February Funding Update (Part 1)
01Summary
February funding update involving Treasury rebalancing: transferring 95,417 FLUID to Merit SAFE for GHO incentives, reimbursing ACI 26,500 USDC + 3.404 ETH + 149 PYUSD for expenses, migrating assets from Aave v2 to v3 across multiple networks, depositing passive assets into Aave v3, acquiring ETH and GHO through swaps, converting DAI to USDS, and transferring BAL and CRV to the Aave Liquidity Committee.
- Type
- treasury allocation
Key changes
- Transfer 95,417 FLUID to Merit SAFE for GHO growth and adoption on Fluid(high)
- Reimburse ACI 26,500 USDC, 3.404 ETH, and 149 PYUSD for EURA bad debt clearing, gas costs, and PYUSD administration(medium)
- Migrate assets from Aave v2 to v3: aWETH, aWBTC, aLINK, aMKR on Ethereum; avWETH, avDAI, avWAVAX on Avalanche; amWMATIC, amUSDT on Polygon; partial USDC (1.5M) and USDT (2.0M) on Ethereum v2(high)
- Deposit passive assets (USDC, USDT, wETH, wMATIC, wBTC, wAVAX, LINK) into Aave v3 across multiple networks(high)
- Swap aEthLUSD and aDPI to ETH for deposit into Aave v3 Core(medium)
- Acquire GHO by swapping 1.50M USDT and 1.50M USDC for deposit into Aave v3 Prime(high)
- Swap DAI and aDAI to USDS for deposit into Aave v3 Core to benefit from USDS liquidity mining and SPK airdrop(medium)
- Transfer all BAL and CRV holdings to Aave Liquidity Committee(medium)
Notable concerns
- High utilisation on Aave v2 Ethereum prevents full USDC and USDT migration; only 1.5M USDC and 2.0M USDT can be migrated
- Multiple swaps required for asset conversions (ETH, GHO, USDS) creating execution complexity
- Consolidation of assets across multiple networks and Aave versions requires coordinated execution
Generated by Kvorum
02Description
Simple Summary
This publication presents the February funding update, which consists of performing the following key activities:
- Funding FLUID incentive campaign;
- Migrating funds from Aave Protocol v2 to v3;
- Transferring BAL & CRV to ALC;
- Acquiring GHO for Merit Phase V;
- Reimbursing EURA Bad Debt Expense; and,
- Reimbursing Gas & Merkl deployment Costs.
Motivation
As part of our ongoing Treasury asset rebalancing strategy, this proposal when implemented will continue to:
- Fund upcoming GHO incentive campaigns with FLUID;
- Follow up action to this proposal;
- Fund Merit Phase V;
- Swap USDC and USDT to GHO;
- Reimburse ACI of costs incurred from;
- Repaying EURA bad debt;
- Administering the PYUSD incentives;
- Gas costs related to AIP submissions;
- Deposit passively held assets into Aave v3;
- Optimising capital efficiency;
- Migrating assets from Aave v2 to v3;
- Ensuring improved capital efficiency and enhanced risk management;
Additionally, to further consolidate and mitigate risk, certain assets will be reallocated to the Core market from various Layer 2 instances. This adjustment aims to progressively consolidate liquidity into the latest instance of Aave, where it can continue to generate returns.
To promote capital efficiency, some passive assets held idle are to be deployed into Aave to earn yield.
Several smaller asset holdings are be converted to aEthETH to reduce the DAO’s exposure to thinly traded long tail assets (or products being sunset) to ensure a more resilient treasury structure.
Finally, as part of the revamping of SKY, certain DAI-correlated assets will be swapped into aEthUSDS.
Specification
Transfer FLUID
Transfer an initial 25% of the 1/3 FLUID holdings assigned to support GHO's growth and adoption on Fluid.
Specifically, Transfer 95,417 $FLUID to Merit SAFE 0xdeadD8aB03075b7FBA81864202a2f59EE25B312b
Reference this prior proposal for more information.
Gas Reimbursement and EURA Bad Debt Clearing Reimbursement
Transfer 26,500 USDC, 3.404 ETH and 149 PYUSD to ACI to reimburse expenses incurred.
This reimburses associated expenses with clearing EURA bad debt, gas costs linked to AIP submissions and administering the PYUSD rewards program respectively.
ACI Receiving Address: 0xac140648435d03f784879cd789130F22Ef588Fcd
Migrate funds from Aave v2 to v3
Migrate the following assets from Aave v2 to v3 on the respective network.
