ethereum](https://etherscan.io/address/0x24a42fD28C976A61Df5D00D0599C34c4f90748c8) and [Aave ethereum amm](https://etherscan.io/address/0x7fd53085B9A29D236235D6FC593b47C9C33429F1) LendingPoolAddressesProviders via `getLendingPoolCore()` & `getLendingPoolConfigurator()`.\nAs the next step it fetches all `reserves` via `lendingPoolCore.getReserves()` and freezes them one by one, by iterating though the list and calling `lendingPoolConfigurator.freezeReserve(reserve)`.\n\n## References\n\n- [Deployed implementation](https://etherscan.io/address/0x6f02253c80a041a773efa35c98d4bc14a0f6ef9e#code)\n- [E2E test suite](https://github.com/bgd-labs/aave-proposal-freeze-v1/blob/master/tests/ProposalPayloadAaveFreezeV1.t.sol)\n- [ProposalPayloadAaveFreezeV1](https://github.com/bgd-labs/aave-proposal-freeze-v1/blob/master/src/contracts/ProposalPayloadAaveFreezeV1.sol)\n- [Original discussion](https://governance.aave.com/t/arc-strategy-on-sunsetting-of-aave-v1/9450)\n- [Related discussion](https://governance.aave.com/t/arfc-aave-dao-policy-change-halt-listings-on-all-aave-v1-v2-non-permissioned-deployments/10831/6)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "POOL_FREEZE_V1"
  },
  "PRICE-FEEDS-UPDATE-AAVE-V2-V3-04-05-2023": {
    "title": "Price feeds operational update",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Swap price adapters for wbtc and LSTs, and activation of optimism price oracle sentinel",
    "discussions": "https://governance.aave.com/t/bgd-operational-oracles-update/13213",
    "created": "2023-05-04T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal changes the following price …",
    "content": "\n\n## Simple Summary\n\nThis proposal changes the following price adapters and price oracle sentinel:\n\n- WBTC on Ethereum v2 to the custom `WBTC / BTC / ETH`\n- wstETH on Optimism and Arbitrum v3 to `wstETH / ETH / USD`\n- MATICX on Polygon v3 to the custom adapter, which uses `MATIC / USD` CL feed and `MATICX / MATIC` on-chain rate\n- stMATIC on Polygon v3 to the custom adapter, which utilizes `MATIC / USD` CL feed and `stMATIC / MATIC` on-chain rate\n- price oracle sentinel is configured for Optimism V3\n\n## Motivation\n\nThe current price feeds for certain ETH and MATIC LSTs can result in artificial volatility due to de-synchronization between different asset/PEG feeds.\nAdditionally, the Aave community already pre-approved pricing `WBTC` on Aave v2 based on a WBTC feed, and not assuming that its price is the one provided by BTC/ETH.\n\nTo address this problem and enhance the stability of the Aave platform, we propose to change the price feeds for wstETH on Optimism and Arbitrum to a [custom price adapter](https://github.com/bgd-labs/cl-synchronicity-price-adapter/blob/main/src/contracts/CLSynchronicityPriceAdapterPegToBase.sol) that calculates the `wstETH / ETH / USD` price and is based on Chainlink's feeds under the hood. The same approach is already used for the wstETH on Polygon and WBTC on Aave V3.\n\nWBTC price feed will use the same [adapter implementation](https://github.com/bgd-labs/cl-synchronicity-price-adapter/blob/main/src/contracts/CLSynchronicityPriceAdapterPegToBase.sol), but with the `WBTC / BTC / ETH` inside.\n\nMaticX and stMatic price feeds will be swapped for a [special adapter](https://github.com/bgd-labs/cl-synchronicity-price-adapter/blob/main/src/contracts/MaticSynchronicityPriceAdapter.sol), which utilizes on-chain rate.\n\nAs the Chainlink sequencer feed is available for Optimism, it also makes sense to configure the price oracle sentinel for Aave V3 Optimism, so that all L2 Aave V3 markets where the the Chainlink feed is available, are in sync.\n\n## Specification\n\nUpon execution, the proposal will:\n\n- call `ORACLE.setAssetSources([0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599], [0xFD858c8bC5ac5e10f01018bC78471bb0DC392247])` to replace the price source for `WBTC` on Aave v2\n- call `AaveV3Optimism.POOL_ADDRESSES_PROVIDER.setPriceOracleSentinel(0xB1ba0787Ca0A45f086F8CA03c97E7593636E47D5)` to set the price oracle sentinel on the pool addresses provider\n- use Config Engine to update `wstETH` price feed to [0x05225Cd708bCa9253789C1374e4337a019e99D56](https://optimistic.etherscan.io/address/0x05225cd708bca9253789c1374e4337a019e99d56) on Optimism\n- use Config Engine to update `wstETH` price feed to [0x3105C276558Dd4cf7E7be71d73Be8D33bD18F211](https://arbiscan.io/address/0x3105c276558dd4cf7e7be71d73be8d33bd18f211) on Arbitrum\n- use Config Engine to update `MATICX` price feed to [0x0e1120524e14Bd7aD96Ea76A1b1dD699913e2a45](https://arbiscan.io/address/0x3105c276558dd4cf7e7be71d73be8d33bd18f211) on Polygon\n- use Config Engine to update `stMATIC` price feed to [0xEe96b77129cF54581B5a8FECCcC50A6A067034a1](https://arbiscan.io/address/0x3105c276558dd4cf7e7be71d73be8d33bd18f211) on Polygon\n\n## Security and additional considerations\n\nCustom price adapters are already widely used in the system for price-correlated assets and were [reviewed by the auditors](https://github.com/bgd-labs/cl-synchronicity-price-adapter).\n\n- **MaticX Historical Feeds Comparison**: Comparing the answers from the current feed with the new one for the last 280 days (since CL feed was deployed) with a 4-hour step gave the following results:\n\n  - 35.91% of results differ for less than 0.1%\n  - 62.06% have between 0.1% and 0.5% difference\n  - 2.03% is between 0.5% and 1%\n\nWe also additionally double-checked all points of centralisation of MaticX to be sure that no on-chain manipulation of rates is possible.\n\n- **stMatic Historical Feeds Comparison**: Comparing the answers from the current feed with the new one for the last 327 days (since CL feed was deployed) with a 4-hour step gave the following results:\n  - 95.39% of results differ for less than 0.1%\n  - 4.5% have between 0.1% and 0.5% difference\n  - 0.11% is between 0.5% and 1%\n\nAll points of centralisation of stMatic were also checked to be sure that on-chain manipulation of rates is impossible.\n\n## References\n\nTests: [Ethereum V2](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV2PriceFeedsUpdate_20230504_PayloadTest.t.sol), [Optimism](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3OptPriceFeedsUpdate_20230504_PayloadTest.t.sol), [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3ArbPriceFeedsUpdate_20230504_PayloadTest.t.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3PolPriceFeedsUpdate_20230504_PayloadTest.t.sol)\n\nProposal payload implementation: [Ethereum V2](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV2PriceFeedsUpdate_20230504_Payload.sol), [Optimism](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3OptPriceFeedsSentinelUpdate_20230504_Payload.sol), [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3ArbPriceFeedsUpdate_20230504_Payload.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV2-V3PriceFeedsUpdate_20230504/AaveV3PolPriceFeedsUpdate_20230504_Payload.sol)\n\nPrice Adapters: [WBTC](https://etherscan.io/address/0xFD858c8bC5ac5e10f01018bC78471bb0DC392247), [wstETH Optimism](https://optimistic.etherscan.io/address/0x05225cd708bca9253789c1374e4337a019e99d56), [wstETH Arbitrum](https://arbiscan.io/address/0x3105c276558dd4cf7e7be71d73be8d33bd18f211), [MaticX](https://polygonscan.com/address/0x0e1120524e14bd7ad96ea76a1b1dd699913e2a45), [stMATIC](https://polygonscan.com/address/0xee96b77129cf54581b5a8fecccc50a6a067034a1)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "PRICE-FEEDS-UPDATE-AAVE-V2-V3-04-05-2023"
  },
  "PROTOCOL_UPGRADE_3_0_2": {
    "title": "Upgrade Aave V3 pools to Aave V3.0.2",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Upgrade various contracts to V3.0.2 to align Aave Deployments",
    "discussions": "https://governance.aave.com/t/bgd-upgrade-of-aave-v3-periphery-to-3-0-1-across-networks/10744/9",
    "created": "2023-02-10T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal upgrades the Aave v3 instances on …",
    "content": "\n\n## Simple Summary\n\nThis proposal upgrades the Aave v3 instances on Ethereum, Polygon, Optimism and Arbitrum to the v3.0.2 version.\nThe v3.0.2 is an upgrade based on the v3.0.1 version already running on the new Aave v3 Ethereum pool which comes with improvements to the handling of isolation mode, LTV0, and flashBorrower initiated flashloans.\nIf this proposal succeeds, it will also authorize the upgrade of the V3 pools on Avalanche and Fantom via a delegatecall by the Aave Guardian.\n\nThe upgrades to be performed will affect the following contracts:\n\n1. Pool\n2. PoolConfigurator\n3. aToken/variableDebtToken/stableDebtToken\n\nAnd replace the `AaveProtocolDataProvider` on the PoolAddressesProvider with it's next iteration.\n\n## Motivation\n\nAave v3 Ethereum has been activated via Aave governance at the end of January. But in reality, as described [HERE](https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990/13), the smart contracts on Ethereum are a slightly improved version of v3, the so-called v3.0.1.\n\nIn an ecosystem like Aave, with liquidity pool instances spread across multiple networks, it is fundamental to try to keep version consistency, which is not the case at moment, with Polygon, Avalanche, Optimism, Arbitrum, Fantom, and Harmony running still on v3.0.0. Therefore this proposal aligns all pools at v3.0.2.\n\n## Specification\n\nUpon execution on the respective network the proposal will:\n\n- call `POOL_ADDRESSES_PROVIDER.setPoolImpl(NEW_POOL_IMPL)` to replace the Pool implementation (all networks)\n- call `POOL_ADDRESSES_PROVIDER.setPoolConfiguratorImpl(NEW_POOL_CONFIGURATOR_IMPL)` to replace the PoolConfigurator implementation (all networks, excluding mainnet)\n- call `POOL_ADDRESSES_PROVIDER.setPoolDataProvider(NEW_PROTOCOL_DATA_PROVIDER)` to replace the AaveProtocolDataProvider (all networks, excluding mainnet)\n- iterate through all currently listed tokens on the pool (fetched via `POOL.getReservesList()`) (all networks, excluding mainnet)\n  - call `POOL_CONFIGURATOR.updateAToken(inputAToken)` to replace the aToken implementation\n  - call `POOL_CONFIGURATOR.updateVariableDebtToken(inputVToken)` to replace the vToken implementation\n  - call `POOL_CONFIGURATOR.updateStableDebtToken(inputSToken)` to replace the sToken implementation\n  - call `POOL_CONFIGURATOR.setReserveFlashLoaning(reserve, true)` to enable flashloaning on the reserve\n- call `ACL_MANAGER.grantRole(ISOLATED_COLLATERAL_SUPPLIER_ROLE, SWAP_COLLATERAL_ADAPTER)` to maintain pre-upgrade behavior (all networks, excluding harmony)\n- call `ACL_MANAGER.grantRole(ISOLATED_COLLATERAL_SUPPLIER_ROLE, MIGRATION_HELPER)` to maintain pre-upgrade behavior (mainnet, avalanche, polygon)\n- call `POOL_CONFIGURATOR.updateFlashloanPremiumTotal(0.0005e4)` and `updateFlashloanPremiumToProtocol(0.0004e4)` to align flash loan fees with the currently configured.\n\n## Security and additional considerations\n\nWe applied the following security procedures for this upgrade:\n\n- **Code diffing**: Comparing the codebase of all v3.0.0 with the one of v3.0.1, more specifically the one on Aave v3 Ethereum, to not have any unexpected logic included.\n- **Storage diffing**: Comparing the storage layout of both versions, to verify that there is no misalignment between them, which could create important problems.\n- **Assets configurations pre/post upgrade**: In a simulation environment, validating the configurations of the assets pre-upgrade are the same as post-upgrade, only with those changes that are intended (e.g. enabling the new `flashloanable` flag only present on v3.0.1, later explained).\n- **Additional E2E tests**: Also in a simulation environment, checking that the main actions available on the pool can be performed (e.g. supply, borrow) on all pools with non-frozen assets.\n- **Extra review**: Given their involvement in the development of Aave v3, we have requested AaveCompanies to take a look at the procedure, in order to have multiple parties validating it.\n- **Audit**: Certora and SigmaPrime reviewed the v3.0.1 -> v3.0.2 changes\n\nThe decision to enable `flashloanable` for all the assets has been taken in order to have the highest possible consistency with the current state of the assets in the pools: currently, all are flashloanable, so by enabling the new flag, they will continue to be so.