Service Provider Compensation Reform for V4 Alignment
01Summary
AIP proposes resetting compensation streams for four primary Aave service providers (ACI, TokenLogic, LlamaRisk, Chaos Labs) to align them with Aave V4 launch, maintaining the same annual compensation levels while adding one-year vesting tied to KPIs. Each provider receives an immediate grant of $250K AAVE (approximately $65,787.50 at 263.15 TWAP).
- Type
- parameter change
- Funding
- $$263,150.00
Key changes
- Reset all active service provider compensation streams to align with Aave V4 launch and ecosystem performance(high)
- Introduce one-year vesting component tied to clear key performance indicators (KPIs) for all service providers(high)
- Provide immediate grants of $250K AAVE (30d TWAP) to ACI, TokenLogic, LlamaRisk, and Chaos Labs(high)
- Maintain same annual compensation levels for each provider while restructuring payment terms(medium)
- For concurrent streams (Chaos Labs and TokenLogic), oldest stream will not be reset(medium)
Notable concerns
- BGD Labs opted out of the compensation reform and will submit a separate proposal
- Variable revenue sharing mentioned in State of the Union will be postponed to V4 rollout
- Vesting details to be handled separately by the AFC
Generated by Kvorum
02Description
Simple Summary
This AIP proposes a comprehensive reset of all active Aave service provider compensation streams to better align contributors with the success of the Aave ecosystem ahead of the Aave V4 launch.
The proposal maintains the same total annual compensation levels for each provider while introducing a one-year vesting component tied to clear key performance indicators (KPIs).
Motivation
As stated in the State of the Union post, Aave DAO should seek to ensure that the service providers who contributed significantly to Aave’s success are directly aligned with the protocol’s growth and long-term sustainability.
The goal of this reform is to reset and unify the compensation framework for all key service providers, ensuring alignment with Aave V4 delivery milestones and improving transparency around deliverables.
Key motivations:
- Alignment with AAVE performance – linking compensation to measurable outcomes.
- Preparation for V4 – establishing a synchronized, goal-driven working structure across contributors.
- Simplicity and fairness – resetting all streams equally for a one-year term.
- Long-term alignment – variable revenue sharing proposed in the State of the Union will be postponed to V4 rollout and finalized thereafter.
Note: While aligned and considered a key service provider of the Aave DAO, BGD Labs has preferred to opted out of the compensation reform and crafted its own proposals. The ACI respects their decision and will support their standalone proposal.
Specification
The following structure will apply to all primary Aave service providers:
| Provider | Annual Stream (Reset) | Immediate Grant |
|---|---|---|
| ACI | Same as previous stream | $250K AAVE (30d TWAP) |
| TokenLogic | 2.5M GHO | $250K AAVE (30d TWAP) |
| LlamaRisk | Same as previous stream | $250K AAVE (30d TWAP) |
| Chaos Labs | Same as previous stream | $250K AAVE (30d TWAP) |
For service providers allowed to have concurrent streams (Chaos Labs & TokenLogic), the oldest stream will not be reset.
The TWAP price used for AAVE is 263.15$
The vesting mentioned in the original discussion will be handled separately by the AFC
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal uses the standard Aave governance execution pattern: the on-chain action list contains only a single execute() call to a payload contract address, which internally (via delegatecall) performs all the specific sub-actions described in the proposal (cancelling old streams, creating new GHO/USD streams, and transferring AAVE grants to each service provider). Because the decoded calldata here is opaque — it does not expose the specific token amounts, recipient addresses, or stream parameters — it is not possible to directly verify the dollar figures, GHO amount, TWAP price, or the 'oldest stream preserved' logic against on-chain values. There is no evidence of a mismatch; the single execute() call is entirely consistent with what a typical Aave compensation-reform payload would do, and the description references the actual payload source code in GitHub for full detail. However, because the calldata does not itself reveal the specific figures being claimed in the description, confidence in a line-by-line verification is low. No discrepancies are flagged since there is no basis in the decoded data to contradict any specific claim, and flagging based on inability to verify would violate the conservative approach requested.
Generated by Kvorum
04Actions
- Target
- 0x9bbd…b637
- 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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