KVORUM
aaveSource: Aave governance v3 · #80

Temporary Freeze of Long-Tail V2 Assets

executedApr 22, 2024, 08:08 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Freeze USDP, GUSD, LUSD, FRAX, sUSD, and AAVE on Aave V2 across Ethereum, Polygon, and Avalanche by calling freezeReserve() on each asset. This temporarily disables new supply and borrows for these non-major assets as part of V2 deprecation, following recent market volatility including a USDP price spike. A follow-up deprecation proposal will allow the community to decide on future utilization.

Type
protocol deprecation

Key changes

  • Freeze USDP reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Freeze GUSD reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Freeze LUSD reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Freeze FRAX reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Freeze sUSD reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Freeze AAVE reserve on Aave V2 Ethereum, Polygon, and Avalanche(high)
  • Disable new supply and borrow functionality for frozen assets(high)

Notable concerns

  • Recent USDP price spike created exposure risk in V2 markets
  • Long-tail assets being frozen are non-major assets with lower market priority
  • This is a temporary freeze pending community vote on full deprecation through standard governance process
ContractsAaveV2EthereumAaveV2PolygonAaveV2Avalanche
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

200 words

Simple Summary

A proposal to freeze USDP, GUSD, LUSD, FRAX, sUSD and AAVE on Aave V2.

Motivation

As part of the deprecation plan for V2 markets, and given the recent market volatility and specifically the USDP price spike, we advise reducing additional exposure to all non-major assets across V2, disabling new supply and borrows.

To minimize the governance overhead, we recommend a temporary freeze vote of all non-major assets across V2, namely USDP, GUSD, LUSD, FRAX, sUSD, and AAVE, via the direct-to-AIP framework.

We plan to submit a follow-up proposal to deprecate these assets through the standard governance process so that the community can decide on the future utilization of these assets.

Furthermore, we would like to highlight the upcoming implementation of CAPO on v2 assets, mitigating the risk of upward Oracle manipulation. This enhancement aims to protect borrowers from unexpected liquidations due to price spikes or potential manipulation incidents, such as the recent surge in USDP prices

Specification

The proposal will call the freezeReserve() function for USDP, GUSD, LUSD, FRAX, sUSD and AAVE.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal contains a single top-level action: a call to execute() on a payload contract address, which is the standard Aave Governance V2/V3 'direct-to-AIP' pattern explicitly referenced in the description. In this pattern, the top-level calldata is always a generic execute() call, and the substantive logic (here, freezeReserve() calls for USDP, GUSD, LUSD, FRAX, sUSD, and AAVE on the Aave V2 Ethereum pool) is defined inside the payload contract's bytecode, not exposed in the decoded top-level calldata provided. Because only one generic action is decoded, I cannot directly verify each individual freezeReserve() call against the six assets named in the description. However, this is expected and routine for this proposal type — the description's linked implementation contract (AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets) matches the target address pattern and stated purpose, and there is no evidence of contradictory or additional actions in the decoded set. No value mismatches, target mismatches, or extra/omitted actions are apparent given the information available. Given the inherent opacity of the payload-execute pattern, I mark confidence as medium rather than high, but do not flag this as a discrepancy since it is standard practice for Aave governance proposals of this kind.

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
0x0b30…2465
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.