Reserve Factor Update October 2023
01Summary
AIP increases Reserve Factors (RF) for 7 assets on Polygon v2 by 5% (up to 99.99% maximum), routing more user interest to Aave DAO Treasury and incentivizing migration to v3. User funds remain safe with no borrowing rate changes.
- Type
- parameter change
Key changes
- DAI Reserve Factor increased from 36.00% to 41.00%(medium)
- USDC Reserve Factor increased from 38.00% to 43.00%(medium)
- USDT Reserve Factor increased from 37.00% to 42.00%(medium)
- wBTC Reserve Factor increased from 70.00% to 75.00%(medium)
- wETH Reserve Factor increased from 60.00% to 65.00%(medium)
- MATIC Reserve Factor increased from 56.00% to 61.00%(medium)
- BAL Reserve Factor increased from 47.00% to 52.00%(medium)
Notable concerns
- Deposit yields on Polygon v2 will be reduced, potentially accelerating user migration away from v2
- Assets already at 99.99% RF show no change
Generated by Kvorum
02Description
Simple Summary
This AIP is a continuation of AIP 284 and increases the Reserve Factor (RF) for assets on Polygon v2 by 5%, up to a maximum of 99.99%.
Motivation
This AIP will reduce deposit yield for assets on Polygon v2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Polygon v2 to v3.
Increasing the RF routes a larger portion of the interest paid by users to Aave DAO's Treasury. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.
Of the assets with an RF set at 99.99%, there is no change. All other asset reserves will have the RF increased by 5%.
Specification
The following parameters are to be updated as follows:
| Asset | Reserve Factor |
|---|---|
| DAI | 41.00% |
| USDC | 43.00% |
| USDT | 42.00% |
| wBTC | 75.00% |
| wETH | 65.00% |
| MATIC | 61.00% |
| BAL | 52.00% |
References
- Implementation: Polygon
- Tests: Polygon
- Snapshot: No snapshot for Direct-to-AIP
- Discussion
Disclaimer
The author, TokenLogic, receives no payment from anyone, including Aave DAO, for this proposal. TokenLogic is a delegate within the Aave community.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance execution pattern: the on-chain action is a single execute(address) call that triggers a separate payload contract (0x53Af...62B7a) which is expected to contain the actual per-asset Reserve Factor updates described in the prose. Because the decoded calldata does not expose the internal logic of that payload contract (e.g., calls to setReserveFactor on the Polygon v2 pool configurator), there is no way to directly verify the specific numeric changes (DAI 41%, USDC 43%, etc.) against on-chain parameters from this data alone. This is typical and expected for Aave AIPs of this type, where governance proposals wrap detailed multi-asset parameter changes inside a single payload execution call. No contradiction is observable between the description and the visible calldata, but the granularity needed to confirm exact RF values is absent, so confidence in a full match is low rather than high. No red flags such as fund transfers, role grants, or mismatched target addresses are present in the visible action beyond the expected executor-to-payload call. Given the absence of any observable inconsistency and the routine nature of this execution pattern for Aave governance, the assessment is 'consistent' but with low confidence due to insufficient decoded detail to verify the specific figures claimed in the description.
Generated by Kvorum
04Actions
- Target
- 0x158a…d45b
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x53Af3E66dfd8182f1084d8f36d4c1085a3962B7a" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 117.2K | 19.99% | — | 3y ago |
| 070x0703…961b | For | 88.1K | 15.03% | — | 3y ago |
| 130x13bd…8548 | For | 61.3K | 10.46% | — | 3y ago |
| 230x2331…7e73 | For | 60K | 10.24% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 7.45% | — | 3y ago |
| B90xb933…8dd1 | For | 42K | 7.17% | — | 3y ago |
| EA0xea17…6676 | For | 38.8K | 6.61% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 37.9K | 6.47% | — | 3y ago |
| 570x57ab…2922 | For | 26.9K | 4.59% | — | 3y ago |
| 7A0x7ae1…e585 | For | 26.7K | 4.55% | — | 3y ago |
| E40xe459…e666 | For | 20K | 3.41% | — | 3y ago |
| 870x8787…ea52 | For | 18.1K | 3.09% | — | 3y ago |
| 180x1855…98ba | For | 5K | 0.86% | — | 3y ago |
| 5A0x5acb…eedf | For | 310.8 | 0.05% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.00% | — | 3y ago |
| 2F0x2f2f…f78a | For | 2.1 | 0.00% | — | 3y ago |
| 970x9748…1999 | For | 0.2 | 0.00% | — | 3y ago |
| AF0xaf50…6898 | For | 0.1 | 0.00% | — | 3y ago |
| 5A0x5a84…e6b0 | For | 0 | 0.00% | — | 3y ago |
| 920x929e…4c50 | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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