Freeze DPI on V2 Ethereum
01Summary
Proposal to freeze DPI (an index token) on Aave V2 Ethereum by disabling borrowing. DPI's market cap has declined from $100-200M in 2021 to $10-30M currently, with trading volumes below $200K daily, raising concerns about liquidity and centralization risk.
- Type
- parameter change
Key changes
- Disable borrowing for DPI (setReserveBorrowing(false)) on Aave V2 Ethereum LendingPoolConfigurator(high)
Notable concerns
- DPI market cap decreased from $100-200M (2021) to $10-30M (current)
- Daily trading volume rarely exceeds $200K
- Centralization risk of DPI compared to direct holding of underlying basket assets
Generated by Kvorum
02Description
Simple Summary
A proposal to to freeze DPI on the Aave V2 Ethereum market.
Motivation
DPI is an index token redeemable for a basket of ERC-20s. Due to an extremely low market cap and trading volumes, combined with centralization considerations, we recommend freezing DPI on Aave V2. Through 2021 DPI held a market cap between $100M and $200M with daily trading volumes in the $Ms. However, throughout 2022 the market cap has decreased drastically, staying between $10M-$30M for the past three months, with daily trading volume rarely crossing the $200K mark. On top of the low market cap and low trading volume, there is also implied centralization risk of DPI compared with the direct holding of the basket of underlying assets. The respective governance forum discussion is linked below:
Specification
Ticker: DPI
Contract Address: 0x1494CA1F11D487c2bBe4543E90080AeBa4BA3C2b
The proposal payload simply executes setReserveBorrowing(false) on the Aave V2 Ethereum LendingPoolConfigurator for DPI.
References
Proposal payload implementation
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description states a single, narrowly-scoped action: freeze DPI borrowing on Aave V2 Ethereum via setReserveBorrowing(false) on the LendingPoolConfigurator. The decoded calldata shows exactly one action: a call to execute() (fallback) on a payload contract address, with no revealed internal arguments. This is the standard Aave Governance V2 pattern where the on-chain proposal action is a delegatecall to a payload contract's execute() function, and the actual reserve-configuration logic lives inside that contract's bytecode rather than being visible as top-level decoded arguments. The description links directly to the payload contract's source code and tests, which corroborates that the execute() call performs the claimed setReserveBorrowing(false) action. Because the decoded data doesn't expose the internal call trace, I cannot verify with full certainty that no other logic exists inside the payload, so confidence is medium rather than high. However, there is no evidence of a mismatch — target, value (zero), and the single-action structure are all consistent with a routine, single-purpose Aave risk parameter change payload. No value, target, or scope discrepancies were found between the prose and the calldata based on available information.
Generated by Kvorum
04Actions
- Target
- 0x6fc2…0646
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 226.5K | 48.40% | — | 4y ago |
| 070x0703…961b | For | 107.3K | 22.93% | — | 4y ago |
| 620x62a4…816a | For | 81.6K | 17.43% | — | 4y ago |
| B90xb933…8dd1 | For | 41.9K | 8.95% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 2.26% | — | 4y ago |
| FA0xfa44…e745 | For | 118.8 | 0.03% | — | 4y ago |
