KVORUM
aaveSource: Aave governance v3 · #130

Stablecoin IR Curve Amendment

executedJul 23, 2024, 03:48 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to reduce stablecoin borrowing interest rates (Slope1) from 9% to 6.5% across Aave V2 and V3 deployments on multiple chains (Ethereum, Polygon, Avalanche, Optimism, Arbitrum, Base, BNB Chain, Scroll, and Gnosis). This aligns rates with anticipated MakerDAO DSR decrease from 8% to 7%, reducing arbitrage opportunities and maintaining Aave's competitiveness. Metis deployment and bridged USDC variants are excluded from changes.

Type
parameter change

Key changes

  • Reduce Slope1 parameter for USDC, USDT, and DAI on Ethereum V2 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC, USDT, FRAX, DAI, LUSD, pyUSD, and crvUSD on Ethereum V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC, USDT, DAI, and FRAX on Avalanche V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC, USDT, DAI, EURA, EURS, and jEUR on Polygon V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC, USDT, DAI, sUSD, LUSD, and MAI on Optimism V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC, USDT, DAI, LUSD, FRAX, and EURS on Arbitrum V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDC on Base V3 from 9% to 6.5%(high)
  • Reduce Slope1 parameter for USDT, USDC, and FDUSD on BNB Chain V3 from 9% to 6.5%(high)

Notable concerns

  • Rate reduction may impact lending yields for suppliers of stablecoin collateral
  • Implementation spans 9 blockchain networks with multiple stablecoin assets, requiring careful execution across all deployments
ContractsAaveV2EthereumAaveV3EthereumAaveV3PolygonAaveV3AvalancheAaveV3OptimismAaveV3ArbitrumAaveV3BaseAaveV3GnosisAaveV3ScrollAaveV3BNB
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

712 words

Simple Summary

A proposal to decrease stablecoin Interest Rate parameters across all Aave deployments.

Motivation

Following the anticipated decrease in DSR — from 8% to 7% — we believe it is prudent to update Aave stablecoin interest rates to best align with the broader market. Previously, we recommended reducing rates concurrent with the last DSR decrease from 13% to 10% in April.

The new parameters went into effect on May 6, 2024, and thus far have helped improve rate stability and utilization rates. As part of our ongoing monitoring of broader markets, we note that MakerDAO is in the process of reducing the DAI Savings Rate, which could impact stablecoin rates throughout DeFi.

Following our methodology laid out in previous recommendations, we recommend closely aligning Slope1 with the DSR to reduce the opportunity of rate arbitrage and ensure that Aave remains competitive. As a result, we propose decreasing Slope1 to 0.5% below the DSR, setting it at 6.5%.

Caveats:

  1. We do not recommend an update to lower-cap stablecoins on Ethereum V2, as they are currently being deprecated.
  2. Similar to the previous proposals, we do not recommend a change on bridged USDC (USDC.e/USDbC) on all deployments. This way, they will have a higher Slope1 to motivate the borrowing of native USDC.

Specification

MarketAssetCurrent Slope1Recommended Slope1
Ethereum V2USDC9%6.5%
Ethereum V2USDT9%6.5%
Ethereum V2DAI9%6.5%
Ethereum V3USDC9%6.5%
Ethereum V3USDT9%6.5%
Ethereum V3FRAX9%6.5%
Ethereum V3DAI9%6.5%
Ethereum V3LUSD9%6.5%
Ethereum V3pyUSD9%6.5%
Ethereum V3crvUSD9%6.5%
Avalanche V3USDC9%6.5%
Avalanche V3USDT9%6.5%
Avalanche V3DAI9%6.5%
Avalanche V3FRAX9%6.5%
Polygon V3USDC9%6.5%
Polygon V3USDT9%6.5%
Polygon V3DAI9%6.5%
Polygon V3EURA9%6.5%
Polygon V3EURS9%6.5%
Polygon V3jEUR9%6.5%
Optimism V3USDC9%6.5%
Optimism V3USDT9%6.5%
Optimism V3DAI9%6.5%
Optimism V3sUSD9%6.5%
Optimism V3LUSD9%6.5%
Optimism V3MAI9%6.5%
Arbitrum V3USDC9%6.5%
Arbitrum V3USDT9%6.5%
Arbitrum V3DAI9%6.5%
Arbitrum V3LUSD9%6.5%
Arbitrum V3FRAX9%6.5%
Arbitrum V3EURS9%6.5%
Base V3USDC9%6.5%
Metis V3m.USDC6%No Change
Metis V3m.USDT6%No Change
Metis V3m.DAI6%No Change
BNB Chain V3USDT9%6.5%
BNB Chain V3USDC9%6.5%
BNB Chain V3FDUSD9%6.5%
Scroll V3USDC9%6.5%
Gnosis V3WXDAI9%6.5%
Gnosis V3USDC9%6.5%
Gnosis V3EURe9%6.5%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal description details a broad set of Slope1 interest-rate reductions (9% → 6.5%) across many Aave V2/V3 deployments on multiple chains, with explicit exceptions (Metis V3, bridged USDC variants). The decoded on-chain actions, however, only show two generic execute() calls (fallback functions with no decoded arguments) targeting two contract addresses on Ethereum mainnet. This is consistent with Aave's standard governance pattern where a mainnet proposal executes one or more 'payload' contracts whose bytecode contains the actual parameter changes and/or cross-chain messages to reflect updates on other networks — the proposal's 'Implementation' section links to the exact source files for each network's payload contract, which is the standard way Aave documents these opaque execute() calls. Because the calldata itself carries no decoded parameters (rates, assets, or target markets), I cannot directly verify that each specific rate change (e.g., 6.5% Slope1 for each listed asset) matches what the two payload contracts will execute on-chain. There is no evidence of a mismatch — the structure (two execute() calls consistent with a multi-network AIP payload pattern) aligns with the description's scope — but the lack of argument-level detail in the decoded calldata prevents high-confidence line-by-line verification of every listed market/asset change. Given no contradictory evidence and this being the expected/standard format for this proposal type, I assess it as consistent, but with low confidence due to the opacity of the fallback-only calldata.

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

2 total
#0fallback()chain 0x1
Target
0x8c8a…dca8
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#1fallback()chain 0x1
Target
0x9c5a…a944
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.