KVORUM
aaveSource: Aave governance v3 · #160

Reserve Factor Updates Late August

executedSep 11, 2024, 11:54 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal adjusts Aave protocol parameters across multiple networks to encourage user migration from v2 to v3 instances: increasing Slope1 by 75bps on Polygon v2 (raising borrowing costs), increasing Reserve Factor by 5% on Ethereum v2 and Avalanche v2 (reducing deposit yields and directing more revenue to Aave DAO), and increasing Reserve Factor by 5% on bridged USDC variants across Arbitrum, Optimism, Polygon, Base, and Gnosis to promote migration to native USDC.

Type
parameter change

Key changes

  • Increase Slope1 parameter by 75 basis points on Polygon v2 for DAI, USDT, USDC (12.75% to 13.50%), wBTC and wETH (7.75% to 8.50%), and wMATIC (9.75% to 10.50%)(high)
  • Increase Reserve Factor by 5% on Ethereum v2 for DAI, USDC, USDT, wETH (70% to 75%) and LINK, wBTC (75% to 80%)(high)
  • Increase Reserve Factor by 5% on Avalanche v2 for DAI.e, USDC.e, USDT.e, wAVAX, wETH.e (65% to 70%) and wBTC.e (70% to 75%)(high)
  • Increase Reserve Factor by 5% on bridged USDC.e across Arbitrum, Optimism, and Polygon (35% to 40%) and USDbC on Base (35% to 40%), plus USDC.e on Gnosis (10% to 15%)(medium)

Notable concerns

  • Users on Ethereum v2 and Avalanche v2 will experience reduced deposit yields, which may incentivize unintended market behavior
  • Increased Slope1 on Polygon v2 raises borrowing costs for all users, not just those migrating
  • The changes do not affect borrowing rates directly, only deposit rates and capital costs
ContractsAaveV2EthereumAaveV2PolygonAaveV2AvalancheAaveV3PolygonAaveV3OptimismAaveV3ArbitrumAaveV3BaseAaveV3Gnosis
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

542 words

Simple Summary

This AIP shall implement the following parameter adjustments:

  • Increase Slope1 across Polygon v2 by 75bps;
  • Increase Reserve Factor (RF) on Ethereum v2 and Avalanche v2 by 5.00%; and,
  • Increase USDC.e and USDbC RF by 5.00% on Arbitrum, Optimism, Polygon, and Base.

Motivation

This AIP will reduce deposit yield for assets on Ethereum v2 and Avalanche v2 instances of Aave Protocol by increasing the RF by 5.00%. By increasing the RF a greater portion of the interest paid by borrowers is directed to the Aave DAO's treasury.

This results in a lower deposit rate for users and encourages migration from v2 instances of the Aave Protocol to v3. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.

The RF across all USDC.e and USDbC reserves will be increased by 5.00% to encourage migration from bridged USDC to native USDC on each respective network.

By increasing the Slope1 parameter by 75bps on Polygon v2, the cost of capital to users increases and further encourages migration to Polygon v3.

Specification

Slope1 Parameter 75bps Increases:

AssetMarketCurrent Slope1Proposed Slope1
DAIPolygon v212.75%13.50%
USDTPolygon v212.75%13.50%
wBTCPolygon v27.75%8.50%
wETHPolygon v27.75%8.50%
USDCPolygon v212.75%13.50%
wMATICPolygon v29.75%10.50%

Reserve Factor 5.00% Increases:

AssetMarketCurrent RFProposed RF
DAI.eAvalanche v265.00%70.00%
USDC.eAvalanche v265.00%70.00%
USDT.eAvalanche v265.00%70.00%
wAVAXAvalanche v265.00%70.00%
WBTC.eAvalanche v270.00%75.00%
WETH.eAvalanche v265.00%70.00%
DAIEthereum v270.00%75.00%
LINKEthereum v275.00%80.00%
USDCEthereum v270.00%75.00%
USDTEthereum v270.00%75.00%
wBTCEthereum v275.00%80.00%
wETHEthereum v270.00%75.00%
USDC.eArbitrum35.00%40.00%
USDC.eOptimism35.00%40.00%
USDC.ePolygon35.00%40.00%
USDbCBase35.00%40.00%
USDC.eGnosis10.00%15.00%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal follows Aave's standard governance execution pattern: the on-chain action decoded here is a single, parameterless execute() call to a payload contract on Ethereum mainnet. This is the typical structure for Aave AIPs, where the actual granular logic (setting Slope1 and Reserve Factor values across the listed v2/v3 markets on multiple chains) lives inside the payload contract's execute() function and is not separately decoded into individual calldata rows here. The description's implementation links point to per-chain payload contracts (AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum, AaveV3Base, AaveV3Gnosis) consistent with a single top-level execute() dispatching to these. Because the decoded calldata only exposes the top-level execute() call and not the internal parameter-setting calls, I cannot directly verify each individual basis-point or percentage change against calldata values. However, this is expected and standard for this proposal type, so I do not flag it as a discrepancy - there is no evidence of a target mismatch, omitted action, or value mismatch beyond what the standard execution pattern implies. Confidence is medium because the lack of granular decoded sub-calls limits certainty, but the overall structure matches the expected pattern with no red flags such as unexpected recipients, extra transfers, or control changes.

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

04Actions

1 total
#0fallback()chain 0x1
Target
0xae1b…b0ce
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.