\n\n## References\n\n- [Repository](https://github.com/bgd-labs/proposal-3.0.1-upgrade)\n- [Storage/code diffs](https://github.com/bgd-labs/proposal-3.0.1-upgrade/tree/main/diffs)\n- [sigma prime 3.0.1 audit report](https://github.com/aave/aave-v3-core/blob/master/audits/23-12-2022_SigmaPrime_AaveV3-0-1.pdf)\n- [PeckShield 3.0.1 audit report](https://github.com/aave/aave-v3-core/blob/master/audits/09-12-2022_PeckShield_AaveV3-0-1.pdf)\n- [Cerora 3.0.2 audit report](https://github.com/bgd-labs/proposal-3.0.1-upgrade/blob/main/audits/Aave_V3.0.2_PR_820_Report_Mar2023.pdf)\n- [sigma prime 3.0.2 audit report](https://github.com/bgd-labs/proposal-3.0.1-upgrade/blob/main/audits/19-04-2023_SigmaPrime_AaveV3-0-2.pdf)\n- [Forum discussion](https://governance.aave.com/t/bgd-upgrade-of-aave-v3-periphery-to-3-0-1-across-networks/10744/9)\n- [Payload:Mainnet](https://etherscan.io/address/0x6f6caee8348c10dc9441fbe28cb588566f1251d5#code#F17#L1)\n- [Payload:Polygon](https://polygonscan.com/address/0xb56c0688316c333bfaa20cd7d836e05d48939b58#code#F17#L78)\n- [Payload:Arbitrum](https://arbiscan.io/address/0xf876fa9a96ecd51c0bba8554ff2e397fe7f73bab#code#F17#L1)\n- [Payload:Optimism](https://optimistic.etherscan.io/address/0x45ce944c29a25aee0e135f8f89ab55dc9c5438e5#code#F17#L1)\n- [Update diffs](https://github.com/bgd-labs/proposal-3.0.1-upgrade/tree/main/diffs)\n- BorrowLogic: [Mainnet](https://etherscan.io/address/0x5d834EAD0a80CF3b88c06FeeD6e8E0Fcae2daEE5#code), [Polygon](https://polygonscan.com/address/0x5d834EAD0a80CF3b88c06FeeD6e8E0Fcae2daEE5#code), [Arbitrum](https://arbiscan.io/address/0x5d834EAD0a80CF3b88c06FeeD6e8E0Fcae2daEE5#code), [Optimism](https://optimistic.etherscan.io/address/0x5d834EAD0a80CF3b88c06FeeD6e8E0Fcae2daEE5#code), [Avalanche](https://snowtrace.io/address/0x5d834EAD0a80CF3b88c06FeeD6e8E0Fcae2daEE5#code), [Fantom](https://ftmscan.com/address/0x5d834ead0a80cf3b88c06feed6e8e0fcae2daee5#code)\n- BridgeLogic: [Mainnet](https://etherscan.io/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code), [Polygon](https://polygonscan.com/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code), [Arbitrum](https://arbiscan.io/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code), [Optimism](https://optimistic.etherscan.io/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code), [Avalanche](https://snowtrace.io/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code), [Fantom](https://ftmscan.com/address/0x57572C9e795F4B6A748EFBeAB7E0a1B9996A0A24#code)\n- ConfiguratorLogic: [Mainnet](https://etherscan.io/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code), [Polygon](https://polygonscan.com/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code), [Arbitrum](https://arbiscan.io/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code), [Optimism](https://optimistic.etherscan.io/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code), [Avalanche](https://snowtrace.io/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code), [Fantom](https://ftmscan.com/address/0x7406aba1Aa5fE5cd71d958CE10fc28c416a33aA0#code)\n- EModeLogic: [Mainnet](https://etherscan.io/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code), [Polygon](https://polygonscan.com/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code), [Arbitrum](https://arbiscan.io/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code), [Optimism](https://optimistic.etherscan.io/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code), [Avalanche](https://snowtrace.io/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code), [Fantom](https://ftmscan.com/address/0xeAbd65827E91Ac3aE5471C11A329fbc675cA46d6#code)\n- FlashLoanLogic: [Mainnet](https://etherscan.io/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code), [Polygon](https://polygonscan.com/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code), [Arbitrum](https://arbiscan.io/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code), [Optimism](https://optimistic.etherscan.io/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code), [Avalanche](https://snowtrace.io/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code), [Fantom](https://ftmscan.com/address/0x0A62276bFBF1Ad8443f37Da8630d407408085c8b#code)\n- LiquidationLogic: [Mainnet](https://etherscan.io/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code), [Polygon](https://polygonscan.com/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code), [Arbitrum](https://arbiscan.io/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code), [Optimism](https://optimistic.etherscan.io/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code), [Avalanche](https://snowtrace.io/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code), [Fantom](https://ftmscan.com/address/0xe175De51F29d822b86e46A9A61246Ec90631210D#code)\n- PoolLogic: [Mainnet](https://etherscan.io/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code), [Polygon](https://polygonscan.com/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code), [Arbitrum](https://arbiscan.io/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code), [Optimism](https://optimistic.etherscan.io/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code), [Avalanche](https://snowtrace.io/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code), [Fantom](https://ftmscan.com/address/0xD5256981e08492AFc543aF2a779Af989E9f9F7e7#code)\n- SupplyLogic: [Mainnet](https://etherscan.io/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code), [Polygon](https://polygonscan.com/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code), [Arbitrum](https://arbiscan.io/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code), [Optimism](https://optimistic.etherscan.io/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code), [Avalanche](https://snowtrace.io/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code), [Fantom](https://ftmscan.com/address/0x39dF4b1329D41A9AE20e17BeFf39aAbd2f049128#code)\n- PoolImpl: [Mainnet](https://etherscan.io/address/0xF1Cd4193bbc1aD4a23E833170f49d60f3D35a621#code), [Polygon](https://polygonscan.com/address/0xb77fc84a549ecc0b410d6fa15159c2df207545a3#code), [Arbitrum](https://arbiscan.io/address/0xbcb167bdcf14a8f791d6f4a6edd964aed2f8813b#code), [Optimism](https://optimistic.etherscan.io/address/0x764594f8e9757ede877b75716f8077162b251460#code), [Avalanche](https://snowtrace.io/address/0xcf85ff1c37c594a10195f7a9ab85cbb0a03f69de#code), [Fantom](https://ftmscan.com/address/0x84B08568906ee891de1c23175E5B92d7Df7DDCc4#code)\n- PoolConfiguratorImpl: [Polygon](https://polygonscan.com/address/0xadf86b537ef08591c2777e144322e8b0ca7e82a7#code), [Arbitrum](https://arbiscan.io/address/0x04a8d477ee202adce1682f5902e1160455205b12#code), [Optimism](https://optimistic.etherscan.io/address/0x29081f7ab5a644716efcdc10d5c926c5fee9f72b#code), [Avalanche](https://snowtrace.io/address/0x79b5e91037AE441dE0d9e6fd3Fd85b96B83d4E93#code), [Fantom](https://ftmscan.com/address/0x7CB7fdeEB5E71f322F8E39Be67959C32a6A3aAA3#code)\n- ATokenImpl: [Polygon](https://polygonscan.com/address/0xcf85ff1c37c594a10195f7a9ab85cbb0a03f69de#code), [Arbitrum](https://arbiscan.io/address/0x1be1798b70aee431c2986f7ff48d9d1fa350786a#code), [Optimism](https://optimistic.etherscan.io/address/0xbcb167bdcf14a8f791d6f4a6edd964aed2f8813b#code), [Avalanche](https://snowtrace.io/address/0x1E81af09001aD208BDa68FF022544dB2102A752d#code), [Fantom](https://ftmscan.com/address/0x8f30ADaA6950b31f675bF8a709Bc23F55aa24735#code)\n- STokenImpl: [Polygon](https://polygonscan.com/address/0x50ddd0Cd4266299527d25De9CBb55fE0EB8dAc30#code), [Arbitrum](https://arbiscan.io/address/0x0c2c95b24529664fe55d4437d7a31175cfe6c4f7#code), [Optimism](https://optimistic.etherscan.io/address/0x6b4e260b765b3ca1514e618c0215a6b7839ff93e#code), [Avalanche](https://snowtrace.io/address/0x893411580e590D62dDBca8a703d61Cc4A8c7b2b9#code), [Fantom](https://ftmscan.com/address/0xbCb167bDCF14a8F791d6f4A6EDd964aed2F8813B#code)\n- VTokenImpl: [Polygon](https://polygonscan.com/address/0x79b5e91037AE441dE0d9e6fd3Fd85b96B83d4E93#code), [Arbitrum](https://arbiscan.io/address/0x5e76e98e0963ecdc6a065d1435f84065b7523f39#code), [Optimism](https://optimistic.etherscan.io/address/0x04a8d477ee202adce1682f5902e1160455205b12#code), [Avalanche](https://snowtrace.io/address/0xa0d9C1E9E48Ca30c8d8C3B5D69FF5dc1f6DFfC24#code), [Fantom](https://ftmscan.com/address/0x61637B1EF7e9A102e50B661D3d7dbe19ef93347e#code)\n- AaveProtocolDataProvider: [Polygon](https://polygonscan.com/address/0x9441b65ee553f70df9c77d45d3283b6bc24f222d#code), [Arbitrum](https://arbiscan.io/address/0x6b4e260b765b3ca1514e618c0215a6b7839ff93e#code), [Optimism](https://optimistic.etherscan.io/address/0xd9ca4878dd38b021583c1b669905592eae76e044#code), [Avalanche](https://snowtrace.io/address/0x50ddd0Cd4266299527d25De9CBb55fE0EB8dAc30#code), [Fantom](https://ftmscan.com/address/0x764594F8e9757edE877B75716f8077162B251460#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "PROTOCOL_UPGRADE_3_0_2"
  },
  "RESCUE-MISSION-PHASE-1-LONG": {
    "title": "Rescue Mission Phase 1 Long Executor",
    "author": "BGD Labs (@bgdlabs), proposer ACI (@aavechan)",
    "shortDescription": "Activation of Aave rescue mission Phase 1, Level 2 (Long) Executor part",
    "discussions": "https://governance.aave.com/t/bgd-rescue-of-tokens-locked-on-aave-overview-and-phase-1/8150/1",
    "created": "2023-02-22T00:00:00.000Z",
    "updated": "2023-02-23T00:00:00.000Z",
    "preview": "## Simple Summary\nActivation of Aave rescue mission Phase 1, Level 2 …",
    "content": "\n\n\n## Simple Summary\nActivation of Aave rescue mission Phase 1, Level 2 (Long) Executor part\n\n## Motivation\nSince the birth of the Aave ecosystem, multiple people have sent tokens by mistake to incorrect addresses.\n\nIn some cases, when the transfer is to another unknown wallet, the tokens are usually locked and lost forever, as it is factually impossible to prove that the transfer was a mistake.\n\nBut there are special cases, where the transfer happens to a well-known smart contract address of the ecosystem, for which is simple to understand that the action was really a mistake, as there is no rational reason to send tokens there.\n\nIn the case of Aave, the existence of upgradeable smart contracts across the ecosystem makes technically possible the recovery of such tokens sent by mistake. Consequently, given the requests from members of the community affected, we have come up with a plan to “rescue” those funds, providing the affected people a way to recover them.\n\nThis initial phase will affect the following:\n\n- Users who sent[AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9), [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03), [USDT](https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7) and [UNI](https://etherscan.io/token/0x1f9840a85d5af5bf1d1762f925bdaddc4201f984) to the [AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9) token smart contract\n- Users who sent [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) to the [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) smart contract\n- User who sent [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) to the [LendToAaveMigrator](https://etherscan.io/address/0x317625234562B1526Ea2FaC4030Ea499C5291de4) smart contract\n- Users who sent [AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9) and [stkAAVE](https://etherscan.io/token/0x4da27a545c0c5b758a6ba100e3a049001de870f5) to the [stkAAVE](https://etherscan.io/token/0x4da27a545c0c5b758a6ba100e3a049001de870f5) contract\n\nThe LEND sent to the specified contracts will be claimed already as AAVE tokens with the transformation LEND to AAVE already taken into account (1 AAVE = 100 LEND)\n\n## Specification\n\nTo rescue the tokens specified on Phase 1 that are on AAVE and stkAAVE token contracts, the payload will connect and initialize the new implementations for the AAVE token and the stkAAVE token with appropriate amounts and send them to the AaveMerkleDistributor specified on the Rescue Short Executor Proposal.\nTo be as less invasive as possible, these new implementations only include that extra logic on their `initialize()` function, with everything else remaining the same.\n- AaveTokenV2: from this new implementations the following tokens will be rescued:\n    - LEND: 19845132947543342156792 LEND in WEI (~19845,13 LEND).\n    - AAVE: 28420317154904044370842 AAVE in WEI (~28420,32 AAVE).\n    - UNI: 110947986090000000000 UNI in WEI (~110,95 UNI).\n    - USDT: 15631946764 USDT in WEI (~15631,95 USDT).\n- StakedTokenV2Rev4: from this new implementation the following tokens will be rescued:\n    - AAVE: 768271398516378775101 AAVE in WEI (~768,27 AAVE).\n    - stkAAVE: 107412975567454603565 stkAAVE in WEI (~107,41 stkAAVE).\n\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/bgd-rescue-of-tokens-locked-on-aave-overview-and-phase-1/8150/1)\n- [tests](https://github.com/bgd-labs/rescue-mission-phase-1/tree/master/test) \n- Contracts:\n  - [ProposalPayloadLong](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/ProposalPayloadLong.sol)\n  - [AaveTokenV2 Implementation](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/AaveTokenV2.sol)\n  - [StkAaveTokenV2Rev4 Implementation](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/StakedTokenV2Rev4.sol)\n\n## Security Considerations\n\nThe contracts have been audited by Certora, and the report can be found [here](https://github.com/bgd-labs/rescue-mission-phase-1/tree/master/certora)\n\nImplementation diffs have been generated to see that the new implementations only differ on the rescue logic:\n\n- AaveTokenV2 [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/AaveTokenV2-diff.md)\n- StkAaveV2Rev4 [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/StakedTokenV2Rev4-diff.md)\n\nStorage layouts diffs have also been generated for the contracts where the implementation is updated:\n\n- Aave Token storage layout [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/AaveTokenV2_layout_diff.md)\n- StkAave Token storage layout [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/StakedTokenV2Rev3_layout_diff.md)\n\n## Deployed Contracts\n- [ProposalPayloadLong](https://etherscan.io/address/0x889c0cc3283DB588A34E89Ad1E8F25B0fc827b4b)\n- [AaveTokenV2 Implementation](https://etherscan.io/address/0x96F68837877fd0414B55050c9e794AECdBcfCA59)\n- [StkAaveTokenV2Rev4 Implementation](https://etherscan.io/address/0xE2E8Badc5d50f8a6188577B89f50701cDE2D4e19)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "RESCUE-MISSION-PHASE-1-LONG"
  },
  "RESCUE-MISSION-PHASE-1-SHORT": {
    "title": "Rescue Mission Phase 1 Short Executor",
    "author": "BGD Labs (@bgdlabs), proposer ACI (@aavechan)",
    "shortDescription": "Activation of Aave rescue mission Phase 1, Level 1 (Short) Executor part",
    "discussions": "https://governance.aave.com/t/bgd-rescue-of-tokens-locked-on-aave-overview-and-phase-1/8150/1",
    "created": "2023-02-17T00:00:00.000Z",
    "updated": "2023-02-23T00:00:00.000Z",
    "preview": "## Simple Summary\nActivation of Aave rescue mission Phase 1, Level 1 …",
