diff --git a/content/aips/AAVESOME_AIP_V5.md b/content/aips/AAVESOME_AIP_V5.md new file mode 100644 index 00000000..52efacf4 --- /dev/null +++ b/content/aips/AAVESOME_AIP_V5.md @@ -0,0 +1,37 @@ +--- +title: DeFi Saver Aave V3 FlashBorrowers Whitelist Part II +author: BGD Labs (@bgdlabs) +shortDescription: Activation of Aave v3 Ethereum +discussions: https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990/16 +created: 2023-01-20 +--- + +This is the template for AIPs. + +When opening a pull request to submit your AIP, please use an uppercase abbreviated title in the filename, `TITLE_ABBREV.md`. + +The title should be 44 characters or less. + +## Simple Summary + +If you can't explain it simply, you don't understand it well enough. Provide a simplified and layman-accessible explanation of the AIP. + +## Motivation + +The motivation is critical for AIPs that want to change Aave. It should clearly explain why the existing protocol specification is inadequate to address the problem that the AIP solves. AIP submissions without sufficient motivation may be rejected outright. + +## Specification + +The technical specification should describe the syntax and semantics of any new feature. + +## References + +A list of relevant links like for this proposal e.g. + +- [forum discussion](discordlink) +- [tests](githublink) +- [proposalCode](githublink) + +## Copyright + +Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). diff --git a/content/ipfs-aips/all-aips.json b/content/ipfs-aips/all-aips.json index 7445a72e..411ac2bf 100644 --- a/content/ipfs-aips/all-aips.json +++ b/content/ipfs-aips/all-aips.json @@ -329,6 +329,16 @@ "content": "\n\n# Simple Summary\n\nThis governance proposal activates the Aave V3 Ethereum pool (3.0.1), by completing all the initial setup and listing WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE, already pre-approved by the community.\nAll the Aave Ethereum V3 addresses can be found in the [aave-address-book](https://github.com/bgd-labs/aave-address-book/blob/main/src/AaveV3Ethereum.sol).\n\n# Motivation\n\nWhile AAVE V3 was deployed to various networks right after the release, the Ethereum pool was still running V2.\nAfter careful consideration, the community [decided to deploy a fresh V3](https://snapshot.org/#/aave.eth/proposal/0x584eb4e0f79e1d9dcdd99b3a0c831bfc3c654af3f8f619d5f68eae23cd9cb149) instead of upgrading the V2 pool, for increased compatibility between the V3 pools and less general complexity.\nThe assets to be listed & respective configurations have been discussed in [the governance forum](https://governance.aave.com/t/arc-aave-v3-ethereum-deployment-assets-and-configurations/10238) and been decided in the following [snapshot](https://snapshot.org/#/aave.eth/proposal/0xc31254fac1369090cea7c0105cbc6381b72189c038391996f855708ff2e0c02e).\n\n# Specification\n\nThis proposal's payload does the following:\n\n1. Create the eMode category for eth correlated assets via `POOL_CONFIGURATOR.setEModeCategory(1, 90_00, 93_00, 10_100, address(0), 'ETH correlated')`\n2. Swap of emergency admin to Aave Guardian via `ACL_MANAGER.removeEmergencyAdmin(AaveGovernanceV2.SHORT_EXECUTOR)` followed by `ACL_MANAGER.addEmergencyAdmin(GUARDIAN_ETHEREUM)`\n3. grant `POOL_ADMIN` permissions to all the asset listing stewards created inside the `constructor()` via `ACL_MANAGER.addPoolAdmin(stewards[i])`\n\nThe Steward pattern is taken from [V3-listing stewards](https://github.com/bgd-labs/aave-v3-listing-stewards/blob/feat/v3-ethereum-tests/src/contracts/common/StewardBase.sol#L8). Each Steward will handle the listing of one specific asset and then renounce to the granted POOL_ADMIN role. This process is needed as otherwise, the proposal's gas limit would be really gas-expensive.\n\n## Configuration snapshot\n\nWhat you can see here is a formatted excerpt of the configuration snapshot with the relevant configurations after proposal execution.\nYou can find the full snapshot in the proposal [repository](https://github.com/bgd-labs/aave-v3-ethereum-proposal/blob/main/reports/0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2_post-stewards-aave-v3-ethereum.md).