KVORUM
aaveSource: Aave governance v3 · #102

Reserve Factor Upgrades

executedMay 11, 2024, 06:26 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Increase Reserve Factor (RF) by 5% for 11 assets on Ethereum V2 and 6 assets on Avalanche V2 to route more interest to Aave DAO Treasury and encourage migration from V2 to V3. User funds remain safe with no liquidation risk and unchanged borrowing rates.

Type
parameter change

Key changes

  • Ethereum V2: Increase Reserve Factor by 5% for DAI (45%→50%), FRAX (50%→55%), GUSD (40%→45%), LINK (50%→55%), LUSD (45%→50%), sUSD (50%→55%), USDC (45%→50%), USDP (40%→45%), USDT (45%→50%), WBTC (50%→55%), WETH (45%→50%)(high)
  • Avalanche V2: Increase Reserve Factor by 5% for DAIe (40%→45%), USDCe (40%→45%), USDTe (40%→45%), WAVAX (40%→45%), WBTCe (45%→50%), WETHe (40%→45%)(high)
  • Incentivize migration from Ethereum V2 to V3 by reducing deposit yields through higher reserve factors(medium)

Notable concerns

  • Reduced deposit yields for V2 users on affected assets
  • Continuation of strategy to deprecate V2 in favor of V3
ContractsAaveV2EthereumAaveV2Avalanche
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

370 words

Simple Summary

This AIP is composed of two actions: (1) a continuation of proposal 73 on Governance V3 that increases the Reserve Factor (RF) for assets on Ethereum V2 by 5.00%, up to a maximum of 99.99%; and (2) to start periodically increasing the RF across Avalanche V2.

Motivation

This AIP will reduce deposit yield for assets on Ethereum & Avalanche V2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Ethereum V2 to V3.

Increasing the RF routes a larger portion of the interest paid by users to Aave DAO's Treasury. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.

Of the assets with an RF set at 99.99%, there is no change. All other asset reserves will have the RF increased by up to 5.00%.

Specification

For Ethereum V2, the following parameters are to be updated as follows:

AssetPrevious Reserve FactorNew Reserve Factor
DAI45.00%50.00%
FRAX50.00%55.00%
GUSD40.00%45.00%
LINK50.00%55.00%
LUSD45.00%50.00%
sUSD50.00%55.00%
USDC45.00%50.00%
USDP40.00%45.00%
USDT45.00%50.00%
WBTC50.00%55.00%
WETH45.00%50.00%

For Avalanche V2, the following parameters are to be updated as follows:

AssetPrevious Reserve FactorNew Reserve Factor
DAIe40.00%45.00%
USDCe40.00%45.00%
USDTe40.00%45.00%
WAVAX40.00%45.00%
WBTCe45.00%50.00%
WETHe40.00%45.00%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

1 total
#0fallback()chain 0x1
Target
0xdcfe…a78a
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.