Extend Liquidity Incentives for Aave v2
01Summary
Extend the current liquidity mining program on Aave v2 by 4 weeks, distributing 2,200 stkAAVE per day pro-rata across supported markets. This maintains continuity while the community debates potential program changes. The extension uses the same distribution mechanism as the existing program.
- Type
- parameter change
- Funding
- $$82MM (based on historical AAVE VWAP for 198,000 stkAAVE total distribution)
Key changes
- Extend liquidity mining program duration by 4 weeks at current parameters(high)
- Continue distributing 2,200 stkAAVE per day pro-rata across supported markets(high)
- Allocate rewards from Ecosystem Reserve (~7% of total)(medium)
Notable concerns
- Recursive leverage accounts for ~32% of v2 deposits, concentrating rewards among levered users
- Program extension delays community debate on potential program modifications
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).
-
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.
-
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.
-
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.
-
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 description is a fairly detailed narrative asking to extend Aave's Liquidity Mining program by 4 weeks using the same stkAAVE distribution parameters, plus a recap of program performance. The decoded calldata contains a single action: a call to execute() on an external contract address that resolves only to a generic fallback() with no further decoded internal calls or parameters (no token amounts, no distribution contract addresses, no duration values visible). This is consistent with how Aave governance proposals typically work: the proposal target is a payload/executor contract whose internal logic (e.g., setting emissions per second, updating distribution end timestamps) is not exposed in this flat decoding. Because the calldata gives no visibility into the actual parameters being set (duration, per-market allocations, stkAAVE amounts), it is not possible to verify whether the 4-week extension or the 'same distribution' claim is faithfully implemented on-chain. There is no evidence of a mismatch, but there is also no evidence to positively confirm the described action matches — the opacity of the decoded call is the limiting factor. Given this, I cannot responsibly flag any specific value, target, or omission discrepancy since doing so would be speculative rather than grounded in the provided decoded data. I am marking confidence as low and assessment as consistent by default, since no concrete contradiction is visible, but a reviewer with access to the underlying payload contract's source/ABI should verify the encoded parameters directly before relying solely on this analysis.
Generated by Kvorum
04Actions
- Target
- 0x2fcd…2289
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| DD0xdd70…8202 | For | 187.7K | 36.90% | — | 5y ago |
| 9B0x9b5e…0499 | For | 109.6K | 21.55% | — | 5y ago |
| 100x10f8…1f92 | For | 89.5K | 17.59% | — | 5y ago |
| A30xa3f0…b233 | For | 63.6K | 12.51% | — | 5y ago |
| 3C0x3cb9…d491 | For | 28.9K | 5.68% | — | 5y ago |
| 450x458c…730e | For | 10K | 1.97% | — | 5y ago |
| 510x517d…2b63 | For | 6.5K | 1.28% | — | 5y ago |
| 700x704d…a0df | For | 5.4K | 1.05% | — | 5y ago |
| 800x80dc…c146 | For | 3.3K | 0.64% | — | 5y ago |
| 510x510b…9938 | For | 1.6K | 0.30% | — | 5y ago |
| F50xf569…271b | For | 1.1K | 0.23% | — | 5y ago |
| 600x6001…887a | For | 1K | 0.20% | — | 5y ago |
| 1B0x1ba6…967d | For | 149.9 | 0.03% | — | 5y ago |
| 7F0x7f18…caed | For | 73 | 0.01% | — | 5y ago |
| E50xe585…330e | For | 48.8 | 0.01% | — | 5y ago |
| 080x084b…c976 | For | 41.2 | 0.01% | — | 5y ago |
| 540x54e5…324a | For | 39.9 | 0.01% | — | 5y ago |
| CA0xca31…367d | For | 29.9 | 0.01% | — | 5y ago |
| 660x6657…8a23 | For | 25.9 | 0.01% | — | 5y ago |
| E20xe2e8…bf80 | For | 23.1 | 0.00% | — | 5y ago |
| 7C0x7c73…56df | For | 20.4 | 0.00% | — | 5y ago |
| 8D0x8db0…a13a | For | 20 | 0.00% | — | 5y ago |
| 8B0x8bce…1c97 | For | 17.2 | 0.00% | — | 5y ago |
| 9D0x9deb…3078 | For | 15.2 | 0.00% | — | 5y ago |
| 8A0x8aba…7940 | For | 11.7 | 0.00% | — | 5y ago |
| 7B0x7b8b…d0f5 | For | 8.3 | 0.00% | — | 5y ago |
| B60xb661…a2cb | For | 6 | 0.00% | — | 5y ago |
| 320x32ca…c384 | For | 5.9 | 0.00% | — | 5y ago |
| DD0xddfd…6a29 | For | 5 | 0.00% | — | 5y ago |
| 430x43c3…158c | For | 1.6 | 0.00% | — | 5y ago |
| 5A0x5a50…0ad7 | For | 1 | 0.00% | — | 5y ago |
| 3A0x3abb…fc79 | For | 0.6 | 0.00% | — | 5y ago |
| 4A0x4a5e…95dc | For | 0.1 | 0.00% | — | 5y ago |
| 190x19bb…5aa8 | For | 0 | 0.00% | — | 5y ago |
| F80xf8a8…cc79 | For | 0 | 0.00% | — | 5y ago |
07Forum
No forum thread is confidently linked to this proposal.