\n\n### Reserve Configurations\n\n| symbol | ltv | liqThreshold | liqBonus | liqProtocolFee | reserveFactor | borrowingEnabled | supplyCap | borrowCap | eModeCategory | isFlashloanable |\n| -------------------------------------------------------------------------------------- | -----: | -----------: | -------: | -------------: | ------------: | ---------------: | -----------------: | -----------------: | -------------: | --------------- |\n| [WBTC](https://etherscan.io/address/0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599#code) | 70.00% | 75.00% | 6.25% | 10% | 20% | true | 43'000 BTC | 28'000 BTC | - | true |\n| [WETH](https://etherscan.io/address/0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2#code) | 80.00% | 82.50% | 5.00% | 10% | 15% | true | 1'800'000 WETH | 1'400'000 WETH | ETH correlated | true |\n| [wstETH](https://etherscan.io/address/0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0#code) | 68.50% | 79.50% | 7.00% | 10% | 15% | true | 200'000 wstETH | 3'000 wstETH | ETH correlated | true |\n| [USDC](https://etherscan.io/address/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48#code) | 74.00% | 76.00% | 4.50% | 20% | 10% | true | 1'760'000'000 USDC | 1'580'000'000 USDC | - | true |\n| [DAI](https://etherscan.io/address/0x6B175474E89094C44Da98b954EedeAC495271d0F#code) | 64.00% | 77.00% | 4.00% | 20% | 10% | true | 338'000'000 DAI | 271'000'000 DAI | - | true |\n| [LINK](https://etherscan.io/address/0x514910771AF9Ca656af840dff83E8264EcF986CA#code) | 50.00% | 65.00% | 7.50% | 10% | 20% | true | 24'000'000 LINK | 13'000'000 LINK | - | true |\n| [AAVE](https://etherscan.io/address/0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9#code) | 60.00% | 70.00% | 7.50% | 10% | 0% | false | 1'850'000 AAVE | - | - | false |\n\n### InterestRateStrategies\n\n| strategy | BaseVariableBorrowRate | VariableRateSlope1 | VariableRateSlope2 | optimalUsageRatio | maxExcessUsageRatio | assets |\n| -------------------------------------------------------------------------------------------------------------------------- | ---------------------: | -----------------: | -----------------: | ----------------: | ------------------: | ---------------- |\n| [0x24701A6368Ff6D2874d6b8cDadd461552B8A5283](https://etherscan.io/address/0x24701A6368Ff6D2874d6b8cDadd461552B8A5283#code) | 0% | 7.00% | 300.00% | 45.00% | 55.00% | WBTC, LINK, AAVE |\n| [0x53F57eAAD604307889D87b747Fc67ea9DE430B01](https://etherscan.io/address/0x53F57eAAD604307889D87b747Fc67ea9DE430B01#code) | 1.00% | 3.80% | 80.00% | 80.00% | 20.00% | WETH |\n| [0x7b8Fa4540246554e77FCFf140f9114de00F8bB8D](https://etherscan.io/address/0x7b8Fa4540246554e77FCFf140f9114de00F8bB8D#code) | 0.25% | 4.50% | 80.00% | 45.00% | 55.00% | wstETH |\n| [0xD6293edBB2E5E0687a79F01BEcd51A778d59D1c5](https://etherscan.io/address/0xD6293edBB2E5E0687a79F01BEcd51A778d59D1c5#code) | 0% | 4.00% | 60.00% | 90.00% | 10.00% | USDC |\n| [0x694d4cFdaeE639239df949b6E24Ff8576A00d1f2](https://etherscan.io/address/0x694d4cFdaeE639239df949b6E24Ff8576A00d1f2#code) | 0% | 4.00% | 75.00% | 80.00% | 20.00% | DAI |\n\n### EMode categories\n\n| label | ltv | liqThreshold | liqBonus |\n| -------------- | -----: | -----------: | -------: |\n| ETH correlated | 90.00% | 93.00% | 1.00% |\n\n## Security procedures\n\nThe proposal execution is simulated [within the tests](https://github.com/bgd-labs/aave-v3-ethereum-proposal/blob/main/tests/AaveV3EthereumActivation.t.sol) and the resulting pool configuration is tested for correctness.\n\nIn addition this proposal has been tested one the [aave interface](https://github.com/aave/interface) using forks.\n\nAave Companies have reviewed the proposal code.