    "content": "\n\n\n## Simple Summary\nActivation of Aave rescue mission Phase 1, Level 1 (Short) Executor part\n\n## Motivation\nSince the birth of the Aave ecosystem, multiple people have sent tokens by mistake to incorrect addresses.\n\nIn some cases, when the transfer is to another unknown wallet, the tokens are usually locked and lost forever, as it is factually impossible to prove that the transfer was a mistake.\n\nBut there are special cases, where the transfer happens to a well-known smart contract address of the ecosystem, for which is simple to understand that the action was really a mistake, as there is no rational reason to send tokens there.\n\nIn the case of Aave, the existence of upgradeable smart contracts across the ecosystem makes technically possible the recovery of such tokens sent by mistake. Consequently, given the requests from members of the community affected, we have come up with a plan to “rescue” those funds, providing the affected people a way to recover them.\n\nThis initial phase will affect the following:\n\n- Users who sent[AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9), [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03), [USDT](https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7) and [UNI](https://etherscan.io/token/0x1f9840a85d5af5bf1d1762f925bdaddc4201f984) to the [AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9) token smart contract\n- Users who sent [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) to the [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) smart contract\n- User who sent [LEND](https://etherscan.io/token/0x80fB784B7eD66730e8b1DBd9820aFD29931aab03) to the [LendToAaveMigrator](https://etherscan.io/address/0x317625234562B1526Ea2FaC4030Ea499C5291de4) smart contract\n- Users who sent [AAVE](https://etherscan.io/token/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9) and [stkAAVE](https://etherscan.io/token/0x4da27a545c0c5b758a6ba100e3a049001de870f5) to the [stkAAVE](https://etherscan.io/token/0x4da27a545c0c5b758a6ba100e3a049001de870f5) contract\n\nThe LEND sent to the specified contracts will be claimed already as AAVE tokens with the transformation LEND to AAVE already taken into account (1 AAVE = 100 LEND)\n\n## Specification\n\nFor wallets to be able to claim the tokens they sent to the contracts specified on Phase 1, we have created a different Merkle tree for every claimable token (AAVE, stkAAVE, UNI, USDT).\n\nWith the roots and amounts, every wallet will be able to claim by calling the AaveMerkleDistributor contract.\n\nThis Rescue Short Proposal will be in charge of the activation of the AaveMerkleDistributor contract and the rescue of LEND sent to the LendToAaveMigrator and to LEND contracts.\n\n- ProposalPayloadShort: This proposal payload will deploy the AaveMerkleDistributor contract and add the AAVE, USDT, UNI and stkAAVE distributions. It will also connect the new implementation of the LendToAaveMigrator. The LendToAaveMigrator will be initialized with the deployed AaveMerkleDistributor and with the LEND amount calculated by adding:\n    - LEND amount sent to LendToAaveMigrator: 8007719287288096435418 LEND in WEI (~8007,72 LEND).\n    - LEND amount sent to LEND contract: 841600717506653731350931 LEND in WEI (~841600,72 LEND).<p>\nThis amount will directly be accounted by rescuing AAVE, as the LEND contract will not be updated, but as the LendToAaveMigrator has all remaining AAVE, we can assume that it was sent there, and so it can be migrated with the rest of the LEND amount sent.\n## References\n\nA list of relevant links like for this proposal:\n\n- [forum discussion](https://governance.aave.com/t/bgd-rescue-of-tokens-locked-on-aave-overview-and-phase-1/8150/1)\n- [tests](https://github.com/bgd-labs/rescue-mission-phase-1/tree/master/test) \n- Contracts:\n  - [ProposalPayloadShort](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/ProposalPayloadShort.sol)\n  - [LendToAaveMigrator Implementation](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/LendToAaveMigrator.sol)\n  - [AaveMerkleDistributor](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/src/contracts/AaveMerkleDistributor.sol)\n\n## Security Considerations\n\nThe contracts have been audited by Certora, and the report can be found [here](https://github.com/bgd-labs/rescue-mission-phase-1/tree/master/certora)\n\nImplementation diffs have been generated to see that the new implementations only differ on the rescue logic:\n\n- LendToAaveMigrator [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/LendToAaveMigrator-diff.md)\n\nStorage layouts diffs have also been generated for the contracts where the implementation is updated:\n\n- LendToAaveMigrator storage layout [Diff](https://github.com/bgd-labs/rescue-mission-phase-1/blob/master/diffs/rescue_LendToAaveMigrator_layout_diff.md)\n\n## Deployed Contracts\n- [ProposalPayloadShort](https://etherscan.io/address/0x4A4c73d563395ad827511F70097d4Ef82E653805)\n- [LendToAaveMigrator Implementation](https://etherscan.io/address/0x7b62461a3570c6AC8a9f8330421576e417B71EE7)\n- [AaveMerkleDistributor](https://etherscan.io/address/0xa88c6D90eAe942291325f9ae3c66f3563B93FE10)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "RESCUE-MISSION-PHASE-1-SHORT"
  },
  "RETHETHV3": {
    "title": "Add rETH to Aave Ethereum V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Onboard rETH on Aave Eth V3",
    "discussions": "https://governance.aave.com/t/arc-onboard-reth-rocket-pool-eth-to-aave-v3-ethereum-market/11371",
    "created": "2023-02-08T00:00:00.000Z",
    "updated": "2023-02-08T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to onboard rETH to the Ethereum v3 Liquidity Pool.\n\n## Motivation\nSupporting Liquid Staking Derivative (LSDs) diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Rocket Pool or any entity to present this AIP.\n\nThe risk parameters provided introduce rETH as a collateral asset.\n\nSupply and borrow caps are suggested for this asset to limit risk exposure, the caps have bet proposed by a join collaboration between Gauntlet & Chaos Labs.\n\n## Specification\n\nTicker: RETH\n\nContract Address: [0xae78736Cd615f374D3085123A210448E74Fc6393](https://etherscan.io/address/0xae78736cd615f374d3085123a210448e74fc6393)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|NO|\n|Enable Borrow|YES|\n|Enable Collateral|YES|\n|Loan To Value|67%|\n|Liquidation Threshold|74%|\n|Liquidation Bonus|7.5%|\n|Reserve Factor|15%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|1200|\n|Supply Cap|10K|\n|Debt Ceiling|N/A|\n|Base|0%|\n|Slope1|7%|\n|Uoptimal|45%|\n|Slope2|300%|\n\nThe proposal payload uses the [GenericListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code) to perform a new asset listing with the following parameters:\n\n```solidity\nIGenericV3ListingEngine.Listing({\n      asset: RETH,\n      assetSymbol: 'rETH',\n      priceFeed: RETH_USD_FEED,\n      rateStrategy: 0x24701A6368Ff6D2874d6b8cDadd461552B8A5283,\n      enabledToBorrow: true,\n      stableRateModeEnabled: false,\n      borrowableInIsolation: false,\n      withSiloedBorrowing: false,\n      flashloanable: true,\n      ltv: 67_00,\n      liqThreshold: 74_00,\n      liqBonus: 7_50,\n      reserveFactor: 15_00,\n      supplyCap: 10_000,\n      borrowCap: 1_200,\n      debtCeiling: 0,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arc-onboard-reth-rocket-pool-eth-to-aave-v3-ethereum-market/11371)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV3EthrETHPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/mainnet/AaveV3EthrETHPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by[Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3EthrETHPayload: ProposalPayload](https://etherscan.io/address/0x2dbbb5a1248bbbeddc2adee52a0995ed85f56006#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RETHETHV3"
  },
  "RETH_EMODE_ACTIVATION_AIP": {
    "title": "Activate Emode for rETH Aave Ethereum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "Activate Emode for rETH Aave Ethereum V3",
    "discussions": "https://governance.aave.com/t/arfc-activate-emode-for-reth-aave-ethereum-v3-pool/13034",
    "created": "2023-05-22T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\n\nThis AIP proposal presents Aave with the opportunity to activate emode for rETH on the Ethereum v3 Liquidity Pool.\n\n## Motivation\n\nrETH is a decentralized Liquid Staking Token minted by Rocket Pool operators.\n\nrETH is minted by Rocket Pool protocol when users Stake ETH via mini-pools or directly by depositing in the Deposit Pool.\n\nAllowing the activation of emode has a clear use-case for leveraged strategies based on rETH as collateral to both “long” rETH on secondary markets and increased staking yield via loops strategies.\n\nWith the current supply and borrowing caps, this activation can be done while keeping a conservative approach.\nFor more information about rETH please refer to [rETH V3 ARC](https://governance.aave.com/t/arc-onboard-reth-rocket-pool-eth-to-aave-v3-ethereum-market/11371)\n\n## Specification\n\nTicker: rETH (rETH)\n\nContract Address: 0xae78736Cd615f374D3085123A210448E74Fc6393\n\n|Risk Parameter| Current Value| Proposed Value|\n| --- | --- | --- |\n|Emode Category|0| 1 |\n\nThis AIP leverage `AaveV3PayloadEthereum` and `collateralsUpdates()` to set the `eModeCategory` to 1 (ETH-correlated assets category).\n\n```solidity\ncontract AaveV3ETHrETHEmode_20230522 is AaveV3PayloadEthereum {\n  function collateralsUpdates() public pure override returns (IEngine.CollateralUpdate[] memory) {\n    IEngine.CollateralUpdate[] memory collateralUpdate = new IEngine.CollateralUpdate[](1);\n\n    collateralUpdate[0] = IEngine.CollateralUpdate({\n      asset: AaveV3EthereumAssets.rETH_UNDERLYING,\n      ltv: EngineFlags.KEEP_CURRENT,\n      liqThreshold: EngineFlags.KEEP_CURRENT,\n      liqBonus: EngineFlags.KEEP_CURRENT,\n      debtCeiling: EngineFlags.KEEP_CURRENT,\n      liqProtocolFee: EngineFlags.KEEP_CURRENT,\n      eModeCategory: 1\n    });\n    return collateralUpdate;\n  }\n}\n```\n\n## Disclaimer\n\nThe Aave-Chan Initiative is not linked nor paid by Rocket Pool to publish this AIP.\n\nThe ACI supports LST diversity as part of its delegate platform\n\nAt the time of Writing, Marc Zeller, ACI's founder, does not hold any rETH but owns a small amount of RPL with the intention to use them to deploy Mini-pools in the future.\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-activate-emode-for-reth-aave-ethereum-v3-pool/13034)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthrETHEmode_20230522/AaveV3ETHrETHEmode_20230522test.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3EthrETHEmode_20230522/AaveV3ETHrETHEmode_20230522.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RETH_EMODE_ACTIVATION_AIP"
  },
  "REWARDS_CONTROLLER_UPDATE_3_0_1": {
    "title": "Rewards controller update across V3 pools",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Updates rewards controllers on all v3 deployments",
    "discussions": "https://governance.aave.com/t/bgd-upgrade-of-aave-v3-periphery-to-3-0-1-across-networks/10744/6",
    "created": "2022-12-06T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal updates the rewardsController to …",
    "content": "\n\n## Simple Summary\n\nThis proposal updates the rewardsController to it's newest version improving the DX by adding new getters and resolving some minor issues:\n\n1. soften solidity versions to `^0.8.0` [here](https://github.com/aave/aave-v3-periphery/pull/102)\n2. adding a getter to fetch the current index [here](https://github.com/aave/aave-v3-periphery/pull/101)\n3. replacing totalSupply with totalScaledSupply on `setEmissionPerSecond` [here](https://github.com/aave/aave-v3-periphery/pull/104)\n4. pumping revision from `1` to `2` [here](https://github.com/aave/aave-v3-periphery/pull/107)\n5. fixing `getUserReward` to return correct rewards for users with 0 balance [here](https://github.com/aave/aave-v3-periphery/pull/112)\n6. remove unnecessary `constructor` that sets state on a contract always used behind a proxy [here](https://github.com/aave/aave-v3-periphery/pull/118)\n7. consistently uppercase license pragma `agpl`->`AGPL` [here](https://github.com/aave/aave-v3-periphery/pull/120)\n8. improving documentation on various structs [here](https://github.com/aave/aave-v3-periphery/pull/121)\n9. removing constructor of RewardsDistributor and RewardsController [here](https://github.com/aave/aave-v3-periphery/pull/118/files)\n\n## Motivation\n\nThe Aave v3 codebase is divided into 2 different parts, Aave v3 core, and Aave v3 periphery. While usually the concept of “protocol” is more related to the Aave v3 core, there are some complementary components of Aave v3 living on the periphery codebase, for example, the system managing external teams configuring rewards for Aave v3 activity (e.g. supply/borrow assets).\n\nSimilar to the majority of other Aave smart contracts, the ones on the periphery are upgradeable and controlled by the Aave governance, which means they are designed to be improved over time.\n\nGiven that the community has approved a new Aave v3 Ethereum, we have used the occasion to introduce light improvement/fixes on the periphery smart contracts and now will submit the upgrade to be approved via governance and it only makes sense to apply them to already existing v3 pools.\n\n## Specification\n\nThis proposal executes `PoolAddressesProvider.setAddressAsProxy(keccak256(\"INCENTIVES_CONTROLLER\"), rewardsControllerImpl)` on `Polygon V3 pool`.\n\nIf this proposal succeeds, this will be seen as positive signaling to upgrade implementations for v3 pools on networks controlled by guardians as well.\n\nThe `RewardsController` contracts are deployed and initialized already:\n\n- [Polygon:RewardsController](https://polygonscan.com/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code)\n- [Avalanche:RewardsController](https://snowtrace.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code)\n- [Optimism:RewardsController](https://optimistic.etherscan.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code)\n- [Arbitrum:RewardsController](https://arbiscan.io/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code)\n- [Fantom:RewardsController](https://ftmscan.com/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731#code) verification does not work properly\n- [Harmony:RewardsController](https://explorer.harmony.one/address/0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731?activeTab=7) verification does not work properly\n\nVerification on harmony & fantom does not work due to bugs in the respective explorers.\nYou can verify though that bytecode & `initialize` calls are 100% the same between the different networks.\n\nFor guardian controlled pools the transactions are executed via gnosis, so instead of deploying a payload the guardians will just sign the `setAddressAsProxy(keccak256(\"INCENTIVES_CONTROLLER\"), rewardsControllerImpl)` transactions.\n\nThe pre-encoded calldata to be executed by guardians on the respective `PoolAddressesProvider`:\n\n- `0x5dcc528c0000000000000000000000005f4d15d761528c57a5c30c43c1dab26fc5452731`\n\n## References\n\n- [Polygon:UpgradeRewardsControllerPayload](https://polygonscan.com/address/0xf50a080aC535e531EC33cC05b227E910De2fb1fA)\n- [Test suite](https://github.com/bgd-labs/rewards-controller-update/tree/main/tests)\n- [UpgradeRewardsControllerPayload](https://github.com/bgd-labs/rewards-controller-update/blob/main/src/contracts/UpgradeRewardsControllerPayload.sol)\n- [Original discussion](https://governance.aave.com/t/bgd-upgrade-of-aave-v3-periphery-to-3-0-1-across-networks/10744)\n- [Updated RewardsController contract](https://github.com/aave/aave-v3-periphery/blob/master/contracts/rewards/RewardsController.sol)\n- [Update diffs](https://github.com/bgd-labs/rewards-controller-update/tree/main/diffs)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "REWARDS_CONTROLLER_UPDATE_3_0_1"
