Freeze BUSD on Aave v2 ETH
01Summary
Proposal to freeze the BUSD reserve on Aave V2 Ethereum pool, preventing new deposits and borrows while allowing existing positions to remain, due to BUSD's declining circulating supply and lack of growth prospects.
- Type
- protocol deprecation
Key changes
- Freeze BUSD reserve on Aave V2 Ethereum by calling freezeReserve() on LendingPoolConfigurator(high)
Notable concerns
- BUSD circulating supply will eventually go to zero
- Freezing reserve may impact peg arbitrage opportunities for BUSD
- Users will need to migrate to alternative stablecoins available on Aave
Generated by Kvorum
02Description
Simple Summary
This AIP proposes to freeze the BUSD reserve on the Aave V2 Ethereum pool
Motivation
While BUSD is not an asset with borrowing power, and recent development does not present risks of excess debt, From Feb 2023, the circulating supply of this asset will eventually go toward zero.
As there’s no real prospect of growth and the inability to mint new BUSD might hurt peg arbitrage opportunity and asset peg. It seems that the most reasonable path for Aave is to freeze this reserve and invite users to switch to another stablecoin among the diversity present in Aave.
Specification
Ticker: BUSD (BUSD)
Contract Address: 0x4Fabb145d64652a948d72533023f6E7A623C7C53
.
The proposal payload simply executes freezeReserve() on the [Aave v2 Ethereum LendingPoolConfigurator]https://etherscan.io/address/0x311Bb771e4F8952E6Da169b425E7e92d6Ac45756) for BUSD.
References
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal describes a single, narrow action: freezing the BUSD reserve on Aave V2 Ethereum via the LendingPoolConfigurator's freezeReserve() function. The decoded on-chain action is a generic execute() call to a dedicated payload contract (0x9c4bf756e2d8da301121b036958f6b3fcd0fe801), which is the standard Aave governance pattern where a purpose-built payload contract's execute() function performs the actual logic. The calldata itself only shows the fallback execute() call with no arguments, since the specific logic (freezeReserve on BUSD) lives in the payload contract's bytecode rather than being passed as calldata. This is normal for Aave governance proposals and matches the referenced GitHub source file name (AaveV2EthFreezeBUSD.sol) which is consistent with the described intent. I cannot directly decode the payload contract's internal logic from the JSON provided, so I rely on the naming convention and reference links, which align well with the description. There is no indication of any additional or conflicting action, no value transfer, and no target mismatch of concern. Confidence is medium rather than high because the actual internal freezeReserve call and its exact target/asset parameters are not directly visible in the decoded arguments, only inferred from contract naming and standard pattern. Given the strong alignment between the described single-purpose action and the executed payload's naming/reference, and no evidence of extra or missing actions, this proposal is assessed as consistent.
Generated by Kvorum
04Actions
- Target
- 0x9c4b…e801
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 220.8K | 38.87% | — | 4y ago |
| 070x0703…961b | For | 106.9K | 18.82% | — | 4y ago |
| 620x62a4…816a | For | 81.2K | 14.29% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 14.12% | — | 4y ago |
| B90xb933…8dd1 | For | 41.7K | 7.34% | — | 4y ago |
| 7A0x7ae1…e585 | For | 26.7K | 4.69% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 1.87% | — | 4y ago |
| D10xd1a4…9074 | For | 8.6 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | Against | 8.3 | 0.00% | — | 4y ago |
| 720x72bc…a6b2 | For | 1 | 0.00% | — | 4y ago |
| 7E0x7eaf…3555 | For | 0.9 | 0.00% | — | 4y ago |
| 4E0x4e83…826d | For | 0.8 | 0.00% | — | 4y ago |
| 680x6830…8ed6 | For | 0.4 | 0.00% | — | 4y ago |
| 120x12ea…ab7d | For | 0.4 | 0.00% | — | 4y ago |
| 900x90ee…edaf | For | 0.2 | 0.00% | — | 4y ago |
| 600x607e…515d | For | 0.2 | 0.00% | — | 4y ago |
| 380x3886…c84b | For | 0.2 | 0.00% | — | 4y ago |
| CC0xcc4f…f54e | For | 0.1 | 0.00% | — | 4y ago |
| BC0xbc2e…2355 | Against | 0.1 | 0.00% | — | 4y ago |
| 480x489d…7fb6 | For | 0 | 0.00% | — | 4y ago |
| AB0xabf4…5e23 | For | 0 | 0.00% | — | 4y ago |
| 310x3121…b440 | For | 0 | 0.00% | — | 4y ago |
07Forum
No forum thread is confidently linked to this proposal.
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