| D10xd1a4…9074 | For | 8.6 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | Against | 8.3 | 0.00% | — | 4y ago |
| 5B0x5b85…a97a | For | 6 | 0.00% | — | 4y ago |
| EA0xeac8…3cf8 | For | 2.1 | 0.00% | — | 4y ago |
| 270x277d…7b07 | For | 1.9 | 0.00% | — | 4y ago |
| 7B0x7b0b…abde | For | 1.5 | 0.00% | — | 4y ago |
| D90xd972…31fa | For | 1.5 | 0.00% | — | 4y ago |
| D80xd834…082d | For | 1.1 | 0.00% | — | 4y ago |
| 290x2993…0591 | For | 1 | 0.00% | — | 4y ago |
| 1A0x1a80…5a38 | For | 1 | 0.00% | — | 4y ago |
| 6C0x6cc8…903c | For | 1 | 0.00% | — | 4y ago |
| 0D0x0d9d…9ff1 | For | 1 | 0.00% | — | 4y ago |
| 7E0x7eaf…3555 | For | 0.9 | 0.00% | — | 4y ago |
| F60xf614…a116 | For | 0.8 | 0.00% | — | 4y ago |
| CB0xcbe7…fe98 | For | 0.8 | 0.00% | — | 4y ago |
| 600x6088…7076 | For | 0.8 | 0.00% | — | 4y ago |
| 930x9390…6566 | For | 0.6 | 0.00% | — | 4y ago |
| AF0xaf1c…bf38 | For | 0.5 | 0.00% | — | 4y ago |
| 640x6474…549f | For | 0.5 | 0.00% | — | 4y ago |
| E40xe459…e666 | For | 0.5 | 0.00% | — | 4y ago |
| 060x061b…a18e | For | 0.4 | 0.00% | — | 4y ago |
| 3F0x3f5f…1332 | For | 0.4 | 0.00% | — | 4y ago |
| 810x81a7…0575 | For | 0.4 | 0.00% | — | 4y ago |
| 240x242d…7e1f | For | 0.3 | 0.00% | — | 4y ago |
| 8D0x8d39…fa0b | For | 0.2 | 0.00% | — | 4y ago |
| C60xc6ef…ec2f | For | 0.2 | 0.00% | — | 4y ago |
| 2E0x2e18…f9ba | For | 0.2 | 0.00% | — | 4y ago |
| 7C0x7c45…6af8 | For | 0.2 | 0.00% | — | 4y ago |
| DD0xdd6d…fefa | For | 0.2 | 0.00% | — | 4y ago |
| 250x2506…29ce | For | 0.2 | 0.00% | — | 4y ago |
| 1A0x1a42…50b7 | For | 0.1 | 0.00% | — | 4y ago |
| E00xe05e…550b | For | 0.1 | 0.00% | — | 4y ago |
| 640x6453…04c0 | For | 0.1 | 0.00% | — | 4y ago |
| AC0xac61…163e | For | 0.1 | 0.00% | — | 4y ago |
| 780x7870…3b87 | For | 0.1 | 0.00% | — | 4y ago |
| 6B0x6b75…9a2a | For | 0.1 | 0.00% | — | 4y ago |
| FF0xff8f…c4f6 | For | 0.1 | 0.00% | — | 4y ago |
| F80xf84c…9a63 | For | 0.1 | 0.00% | — | 4y ago |
| 3E0x3e07…525b | For | 0.1 | 0.00% | — | 4y ago |
| 4F0x4f17…a1a8 | For | 0.1 | 0.00% | — | 4y ago |
| 9E0x9ea2…78a8 | For | 0.1 | 0.00% | — | 4y ago |
| E10xe177…14c6 | For | 0.1 | 0.00% | — | 4y ago |
| 4B0x4b46…94f3 | For | 0.1 | 0.00% | — | 4y ago |
| C50xc506…651b | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] - Add DPI to V3 Ethereum and Freeze on V2 Ethereum ↗discourse · high confidence
Arguments for
- DPI's market cap has collapsed from $100-200M to $10-30M with daily volumes below $200K, making it unsuitable for V2 and better managed in V3 Isolation Mode.— ChaosLabs
- DPI's 80% daily annualized volatility and 83% 30-day volatility justify moving it to Isolation Mode with a 70% liquidation threshold rather than keeping it as unrestricted collateral on V2.— ChaosLabs
- Isolation Mode with a $2.5M debt ceiling and 40K borrow cap eliminates profitable attack vectors under current liquidity conditions while still allowing DPI lending.— ChaosLabs
- Most DPI suppliers on V2 already have their other assets listed on V3, so they can migrate their collateral with only the Isolation Mode limitation.— ChaosLabs
Arguments against
None surfaced.
Unresolved concerns
- Users lose cross-collateralization on V2 DPI when moving to V3 Isolation Mode, which could limit borrowing capacity despite most assets being available on V3.— ChaosLabs
Notable participants
- ChaosLabsProposer and risk analysis contributor providing comprehensive market data, volatility analysis, and parameter recommendations.
Generated by Kvorum
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