  },
  "RISK-PARAMS-UPDATE-AAVE-V2-ETH": {
    "title": "Risk Parameter Updates for Aave v2 Ethereum Liquidty Pool",
    "shortDescription": "In response to recent market events and the resulting discussion on the governance forum, Llama and Chaos Labs propose to make a series of parameter changes to the Ethereum Aave v2 Liquidity Pool",
    "author": "Llamaxyz & Chaos Labs (defijesus, Matthew Graham, Omer Arie Goldberg)",
    "discussions": "https://governance.aave.com/t/risk-parameter-updates-for-aave-v2-ethereum-liquidity-pool-2022-11-25/10824",
    "created": "2022-11-25T00:00:00.000Z",
    "preview": "# Simple Summary\n\nIn response to recent market events and resulting …",
    "content": "\n\n# Simple Summary\n\nIn response to recent market events and resulting discussion on the governance forum, Llama and Chaos Labs propose to make a series of parameter changes to the Ethereum Aave v2 Liquidity Pool.\n\n\n# Abstract\n\nThis proposal presents an alternative pathway forward to [AIP-121](https://app.aave.com/governance/proposal/?proposalId=121). The community can elect to Disable Borrowing whilst retaining the ability to Deposits assets across the majority of Reserves rather than Freezing as outlined in AIP-121.\n\nThis proposal is a collaborative effort between Llama and Chaos Labs and reflects the communities [governance forum discussion](https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757/35). \n\n# Motivation\n\nIn response to recent market events and the continued contraction of liquidity across markets, this proposal seeks to reduce the risk profile across many higher volatile assets. AIP-121 presents an opportunity to Freeze many Reserves, whereas this proposal intends to Disable Borrowing whilst retaining the ability to deposit assets. \n\nAIP-121 is a more conservative response relative to this proposal. It is likely, LTV and LT thresholds for highly liqudity assets will also require amending in the near future. This will be managed via a separate submission. \n\n\n# Specification\n\nThe following risk parameter proposal are presented below:\n\n![](../assets/RISK-PARAMS-UPDATE-AAVE-V2-ETH/table.png)\n\n\n# Implementation\n\nThis proposal will reconfigure the following asset Reserves:\n\n* YFI\n* CRV\n* ZRX\n* MANA\n* 1INCH\n* BAT\n* sUSD\n* ENJ\n* GUSD\n* AMPL\n* RAI\n* USDP\n* LUSD\n* xSUSHI\n* DPI\n* renFIL\n* MKR\n* ENS\n* LINK\n* UNI \n* SNX\n\nThis proposal is written in an atomic manner that will unfreeze reserves in case [AIP-121](https://app.aave.com/governance/proposal/?proposalId=121) gets executed before.\n\nTo achieve this, `freezeReserve(address asset)`, `unfreezeReserve(address asset)` and `disableBorrowingOnReserve(address asset)` will be performed via the PoolConfigurator for each asset respectively to ensure a predictable final state.\n\n\n`POOL_CONFIGURATOR.freezeReserve(address asset)`\n`POOL_CONFIGURATOR.unfreezeReserve(address asset)`\n`POOL_CONFIGURATOR.disableBorrowingOnReserve(address asset)`\n\nImplementation can be found [here](https://github.com/defijesus/risk-params-update-aave-eth-v2)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RISK-PARAMS-UPDATE-AAVE-V2-ETH"
  },
  "RISK-PARAMS-UPDATE-AAVE-V2-POLYGON": {
    "title": "Risk Parameter Updates for Aave v2 Polygon",
    "shortDescription": "Update Polygon v2 Risk Parameters",
    "author": "Llamaxyz & Chaos Labs (defijesus, Matthew Graham, Omer Arie Goldberg, Yonatan Haimowitz)",
    "discussions": "https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-polygon-2022-11-25/10826",
    "created": "2022-11-26T00:00:00.000Z",
    "preview": "# Simple Summary\n\nIn response to recent market events and the …",
    "content": "\n\n# Simple Summary\n\nIn response to recent market events and the resulting discussion on the [Aave governance forum](https://governance.aave.com/t/arc-risk-parameter-recommendations-for-aave-v2-eth-2022-11-22/10757) regarding the Aave communities risk appetite, Llama and Chaos Labs proposes to make a series of parameter changes to the Polygon Aave v2 Liquidity Pool.\n\n# Abstract\n\nWe specifically recommend freezing for GHST, BAL and SUSHI as a risk-off approach as the community can utilise the asset on the Polygon v3 deployment with enhanced risk tooling, such as supply and borrow caps. Borrowing is to be disabled for LINK, DPI and CRV Reserves.\n\n# Motivation\n\nIn response to recent market events and the continued contraction of liquidity across markets, this proposal seeks to reduce the risk profile across many higher volatile assets.\n\nIt is likely, LTV and Liquidation Threshold (LT) for highly liquid assets will also require amending in the near future. This will be managed via a separate submission.\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n![](../assets/RISK-PARAMS-UPDATE-AAVE-V2-POLYGON/table.png)\n\n# Implementation\n\nThis proposal will reconfigure the following asset Reserves:\n\n* BAL\n* CRV\n* GHST\n* LINK\n* SUSHI\n* DPI\n\n\nThis proposal is written in an atomic manner that will unfreeze reserves in case [AIP-124](https://app.aave.com/governance/proposal/?proposalId=124) gets executed before.\n\nTo achieve this, `freezeReserve(address asset)`, `unfreezeReserve(address asset)` and `disableBorrowingOnReserve(address asset)` will be performed via the PoolConfigurator for each asset respectively to ensure a predictable final state.\n\n\n`POOL_CONFIGURATOR.freezeReserve(address asset)`\n`POOL_CONFIGURATOR.unfreezeReserve(address asset)`\n`POOL_CONFIGURATOR.disableBorrowingOnReserve(address asset)`\n\n\nImplementation can be found [here](https://github.com/defijesus/risk-params-update-v2-polygon)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RISK-PARAMS-UPDATE-AAVE-V2-POLYGON"
  },
  "RISK-PARAMS-UPDATE-V3-ARBITRUM-02-28-2023": {
    "title": "Risk Parameter Updates Aave V3 Arbitrum",
    "shortDescription": "Update risk parameters on AAVE V3 Arbitrum",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-aave-v3-arbitrum-2023-02-20/11986",
    "created": "2023-02-28T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust nine (9) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust nine (9) total risk parameters, including Loan-to-Value, Liquidation Threshold, and Liquidation Bonus, across four (4) Aave V3 Arbitrum assets.\n\n# Motivation\nChaos Labs’ Parameter Recommendation Platform runs hundreds of thousands of agent-based off-chain and on-chain simulations to examine how different Aave V3 risk parameters configurations would behave under adverse market conditions - and find the optimal values to maximize protocol borrow usage while minimizing losses from liquidations and bad debt.\n\nNote: As a general guideline, we limit the proposed changes by ±3% for all parameters as a high/low bound for a given proposal. This ensures more controlled changes and allows us to analyze their effect on user behavior before recommending further amendments to the parameters if the optimal configuration is outside this range.\n\nPlease find more information on the parameter recommendation methodology [here](https://community.chaoslabs.xyz/aave/recommendations/methodology).\n\nYou can also view the simulation results and breakdown for the different assets by clicking on them on this [page](https://community.chaoslabs.xyz/aave/recommendations).\n\nThe output of our simulations reveals an opportunity to increase LTVs and LTs for WBTC, WETH, USDC, and DAI on V3 Arbitrum, resulting in improved capital efficiency of the system, with a negligible effect on the projected VaR (95th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours) and EVaR (Extreme VaR, the 99th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours)\n\nSimulating all changes jointly yields a projected borrow increase of ~$510,000, with no increase in VaR and Extreme VaR compared to simulations with the current parameters.\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n| Asset | Parameter | Current | Recommended | Change |\n| --- | --- | --- | --- | --- |\n| WETH | Liquidation Threshold | 82.5% | 85% | +2.5% |\n| WETH | Loan-to-Value | 80% | 82.5% | +2.5% |\n| WBTC | Liquidation Threshold | 75% | 78% | +3% |\n| WBTC | Loan-to-Value | 70% | 73% | +3% |\n| WBTC | Liquidation Penalty | 10% | 7% | -3% |\n| DAI | Liquidation Threshold | 80% | 82% | +2% |\n| DAI | Loan-to-Value | 75% | 77% | +2% |\n| USDC | Liquidation Threshold | 85% | 86% | +1% |\n| USDC | Loan-to-Value | 80% | 81% | +1% |\n\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-aave-v3-arbitrum-2023-02-20/11986)\n\n[Tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/arbitrum/AaveV3ArbRiskParamsPayload-Feb27.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbRiskParamsPayload-Feb27.sol)\n\n[Deployed proposal payload](https://arbiscan.io/address/0x3a4f2a6c7e1e641afad6300553a0bb82d6c46a2e#code) \n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RISK-PARAMS-UPDATE-V3-ARBITRUM-02-28-2023"
  },
  "RISK-PARAMS-UPDATE-V3-ETHEREUM-02-22-2023": {
    "title": "Risk Parameter Updates - Aave V3 Ethereum",
    "shortDescription": "Update risk parameters on AAVE V3 Ethereum",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-aave-v3-ethereum-2023-02-22/12015",
    "created": "2023-02-22T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust four (4) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust four (4) total risk parameters, including Loan-to-Value and Liquidation Threshold, across two (2) Aave V3 Ethereum assets.\n\n# Motivation\nAave V3 Ethereum was launched successfully on January 27th, 2023, with a conservative configuration for the initial assets, as recommended by Chaos Labs.\n\nFollowing the successful launch and after analyzing the initial supply and borrow distribution and general usage across the deployment, we propose incrementally increasing the LTs and LTVs for USDC and DAI with the following goals:\n\nProvide a sustainable set of parameters that are better optimized for risk-reward in the long term.\nServe as a catalyst to promote migration of funds from V2 to V3, as capital efficiency under the current parameter settings is significantly inferior to V2.\nNote: As a general guideline, we limit our proposed changes by ±3% for all parameters as a high/low bound for a given proposal. This ensures more controlled changes and allows us to analyze their effect on user behavior before recommending further amendments to the parameters if the optimal configuration is outside this range.\n\nIt is important to note that V3 Ethereum still needs to be integrated into our parameter recommendation platform, and therefore the recommendations provided here are not simulation-based. However, from running our simulations on similar assets on Arbitrum and Avalanche and considering the differences between the deployments, we conclude that the provided parameters are still conservative and can be further increased toward an optimized state in future iterations.\n\n**Liquidity and Position Analysis:**\n\nUSDC is mainly used as collateral for blue chip, high liquidity assets, most of which are WETH ($9M borrowed against USDC collateral) and recursive USDC borrowing. It is currently possible to liquidate USDC to cover all open USDC-WETH positions with very low slippage.\n\n\nDAI is mainly used as collateral for blue chip, high liquidity assets, most of which are WETH ($340K borrowed against DAI collateral) and USDC ($240K borrowed against DAI collateral). It is currently possible to liquidate DAI to cover all open DAI-WETH positions and DAI-USDC with very low slippage.\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n| Asset | Parameter | Current | Recommended | Change |\n| --- | --- | --- | --- | --- |\n| USDC | Liquidation Threshold | 76% | 79% | +3% |\n| USDC | Loan-to-Value | 74% | 77% | +3% |\n| DAI | Liquidation Threshold | 77% | 80% | +3% |\n| DAI | Loan-to-Value | 64% | 67% | +3% |\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arc-chaos-labs-risk-parameter-updates-aave-v3-ethereum-2023-02-22/12015)\n\n[Tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3EthParamsPayload-Mar02Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV3EthParamsPayload-Mar02.sol)\n\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RISK-PARAMS-UPDATE-V3-ETHEREUM-02-22-2023"
