Reserve Factor Upgrades
01Summary
Increase Reserve Factor (RF) for 11 assets on Ethereum V2 by 3-4.99% and for 6 assets on Avalanche V2 by 5%, routing more user interest to Aave DAO Treasury and encouraging migration from V2 to V3. User funds remain safe and borrowing rates unchanged.
- Type
- parameter change
Key changes
- Ethereum V2: Increase Reserve Factor for DAI from 50% to 55%(medium)
- Ethereum V2: Increase Reserve Factor for USDC from 50% to 55%(medium)
- Ethereum V2: Increase Reserve Factor for USDT from 50% to 55%(medium)
- Ethereum V2: Increase Reserve Factor for WETH from 50% to 55%(medium)
- Ethereum V2: Increase Reserve Factor for LINK from 55% to 60%(medium)
- Ethereum V2: Increase Reserve Factor for WBTC from 55% to 60%(medium)
- Ethereum V2: Increase Reserve Factor for FRAX from 95% to 99.99%(medium)
- Ethereum V2: Increase Reserve Factor for GUSD from 95% to 99.99%(medium)
Notable concerns
- Reduced deposit yields for V2 users may impact user experience and returns
- Proposal aims to incentivize migration to V3, which may fragment liquidity across protocol versions
Generated by Kvorum
02Description
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:
| Asset | Previous Reserve Factor | New Reserve Factor |
|---|---|---|
| DAI | 50.00% | 55.00% |
| FRAX | 95.00% | 99.99% |
| GUSD | 95.00% | 99.99% |
| LINK | 55.00% | 60.00% |
| LUSD | 95.00% | 99.99% |
| sUSD | 95.00% | 99.99% |
| USDC | 50.00% | 55.00% |
| USDP | 95.00% | 99.99% |
| USDT | 50.00% | 55.00% |
| WBTC | 55.00% | 60.00% |
| WETH | 50.00% | 55.00% |
For Avalanche V2, the following parameters are to be updated as follows:
| Asset | Previous Reserve Factor | New Reserve Factor |
|---|---|---|
| DAIe | 45.00% | 50.00% |
| USDCe | 45.00% | 50.00% |
| USDTe | 45.00% | 50.00% |
| WAVAX | 45.00% | 50.00% |
| WBTCe | 50.00% | 55.00% |
| WETHe | 45.00% | 50.00% |
References
- Implementation: AaveV2Ethereum, AaveV2Avalanche
- Tests: AaveV2Ethereum, AaveV2Avalanche
- Discussion for Ethereum Reserve Factor Updates
- Snapshot for Ethereum Reserve Factor Updates
- Discussion for Avalanche Reserve Factor Updates
- Snapshot for Avalanche Reserve Factor Updates
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal describes two coordinated actions: raising Reserve Factors by up to 5% (capped at 99.99%) for 11 Ethereum V2 assets and 6 Avalanche V2 assets. The decoded on-chain data contains only one action: a fallback execute() call to a single contract on chain 0x1 (Ethereum). This matches the Aave governance pattern where a short executor delegatecalls into a payload contract that performs the real logic, so the lack of decoded arguments for the Ethereum leg is not itself suspicious and is treated as routine/opaque execution rather than a mismatch. However, the complete absence of any second action or cross-chain dispatch mechanism for Avalanche V2 is a real gap: the description promises Avalanche-side changes but the calldata provided gives no evidence that any Avalanche-targeting action (direct or via a cross-chain controller) is included in this proposal's execution. This could mean the Avalanche update is handled by a separate proposal/payload not shown here, or that the description overstates the scope of this specific on-chain proposal. Given the potential for the Avalanche portion to be entirely absent from execution while being prominently claimed in the summary and motivation, this is flagged as a material discrepancy. Confidence is medium because the opaque execute() call could legitimately encapsulate more than what is visible, but the complete lack of any second/cross-chain action row is a meaningful gap a delegate should be aware of before voting.
Discrepancies
- highomitted in description
The description explicitly frames this AIP as two distinct actions — one affecting Ethereum V2 reserves and a second affecting Avalanche V2 reserves. The decoded calldata, however, shows only a single execute() call targeting chain 0x1 (Ethereum). There is no visible action (e.g., a cross-chain message/bridge call to a CrossChainController or a second payload targeting Avalanche) that would carry out the claimed Avalanche V2 reserve factor increases. Without a decoded action for the Avalanche side, a reviewer cannot confirm that the Avalanche changes described in the proposal are actually part of this on-chain execution.
“to start periodically increasing the RF across Avalanche V2”
- lowvalue mismatch
Because the single decoded action is a generic execute()/fallback call with no arguments, none of the specific per-asset Reserve Factor values claimed in the description (e.g., DAI 50%→55%, FRAX 95%→99.99%, etc.) can be independently verified against the calldata. This is typical of Aave's delegatecall payload pattern, but it means the numeric claims rest on trust in the linked implementation contract rather than on directly verifiable calldata.
“New Reserve Factor”
Generated by Kvorum
04Actions
- Target
- 0xd15a…9e00
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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