Reserve Factor Updates Late September
01Summary
This AIP adjusts Aave Protocol parameters across multiple networks to encourage migration from v2 to v3: increasing Slope1 by 75bps on Polygon v2 (DAI, USDT, USDC, wETH, wBTC, wMATIC), increasing Reserve Factor by 5% on Ethereum v2 and Avalanche v2, and increasing Reserve Factor by 5% on USDC.e and USDbC across Arbitrum, Optimism, Polygon, Base, and Gnosis. These changes reduce deposit yields, increase borrowing costs, and direct more interest to the Aave DAO treasury.
- Type
- parameter change
Key changes
- Increase Slope1 parameter by 75bps on Polygon v2 for DAI, USDT, USDC (13.50% to 14.25%), wETH, wBTC (8.50% to 9.25%), and wMATIC (10.50% to 11.25%)(high)
- Increase Reserve Factor by 5% on Ethereum v2 for DAI, USDC, USDT, wETH (75% to 80%), LINK, wBTC (80% to 85%)(high)
- Increase Reserve Factor by 5% on Avalanche v2 for DAI.e, USDC.e, USDT.e, wAVAX (70% to 75%), WBTC.e (75% to 80%), WETH.e (70% to 75%)(high)
- Increase Reserve Factor by 5% on USDC.e across Arbitrum, Optimism, Polygon (40% to 45%) and on USDbC in Base (40% to 45%), USDC.e in Gnosis (15% to 20%)(medium)
Notable concerns
- Deposit yields will decrease on Ethereum v2 and Avalanche v2, reducing returns for depositors
- Borrowing costs will increase on Polygon v2, raising capital costs for borrowers
- These changes are designed to encourage migration from v2 to v3 instances, potentially fragmenting liquidity
- Bridged USDC migrations may affect cross-chain bridge usage patterns
Generated by Kvorum
02Description
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, Base and Gnosis.
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:
| Asset | Market | Current Slope1 | Proposed Slope1 |
|---|---|---|---|
| DAI | Polygon v2 | 13.50% | 14.25% |
| USDT | Polygon v2 | 13.50% | 14.25% |
| wBTC | Polygon v2 | 8.50% | 9.25% |
| wETH | Polygon v2 | 8.50% | 9.25% |
| USDC | Polygon v2 | 13.50% | 14.25% |
| wMATIC | Polygon v2 | 10.50% | 11.25% |
Reserve Factor 5.00% Increases:
| Asset | Market | Current RF | Proposed RF |
|---|---|---|---|
| DAI.e | Avalanche v2 | 70.00% | 75.00% |
| USDC.e | Avalanche v2 | 70.00% | 75.00% |
| USDT.e | Avalanche v2 | 70.00% | 75.00% |
| wAVAX | Avalanche v2 | 70.00% | 75.00% |
| WBTC.e | Avalanche v2 | 75.00% | 80.00% |
| WETH.e | Avalanche v2 | 70.00% | 75.00% |
| DAI | Ethereum v2 | 75.00% | 80.00% |
| LINK | Ethereum v2 | 80.00% | 85.00% |
| USDC | Ethereum v2 | 75.00% | 80.00% |
| USDT | Ethereum v2 | 75.00% | 80.00% |
| wBTC | Ethereum v2 | 80.00% | 85.00% |
| wETH | Ethereum v2 | 75.00% | 80.00% |
| USDC.e | Arbitrum | 40.00% | 45.00% |
| USDC.e | Optimism | 40.00% | 45.00% |
| USDC.e | Polygon | 40.00% | 45.00% |
| USDbC | Base | 40.00% | 45.00% |
| USDC.e | Gnosis | 15.00% | 20.00% |
References
- Implementation: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum, AaveV3Base, AaveV3Gnosis
- Tests: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum, AaveV3Base, AaveV3Gnosis
- Discussion for USDCe updates
- Snapshot for USDCe updates
- Discussion for Ethereum V2 Reserve Factor Updates
- Snapshot for Ethereum V2 Reserve Factor Updates
- Discussion for Avalanche V2 Reserve Factor Updates
- Snapshot for Avalanche V2 Reserve Factor Updates
- Discussion for Polygon V2 Borrow Rate Updates
- Snapshot for Polygon V2 Borrow Rate Updates
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal's single on-chain action is a call to execute() on what appears to be a governance payload contract, with no further decoded internal calls or parameters. This is the standard pattern for Aave cross-chain/multi-market governance proposals, where the payload contract's bytecode (referenced via the GitHub implementation links in the proposal) performs the granular Slope1 and Reserve Factor updates described in the prose. Because the decoded calldata does not expose the individual parameter-setting calls (e.g., setReserveFactor, setInterestRateStrategy) or their target markets/values, it is not possible to verify at the calldata level whether the specific 75bps Slope1 increases or 5% RF increases match the values claimed in the description tables. There is no evidence of a mismatch, but there is also no way to confirm exact correctness beyond trusting the referenced source code and audit tests linked in the References section. Given this opacity, confidence is set to low and no discrepancies are flagged, since flagging a discrepancy would require speculation beyond what the decoded action data provides. The overall assessment is 'consistent' because nothing in the visible calldata contradicts the description, but this is a case of insufficient decoding depth rather than a confirmed match on every parameter.
Generated by Kvorum
04Actions
- Target
- 0xb626…a051
- 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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