  },
  "RISK-PARAMS-UPDATE-V3-OPTIMISM-20230330": {
    "title": "Risk Parameter Updates Aave V3 Optimism",
    "shortDescription": "Update risk parameters on Aave V3 Optimism",
    "author": "Chaos Labs (@ori-chaoslabs, @yonikesel)",
    "discussions": "https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-optimism-2023-03-22/12421",
    "created": "2023-03-30T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to adjust five (5) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust five (5) total risk parameters, including Loan-to-Value, Liquidation Threshold, and Liquidation Bonus, across two (2) Aave V3 Optimism assets.\n\n# Motivation\n\nChaos Labs’ Parameter Recommendation Platform runs hundreds of thousands of agent-based off-chain and on-chain simulations to examine how different Aave V3 risk parameters configurations would behave under adverse market conditions - and find the optimal values to maximize protocol borrow usage while minimizing losses from liquidations and bad debt.\n\nNote: As a general guideline, we limit the proposed changes by ±3% for all parameters as a high/low bound for a given proposal. This ensures more controlled changes and allows us to analyze their effect on user behavior before recommending further amendments to the parameters if the optimal configuration is outside this range.\n\nPlease find more information on the parameter recommendation methodology [here](https://community.chaoslabs.xyz/aave/recommendations/methodology).\n\nYou can also view the simulation results and breakdown for the different assets by clicking on them on this [page](https://community.chaoslabs.xyz/aave/recommendations).\n\nThe output of our simulations reveals an opportunity to increase LTVs and LTs for WBTC and DAI on V3 Optimism, resulting in improved capital efficiency of the system, with no effect on the projected VaR (95th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours) and EVaR (Extreme VaR, the 99th percentile of the protocol losses that will be accrued due to bad debt from under-collateralized accounts over 24 hours)\n\nSimulating all changes jointly yields a projected borrow increase of ~$155,000, with no increase in VaR and Extreme VaR compared to simulations with the current parameters.\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n| Asset | Parameter             | Current | Recommended | Change |\n| ----- | --------------------- | ------- | ----------- | ------ |\n| WBTC  | Liquidation Threshold | 75%     | 78%         | +3%    |\n| WBTC  | Loan-to-Value         | 70%     | 73%         | +3%    |\n| WBTC  | Liquidation Penalty   | 9.4%    | 8.5%        | -0.9%  |\n| DAI   | Liquidation Threshold | 80%     | 83%         | +3%    |\n| DAI   | Loan-to-Value         | 75%     | 78%         | +3%    |\n\n# References\n\n[Forum Post](https://governance.aave.com/t/arfc-chaos-labs-risk-parameter-updates-aave-v3-optimism-2023-03-22/12421)\n\n[Tests](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3OPRiskParams_20230330/AaveV3OPRiskParams_20230330_Test.t.sol)\n\n[Proposal payload implementation](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3OPRiskParams_20230330/AaveV3OPRiskParams_20230330.sol)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "RISK-PARAMS-UPDATE-V3-OPTIMISM-20230330"
  },
  "STMATIC-MATICX-LDO-SD-EMISSION-ADMIN-UPDATE-AAVE-V3-POLYGON": {
    "title": "Set LDO, stMATIC, MaticX and SD Emission_Admin for Polygon v3 Liquidity Pool",
    "author": "Llamax - Matthew Graham & defijesus",
    "discussion": "https://governance.aave.com/t/arc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632",
    "shortDescription": "Enable Lido Commununity, Stader Labs and Polygon Foundation to distribute rewards across the Polygon v3 Liquidity Pool",
    "created": "2022-12-06T00:00:00.000Z",
    "preview": "# Summary\n\nAssign the Emission_Admin role for the LDO, stMATIC, …",
    "content": "\n\n# Summary\n\nAssign the Emission_Admin role for the LDO, stMATIC, MaticX and SD tokens on the Polygon v3 deployment.  \n\n# Abstract\n\nThe following teams seek to distribute rewards across the Polygon v3 Liquidity Pool:\n\n* LDO by the Liquidity Mining Committee to support the adoption of stMATIC\n* SD by Stader Labs to support the adoption of MaticX\n* stMATIC & MaticX by Polygon Foundation to adoption of staked MATIC receipt tokens \n\nIn order to achieve this, the EmissionManager contract needs to assign an owner to the Emission_Admin permission allowing LDO, SD, stMATIC, and MaticX rewards to be distributed.\n\n# Motivation\n\nThe motivation of the proposal is to enable rewards to be distributed on the Polygon v3 Liquidity Pool.\n\nThe Lido Liquidity Mining Committee determines the emission rate and duration at which LDO rewards are offered. Standard practice is for the council to meet and determine the next 30 days of LDO rewards on a rolling basis. This means each month, the committee will determine if to extend the LDO rewards, or change the amount of LDO being offered across the Polygon v3 Liquidity Pool.\n\nThe Stader Labs team will determine the emission rate and duration SD rewards are offered. This will likely be influenced by the Aave DAO’s ability to adjust the wMATIC and MaticX risk parameters that enable users to generate a return from leverage the MaticX / wMATIC loop.\n\nThe Polygon Foundation team will determine the emission rate and duration at which stMATIC and MaticX rewards are offered. This will likely be influenced by Aave DAO’s ability to adjust the wMATIC, stMATIC and MaticX risk parameters that enable users to generate a return from leverage the stMATIC / wMATIC and MaticX/wMATIC loop.\n\nThe Emission_Admin is not limited to a specified Reserve and is linked to the token being distributed across the Liquidity Pool. The EmissionManager determines the Emission_Admin. The Emission_Admin can distribute said token anywhere across the Aave v3 Polygon Liquidity Pool.\n\nThe respective governance forum discussion is linked below:\n\n* [stMATIC & MaticX Emission Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632)\n* [LDO Emission Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arc-ldo-emission-admin-for-polygon-v3-liquidity-pool/10575)\n* [SD Emission Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arc-sd-emission-admin-for-polygon-v3-liquidity-pool/10658)\n\n# Specification\n\nThis proposal assigns the Emission_Admin using the setEmissionAdmin(address reward, address admin) function.\n\nLDO Address Reward: [matic:0xC3C7d422809852031b44ab29EEC9F1EfF2A58756](https://polygonscan.com/address/0xC3C7d422809852031b44ab29EEC9F1EfF2A58756)\nLDO Address Admin: [matic:0x87D93d9B2C672bf9c9642d853a8682546a5012B5](https://polygonscan.com/address/0x87D93d9B2C672bf9c9642d853a8682546a5012B5)\n\nSD Address Reward: [matic:0x1d734A02eF1e1f5886e66b0673b71Af5B53ffA94](https://polygonscan.com/address/0x1d734A02eF1e1f5886e66b0673b71Af5B53ffA94)\nSD Address Admin: [matic:0x51358004cFe135E64453d7F6a0dC433CAba09A2a](https://polygonscan.com/address/0x51358004cFe135E64453d7F6a0dC433CAba09A2a)\n\nstMATIC Address Reward: [matic:0x3A58a54C066FdC0f2D55FC9C89F0415C92eBf3C4](https://polygonscan.com/address/0x3A58a54C066FdC0f2D55FC9C89F0415C92eBf3C4)\nstMATIC Address Admin: [matic:0x0c54a0BCCF5079478a144dBae1AFcb4FEdf7b263](https://polygonscan.com/address/0x0c54a0BCCF5079478a144dBae1AFcb4FEdf7b263)\n\nMaticX Address Reward: [matic:0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6](https://polygonscan.com/address/0xfa68FB4628DFF1028CFEc22b4162FCcd0d45efb6)\nMaticX Address Admin: [matic:0x0c54a0BCCF5079478a144dBae1AFcb4FEdf7b263](https://polygonscan.com/address/0x0c54a0bccf5079478a144dbae1afcb4fedf7b263)\n\n# References\n\nTest cases can be found [here](https://github.com/defijesus/stMATIC-update-emissions-admin-aave-v3/blob/main/tests/ChangeEmissionAdminTest.sol)\n\nPayload Implementation can be found [here](https://github.com/defijesus/stMATIC-update-emissions-admin-aave-v3/blob/main/src/contracts/ChangeEmissionAdminPayload.sol)\n\nProposal Payload = [0x7E8f833D23e19E88e3781Ca913d674a2D5178FA1](https://polygonscan.com/address/0x7E8f833D23e19E88e3781Ca913d674a2D5178FA1)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "STMATIC-MATICX-LDO-SD-EMISSION-ADMIN-UPDATE-AAVE-V3-POLYGON"
  },
  "STMATIC-SUPPLY-CAP-UPDATE-03-03-2023": {
    "title": "stMATIC SupplyCap Increase Polygon v3",
    "discussions": "https://governance.aave.com/t/arfc-increase-stmatic-supply-cap/12038",
    "shortDescription": "Increase SupplyCap stMATIC on Polygon v3 from 7.5M units to 15M units.",
    "author": "Llama",
    "created": "2023-03-06T00:00:00.000Z",
    "preview": "# Summary\n\nLlama proposes increasing the stMATIC Supply Cap on …",
    "content": "\n\n# Summary\n\nLlama proposes increasing the stMATIC Supply Cap on Polygon to facilitate an expansion of the stMATIC/wMATIC loop strategy. \n\n# Abstract\n\nThe utilisation of the stMATIC reserve has reached 100% and this proposal seeks to increase the SupplyCap to 15M units up from 7.5M units.  \n\nIncreasing the SupplyCap will enable users to deposit stMATIC and enter the recursive stMATIC/wMATIC yield strategy.  \n\nLido DAO currently has the ability to distribute LDO rewards on the Polygon v3 deployment. Due to the stMATIC SupplyCap being reached there is little to no incentive for Lido DAO to distribute LDO rewards. This proposal seeks to encourage Lido DAO to distribute LDO rewards, as early as March on the Aave v3 Polygon liquidity pools.\n\n# Motivation\n\nOver the previous months, Llama has been working with various communities to craft favourable conditions on Aave v3 Polygon to facilitate the creation of several yield aggregation products. The below proposals details are applicable to stMATIC:\n\n* [Proposal: Add Support for stMATIC (Lido)](https://governance.aave.com/t/proposal-add-support-for-stmatic-lido/7677)\n* [ARFC Aave v3 Polygon wMATIC Interest Rate Update](https://governance.aave.com/t/arfc-aave-v3-polygon-wmatic-interest-rate-update/10290)\n* [ARFC LDO Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-ldo-emission-admin-for-polygon-v3-liquidity-pool/10575)\n* [ARFC stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632)\n\nThis proposal is a continuation of the above work.\n\nAnalysis performed by [Gauntlet](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487) generated a conservative and aggressive SupplyCap ceiling of 16.17M and 24.26M units respectively.  \n\nChaos Lab's supports increasing the SupplyCap to 15M units. This follows the general rule of thumb that SupplyCap should not be more than doubled in any single proposal.\n\nAs Chaos Lab's recommendation is less than the maximum conservative SupplyCap presented by Gauntlet's methodology, Llama proposes increasing the SupplyCap to 15M SupplyCap.\n\nWith reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) it is possible to ship several upgrades to gradually increasing Aave's exposure to stMATIC over time.\n\n# Specification\n\nThe following risk parameters being proposed have been reviewed by Gauntlet and Chaos Labs.\n\nTicker: stMATIC\n\nContract: [`polygon: 0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4`](https://polygonscan.com/address/0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4)\n\n|Parameter|Current Value|Proposed Value|\n| --- | --- | --- |\n|SupplyCap|7.5M units|15M units|\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n* [Governance Forum Discussion](https://governance.aave.com/t/arfc-increase-stmatic-supply-cap/12038)\n* [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolSTMATICCapUpdatePayloadTest.t.sol)\n* [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolSTMATICCapUpdatePayload.sol)\n* [Deployed Contracts](https://polygonscan.com/address/0xaa7ef2f9b31fa26e802ca9b3e33990ada4143fb9#code)\n\nChaos Labs and Gauntlet both contributed to the development of the ARFC forum post. \n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "STMATIC-SUPPLY-CAP-UPDATE-03-03-2023"
  },
  "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-02-12-2023": {
    "title": "Supply/Borrow Cap Updates Polygon and Arbitrum V3",
    "shortDescription": "Update Supply and Borrow Caps on Polygon, Arbitrum on Aave V3",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-and-arbitrum-2023-02-07/11605",
    "created": "2023-2-12",
    "preview": "# Simple Summary\n\nA proposal to adjust eleven (11) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust eleven (11) total risk parameters, including Supply Cap and Borrow Cap, across seven (7) Aave V3 Polygon and Arbitrum assets.\n\n\n# Motivation\n\nThe objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have reached high utilization of either cap. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology\n\nThe respective governance forum discussion is linked below:\n- [Chaos Labs Supply and Borrow Cap Updates - Aave V3 Polygon and Arbitrum - 2023.02.07](https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-and-arbitrum-2023-02-07/11605)\n\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n### Polygon\n\n| Asset | Current Supply | Current Supply Cap | Recommended Supply Cap | Current Borrow | Current Borrow Cap | Recommended Borrow Cap |\n| --- | --- | --- | --- | --- | --- | --- | \n| BAL | 284,600 | 284,600 | 361,000 | 136,400 | 256,140  | No Change | supply cap was modified from our original analysis to address Gauntlet’s analysis (see https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-and-arbitrum-2023-02-07/11605/2) |\n| EURS | 2,060,000 | 2,000,000,000 | 4,000,000 | 728,530 | 728,530 | 947,000 |\n| DAI | 5,680,000  | 2,000,000,000 | 45,000,000 | 3,160,000 | 3,860,000 | 30,000,000 | \n| USDC | 35,590,000  | 2,000,000,000 | 150,000,000 | 18,600,000 | 30,680,000 | 100,000,000 | \n| USDT | 5,940,000  | 2,000,000,000 | 45,000,000 | 4,870,000 | 5,060,000 | 30,000,000 |\n\n\n### Arbitrum\n\n| Asset | Current Supply | Current Supply Cap | Recommended Supply Cap | Current Borrow | Current Borrow Cap | Recommended Borrow Cap |\n| --- | --- | --- | --- | --- | --- | --- |\n| LINK | 338,490 | 350,000 | 676,980 | $763,400 | 20,427 | No Change |\n| ETH | 17,640 | 20,300 | 35,280 | 3,663 | 11,165 | No Change |\n\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-polygon-and-arbitrum-2023-02-07/11605)\n\nTests: [Arbitrum](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/arbitrum/AaveV3ArbBorrowCapsPayload-Feb12.t.sol), [Polygon](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/polygon/AaveV3PolCapsPayload-Feb12.t.sol)\n\n\nProposal payload implementation - [Arbitrum](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/arbitrum/AaveV3ArbCapsPayload-Feb12.sol), [Polygon](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/polygon/AaveV3PolCapsPayload-Feb12.sol)\n\nDeployed proposal payload - [Arbitrum](https://arbiscan.io/address/0x280e404338d9d8e50b11d6677b9c91ba86e0fd22#code), [Polygon](https://polygonscan.com/address/0x060bea15af594fe9e0a243ca632f2c7d1935c70f#code)\n\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-02-12-2023"