\n\n## Deployed Contracts\n\n- [GenericV3ListingEngine](https://etherscan.io/address/0xC51e6E38d406F98049622Ca54a6096a23826B426#code)\n- [ProposalPayload](https://etherscan.io/address/0xc5a0ba13a3749c5d4a21934df8fd64821ac3fce7#code)\n\n## References\n\n- [Discussion: upgrade vs fresh deployment](https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990)\n- [Discussion: asset listings & parameters](https://governance.aave.com/t/arc-aave-v3-ethereum-deployment-assets-and-configurations/10238)\n- [Code: ListingEngine](https://github.com/bgd-labs/aave-helpers/tree/master/src/v3-listing-engine)\n- [Code: ProposalPayload](https://github.com/bgd-labs/aave-v3-ethereum-proposal)\n\n# Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", "basename": "AAVE_ETHEREUM_V3" }, + "AAVESOME_AIP_V5": { + "title": "TEST \na# \n", + "author": "BGD Labs (@bgdlabs)", + "shortDescription": "Activation of Aave v3 Ethereum", + "discussions": "https://governance.aave.com/t/bgd-aave-v3-ethereum-new-deployment-vs-aave-v2-upgrade/9990/16", + "created": "2023-01-20T00:00:00.000Z", + "preview": "This is the template for AIPs.\n\nWhen opening a pull request to …", + "content": "\n\nThis is the template for AIPs.\n\nWhen opening a pull request to submit your AIP, please use an uppercase abbreviated title in the filename, `TITLE_ABBREV.md`.\n\nThe title should be 44 characters or less.\n\n## Simple Summary\n\nIf you can't explain it simply, you don't understand it well enough. Provide a simplified and layman-accessible explanation of the AIP.\n\n## Motivation\n\nThe motivation is critical for AIPs that want to change Aave. It should clearly explain why the existing protocol specification is inadequate to address the problem that the AIP solves. AIP submissions without sufficient motivation may be rejected outright.\n\n## Specification\n\nThe technical specification should describe the syntax and semantics of any new feature.\n\n## References\n\nA list of relevant links like for this proposal e.g.\n\n- [forum discussion](discordlink)\n- [tests](githublink)\n- [proposalCode](githublink)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", + "basename": "AAVESOME_AIP_V5" + }, "AAVE_STARKNET_PHASE_I_DEPLOYMENT": { "title": "Aave StarkNet Phase I - Aave <> StarkNet Bridge deployment/activation by Aave governance", "author": "Aave on StarkNet", @@ -351,19 +361,6 @@ "content": "\n\n## Simple Summary\n\nProvide Aave Grants DAO (AGD) with $3.25m for the next two quarters (Q1 and Q2 2023) to fund more projects that benefit AAVE.\n\n## Abstract\n\nSince launching in May 2021, Aave Grants DAO has awarded over $4,395,000 in grants to teams building on Aave or contributing to the ecosystem. Aave Grants has also been a key driver of growth by awarding over $120k in Aave bounties across ten different hackathons, hosting three rAAVEs, and making other sponsorships to help proliferate the ghost. We are proposing to renew the program for the next two quarters by providing $3.25 million dollars ($1.625 million per quarter).\n\n## Motivation\n\nAave Grants DAO is a community-led grants program, focused on growing a thriving ecosystem of contributors within Aave through funding ideas, projects and events that benefit the ecosystem. We aim to drive development on top of Aave and ensure a constant influx of talented builders to maintain Aave’s long term growth. We help build culture and community around the Aave ecosystem that in turn attracts the best contributors.\n\n## Test Cases\n\nThe full test of this proposal can be found [here.](https://github.com/llama-community/aave-proposals/blob/main/src/test/proposals/aave-grants-dao-renewal/ProposalPayloadE2E.t.sol)\n\n## Implementation\n\nThis proposal includes a $3.25M approval of funds from the AaveEcosystemReserve and CollectorContract to the grants DAO multisig.\nThe funds are divided as follows:\n\n\nThis will allow the grants DAO to withdraw funds as needed and let the V2Collector to continue to earn interest in the meantime. The proposal payload will target the contract AaveEcosystemReserveController and call the function `function transfer(address collector, IERC20 token, address recipient, uint256 amount)` and `approve(address collector, IERC20 token, address recipient, uint256 amount)`.