KVORUM
aaveSource: Aave governance v3 · #26

[ARFC] Deprecate Aave V2 AMM Market - Step 2

executedFeb 16, 2024, 06:50 PM UTCby680x683a…6c02

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to further deprecate Aave V2 AMM market by increasing reserve factors to 99% for WETH, DAI, USDC, WBTC, and USDT, and adjusting interest rate parameters (increasing variable base rates and slope1 for certain assets) to encourage user migration off the AMM market and reduce the remaining $94k borrow position.

Type
parameter change

Key changes

  • Increase reserve factors to 99% for WETH (from 0.1), DAI (from 0.1), USDC (from 0.1), WBTC (from 0.2), and USDT (from 0.1)(high)
  • Increase variable base rates: WETH to 0.06, DAI to 0.04, USDC to 0.04, WBTC to 0.05, USDT to 0.06(high)
  • Increase variable slope1: DAI from 0.04 to 0.1, USDC from 0.04 to 0.1, USDT from 0.04 to 0.1(high)

Notable concerns

  • Significant reserve factor increases to 99% across major assets will substantially reduce protocol revenue from these markets
  • Interest rate parameter adjustments will make borrowing more expensive, designed to incentivize user migration from AMM market
ContractsAaveV2EthereumAMM
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

273 words

Simple Summary

A proposal for further deprecation recommendations on Aave AMM v2. For more details, see the full forum post here.

Motivation

Gauntlet aims to reduce the remaining $94k borrow position and migrate users off the AMM market. Further analysis and information can be found in our forum post.

Specification

Gauntlet recommends to increase reserve factor to 99% for the following assets:

AssetCurrent RFRecommended RF
WETH0.10.99
DAI0.10.99
USDC0.10.99
WBTC0.20.99
USDT0.10.99

Gauntlet recommends to adjust the IR params for the following assets:

AssetCurrent Variable BaseRecommended Variable BaseCurrent Variable Slope1Recommended Variable Slope1
WETH00.060.08No Change
DAI00.040.040.1
USDC00.040.040.1
WBTC00.050.08No Change
USDT00.060.040.1

References

Disclaimer

Gauntlet has not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

1 total
#0fallback()chain 0x1
Target
0x51f9…76d7
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.