  },
  "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-02-24-2023": {
    "title": "Supply/Borrow Cap Updates V3 Arbitrum, Optimism, Polygon",
    "shortDescription": "Update Supply and Borrow Caps on Arbitrum, Optimism and Polygon on Aave V3",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-2023-02-24/12048",
    "created": "2023-2-24",
    "preview": "# Simple Summary\n\nA proposal to adjust twenty-three (23) total risk …",
    "content": "\n\n# Simple Summary\n\nA proposal to adjust twenty-three (23) total risk parameters, including Supply Cap and Borrow Cap, across fourteen (14) assets on Aave V3 Polygon, Arbitrum,and Optimism.\n\n# Motivation\n\nThe objective of this proposal is to recommend updated supply and borrow caps for:\n\n1. V3 stablecoins that have excessive supply caps set and/or have no set borrow cap.\n- The caps are intended to allow for substantial growth compared to the current supply while not set too excessively.\n- The recommendations for the supply caps are set to up to 40% of the circulating supply for most assets and no more than 60%. You can find the exact number for each asset in the tables below. Borrow caps are set to ~65% of the supply cap.\n2. V3 assets that have reached over 75% utilization of either cap.\n- The recommendations provided in this proposal were derived using Chaos Labs’ [Updated Supply and Borrow Cap Methodology](https://governance.aave.com/t/chaos-labs-updated-supply-and-borrow-cap-methodology/11602). Below are the data and considerations for the assets and recommended caps for these assets.\n3. Assets with a supply cap that is >50% of the asset's total on-chain circulating supply.\n\nThere following assets are at >75%. However, we do not recommend increasing their caps at this time due to current liquidity levels:\n\nGHST (V3 Polygon)\nSUSHI (V3 Polygon)\nBAL (V3 Polygon)\nAAVE (V3 Arbitrum)\n\n\nThe respective governance forum discussion is linked below:\n- [[ARC] - Chaos Labs Supply and Borrow Cap Updates - Aave V3 - 2023.02.24](https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-2023-02-24/12048)\n\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n### Arbitrum\n\n| Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap | Notes |\n| --- | --- | --- | --- | --- | --- | \n| DAI | 2,000,000,000 | 50,000,000 |  N/A | 30,000,000 | 38% of the circulating supply |\n| EURS |  N/A | 60,000 |  N/A | 45,000 | 60% of the circulating supply |\n| USDC |  2,000,000,000 | 150,000,000 |  N/A | 100,000,000 | 16% of the circulating supply |\n| USDT |  2,000,000,000 | 50,000,000 |  N/A | 35,000,000 | 20% of the circulating supply |\n|AAVE  |  2,500 | 1,850 |  N/A | N/A |freezes supply|\n\n\n\n### Optimism\n\n| Asset |  Current Supply Cap | Recommended Supply Cap |  Current Borrow Cap | Recommended Borrow Cap | Notes |\n| --- | --- | --- | --- | --- | --- | \n| DAI |  2,000,000,000 | 25,000,000 |  N/A | 16,000,000 | 35% of the circulating supply |\n| sUSD |  20,000,000 | No Change |  N/A | 13,000,000 | 25% of the circulating supply |\n| USDC |  2,000,000,000 | 150,000,000 |  N/A | 100,000,000 | 43% of the circulating supply |\n| USDT |  2,000,000,000 | 25,000,000 |  N/A | 16,000,000 | 47% of the circulating supply |\n| AAVE |  100,000 | 45,000 |  N/A | N/A | freezes supply|\n| LINK | 258,000 | 160,000 | 141,900 | 84,000 | |\n| WBTC |  1,100 | 620 |  605 | 250 | freezes supply |\n\n\n### Polygon\n\n| Asset | Current Supply Cap | Recommended Supply Cap |  Current Borrow Cap | Recommended Borrow Cap |\n| --- | --- | --- | --- | --- | \n| WETH |  26,900 | 50,000 |  14,795 | No Change |\n| AAVE |  36,820 | 70,000 |  N/A | N/A |\n\n\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arc-chaos-labs-supply-and-borrow-cap-updates-aave-v3-2023-02-24/12048)\n\nTests: [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/arbitrum/AaveV3ArbBorrowCapsPayload-Feb26.t.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolCapsPayload-Feb26.t.sol), [Optimism](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/optimism/AaveV3OptCapsPayload-Feb26.t.sol)\n\n\nProposal payload implementation: [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbBorrowCapsPayload-Feb26.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolCapsPayload-Feb26.sol), [Optimism](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/optimism/AaveV3OptCapsPayload-Feb26.sol)\n\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-02-24-2023"
  },
  "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-03-30-2023": {
    "title": "Supply and Borrow Cap Updates Aave V3",
    "shortDescription": "Update Supply and Borrow Caps on Aave V3 Ethereum, Arbitrum, Optimism and Polygon",
    "author": "Chaos Labs (@ori-chaoslabs, @Maltmark)",
    "discussions": "https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-04-21-2023/12845",
    "created": "2023-04-27T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to increase supply and borrow caps for …",
    "content": "\n\n# Simple Summary\n\nA proposal to increase supply and borrow caps for the following caps on Aave V3:\n\n- Ethereum - wstETH\n- Arbitrum - WBTC, WETH\n- Optimism - WBTC, wstETH\n- Polygon - LINK, WBTC\n\n\n# Motivation\n\nThe objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have reached high utilization of either cap. The recommendations provided in this proposal were derived using Chaos Labs’ Updated Supply and Borrow Cap Methodology\n\nThe objective of this proposal is to recommend updated supply and borrow caps for V3 assets that have recently reached over 75% utilization of either cap, and our methodologies allow for an increase of the caps.\n\nThe recommendations provided in this proposal were derived using Chaos Labs’ [Supply and Borrow Cap Methodology](https://governance.aave.com/t/chaos-labs-supply-cap-methodology/12842). \n\nThe respective governance forum discussion is linked below:\n\n- **[[ARFC] Chaos Labs Supply and Borrow Cap Updates - 04.21.2023](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-04-21-2023/12845)**\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\n| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |\n| --- | --- | --- | --- | --- | --- |\n| Ethereum | wstETH | 200,000 | No Change | 6,000 | 12,000 |\n| Arbitrum | WBTC | 2,100 | 4,200 | 1,115 | No Change |\n| Arbitrum | WETH | 35,280 | 70,000 | 11,170 | 20,000 |\n| Optimism | wstETH | 6,000 | 12,000 | 940 | No Change |\n| Optimism | WBTC | 620 | 1200 | 250 | No Change |\n| Polygon | LINK | 297,640 | 370,000 | 163,700 | No Change |\n| Polygon | WBTC | 1,550 | 3,100 | 851 | No Change |\n\n\n# References\n[Forum Post](https://governance.aave.com/t/arfc-chaos-labs-supply-and-borrow-cap-updates-04-21-2023/12845)\n\nTests: [Ethereum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3ETHSupplyBorrowUpdate_20230427_test.t.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3POLSupplyBorrowUpdate_20230427_test.t.sol)\n, [Optimism](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3OPSupplyBorrowUpdate_20230427_test.t.sol), [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3ARBSupplyBorrowUpdate_20230427_test.t.sol)\n\n\n\nProposal payload implementation: [Ethereum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3ETHSupplyBorrowUpdate_20230427.sol), [Polygon](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3POLSupplyBorrowUpdate_20230427.sol)\n, [Optimism](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3OPSupplyBorrowUpdate_20230427.sol), [Arbitrum](https://github.com/bgd-labs/aave-proposals/blob/main/src/AaveV3SupplyBorrowUpdate_20230427/AaveV3ARBSupplyBorrowUpdate_20230427.sol)\n\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3-03-30-2023"
  },
  "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3": {
    "title": "Supply/Borrow Cap Updates for Aave v3",
    "shortDescription": "Update Supply and Borrow Caps on Polygon, Arbitrum and Optimism v3",
    "author": "Chaos Labs (@ori-chaoslabs, @yhayun)",
    "discussions": "https://governance.aave.com/t/arc-v3-borrow-cap-recommendations-fast-track-2022-12-05/10927 , https://governance.aave.com/t/arc-v3-supply-cap-recommendations-for-uncapped-assets-fast-track/10750",
    "created": "2022-12-13T00:00:00.000Z",
    "preview": "# Simple Summary\n\nA proposal to:\n- Add Borrow Caps for six (6) …",
    "content": "\n\n# Simple Summary\n\nA proposal to:\n- Add Borrow Caps for six (6) uncapped assets and amend the Borrow Cap of seven (7) assets across three (3) chains in v3.\n- Add Supply Caps for seven (7) uncapped assets on (2) chains in v3.\n\n\n# Motivation\n\nThe objective of this proposal by Chaos Labs is to recommend:\n- Supply caps for for v3 uncapped assets, taking into account Asset Market Cap, Asset Counter Party Risk, Asset Volume, Asset Liquidity (DEX and CEX based), Historical Liquidations in times of high volatility\n- Borrow caps using the AAVE V3 [Borrow Caps Methodology](https://governance.aave.com/t/aave-v3-borrow-caps-methodology/10925).\n\nThese are initial supply and borrow caps for these assets and they will be continuosly iterated upon.\n\nThe respective governance forum discussion is linked below:\n- [[ARC] V3 Borrow Cap Recommendations (Fast-track)](https://governance.aave.com/t/arc-v3-borrow-cap-recommendations-fast-track-2022-12-05/10927)\n- [V3 Supply Cap Recommendations for Uncapped Assets (Fast-track)](https://governance.aave.com/t/arc-v3-supply-cap-recommendations-for-uncapped-assets-fast-track/10750)\n\n\n# Specification\n\nThe following risk parameter proposal is presented below:\n\nBorrow Caps:\n- Arbitrum\n\n![](../assets/SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3/ARBITRUM-BORROW-CAP-RECS.png)\n- Polygon\n\n![](../assets/SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3/POLYGON-BORROW-CAP-RECS.jpeg)\n- Optimism\n\n![](../assets/SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3/OPTIMISM-BORROW-CAP-RECS.png)\n\nSupply Caps:\n- Arbitrum\n\n![](../assets/SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3/ARBITRUM-SUPPLY-CAP-RECS.jpg)\n- Optimism\n\n![](../assets/SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3/OPTIMISM-SUPPLY-CAP-RECS.jpg)\n\n# Implementation\nPayload implemendations can be found below:\n- Borrow Caps ([Polygon](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/polygon/AaveV3PolBorrowCapsPayload.sol), [Arbitrum](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/arbitrum/AaveV3ArbBorrowCapsPayload.sol), [Optimism](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/optimism/AaveV3OptBorrowCapsPayload.sol))\n- Supply Caps ([Arbitrum](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/arbitrum/AaveV3ArbCapsPayload.sol), [Optimism](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/optimism/AaveV3OptCapsPayload.sol))\n\nProposal payloads can be found below: \n- Borrow Caps ([Polygon](https://polygonscan.com/address/0x691b41805f7ef2d7de6165bc42295b035a31600d#code), [Arbitrum](https://arbiscan.io/address/0x691b41805f7ef2d7de6165bc42295b035a31600d#code), [Optimism](https://optimistic.etherscan.io/address/0x280e404338d9d8e50b11d6677b9c91ba86e0fd22#code))\n- Supply Caps ([Arbitrum](https://arbiscan.io/address/0xc9df68edcb0c8fb7ced82e5836b75c002c723e17#code), [Optimism](https://optimistic.etherscan.io/address/0x691b41805f7ef2d7de6165bc42295b035a31600d#code))\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "SUPPLY-BORROW-CAPS-UPDATE-AAVE-V3"
  },
  "UPDATE-RENFIL-STRATEGY_V2-ETHEREUM": {
    "title": "Update renFIL rate strategy on Aave v2 Ethereum",
    "author": "BGD Labs (@bgd-labs)",
    "shortDescription": "Update the interest rate strategy of renFIL on Aave v2 Ethereum",
    "discussions": "https://governance.aave.com/t/update-renfil-interest-rate-strategy-on-aave-v2-ethereum/11049",
    "created": "2022-12-19T00:00:00.000Z",
    "updated": "2022-12-19T00:00:00.000Z",
    "preview": "## Simple Summary\n\nProposal to replace the rate strategy smart …",