\n\n## References\n\nForum Post: [https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289](https://governance.aave.com/t/updated-proposal-aave-grants-dao-renewal/11289)\n\nSnapshot: [https://snapshot.org/#/aave.eth/proposal/0x194b68a5319b074065e38fcb0bd96e8e8b6ce15870844593e79750605a609109](https://snapshot.org/#/aave.eth/proposal/0x194b68a5319b074065e38fcb0bd96e8e8b6ce15870844593e79750605a609109)\n\n**Target Contracts**\n\nProposalPayload = [0xe4621dfd503a533f42bb5a45162ea3e5233acd5f](\nhttps://etherscan.io/address/0xe4621dfd503a533f42bb5a45162ea3e5233acd5f)\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", "basename": "AGD-RENEWAL-JAN-2023" }, - "AIP-1": { - "aip": 1, - "title": "LEND/AAVE migration and activation of the Safety Module", - "status": "Implemented", - "author": "Marc Zeller (@marczeller)", - "shortDescription": "", - "discussions": "https://governance.aave.com/t/initial-discussion-aave-reserve-emission-for-safety-and-ecosystem-incentives/85/60", - "created": "2020-09-21T00:00:00.000Z", - "updated": "2020-09-25T00:00:00.000Z", - "preview": "## AIP rationale\n\nAs stated in the [Aavenomics …", - "content": "\n\n## AIP rationale\n\nAs stated in the [Aavenomics paper](https://aave.com/Aavenomics.pdf), the AAVE asset is designed to become the center of gravity for Aave governance and the protocol.\n\n\nThe DeFi decentralized ethos has been mostly achieved with protocols on the financial side, creating an ecosystem of financial applications with users in control of their own assets. However, we believe that is only the halfway point of the decentralization objective. Users should also be be in control of the protocol. The AAVE asset is designed for this purpose. This AIP is the first binding step towards the community ownership of the Aave Protocol.\n\n\nThis AIP, if accepted by the community, will slowly deprecate the LEND asset in favour of the AAVE asset. As stated in the Aavenomics, this token upgrade will also create the Ecosystem Reserve (ER), the Safety Module (SM), and start the Safety Incentive (SI) rewards distribution. The Safety Module is designed as an additional line of defense for Aave liquidity providers and as a way for AAVE holders to \"stake\" their assets in exchange for a range of rewards.\n\n\nThis AIP's purpose is also to dedicate a part of the ER to a kickstart incentives for the Safety Module's first quarterly staker distribution.\n\n## AIP content in short\n\n- Migration of LEND -> AAVE asset with the migration contract\n- Activation of the quarterly plan of Safety Incentives (SI) allocation\n- Start of the Safety Module with initial SI rewards of 400 AAVE/day\n\n## Safety Incentives Schedule\n\nThe bootstrapping phase of the Safety Module will be a step-by-step process in 2 main phases:\n- Initial bootstrapping with launch of the Safety Module, the ability to stake and earn AAVE rewards, but no activation of the protocol protection (i.e slashing) and thus risk-free for stakers.\n- Activation of the Safety Module, a new line of defense for the Aave Protocol users.\n\nThe initial bootstrapping phase rationale is designed to have lower rewards and a risk-free environment to allow the majority of LEND holders to migrate at their own pace. This encourages a careful approach while interacting with critical migration and staking smart-contracts.\n\nAfter activation of the Safety Module, the Aave governance can adjust the Safety Incentive (SI) schedule and emissions rate.\n\nThe Safety Incentive's allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the ER is empty.\n\n## Mainnet addresses and relevant notes\n\nIf this AIP is validated by a community vote, the following addresses will be involved in the migration process :\n\n- [0x8a2efd9a790199f4c94c6effe210fce0b4724f52](https://etherscan.io/address/0x8a2efd9a790199f4c94c6effe210fce0b4724f52) AaveProtoGovernance : the governance contract\n- [0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9](https://etherscan.io/address/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9#code) AAVE token contract : the ERC20 AAVE token contract\n- [0x4da27a545c0c5b758a6ba100e3a049001de870f5](https://etherscan.io/address/0x4da27a545c0c5b758a6ba100e3a049001de870f5) StakedAave : The Staking contract for AAVE\n- [0x317625234562b1526ea2fac4030ea499c5291de4](https://etherscan.io/address/0x317625234562b1526ea2fac4030ea499c5291de4) LendToAaveMigrator : The migration