**Liquidity Mining Extension**
01Summary
Extend the current Aave liquidity mining program by 4 weeks, distributing 2,200 stkAAVE per day across supported markets to maintain borrower and lender incentives while the community debates potential program changes. The extension uses the same distribution model as the existing program and prevents any interruption to Aave users.
- Type
- parameter change
Key changes
- Extend liquidity mining program duration by 4 weeks at current distribution rate of 2,200 stkAAVE per day(high)
- Maintain pro-rata stkAAVE distribution across supported markets based on dollar value of borrowing activity(medium)
- Allow community time to debate and design potential changes to liquidity mining program without service interruption(medium)
Notable concerns
- Approximately 32% of v2 deposits involve recursive leverage strategies which may present concentration risk
- High stablecoin concentration with USDC and DAI markets experiencing largest growth
Generated by Kvorum
02Description
Liquidity Mining Extension
Given the liquidity mining program will end this week, this AIP will extend the current program by 4 weeks. This extension should give the community enough time to debate any changes to the liquidity mining program without any interruption for Aave borrowers and lenders.
The same stkAAVE distribution will be used.
Liquidity Mining v1
Liquidity mining incentives were introduced for Aave v2 on 4/26/21.
2,200 stkAAVE per day will be allocated pro-rata across supported markets based on the dollar value of the borrowing activity in the underlying market. stkAAVE was distributed over AAVE to further align users with the Aave Protocol and increase the amount of AAVE staked in the safety module.
Liquidity Mining Recap
-
Value Distributed: During the liquidity mining campaign, 198,000 stkAAVE will be distributed to borrowers and lenders on Aave v2, using ~7% of the Ecosystem Reserve. This equates to $82MM in rewards (AAVE VWAP since LM program started).
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TVL: v2 TVL rose from $7.8 billion to a high of $14.4 billion in mid-May. Stablecoin liquidity accounts for more than 60% of total Aave v2 liquidity.
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V1 to V2 liquidity migration: v1 liquidity decreased from $2.5 billion to $372MM since the liquidity mining program started. 40% of Aave liquidity was deployed in v1 before the LM rewards started. Aave v1 liquidity now accounts for less than 3% of all liquidity on Aave. This allows the community to remain focused on v2 and upcoming money markets.
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Growth in dollar value supplied and borrowed: The USDC and DAI markets experienced the largest increase in dollar value supplied and borrowed. Note - many users on these markets have recursively levered their position to maximize yields. Recursive leverage accounts for ~32% of all deposits on v2. This compares to ~40% on Aave’s Polygon market.
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Reserve Growth: Aave reserves help provide the first layer of protection for borrowers and lenders. Since liquidity mining rewards launched, Aave’s v2 reserves have grown by ~$7MM.
03Mismatch analysis
The proposal contains a single on-chain action: a call to execute() on what appears to be an Aave governance payload/executor contract. This is the typical pattern for Aave Improvement Proposals (AIPs), where the DAO's governance executor delegatecalls into a purpose-built payload contract whose internal logic (e.g., extending liquidity mining emissions by a set duration) is not exposed as decoded function arguments in this dataset — it's opaque from the calldata alone. Because there are no decoded parameters (durations, addresses, amounts) to check against the description's claims of a '4 week extension' with 'the same stkAAVE distribution', I cannot directly verify the magnitude or target of the change from the calldata provided. However, nothing in the available decoded data contradicts the description, and this structure is standard/expected for this contract type. Given the lack of visibility into the payload's internal effects, confidence is low, and no specific discrepancy can be substantiated — flagging one would be speculative. I therefore mark this as consistent with low confidence rather than raising an unsupported warning.
Generated by Kvorum
04Actions
- Target
- 0x2fcd…2289
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
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07Forum
No forum thread is confidently linked to this proposal.