KVORUM
aaveSource: Aave governance v3 · #89

Reserve Factor Updates

executedApr 29, 2024, 03:41 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal increases Reserve Factors (RF) by 5% for multiple assets on Aave V2 Ethereum and Avalanche, routing more interest to the Aave DAO Treasury and encouraging migration to V3. User funds and borrowing rates remain unchanged.

Type
parameter change

Key changes

  • Increase Reserve Factor for 11 assets on Ethereum V2 by 5.00% (DAI from 40% to 45%, FRAX from 45% to 50%, GUSD from 35% to 40%, LINK from 45% to 50%, LUSD from 40% to 45%, sUSD from 45% to 50%, USDC from 40% to 45%, USDP from 35% to 40%, USDT from 40% to 45%, WBTC from 45% to 50%, WETH from 40% to 45%)(high)
  • Increase Reserve Factor for 6 assets on Avalanche V2 by 5.00% (DAIe, USDCe, USDTe, WETHe from 35% to 40%; WBTCe from 40% to 45%; WAVAX from 35% to 40%)(high)
  • Continue Governance V3 Proposal 73 implementation for Ethereum V2 Reserve Factor increases(medium)

Notable concerns

  • Reserve Factors at 99.99% will not change
  • Deposit yields will be reduced for affected assets on both Ethereum V2 and Avalanche V2
  • User funds remain at risk of liquidation status unchanged
ContractsAaveV2EthereumAaveV2Avalanche
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

372 words

Simple Summary

This AIP is composed of two actions: (1) a continuation of proposal 73 on Governance V3 that increases the Reserve Factor (RF) for assets on Ethereum V2 by 5.00%, up to a maximum of 99.99%; and (2) to start periodically increasing the RF across Avalanche V2.

Motivation

This AIP will reduce deposit yield for assets on Ethereum & Avalanche V2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Ethereum 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 up to 5.00%.

Specification

For Ethereum V2, the following parameters are to be updated as follows:

AssetPrevious Reserve FactorNew Reserve Factor
DAI40.00%45.00%
FRAX45.00%50.00%
GUSD35.00%40.00%
LINK45.00%50.00%
LUSD40.00%45.00%
sUSD45.00%50.00%
USDC40.00%45.00%
USDP35.00%40.00%
USDT40.00%45.00%
WBTC45.00%50.00%
WETH40.00%45.00%

For Avalanche V2, the following parameters are to be updated as follows:

AssetPrevious Reserve FactorNew Reserve Factor
DAIe35.00%40.00%
USDCe35.00%40.00%
USDTe35.00%40.00%
WAVAX35.00%40.00%
WBTCe40.00%45.00%
WETHe35.00%40.00%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Material discrepancy

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Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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04Actions

1 total
#0fallback()chain 0x1
Target
0x7506…4c73
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

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Outcome (current)—
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06Voters

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07Forum

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