KVORUM
aaveSource: Aave governance v3 · #9

Reserve Factor Updates (Jan 15, 2024)

executedJan 28, 2024, 09:11 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Increase Reserve Factor (RF) by 5% for most assets on Polygon v2 (DAI, USDC, USDT, wETH, MATIC) to reduce deposit yields and encourage migration to v3. Assets already at 99.99% (wBTC, BAL) remain unchanged. This routes more interest to Aave DAO Treasury without affecting borrowing rates or user fund safety.

Type
parameter change

Key changes

  • DAI Reserve Factor increased from 61.00% to 66.00%(medium)
  • USDC Reserve Factor increased from 63.00% to 68.00%(medium)
  • USDT Reserve Factor increased from 62.00% to 67.00%(medium)
  • wETH Reserve Factor increased from 85.00% to 90.00%(medium)
  • MATIC Reserve Factor increased from 81.00% to 86.00%(medium)
  • wBTC and BAL Reserve Factors remain at 99.99% (no change)(low)

Notable concerns

  • Increased Reserve Factor will reduce deposit yields for Polygon v2 users, incentivizing migration away from v2 to v3
ContractsAaveV2Polygon
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

229 words

Simple Summary

This AIP is a continuation of Governace V3 ProposalID 1 and increases the Reserve Factor (RF) for assets on Polygon v2 by 5.00%, up to a maximum of 99.99%.

Motivation

This AIP will reduce deposit yield for assets on Polygon v2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Polygon 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 5%.

Specification

The following parameters are to be updated as follows:

AssetReserve Factor
DAI66.00%
USDC68.00%
USDT67.00%
wBTC99.99%
wETH90.00%
MATIC86.00%
BAL99.99%

References

Disclaimer

TokenLogic and karpatkey receive no compensation beyond Aave protocol for the creation of this proposal. TokenLogic and karpatkey are both delegates within the Aave ecosystem.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

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