Update renFIL rate strategy on Aave v2 Ethereum
01Summary
Replace renFIL's interest rate strategy on Aave v2 Ethereum with a zero rate strategy to stop accruing variable borrow debt, as Ren Protocol has disabled minting and will disable burning of renTokens due to Alameda-related issues.
- Type
- parameter change
Key changes
- Replace renFIL interest rate strategy with AaveV2ZeroInterestRateStrategy, setting variable borrow and liquidity rates to constant zero(high)
- Call setReserveInterestRateStrategyAddress() on Aave v2 Ethereum PoolConfigurator for renFIL asset(high)
Notable concerns
- renFIL minting is already disabled and burning will be disabled, making interest rate accrual meaningless
- This change reflects fundamental changes in renToken creation/destruction mechanics due to Ren Protocol's transition away from Alameda dependency
Generated by Kvorum
02Description
Simple Summary
Proposal to replace the rate strategy smart contract of renFIL on Aave v2 Ethereum with one returning constant zero rates, to avoid further accrual of variable borrow debt.
Motivation
As explained on https://medium.com/renproject/moving-on-from-alameda-da62a823ce93, the mint/burn dynamics of renTokens have been affected, with minting already disabled, and burning to be disabled on the following days.
Even if renFIL is only listed as borrowing asset on Aave v2 Ethereum (not collateral), fundamental changes on the creation/destruction of the asset creates a situation where the variable borrow and liquidity rate are not meaningful anymore, and should probably be set as constant 0.
Additional information can be found on the Aave governance forum.
Specification
From a technical standpoint, the proposal payload only calls setReserveInterestRateStrategyAddress() on the Aave v2 Ethereum PoolConfigurator contract, passing as parameters the address of renFIL and the address of the new rate strategy smart contract.
References
- Aave v2 Zero rate strategy
- Proposal payload implementation
- Deployed proposal payload
- Deployed rate strategy
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal uses the standard Aave governance payload pattern: a single action calling execute() on a dedicated payload contract, which internally performs the actual logic (in this case, calling setReserveInterestRateStrategyAddress on the PoolConfigurator). This decoded action alone does not reveal the internal call, since it is not statically decodable without tracing execution or reviewing the payload contract's source code. However, the description provides links to the verified source code of both the payload contract and the new rate strategy contract, and the specification section explicitly describes the single expected internal action, which matches the well-established pattern for this type of proposal. There is nothing in the visible calldata that contradicts the description, and no additional actions, transfers, or role changes are present beyond the single execute() call. Given the inherent limitation of not being able to decode the internal delegatecall behavior from the top-level trace alone, confidence is medium rather than high, but there is no evidence of a mismatch between the stated intent and the on-chain action structure.
Generated by Kvorum
04Actions
- Target
- 0xbfcf…daab
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- Update renFIL interest rate strategy on Aave v2 Ethereum ↗discourse · high confidence
Arguments for
- Disabling mint/burn functions on renFIL has eliminated liquidity and broken the settlement flow, making further interest accrual on borrowings pointless since no new renFIL will be minted.— bgdlabs
- Reducing interest rate parameters to zero removes incentive for continued debt growth that cannot be repaid or liquidated without available liquidity.— bgdlabs
- Quick action to minimize rate parameters prevents accumulation of virtual debt that has no real economic value in the absence of renFIL liquidity.— bgdlabs
Arguments against
None surfaced.
Notable participants
- bgdlabsProposal author and primary advocate who identified the problem, recommended the solution, and implemented the governance change.
Generated by Kvorum
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