Amend Safety Module Emissions
01Summary
Proposal to reallocate daily AAVE emissions across Safety Module categories: increase stkGHO emissions from 50 to 100 AAVE/day to support GHO peg stability, while reducing stkAAVE and stkBPT emissions from 385 to 360 AAVE/day each to keep total daily emissions unchanged at 1,120 AAVE/day.
- Type
- parameter change
Key changes
- Increase daily AAVE emissions to stkGHO from 50 to 100 AAVE/day (+100% increase)(high)
- Decrease daily AAVE emissions to stkAAVE from 385 to 360 AAVE/day (-25 AAVE/day)(medium)
- Decrease daily AAVE emissions to stkBPT from 385 to 360 AAVE/day (-25 AAVE/day)(medium)
Notable concerns
- GHO price has been drifting away from 1:1 peg despite initial positive price action with stkGHO introduction
- Approximately 5.2M GHO currently cooling off from the stkGHO module with risk of redemption and market sale
- Redistribution of emissions away from stkAAVE and stkBPT holders may impact their incentive structure
Generated by Kvorum
02Description
Simple Summary
This publication proposes amending daily AAVE emissions across the three Safety Module (SM) categories to support GHO stability.
Motivation
With the introduction of stkGHO, GHO went through a positive price action and recovered the 1:1 peg.
Since then, however, the price of GHO has been drifting. There is additional risk of GHO being redeemed from the SM and sold in the market. There are currently around 5.2M GHO cooling off from the stkGHO module.
To support the GHO peg and to pave the way for future GHO supply expansion, this publication proposes increasing the daily AAVE emissions going to stkGHO holders.
This publication also proposes to offset this increase in AAVE emissions by reducing the emissions directed to stkAAVE and stkBPT holders. The overall amount of AAVE per day is to remain unchanged.
Specification
This proposal will implement the following changes to the AAVE emissions across the three SM categories:
| Asset Current | AAVE/Day | Proposed AAVE/Day |
|---|---|---|
| stkAAVE | 385 | 360 |
| stkGHO | 50 | 100 |
| stkBPT (AAVE/wstETH) | 385 | 360 |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
- Target
- 0xadbe…7426
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
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07Forum
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