Reserve Factor Updates (February 15, 2024)
01Summary
This proposal increases the Reserve Factor (RF) for five assets on Aave's Polygon v2 by 5% (with wETH already at maximum 99.99%), redirecting more interest to the Aave DAO Treasury and encouraging migration to v3. User funds remain safe and borrowing rates are unchanged.
- Type
- parameter change
Key changes
- DAI Reserve Factor increased from 71% to 76%(medium)
- USDC Reserve Factor increased from 73% to 78%(medium)
- USDT Reserve Factor increased from 72% to 77%(medium)
- wETH Reserve Factor remains at 99.99% (already at maximum)(low)
- MATIC Reserve Factor increased from 91% to 96%(medium)
Notable concerns
- This is a continuation of a previous reserve factor increase proposal, indicating ongoing migration pressure from v2 to v3
Generated by Kvorum
02Description
Simple Summary
This AIP is a continuation of continuation of proposal 24 on Governance v3 and increases the Reserve Factor (RF) for assets on Polygon v2 by 5.00%, up to a maximum of 99.99%.
Motivation
This AIP will reduce deposit yield for assets on Polygon v2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Polygon v2 to v3.
Increasing the RF routes a larger portion of the interest paid by users to Aave DAO's Treasury. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.
Of the assets with an RF set at 99.99%, there is no change. All other asset reserves will have the RF increased by 5%.
Specification
The following parameters are to be updated as follows:
| Asset | Reserve Factor |
|---|---|
| DAI | 76.00% |
| USDC | 78.00% |
| USDT | 77.00% |
| wETH | 99.99% |
| MATIC | 96.00% |
References
- Implementation: AaveV2Polygon
- Tests: AaveV2Polygon
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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04Actions
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05Tally
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06Voters
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07Forum
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