Gauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v3
01Summary
Aave governance proposal to reduce WETH variable base rate from 1% to 0% on Optimism and Arbitrum v3 chains. This is a follow-up to clarify Gauntlet's previous interest rate recommendations, intended to drive additional protocol revenue and adjust risk profiles for LST collateral by reducing dependence on onchain liquidity.
- Type
- parameter change
Key changes
- Reduce WETH variable base rate on Optimism from 1% to 0%(medium)
- Reduce WETH variable base rate on Arbitrum from 1% to 0%(medium)
- Clarify and implement the full intent of previous snapshot vote which intended to lower base rate alongside slope 1 reduction(medium)
Notable concerns
- This proposal clarifies that the previous AIP-327 did not fully implement the community's intended direction - the snapshot was intended to lower both slope 1 and base rate, but only slope 1 was implemented
- The proposal assumes current borrowing profiles on v3 justify moving forward with only Arbitrum and Optimism, not all chains
Generated by Kvorum
02Description
Summary
A proposal to make a followup to Gauntlet's previous WETH IR recommendations.
The community voted to pass option 1 on Gauntlet's previous snapshot, which lowered slope 1 for WETH on all v3 to 3.3%. On the other hand, option 2 recommended to remove the base rate for WETH to match v3 Ethereum.
Option 1 was intended to be a superset of option 2 and also intended to lower the base rate to 0 for WETH. This language was not specified in the snapshot. As a result, we only included lowering WETH slope 1 in AIP-327.
To be extra clear with the community, we put out this new AIP specifically for lowering the base rate to 0 for WETH. Given current borrowing profiles on v3, we decide to move forward with Arbitrum and Optimism v3.
Again, this will help to
- drive additional revenue to Aave.
- adjust current risk profile for LST to depend less on onchain liquidity, which has been steadily declining over the past few months. This may be adding risk to the current borrow composition against LST collateral.
Specification
| Chain | Asset | Action | Current Value | New Value |
|---|---|---|---|---|
| Optimism | WETH | Lower Variable Base | 1% | 0% |
| Arbitrum | WETH | Lower Variable Base | 1% | 0% |
Implementation
The proposal implements changes on Optimism and Arbitrum v3 using the following payloads:
References
- Discussion: https://governance.aave.com/t/gauntlet-interest-rate-recommendations-for-weth-and-wmatic-on-v2-and-v3/14588/8
- Snapshot: https://snapshot.org/#/aave.eth/proposal/0x38a04c265542ec82202b9bb22ef4548290fbe7cde068f7c1c4fa9cd67c3c491b
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
Copyright
Copyright and related rights waived via CC0.
By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.
03Mismatch analysis
The description claims two actions: lowering WETH's variable base interest rate from 1% to 0% on Optimism v3 and on Arbitrum v3, executed via linked payload contracts. The decoded calldata shows exactly two actions, each an execute(address) call on Ethereum mainnet targeting what are standard Aave cross-chain bridge executor contracts, forwarding execution to a specific payload address on the corresponding L2. This structural pattern (two actions, one per chain, routed through governance bridge executors) matches the proposal's stated scope of 'Arbitrum and Optimism v3' and aligns with the number of chains and the Implementation section's two GitHub-linked payloads. However, the decoded calldata itself does not expose the granular numeric parameter change (base rate 1%→0%) since that logic lives inside the target payload contracts, which are not further decoded here. This limits full verification of the exact rate value, but the action count, direction (two chains, no unexpected third target), and general pattern are fully consistent with the prose. No extra, missing, or mismatched targets are apparent. Given the inability to inspect the payload internals for the precise rate figures, confidence is medium rather than high, but nothing in the visible calldata contradicts the description, so no discrepancies are flagged.
Generated by Kvorum
04Actions
- Target
- 0x5f5c…6711
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0xc12aD8B3D242B1EDdc1C8319D1d58608E67043eD" }- Calldata
- Target
- 0xd1b3…cfa3
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x0568a3aeb8E78262dEFf75ee68fAC20ae35ffA91" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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