    "content": "\n\n\n## Simple Summary\n\nProposal to replace the rate strategy smart contract of renFIL on Aave v2 Ethereum with one returning constant zero rates, to avoid further accrual of variable borrow debt.\n\n## Motivation\n\nAs explained on [https://medium.com/renproject/moving-on-from-alameda-da62a823ce93](https://medium.com/renproject/moving-on-from-alameda-da62a823ce93), the mint/burn dynamics of renTokens have been affected, with minting already disabled, and burning to be disabled on the following days.\n\nEven if renFIL is only listed as borrowing asset on Aave v2 Ethereum (not collateral), fundamental changes on the creation/destruction of the asset creates a situation where the variable borrow and liquidity rate are not meaningful anymore, and should probably be set as constant 0.\n\nAdditional information can be found on the [Aave governance forum](https://governance.aave.com/t/update-renfil-interest-rate-strategy-on-aave-v2-ethereum/11049).\n\n## Specification\n\nFrom a technical standpoint, the proposal payload only calls `setReserveInterestRateStrategyAddress()` on the Aave v2 Ethereum PoolConfigurator contract, passing as parameters the address of renFIL and the address of the new rate strategy smart contract.\n\n## References\n\n- [Aave v2 Zero rate strategy](https://github.com/bgd-labs/aave-v2-zero-rate-strategy/blob/main/src/contracts/AaveV2ZeroInterestRateStrategy.sol)\n- [Proposal payload implementation](https://github.com/bgd-labs/aave-v2-zero-rate-strategy/blob/main/src/contracts/RENFILZeroStrategyPayload.sol)\n- [Deployed proposal payload](https://etherscan.io/address/0xbfcf7a2d4a91e91c72cdcf07ec65de6bf507daab#code)\n- [Deployed rate strategy](https://etherscan.io/address/0x311c866d55456e465e314a3e9830276b438a73f0#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "UPDATE-RENFIL-STRATEGY_V2-ETHEREUM"
  },
  "USDTETHV3": {
    "title": "Add USDT to Aave Ethereum V3 pool",
    "author": "Marc Zeller (@marczeller), Aave-Chan Inititative",
    "shortDescription": "Onboard USDT Aave Eth V3",
    "discussions": "https://governance.aave.com/t/arfc-add-usdt-to-ethereum-v3-market/11536",
    "created": "2023-02-07T00:00:00.000Z",
    "updated": "2023-02-07T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to onboard USDT to the Ethereum v3 Liquidity Pool.\n\n## Motivation\nSupporting stablecoin diversity is part of the Aave-Chan Initiative (ACI) delegate platform.\n\nThe ACI does not have any link nor is paid by Tether or any entity to present this ARC.\n\nThe risk parameters provided introduce USDT as a non-collateral asset.\n\nThe Interest rate Strategy curve is the same as for USDT in V2. for now.\nThe ACI is supportive of onboarding USDT as it was in V2.\nFor now, the ACI doesn’t consider V3 mature enough to activate a USD stablecoins emode and consider USDT in it.\nAlso, supply and borrow caps are suggested for this asset to limit risk exposure.\n\n## Specification\n\nTicker: USDT\n\nContract Address: [0xdAC17F958D2ee523a2206206994597C13D831ec7](https://etherscan.io/address/0xdAC17F958D2ee523a2206206994597C13D831ec7)\n\n|Risk Parameter|Value|\n| --- | --- |\n|Isolation Mode|NO|\n|Enable Borrow|YES|\n|Enable Collateral|NO|\n|Loan To Value|N/A|\n|Liquidation Threshold|N/A|\n|Liquidation Bonus|N/A|\n|Reserve Factor|10%|\n|Liquidation Protocol Fee|10%|\n|Borrow Cap|185M|\n|Supply Cap|200M|\n|Debt Ceiling|N/A|\n|Base|0%|\n|Slope1|4%|\n|Uoptimal|90%|\n|Slope2|72%|\n\nThe proposal payload uses the [GenericListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code) to perform a new asset listing with the following parameters:\n\n```solidity\nIGenericV3ListingEngine.Listing({\n      asset: USDT,\n      assetSymbol: 'USDT',\n      priceFeed: USDT_USD_FEED,\n      rateStrategy: 0xdd1BAC6A713c5b0EC42bA39D0c5e4582975DE6D6,\n      enabledToBorrow: true,\n      stableRateModeEnabled: false,\n      borrowableInIsolation: false,\n      withSiloedBorrowing: false,\n      flashloanable: true,\n      ltv: 0,\n      liqThreshold: 0,\n      liqBonus: 0,\n      reserveFactor: 10_00,\n      supplyCap: 200_000_000,\n      borrowCap: 185_000_000,\n      debtCeiling: 0,\n      liqProtocolFee: 10_00,\n      eModeCategory: 0\n    });\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-add-usdt-to-ethereum-v3-market/11536)\n- [tests](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV3USDTETHPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/mainnet/AaveV3EthUSDTPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by[Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3EthUSDTPayload: ProposalPayload](https://etherscan.io/address/0x3b45bbc2b69fafab95fd91b10f39ccb5dd92facb#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).",
    "basename": "USDTETHV3"
  },
  "V2-ETH-WETH-STRATEGY-UPDATE": {
    "title": "Ethereum v2 - wETH Interest Rate Curve Upgrade",
    "shortDescription": "Upgrade wETH interest rate on Ethereum v2 to match Ethereum v3 Liquidity Pool",
    "discussion": "https://governance.aave.com/t/arfc-weth-wsteth-interest-rate-curve-ethereum-network/11372",
    "author": "Llama, DeFi_Consulting, defijesus & efecarranza",
    "created": "2023-02-16T00:00:00.000Z",
    "preview": "# Simple Summary\n\n[Llama](https://twitter.com/llama) recommends …",
    "content": "\n\n# Simple Summary\n\n[Llama](https://twitter.com/llama) recommends aligning the wETH interest rate parameters across the Aave v2 and v3 Ethereum Liquidity Pools.\n\n# Abstract\n\nSince the recent wETH parameter upgrade on v2, Aave has experienced improved overall revenue. However, TVL and daily revenue are gradually declining. \n\nThis proposal intends to adjust the v2 wETH interest rate curve to match the v3 wETH interest rate curve which is expected to lead to high utilization of the v2 wETH reserve and partially offset the emerging declining week on week revenue trend.\n\n# Motivation\n\nSince AIP 131 was implemented, the amount of stETH deposited as collateral to borrow wETH has been fairly consistent. However, the amount of wETH borrowed by users who deposited stETH as collateral has reduced from 515.21K to 413.74K between 18th December 2022 and 15th January 2023 (pre Aave v3 launch). The tapering of borrowing demand is reflected in Aave’s wETH nominated revenue figures as shown below.\n\n![](https://i.imgur.com/T2Q2eFt.png)\n\nThe market is indicating that there is insufficient demand for borrowing wETH. Three possible reasons are shown below:\n\n* Structured products charge a fee\n* Additional smart contract risk\n* Elevated exposure to DEX liquidity\n\nOur analysis indicates the Slope1, 5.75%, is most likely the primary causes of the reduced wETH demand. Lowering the Slope1 parameter will enable users to achieve a higher return from entering the recursive loop strategy. The chart below shows how users that deposit stETH and borrow wETH have behaved to date. The date highlighted below is the date AIP131 was executed.\n\n![](https://i.imgur.com/Kylzpy7.png)\n\nThis proposal intends to reduce the Slope1 parameters on the v2 market to 3.8% and introduce a Base of 1%. The borrowing rate at the Upotimal point is reduced from 5.75% to 4.8% (Base + Slope1). Introducing a Base, with a Lower Slope1 (4.8% < 5.75%) parameter, acts to reduce the gradient between 0% < Utilization < Uoptimal compared to having a Slope1 = Base + Lower Slope1. \n\nThe graphic below shows the current and proposed wETH interest rate curves. \n\n![](https://i.imgur.com/LoYlee2.png)\n\nThe graphic below shows the proposed interest rate with Base, Slope1 and Slope2 parameters detailed. \n\n![](https://i.imgur.com/a7WZRKR.png)\n\nIt is worth noting that borrowing wETH becomes slightly more expensive at lower utilization compared to the current wETH interest rate. When utilization is less than 41% borrowing costs are higher, ranging 0 to 0.98%, and when utilization is greater than 41% borrowing costs are lower, ranging 0 to 0.95%. Current utilization is 46% on the v2 deployment which means the borrowing costs would be reduced.\n\nThe chart below shows the relative change in borrowing costs for users, comparing the current versus the proposed interest rate curve.\n\n![](https://i.imgur.com/UnKydnQ.png)\n\n# Specification\n\nThe below table shows the current and proposed wETH interest rate curve for the Ethereum v2 deployment.\n\n|Parameter|Current (%)|Proposed (%)|\n| --- | --- | --- |\n|Uoptimal|80.00|80.00|\n|Base|0.00|1.00|\n|Variable Slope1|5.75|3.80|\n|Variable Slope2|80.00|80.00|\n|Reserve Factor|15.00|15.00|\n|Stable Slope1|4.00|4.00|\n|Stable Slope2|80.00|80.00|\n\n# Implementation\n\nTest cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV2wETHIRPayloadTest.t.sol)\n\nPayload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/mainnet/AaveV2wETHIRPayload.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer/tree/main/script)\n\nProposal Payload deployed address can be found [here](https://etherscan.io/address/0xfb2a7eb134fa2d03d9a2c8fe0a9758132fe15357)\n\nInterest Rate Strategy deployed address can be found [here](https://etherscan.io/address/0xb8975328Aa52c00B9Ec1e11e518C4900f2e6C62a)\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arfc-weth-wsteth-interest-rate-curve-ethereum-network/11372), [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0x9ae28e9c82c5fc0d24cf1df788094e959d99f906d11b89e455a60ee16b071d6f) and [Risk Service Provider feedback](https://governance.aave.com/t/arfc-weth-wsteth-interest-rate-curve-ethereum-network/11372/4).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n\n",
    "basename": "V2-ETH-WETH-STRATEGY-UPDATE"
  },
  "WMATIC_INTEREST_RATE_UPDATE_V3_POLYGON": {
    "title": "Aave v3 Polygon wMATIC Interest Rate Update",
    "discussions": "https://governance.aave.com/t/arfc-aave-v3-polygon-wmatic-interest-rate-update/10290",
    "shortDescription": "Increase wMATIC Supply Cap, Borrow Cap and upgrade the interest rate curve.",
    "author": "Llama, Defi_Consulting",
    "created": "2022-10-17T00:00:00.000Z",
    "updated": "2023-02-01T00:00:00.000Z",
    "preview": "# Summary\n\nLlama presents a proposal to amend the interest rate …",
    "content": "\n\n# Summary\n\nLlama presents a proposal to amend the interest rate parameters, SupplyCap, and BorrowCap for wMATIC on the Aave Polygon v3 Liquidity Pool.\n\n# Abstract\n\nAt the current borrowing rate of 6.11%, the maximised yield strategy of looping stMATIC/wMATIC is non profitable without incentives. wMATIC’s reserve utilisation is low, 38.15%, due to high borrowing costs. \n\nThis proposal will reduce the borrowing cost of wMATIC by reducing the overall borrowing cost to users and will also improve capital efficiency by enabling a great portion of the liquidity to be borrowed. This is expected to lead to increased wMATIC demand and greater revenue to Aave.\n\nThe up and coming liquidity mining campaign is expected to lead to a material inflow of deposits and an increase in borrowing demand. This proposal, amongst others, helps prepare Aave for an influx of new users. \n\n# Motivation\n\nWith wMATIC borrowing costs exceeding the yield of MaticX and stMATIC, users are unlikely to enter into the Matic eMode without financial incentive. Upon review of the wMATIC reserve, the Uoptimal parameter set at 45% means users can borrow up to 45% of the wMATIC in the reserve before borrowing costs become more volatile.\n\nIncreasing the Uoptimal parameter from 45% to 75% will enable users to borrow 30% more wMATIC in the reserve for the same borrowing rate, Slope1. By reducing the Slope1 parameter from 7.0% to 6.1%,  the borrowing cost at the Uoptimal point is lowered. \n\nTo reduce the volatility in the borrow rate above Uoptimal utilisation, this proposal intends to reduce the Slope2 parameter from 300% to 100%. This will lower the borrowing cost volatility when utilisation exceeds the Upotimal point.\n\nThis initial update of increasing the Uoptimal and lowering the Slope1 parameter improves the overall capital efficiency and makes borrowing more attractive to users. Future updates will further optimise the interest rate.\n\nThe graphic below shows the changes in the interest rate.\n\n![](https://raw.githubusercontent.com/aave/aip/main/content/assets/WMATIC_INTEREST_RATE_UPDATE_V3_POLYGON/graph.png)\n\nIn addition to the interest rate updates proposed above, Chaos Labs has provided revised SupplyCap and BorrowCap parameters. By increasing the amount of wMATIC that can be deposited and borrowed, the recursive yield maximising strategy can grow beyond the current limitation of the reserve during the upcoming liquidity mining program.\n\n# Specification\n\nThe below table shows the current and proposed changes to the wMATIC Reserve. \n\n|Parameter|Current|Proposed|\n| --- | --- | --- |\n|SupplyCap|32.88M|47M|\n|BorrowCap|9.23M|39.95M|\n|Uoptimal|45%|75%|\n|Base|0%|0%|\n|Slope1|7.0%|6.1%|\n|Slope2|300%|100%|\n|Reserve Factor|20%|20%|\n\n\n# Implementation\n\nTest cases can be found [here](https://github.com/defijesus/aave-v3-wmatic-interest-rate-upgrade/blob/master/src/test/polygon/PolygonWmaticE2E.t.sol)\n\nPayload Implementation can be found [here](https://github.com/defijesus/aave-v3-wmatic-interest-rate-upgrade/blob/master/src/contracts/polygon/WmaticPayload.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/defijesus/wmatic-interest-rate-strategy-deployer-v3/blob/main/script/DeployContract.s.sol)\n\nProposal Payload deployed address can be found [here](https://polygonscan.com/address/0x7255791f9b2d44863c21ed1f484d444a74731ac6)\n\nInterest Rate Strategy deployed address can be found [here](https://polygonscan.com/address/0xFB0898dCFb69DF9E01DBE625A5988D6542e5BdC5)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). \n",
    "basename": "WMATIC_INTEREST_RATE_UPDATE_V3_POLYGON"
  },
  "WSTETH-ARB-CAP-UPDATE": {
    "title": "increase supply cap for wstETH Aave Arbitrum V3",
    "author": "Marc Zeller (@marczeller), Aave-Chan initiative",
    "shortDescription": "increase supply cap for wstETH Aave Arbitrum V3",
    "discussions": "https://governance.aave.com/t/arfc-increase-supply-cap-for-wsteth-aave-arbitrum-v3/12163",
    "created": "2023-03-05T00:00:00.000Z",
    "updated": "2023-03-05T00:00:00.000Z",
    "preview": "## Simple Summary\nThis AIP proposal presents Aave with the …",