Where it says All-1, it refers to all available liquidity minus 1 unit as to not drain the pool where possible. In other pools, it will be as much as is available to withdraw.
| Ethereum | Avalanche | Polygon |
|---|---|---|
| aWETH (All-1) | avWETH (All-1) | amWMATIC (All-1) |
| aWBTC (All-1) | avDAI (All-1) | amUSDT (All-1) |
| aLINK (All-1) | avWAVAX (All-1) | |
| aMKR (All-1) | ||
| aUSDC (1.5M) | ||
| aUSDT (2.0M) |
Funds are to be deposited into the Core deployment on Ethereum and Aave v3 on the respective networks.
Note: Not all USDC and USDT on v2 Ethereum can be migrated due to high utilisation. This publication proposes a partial migration of 1.5M and 2.0M respectively.
Deposit Passively Held Assets into Aave
Deposit the following assets into their respective V3 Pools.
| Ethereum v3 (Core) | Optimism v3 | Avalanche v3 | Polygon v3 |
|---|---|---|---|
| USDC | USDC | USDC | wMATIC |
| USDT | wETH | USDT | wBTC |
| USDT | wAVAX | USDT | |
| wETH.e | LINK | ||
| BTC.d |
Acquire ETH and deposit into Aave v3 (Core)
Withdraw and swap the following assets to ETH. ETH to be deposited into Aave in a follow up proposal.
| Ethereum |
|---|
| aEthLUSD (All-1) |
| aDPI (All-1) |
Acquire GHO and deposit into Aave v3 (Prime)
Both withdrawn above from Aave V2 Ethereum. GHO to be deposited into Aave in a follow up proposal.
| Ethereum |
|---|
| USDT (1.50M) |
| USDC (1.50M) |
Acquire USDS and deposit into Aave V3 (Core)
Withdraw and swap the following assets to USDS. USDS to be deposited into Aave in a follow up proposal.
| Ethereum |
|---|
| DAI (All) |
| aDAI (All-1) |
| aEthDAI (All-1) |
USDS deposits on Core benefit from USDS liquidity mining and SPK airdrop rewards.
Transfer Assets to Aave Liquidity Committee (ALC)
Withdraw and transfer the following assets to the ALC.
| Ethereum |
|---|
| BAL (All) |
| aBAL (All-1) |
| aEthBAL (All-1) |
| CRV (All) |
| aCRV (All-1) |
| aEthCRV (All-1) |
ALC SAFE: 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
References
- Implementation: AaveV3Ethereum, AaveV3Polygon, AaveV3Optimism, AaveV3Avalanche
- Tests: AaveV3Ethereum, AaveV3Polygon, AaveV3Optimism, AaveV3Avalanche
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded on-chain action is a single, argument-less execute() call to a payload contract address, which is the standard pattern for Aave governance proposals (the AIP calls a payload contract that internally performs the granular treasury operations described in the specification). Because the calldata provided contains no decoded sub-actions, transfer amounts, token addresses, or recipient addresses, there is no way to directly verify the many specific claims in the description (FLUID transfer amount, ACI reimbursement figures, v2-to-v3 migration amounts, ALC transfers, GHO/USDS/ETH swaps) against on-chain execution details. This is not evidence of a mismatch — it is simply a limitation of the decoded data available for this review, which only surfaces the top-level governance call rather than the payload contract's internal logic (which would require decoding the linked Solidity implementation). Given this, I cannot confidently flag any value, target, or omission discrepancies, and per instructions I am not raising unverified claims as warnings. Confidence is therefore set to low, and the overall assessment defaults to consistent since no concrete mismatch was identified within the scope of the provided calldata compared to a reasonable, well-established proposal pattern for Aave DAO funding updates.
Generated by Kvorum
04Actions
- Target
- 0x16ca…372a
- 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.
08Similar proposals
- aaveexecutedFebruary Funding Update - Part B92%
- aaveexecutedMay Funding Update92%
- aaveexecutedSeptember Funding Update91%
- aaveexecutedMay Funding Update90%
- aaveexecutedSeptember Funding Update - Part A90%
- aaveexecutedNovember Funding Update90%
- aaveexecutedApril Funding update90%
- aavecanceledMay Funding Update89%
- aaveexecutedApril Funding Update89%
- aavecanceledSeptember Funding Update89%