contract\n- [0x95a4949f09415b12da789e144b2522956620d005](https://etherscan.io/address/0x95a4949f09415b12da789e144b2522956620d005) AaveGenesisPayloadProposal : Contract in charge of enforcement of the AIP outcome\n- [0xa133459b2502b0137e85a446fa8d4e300877a007](https://etherscan.io/address/0xa133459b2502b0137e85a446fa8d4e300877a007) AaveGenesisExecutor : Contract enforcing a 24h delay on enforcement of AIP outcome to allow the community to be prepared to migrate\n- [0x25f2226b597e8f9514b3f68f00f494cf4f286491](https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491#code) AaveIncentivesVault : Ecosystem Reserve\n\n\nThe migration process for every LEND holder will leverage the method `migrateFromLend()` with a simple `uint256` input of the amount. Non-technical users will have a migration portal available on the [Aave application](https://aave.com/)\n\nThe contracts are deployed to the Ethereum mainnet but are **not activated until the outcome of the current AIP vote**. Please refrain from trying to use them before activation, as it will result in a failed transaction.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", - "basename": "AIP-1" - }, "AIP-10": { "aip": 10, "title": "Adding xSushi on AAVE", @@ -494,18 +491,18 @@ "content": "\n\n## AIP rationale\n\nWith the results of AIP-16, A liquidity mining program started on the Aave V2 protocol.\n\nMany protocol took this opportunity to reinforce their synergies with Aave and deposit liquidity on Aave on behalf of their users.\n\nFor some protocols based on immutable contracts, participating in the Liquidity mining program requires some slight governance intervention on both sides.\n\nCurve.finance is one of them, they implemented via a community work the compability with the Aave liquidity for their Aave and sAave pools : https://dao.curve.fi/vote/ownership/45\n\nIt's now up to the Aave community to strengthten this synergy on Aave side allowing Curve users depositing into Aave to collect both CRV & StkAAVE rewards.\n\n# AIP content in short\n\n* Set Curve contract as claimers in the incentives controller contract.\n\n# Relevant Links\n\n* AIP-16 implementing liquidity mining on Aave V2: https://app.aave.com/governance/11-Qmf1JeXiw8BDUoKJ89VmUJ8wy22D2udqL4HxprCG7DZ5zG\n* Curve governance vote: https://dao.curve.fi/vote/ownership/45\n\n\n## Implementations details\n\ncall `setClaimer()` for Curve contracts on `INCENTIVES_CONTROLLER_PROXY_ADDRESS` \n\nCurve aPool contract : https://etherscan.io/address/0x96D7BC17912e4F320c4894194564CF8425cfe8d9\n\nCurve sPool contract : https://etherscan.io/address/0xe5f41acad47849c6eb28b93913ca81893fb5a2a6\n\nLink to incentives controller proxy : https://etherscan.io/address/0xd784927Ff2f95ba542BfC824c8a8a98F3495f6b5#readProxyContract\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", "basename": "AIP-19" }, - "AIP-2": { - "aip": 2, - "title": "Bootstrap of the AAVE Governance Fund", + "AIP-1": { + "aip": 1, + "title": "LEND/AAVE migration and activation of the Safety Module", "status": "Implemented", - "author": "Emilio Frangella (@The3D_)", + "author": "Marc Zeller (@marczeller)", "shortDescription": "", - "discussions": "https://governance.aave.com/t/proposal-to-stop-the-lend-burning-and-start-building-an-aave-governance-treasury/1012", - "created": "2020-11-05T00:00:00.000Z", - "updated": "2020-11-05T00:00:00.000Z", - "preview": "## AIP rationale\n\nThe Aave protocol V1 included the possibility to …", - "content": "\n\n## AIP rationale\n\nThe Aave protocol V1 included the possibility to burn LEND tokens by collecting flashloan premiums and borrowing fees. Up until now, 2.5M LEND have been burned, which will not be converted to AAVE.\nAs a result of the migration, the LEND liquidity has shrunk considerably, which makes it very hard to buy LEND on dexes for the burning.