KVORUM
aaveSource: Aave governance v3 · #459

Reduce Safety Module Emissions

executedMar 23, 2026, 11:33 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Reduce Safety Module emissions by cutting stkAAVE emissions from 260 to 220 AAVE/day, reducing stkAAVE/wstETH BPTv2 emissions to 0, and shortening stkAAVE cooldown from 7 to 2 days. This saves 29,200 AAVE/year ($3.6M) while transitioning toward Protocol-Owned Liquidity and making stkAAVE more liquid.

Type
parameter change

Key changes

  • Reduce stkAAVE emissions from 260 to 220 AAVE/day, lowering APR from 3.69% to 3.12%(high)
  • Eliminate stkAAVE/wstETH BPTv2 emissions entirely (40 to 0 AAVE/day) as part of sunset transition(high)
  • Reduce stkAAVE cooldown period from 7 days to 2 days to increase liquidity for CEX and futures integrations(medium)
  • Set stkAAVE/wstETH BPTv2 cooldown to 0 days and slashing to 0% as part of deprecation(medium)

Notable concerns

  • Previous reduction from 315 to 260 AAVE/day did not trigger exodus, but further reduction to 220 AAVE/day carries execution risk
  • stkAAVE/wstETH BPTv2 sunset depends on successful deployment of concentrated AAVE/wETH liquidity and Umbrella rollout via Protocol-Owned Liquidity
ContractsstkAAVEstkAAVE/wstETH BPTv2
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

347 words

Simple Summary

This proposal reduces Safety Module emissions and adjusts parameters for stkAAVE and stkAAVE/wstETH BPTv2, saving a combined 29,200 AAVE/year (~0.18% of total supply, ~$3.6M) while transitioning stkAAVE/wstETH BPTv2 toward sunset in favour of Protocol-Owned Liquidity.

Motivation

The general theme over the last 6 months has been to reduce AAVE emissions by shifting towards direct AAVE/ETH provisioning and ensuring future emissions are more sustainably funded via the buyback program.

stkAAVE: The current 260 AAVE/day yields 3.69% for stkAAVE holders. The module continues to demonstrate healthy participation at 16.78% of AAVE supply staked, with strong net inflows (+98,600 in January 2026, +60,100 in February 2026). The previous reduction from 315 to 260 AAVE/day did not trigger an exodus. Reducing to 220 AAVE/day results in a 3.12% APR, continuing the proven downtrend (385 → 360 → 315 → 260 → 220). The cooldown reduction from 7 to 2 days makes stkAAVE more liquid and suitable for integrations such as CEX Earn programs and futures markets.

stkAAVE/wstETH BPTv2: With the Aave Finance Committee (AFC) receiving additional funding via AIP 449, additional AAVE/wETH liquidity is to be deployed that allows stkAAVE/wstETH BPTv2 to be sunset, resulting in a cost savings of 14,600 AAVE/year. By replacing the inefficient full-range 80/20-weighted pool with concentrated liquidity, the Aave DAO can facilitate swaps more capital-efficiently. Umbrella rollout provides targeted, capital-efficient protocol protection, reducing the legacy need for stkAAVE/wstETH BPTv2 as a Safety Module mechanism.

Specification

ContractParameterCurrentProposed
stkAAVEEmissions (AAVE/day)260220
stkAAVECooldown Period7 Days2 Days
stkAAVE/wstETH BPTv2Emissions (AAVE/day)400
stkAAVE/wstETH BPTv2Cooldown Period20 Days0 Days
stkAAVE/wstETH BPTv2Slashing10%0%

Combined annual emission savings: ~29,200 AAVE (~0.18% of total supply, ~$3.6M).

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

placeholder

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0fallback()chain 0x1
Target
0x17e1…810e
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

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VP participating0
Outcome (current)—
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06Voters

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07Forum

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