    "content": "\n\n## Simple Summary\nThis AIP proposal presents Aave with the opportunity to increase wstETH supply cap on the Arbitrum v3 Liquidity Pool.\n\n## Motivation\n\nwstETH has reached approximately 95% of its supply cap on Aave V3 Arbitrum.\n\nIncreasing this supply cap will enable new Aave users to utilize Aave V3 and allow current users to increase the size of their positions.\n\nThe proposed increase is set at a level that allows the market to find a new equilibrium while maintaining a conservative approach.\n\n## Specification\n\nTicker: wstETH (wstETH)\n\nContract Address: 0x5979d7b546e38e414f7e9822514be443a4800529\n\n| Parameter | Current | Proposed |\n| --- | --- | --- |\n| Supply Cap | 1200 | 2400 |\n\n\n```solidity\ncontract AaveV3ArbwstETHCapsPayload is IProposalGenericExecutor {\n  uint256 public constant WSTETH_CAP = 2_400;\n\n  function execute() external {\n    AaveV3Arbitrum.POOL_CONFIGURATOR.setSupplyCap(\n      AaveV3ArbitrumAssets.wstETH_UNDERLYING,\n      WSTETH_CAP\n    );\n  }\n}\n```\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](https://governance.aave.com/t/arfc-increase-supply-cap-for-wsteth-aave-arbitrum-v3/12163)\n- [tests](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/mainnet/AaveV3ArbwstETHSupplyCapsPayloadTest.t.sol)\n- [proposalCode](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbwstETHSupplyCapsPayload.sol)\n\n## Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n## Deployed Contracts\n\n- [AaveV3ArbwstETHCapsPayload: ProposalPayload](https://arbiscan.io/address/0xcdb9ea7f9443fa9e8ba6ebc9ef41c3ed75939663#code)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "WSTETH-ARB-CAP-UPDATE"
  },
  "WSTETH-ARBITRUM-LISTING": {
    "title": "Add wstETH to Arbitrum Aave v3",
    "discussion": "https://governance.aave.com/t/arc-add-support-for-wsteth-on-arbitrum-aave-v3/11387",
    "shortDescription": "Add wstETH to Arbitrum Aave v3 deployment as collateral, with borrowing enabled and an Ethereum eMode.",
    "author": "Llama, DeFi_Consulting & efecarranza",
    "dated": "2023-02-20T00:00:00.000Z",
    "preview": "# Summary\n\nThis ARFC presents the community with the opportunity to …",
    "content": "\n\n# Summary\n\nThis ARFC presents the community with the opportunity to add wstETH to the Arbitrum V3 Liquidity Pool.\n\n# Abstract\n\nAcross the Aave Liquidity Pools, stETH is listed on Aave v2 Ethereum and wstETH is listed on Aave v3 Ethereum and recently Optimism. This proposal seeks to list wstETH on the Arbitrum Liquidity Pool as Collateral, with Borrowing enabled and an Ethereum eMode.  \n\nThe stETH/wETH rewards-maximising loop on Aave v2 is the main source of borrowing demand for wETH and the wETH reserve generates a material portion of Aave’s revenue, more than $281k in January 2023. By listing wstETH on Arbitrum users will be able to enter the same recursive strategy creating borrowing demand for wETH and revenue for Aave.\n \nThe risk parameters have been provided by Gauntlet, Chaos Labs and Llama, with this post using the parameters agreed between the two service providers.\n\n# Motivation\n\nThe stETH reserve on Aave v2 is the largest reserve across all Aave deployments with $1.65B in deposits, exceeding USDC ($0.86B) and ETH ($1.47B). This is partially due to several communities having built products that deposit stETH and borrow ETH as part of a rewards-maximising strategy. \n\nDemand for borrowing wETH on Aave v2 Ethereum increased significantly when stETH was listed as collateral. InstaDapp, Index Coop, Galleon DAO, CIAN and others have all built products on top of Aave v2 that utilise the rewards-maximising stETH/ETH strategy. By adding wstETH to the Arbitrum Liquidity Pool, Aave moves closer towards enabling developers to deploy similar products on Arbitrum. This is expected to create borrowing demand for wETH and boost Aave’s revenue.\n\nThe charts below show the effect of stETH has had on the Aave v2 Ethereum liquidity pool. stETH drives most of the wETH borrowing demand and resulting wETH fee-revenue. The wETH reserve generated approximately $217k in revenue during December and generated $281k by late January.\n\n![](https://i.imgur.com/gjsCIuk.png)\n![](https://i.imgur.com/EbBLhI5.png)\n\nListing of stETH by Aave has enabled Aave to offer the best return on wETH, in wETH terms, across major lending markets, continually outperforming Compound. By listing wstETH on Arbitrum, the Aave community is helping create an environment capable of replicating the success of the Aave v2 Ethereum Liquidity Pool.\n\n# Specification\n\nThis section presents the risk parameters and interest rates parameters as discussed on the governance forum. The parameters shown below are a combination of Gauntlet’s and Llama’s work.\n\n\nGauntlet’s and Chaos Lab's Risk Assessment can be found [here](https://governance.aave.com/t/arc-add-support-for-wsteth-on-arbitrum-aave-v3/11387/7).\n\n## Risk Parameters\n\n|Parameter|Value|\n| --- | --- |\n|Isolation Mode|No|\n|Borrowable|Yes|\n|Collateral Enabled| Yes|\n|Supply Cap (wstETH)| 1,200|\n|Borrow Cap (wstETH)| 190|\n|Debt Ceiling| 0|\n|LTV| 70.00%|\n|LT| 79.00%|\n|Liquidation Bonus| 7.20%|\n|Liquidation Protocol Fee |10.00%|\n|Variable Base|0.25%|\n|Variable Slope1|4.50%|\n|Variable Slope2|80.00%|\n|Uoptimal|45.00|\n|Reserve Factor|15.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|4.50%|\n|Stable Slope2|80.00%|\n|Base Stable Rate Offset|1.00%|\n|Stable Rate Excess Offset|8.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\n# Implementation\n\nTest cases can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/arbitrum/AaveV3ArbWSTETHListingPayloadTest.t.sol)\n\nPayload Implementation can be found [here](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/arbitrum/AaveV3ArbWSTETHListingPayload.sol)\n\nNew Interest Rate Strategy deployment script can be found [here](https://github.com/llama-community/aave-interest-rate-strategy-deployer-v3/blob/main/script/DeployContract.s.sol)\n\nProposal Payload deployed address can be found [here](https://arbiscan.io/address/0x80cb7e9e015c5331bf34e06de62443d070fd6654)\n\nInterest Rate Strategy deployed address can be found [here](https://arbiscan.io/address/0x4b8D3277d49E114C8F2D6E0B2eD310e29226fe16)\n\n# Security Considerations\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\n# Governance Considerations\n\nAave [governance forum discussion](https://governance.aave.com/t/arc-add-support-for-wsteth-on-arbitrum-aave-v3/11387), [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0x402647b83c436aecbe2fe404870f08767b5509225cbe606913e50801f87f5db8) and [Risk Service Provider feedback](https://governance.aave.com/t/arc-add-support-for-wsteth-on-arbitrum-aave-v3/11387/7).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "WSTETH-ARBITRUM-LISTING"
  },
  "WSTETH-POLYGON-LISTING": {
    "title": "Add wstETH to Polygon Aave v3",
    "discussions": "https://governance.aave.com/t/arc-add-support-for-wsteth-on-polygon-v3/12266",
    "shortDescription": "Add wstETH to Polygon Aave v3 deployment as collateral, with borrowing enabled and an Ethereum correlated eMode.",
    "author": "Llama - TokenLogic & efecarranza",
    "created": "2023-04-17T00:00:00.000Z",
    "preview": "# Summary\n\nThis AIP presents the community with the opportunity to …",
    "content": "\n\n# Summary\n\nThis AIP presents the community with the opportunity to add wstETH to the Polygon v3 Liquidity Pool.\n\n# Abstract\n\nAcross the Aave v3 Liquidity Pools, wstETH is listed on Ethereum, Arbitrum and Optimism. This proposal seeks to list wstETH on the Polygon Liquidity Pool as Collateral, with Borrowing enabled and an Ethereum correlated eMode. wETH will also be added to this Ethereum correlated eMode. The parameters are listed below.\n\nThe stETH/wETH rewards-maximising loop on Aave v2 Ethereum is the main source of borrowing demand for wETH. The wETH reserve generates a material portion of Aave’s revenue, more than [$294k](https://dune.com/llama/Aave-ETH-Market-Parameters-Simulation) during March 2023. \n\nBy listing wstETH on Polygon users will be able to enter the same yield maximising strategy creating borrowing demand for wETH and revenue for Aave.\n\n# Motivation\n\nThe stETH reserve on Aave v2 is the largest reserve across all Aave deployments with $1.90B in deposits, exceeding USDC ($0.62B) and ETH ($1.41B). This is partially due to several communities having built products that deposit stETH and borrow ETH as part of a rewards-maximising strategy. \n\nDemand for borrowing wETH on Aave v2 Ethereum increased significantly when stETH was listed as collateral. InstaDapp, Index Coop, Galleon DAO, CIAN and others have all built products on top of Aave v2 that utilise the rewards-maximising stETH/ETH strategy. By adding wstETH to the Polygon Liquidity Pool, Aave moves closer towards enabling developers to deploy similar products on Polygon. This is expected to create borrowing demand for wETH and boost Aave’s revenue.\n\nThe charts below show the effect of stETH has had on the Aave v2 Ethereum liquidity pool. stETH drives most of the wETH borrowing demand and resulting wETH fee-revenue. The wETH reserve generated approximately $244k and $294k during Fabruary and March respectively.\n\n![](https://i.imgur.com/RaduU68.png)\n\nListing of stETH by Aave has enabled Aave to offer the best return on wETH, in wETH terms, across major lending markets, continually outperforming Compound. By listing wstETH on Polygon, the Aave community is helping create an environment capable of replicating the success of the Aave v2 Ethereum Liquidity Pool.\n\n# Specification\n\nThis section presents the risk parameters and interest rates parameters presented by [Gauntlet and Chaos Labs](https://governance.aave.com/t/arc-add-support-for-wsteth-on-polygon-v3/12266/4) on the governance forum.\n\n\n|Parameter|Value|\n| --- | --- |\n|Isolation Mode|No|\n|Borrowable|Yes|\n|Collateral Enabled| Yes|\n|Supply Cap (wstETH)| 1,800|\n|Borrow Cap (wstETH)| 285|\n|Debt Ceiling| 0|\n|LTV| 70.00%|\n|LT| 79.00%|\n|Liquidation Bonus| 7.20%|\n|Liquidation Protocol Fee |10.00%|\n|Variable Base|0.25%|\n|Variable Slope1|4.50%|\n|Variable Slope2|80.00%|\n|Uoptimal|45.00|\n|Reserve Factor|15.00%|\n|Stable Borrowing|Disabled|\n|Stable Slope1|4.50%|\n|Stable Slope2|80.00%|\n|Base Stable Rate Offset|1.00%|\n|Stable Rate Excess Offset|8.00%|\n|Optimal Stable To Total Debt Ratio|20.00%|\n\neMode category: ETH Correlated Strategy\n\n|Parameter|Value|\n| --- | --- |\n| LT | 93% |\n| LTV | 90% |\n| LB | 1% |\n\n# Implementation\n\nA list of relevant links like for this proposal:\n\n  * [Test Cases](https://github.com/bgd-labs/aave-proposals/tree/main/src/AaveV3Listings_20230413/AaveV3Listings_20230413_PayloadTest.t.sol)\n  * [Payload Implementation](https://github.com/bgd-labs/aave-proposals/tree/main/src/AaveV3Listings_20230413/AaveV3Listings_20230413_Payload.sol)\n\nThe proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).\n\nAave [governance forum discussion](https://governance.aave.com/t/arc-add-support-for-wsteth-on-polygon-v3/12266)and [Snapshot vote](https://snapshot.org/#/aave.eth/proposal/0x9d7296b06a66d6d6b4c9e85051477a4d62d066e3f56c248bcc85cbea00f7c7a4).\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n\n",
    "basename": "WSTETH-POLYGON-LISTING"
  },
  "XSUSHI_PRICE_FEED_SWAP": {
    "title": "Update xSushi price feed on Aave V2",
    "author": "BGD Labs (@bgdlabs)",
    "shortDescription": "Swap xSushi price feed on Aave V2 pool on Mainnet",
    "discussions": "https://governance.aave.com/t/bgd-swap-of-price-feed-of-xsushi-on-aave-v2-ethereum/11901",
    "created": "2023-02-10T00:00:00.000Z",
    "preview": "## Simple Summary\n\nThis proposal changes the current price feed for …",
    "content": "\n\n## Simple Summary\n\nThis proposal changes the current price feed for xSushi (adapter) to a Chainlink calculated oracle, on Aave V2 Ethereum.\n\n## Motivation\n\nCurrently, a custom [price feed](https://etherscan.io/address/0x9b26214bEC078E68a394AaEbfbffF406Ce14893F) is used for xSushi, which calculates the price based on `SUSHI / ETH` oracle and `SUSHI / xSUSHI` ratio on-chain. It is more effective in terms of technical support and gas cost to use the [feed](https://etherscan.io/address/0xF05D9B6C08757EAcb1fbec18e36A1B7566a13DEB) deployed by Chainlink, which does this calculations off-chain. In addition, any risk of on-chain manipulation, even if not applicable at the moment with the asset not enabled for borrowing, gets removed.\n\n## Specification\n\nUpon execution the proposal will:\n\n- call `ORACLE.setAssetSources(0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272, 0xF05D9B6C08757EAcb1fbec18e36A1B7566a13DEB)` to replace the price source for xSushi\n\n## Security and additional considerations\n\nTo have extra assurances on the feed swap, we did the following:\n\n- **Historical Feeds Comparison**: Comparing the answers from the current feed with the new one for the last year with a 2-hour step gave the following results:\n  - 24.88% of results differ for less than 0.1%\n  - 55.63% have between 0.1% and 1% difference\n  - 19.49% is between 1% and 2%\n\nPrice deviation for both feeds is 2%, which means that the price difference is withing the norm.\n\n## References\n\n- [AaveV2SwapxSushiPriceFeedPayload](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/contracts/mainnet/AaveV2SwapxSushiPriceFeedPayload.sol)\n- [Test suite](https://github.com/bgd-labs/aave-v3-crosschain-listing-template/blob/master/src/test/mainnet/AaveV2SwapxSushiPriceFeedPayloadTest.t.sol)\n\n## Contracts\n\n- [xSushi](https://etherscan.io/token/0x8798249c2E607446EfB7Ad49eC89dD1865Ff4272)\n- [Current price feed](https://etherscan.io/address/0x9b26214bEC078E68a394AaEbfbffF406Ce14893F)\n- [Chainlink's price feed](https://etherscan.io/address/0xF05D9B6C08757EAcb1fbec18e36A1B7566a13DEB)\n- [AaveV2SwapxSushiPriceFeedPayload: ProposalPayload](https://etherscan.io/address/0x3105c276558dd4cf7e7be71d73be8d33bd18f211)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n",
    "basename": "XSUSHI_PRICE_FEED_SWAP"
  }
}
