Reserve Factor Updates Mid October
01Summary
This proposal adjusts Aave Protocol parameters across multiple chains to encourage migration from v2 to v3 instances: increasing Slope1 by 75bps on Polygon v2 (affecting DAI, USDT, wBTC, wETH, USDC, wPOL), increasing Reserve Factor by 5% on Ethereum v2 and Avalanche v2 across multiple assets, and increasing Reserve Factor by 5% for USDC.e and USDbC on Arbitrum, Optimism, Polygon, Base, and Gnosis.
- Type
- parameter change
Key changes
- Increase Slope1 by 75 basis points on Polygon v2 for DAI, USDT, wBTC, wETH, USDC, and wPOL to increase borrowing costs and encourage migration to v3(medium)
- Increase Reserve Factor by 5% on Ethereum v2 for DAI, LINK, USDC, USDT, wBTC, and wETH to redirect more borrower interest to DAO treasury and reduce deposit yields(medium)
- Increase Reserve Factor by 5% on Avalanche v2 for DAI.e, USDC.e, USDT.e, wAVAX, WBTC.e, and WETH.e to reduce deposit yields and encourage v3 migration(medium)
- Increase Reserve Factor by 5% for USDC.e on Arbitrum, Optimism, and Polygon, and USDbC on Base and Gnosis to encourage migration from bridged USDC to native USDC(low)
Notable concerns
- Reduced deposit yields on v2 instances may negatively impact current v2 users
- Increased borrowing costs on Polygon v2 may reduce protocol utilization
- Proposal affects multiple chains and numerous asset pairs, creating complex risk surface
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 | 14.25% | 15% |
| USDT | Polygon v2 | 14.25% | 15% |
| wBTC | Polygon v2 | 9.25% | 10% |
| wETH | Polygon v2 | 9.25% | 10% |
| USDC | Polygon v2 | 14.25% | 15% |
| wPOL | Polygon v2 | 11.25% | 12% |
Reserve Factor 5.00% Increases:
| Asset | Market | Current RF | Proposed RF |
|---|---|---|---|
| DAI.e | Avalanche v2 | 75.00% | 80.00% |
| USDC.e | Avalanche v2 | 75.00% | 80.00% |
| USDT.e | Avalanche v2 | 75.00% | 80.00% |
| wAVAX | Avalanche v2 | 75.00% | 80.00% |
| WBTC.e | Avalanche v2 | 80.00% | 85.00% |
| WETH.e | Avalanche v2 | 75.00% | 80.00% |
| DAI | Ethereum v2 | 80.00% | 85.00% |
| LINK | Ethereum v2 | 85.00% | 90.00% |
| USDC | Ethereum v2 | 80.00% | 85.00% |
| USDT | Ethereum v2 | 80.00% | 85.00% |
| wBTC | Ethereum v2 | 85.00% | 90.00% |
| wETH | Ethereum v2 | 80.00% | 85.00% |
| USDC.e | Arbitrum | 45.00% | 50.00% |
| USDC.e | Optimism | 45.00% | 50.00% |
| USDC.e | Polygon | 45.00% | 50.00% |
| USDbC | Base | 45.00% | 50.00% |
| USD//C | Gnosis | 20.00% | 25.00% |
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 description lists granular, well-documented parameter changes (Slope1 +75bps on six Polygon v2 assets; Reserve Factor +5% on six Ethereum v2 assets, six Avalanche v2 assets, and USDC.e/USDbC across five additional networks), all linked to specific implementation and test contracts in the BGD Labs aave-proposals-v3 repo. This matches the well-known Aave governance pattern for multi-chain parameter update AIPs. However, the only decoded on-chain action available is a single, non-parameterized execute() call to a contract on Ethereum mainnet. This is typical for Aave AIPs: the top-level DAO proposal calls into a 'Payload' contract whose internal bytecode (not exposed in this decoded calldata) performs the actual PoolConfigurator calls for Ethereum v2 and dispatches cross-chain governance actions to the other listed networks via their respective bridge executors. Because the decoded action contains no arguments or sub-calls, it is not possible to directly verify that the encoded reserve factor and slope1 values match the numbers quoted in the description. No contradiction is evident, but the lack of visibility into the payload's internal logic means confidence in this comparison must be low rather than a positive confirmation of a full match. No value, target, or omission discrepancies can be affirmatively identified from the data provided, so the assessment is reported as consistent, with confidence flagged low due to insufficient calldata granularity to fully verify the numeric claims of the proposal.
Generated by Kvorum
04Actions
- Target
- 0x8072…8838
- 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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