Ethereum v2 Collector Contract Consolidation
01Summary
Aave proposes consolidating 17 long-tail assets from the v2 Collector Contract into USDC and redeeming ammTokens from the AMM deployment. A swap contract will enable any actor to exchange USDC for these tokens at Chainlink Oracle prices plus a small premium to cover swap and gas costs.
- Type
- treasury allocation
Key changes
- Consolidate 17 long-tail assets from v2 Collector Contract to USDC(high)
- Redeem ammTokens (aAmmDAI, aAmmUSDC, aAmmUSDT, aAmmWBTC, aAmmWETH) for underlying assets from AMM deployment(high)
- Deploy swap contract allowing public actors to exchange USDC for specified tokens at Chainlink Oracle prices plus premium(medium)
- Relocate capital away from underutilized v2 AMM deployment ahead of Ethereum v3 deployment(medium)
Notable concerns
- The proposal consolidates holdings of small economic value, undercollateralized assets, and volatile pricing assets into USDC
- This is the first of several intended consolidation proposals, indicating ongoing portfolio restructuring
- Premium mechanism relies on community arbitrage actors to facilitate swaps
- v2 AMM deployment currently attracts very little capital and usage relative to other deployments
Generated by Kvorum
02Description
Summary
@llamaxyz proposes consolidating the Aave v2 Collector Contract holdings by swapping a portion of the long tail assets to USDC and redeeming assets from the Aave AMM deployment.
Abstract
The Aave v2 Collector Contract has accumulated a holding in several assets over time. Assets from the v1, v2, RWA, ARC, and AMM depoloyments all accumulate in the Ethereum v2 Collector Contract. This proposal is the first of several intended to consolidate the various Collector Contracts and Treasury holdings.
This proposal seeks to consolidate 17 assets in the v2 Ethereum Collector Contract to USDC and redeem ammTokens for the underlying assets.
Motivation
The DAO is currently accumulating over 60 assets in the v2 Collector Contract from various Aave deployments. Many of these holdings are of small economic value, are undercollateralized assets, or exhibit volatile pricing behaviour. Upon consolidating the DAO’s assets into USDC, which most of the DAO’s costs are denominated in, Llama intends to present the community with recommendations for deploying a portion of the larger holdings.
The AMM Liquidity Pool, v2, attracts very little capital and usage relative to other deployments. A number of the assets are frozen and, with v3 being deployed on Ethereum soon, it makes sense for the DAO to relocate this capital away from from the v2 AMM deployment. This proposal enables the following ammTokens, aAmmDAI, aAmmUSDC, aAmmUSDT, aAmmWBTC, and aAmmWETH to be redeemed periodically by calling a contract. Any actor will be able to interact with the contract via Etherscan. Llama, or anyone else, can redeem these ammTokens periodically with the underlying asset to be held within the v2 Collector Contract.
Specification
Thie following assets held within the Ethereum v2 Collector Contract are to be converted to USDC via swap contract.
Users will be able to deposit USDC and receive the tokens mentioned in the table above, plus a small premium. The premium is expected to reimburse the cost incurred from swapping the applicable token to USDC along with associated gas costs. The methodology enables actors to support Aave in swapping one asset for another by creating an arbitrage opportunity in a decentralized manner.
The following assets are to be redeemed from the AMM deployment.
Implementation
The below outlines at a high level the flow of events this proposal will achieve:
Redeem aTokens and ammTokens for underlying asset Deploy a Swap Contract whereby actors can deposit USDC and receive a selected token stated in the above table at the Chainlink Oracle price + premium v2 Collector Contract receives USDC Test cases can be found here
Payload Implementation can be found here
Proposal Payload = 0xBefcd01681224555b74eAC87207eaF9Bc3361F59
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded on-chain data contains only a single top-level action: a call to execute() on the Proposal Payload contract address 0xBefcd01681224555b74eAC87207eaF9Bc3361F59, which matches exactly the payload address cited in the proposal's Implementation section. This is the standard Aave governance execution pattern, where the actual substantive logic (redeeming ammTokens, deploying a swap contract, converting long-tail assets to USDC) is encoded inside the payload contract's bytecode and executed via delegatecall — it is not separately decoded into individual sub-actions here. Because we only have visibility into this single wrapper call and not the internal operations the payload performs, we cannot directly verify line-by-line whether the specific claims (17 assets swapped, 5 ammTokens redeemed, premium mechanics, etc.) are faithfully implemented in the payload bytecode. However, there is no evidence of a target mismatch, value mismatch, or extraneous action — the single decoded action is consistent with what the description says will happen (calling the payload to execute the consolidation). Given the lack of decoded internal calls, confidence is low, but nothing in the available data contradicts the description, so the assessment is 'consistent' rather than flagging an unverifiable discrepancy.}. No discrepancies are flagged because the visible action matches the stated payload address and execution mechanism, and any granularity gaps stem from the inherent limitation of a single wrapped execute() call rather than a mismatch.
Generated by Kvorum
04Actions
- Target
- 0xbefc…1f59
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
- [ARFC] Ethereum v2 Collector Contract Consolidation ↗discourse · medium confidence
Arguments for
- Consolidating v2 Collector assets into USDC reduces complexity and aligns holdings with the DAO's cost denomination while enabling easier treasury management.— Llamaxyz, MarcZeller, fig
- Redeeming AMM deployment assets makes sense given v3 is coming to Ethereum and the AMM pool attracts very little capital and usage.— Llamaxyz, fig
- The swap contract methodology creates a decentralized arbitrage opportunity allowing any actor to support the consolidation without requiring Llama to execute all swaps manually.— Llamaxyz, MatthewGraham
- Time-sensitive execution is warranted because renFIL and other holdings exhibit volatile pricing behavior and face near-term value deterioration risks.— MarcZeller
- The premium levels are appropriate compensation for the cost and effort of completing multiple approval transactions and managing gas-sensitive smaller trades across different conditions.— MatthewGraham
Arguments against
None surfaced.
Unresolved concerns
- Whether DEX aggregators like 1inch, ParaSwap, or 0x could provide a more standardized and efficient interface for future PSM integrations rather than custom contracts.— sakulstra
- Whether using Chainlink Oracle prices plus premium is the optimal pricing mechanism given the divergence between CEX and DEX liquidity pricing.— miguelmtz, MatthewGraham
- Whether the premium levels of up to 500 bps are excessive and whether lower or zero premiums could still attract market makers given zero slippage for supported amounts.— sakulstra
Notable participants
- LlamaxyzProposal author who incorporated community feedback and reduced premiums by 21.8% before snapshot vote.
- MatthewGrahamCo-author who provided detailed explanations of premium methodology and pricing logic.
- MarcZellerAave-Chan initiative representative who expressed strong support and advocated for quick execution to avoid unnecessary delays.
- sakulstraContributor who raised concerns about premium levels and proposed long-term standardization of PSM integrations with DEX aggregators.
- figEarly supporter who thanked the team for incorporating community feedback and publishing a clear proposal.
- Callen_WintermuteDelegate who expressed full support for the proposal.
- miguelmtzParticipant who questioned the pricing methodology and whether Chainlink oracle prices should be used.
- sakulstraContributor advocating for standardized PSM approaches across future treasury management proposals.
Generated by Kvorum
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