Upgrade Aave V3 ETH Poool wETH parameters
01Summary
Proposal to adjust WETH parameters on Aave V3 Ethereum: reduce slope1 from 3.8% to 2.8% and optimal utilization from 90% to 80%. This aims to make leverage loops more profitable and align borrowing costs with stETH/rETH yields (3.30% and 3.07%) while maintaining protocol competitiveness.
- Type
- parameter change
Key changes
- Reduce WETH Variable Slope 1 from 3.8% to 2.8%(high)
- Reduce WETH Optimal Utilization from 90% to 80%(high)
- Enhanced profitability for leverage loop users through lower borrowing costs(medium)
- Increased ETH reserve utilization expected to partly offset protocol revenue loss(medium)
Notable concerns
- Protocol revenue may decrease due to lower interest rate equilibrium, though partly offset by increased utilization
Generated by Kvorum
02Description
Summary
The current yields of stETH and reth are 3.30% and 3.07% respectively. By adjusting the slope1 parameter of WETH, we aim to:
- Enhance Profitability in Leverage Loops: The proposed adjustment will make leverage loops more profitable for users.
- Align with stETH and reth Yields: The proposed adjustment aims to set the slope1 slightly below the current yields of stETH and reth, ensuring Aave remains competitive.
Increased utilization of ETH reserve is expected to partly compensate for the slight loss of protocol revenue due to lower interest rate equilibrium.
Specification
| Chain | Asset | Current Uopt | Recommended Uopt | Current Variable Slope 1 | Recommended Variable Slope 1 |
|---|---|---|---|---|---|
| Ethereum v3 | WETH | 90% | 80% | 3.8% | 2.8% |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Disclaimer
Gauntlet and ACI have not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
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.
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 proposal description makes specific, quantitative claims about changing WETH's Uoptimal (90%->80%) and Variable Slope1 (3.8%->2.8%) parameters on Aave V3 Ethereum. The only decoded on-chain action, however, is a single call to forwardPayloadForExecution, which is the standard Aave Governance V3 mechanism for forwarding execution to a separate payload contract deployed on the target chain. The actual parameter-setting logic (rate strategy updates) lives inside that referenced payload contract (0xdAbad81...), which is not decoded here — we only see the forwarding call's arguments (access level, target chain, payload address, and a numeric parameter). Because the specific numeric changes described in the proposal cannot be directly verified against the opaque forwarded payload, we cannot confirm or deny a value mismatch from the calldata alone. This pattern (a single forwardPayloadForExecution call referencing an external payload contract) is standard and expected for Aave cross-chain governance proposals, and is not itself evidence of malfeasance or inconsistency. Given the referenced implementation and test files in the description align with the standard BGD Labs proposal structure for this exact type of parameter update, and no additional actions, transfers, or role changes appear in the calldata beyond the expected forwarding call, we assess this as consistent, but confidence is low due to the inability to decode the ultimate parameter values applied by the forwarded payload.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "11" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 116.5K | 24.63% | — | 3y ago |
| 130x13bd…8548 | For | 61.3K | 12.96% | — | 3y ago |
| 230x2331…7e73 | For | 60K | 12.68% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 9.23% | — | 3y ago |
| B90xb933…8dd1 | For | 42.4K | 8.96% | — | 3y ago |
| EA0xea17…6676 | For | 38.8K | 8.20% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 38K | 8.04% | — | 3y ago |
| 570x57ab…2922 | For | 26.2K | 5.53% | — | 3y ago |
| 870x8787…ea52 | For | 21.1K | 4.46% | — | 3y ago |
| E40xe459…e666 | For | 20K | 4.23% | — | 3y ago |
| 180x1855…98ba | For | 5K | 1.07% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.01% | — | 3y ago |
| B00xb056…42a9 | For | 5.9 | 0.00% | — | 3y ago |
| 700x70df…1889 | For | 1 | 0.00% | — | 3y ago |
| 570x5762…a752 | For | 1 | 0.00% | — | 3y ago |
| 1F0x1f98…e789 | For | 0.2 | 0.00% | — | 3y ago |
| 180x18d6…13f9 | For | 0.2 | 0.00% | — | 3y ago |
| BA0xba1d…679b | For | 0.1 | 0.00% | — | 3y ago |
| 930x93d2…dd57 | For | 0.1 | 0.00% | — | 3y ago |
| 3D0x3de3…95dd | For | 0.1 | 0.00% | — | 3y ago |
| CD0xcddc…efde | For | 0.1 | 0.00% | — | 3y ago |
| FB0xfbcc…594a | For | 0.1 | 0.00% | — | 3y ago |
| FA0xfa52…b9f7 | For | 0.1 | 0.00% | — | 3y ago |
| BA0xbae3…abc7 | For | 0.1 | 0.00% | — | 3y ago |
| 510x51fd…b1f5 | For | 0 | 0.00% | — | 3y ago |
| 0A0x0a75…23d4 | For | 0 | 0.00% | — | 3y ago |
| 8A0x8a03…7b13 | For | 0 | 0.00% | — | 3y ago |
| AC0xac49…752d | For | 0 | 0.00% | — | 3y ago |
| 0C0x0c66…fda7 | For | 0 | 0.00% | — | 3y ago |
| 940x945f…c726 | For | 0 | 0.00% | — | 3y ago |
| E60xe635…1773 | For | 0 | 0.00% | — | 3y ago |
| DA0xda68…dfbb | For | 0 | 0.00% | — | 3y ago |
| D50xd51b…c15f | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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