\n\nThe LEND burner currently holds around 20K of funds, distributed across all the different Aave V1 reserves (mostly stablecoins). The burner contract is here https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n\nThis AIP proposes to stop the LEND burning. Instead, the idea is to collect the fees accrued by AAVE V1 to bootstrap a protocol fund. \n\n## AIP content in short\n\n- Deprecation of the current TokenDistributor contract\n- Implementation of the following strategy instead of burning:\n \n 1. Remove the assets conversion to LEND and subsequent burning\n 2. The assets are moved to the AAVE Collector contract, under direct control of the AAVE governance (https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c)\n\n- The implementation will keep the current redistribution of the referral fees (20% of the total) to continue with the referral distribution as until now.\n\n## Implementation details\n\n- Upgrade of the TokenDistributor contract https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n- Modify the distribute() function as follows:\n\n 1. Remove LEND burning\n 2. Move the assets to 0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\nDistribution to the current referral fees wallet will be kept.\n \n## Proposal data\n\nAIP2 Payload:\n\nhttps://etherscan.io/address/0x4b7c3e3ea48f80a78487067cd08b9a8430eb8eb5\n\nNew TokenDistributor Implementation:\n\nhttps://etherscan.io/address/0x62C936a16905AfC49B589a41d033eE222A2325Ad\n\nAave Collector contract:\n\nhttps://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", - "basename": "AIP-2" + "discussions": "https://governance.aave.com/t/initial-discussion-aave-reserve-emission-for-safety-and-ecosystem-incentives/85/60", + "created": "2020-09-21T00:00:00.000Z", + "updated": "2020-09-25T00:00:00.000Z", + "preview": "## AIP rationale\n\nAs stated in the [Aavenomics …", + "content": "\n\n## AIP rationale\n\nAs stated in the [Aavenomics paper](https://aave.com/Aavenomics.pdf), the AAVE asset is designed to become the center of gravity for Aave governance and the protocol.\n\n\nThe DeFi decentralized ethos has been mostly achieved with protocols on the financial side, creating an ecosystem of financial applications with users in control of their own assets. However, we believe that is only the halfway point of the decentralization objective. Users should also be be in control of the protocol. The AAVE asset is designed for this purpose. This AIP is the first binding step towards the community ownership of the Aave Protocol.\n\n\nThis AIP, if accepted by the community, will slowly deprecate the LEND asset in favour of the AAVE asset. As stated in the Aavenomics, this token upgrade will also create the Ecosystem Reserve (ER), the Safety Module (SM), and start the Safety Incentive (SI) rewards distribution. The Safety Module is designed as an additional line of defense for Aave liquidity providers and as a way for AAVE holders to \"stake\" their assets in exchange for a range of rewards.\n\n\nThis AIP's purpose is also to dedicate a part of the ER to a kickstart incentives for the Safety Module's first quarterly staker distribution.\n\n## AIP content in short\n\n- Migration of LEND -> AAVE asset with the migration contract\n- Activation of the quarterly plan of Safety Incentives (SI) allocation\n- Start of the Safety Module with initial SI rewards of 400 AAVE/day\n\n## Safety Incentives Schedule\n\nThe bootstrapping phase of the Safety Module will be a step-by-step process in 2 main phases:\n- Initial bootstrapping with launch of the Safety Module, the ability to stake and earn AAVE rewards, but no activation of the protocol protection (i.e slashing) and thus risk-free for stakers.\n- Activation of the Safety Module, a new line of defense for the Aave Protocol users.\n\nThe initial bootstrapping phase rationale is designed to have lower rewards and a risk-free environment to allow the majority of LEND holders to migrate at their own pace. This encourages a careful approach while interacting with critical migration and staking smart-contracts.\n\nAfter activation of the Safety Module, the Aave governance can adjust the Safety Incentive (SI) schedule and emissions rate.\n\nThe Safety Incentive's allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the ER is empty.\n\n## Mainnet addresses and relevant notes\n\nIf this AIP is validated by a community vote, the following addresses will be involved in the migration process :\n\n- [0x8a2efd9a790199f4c94c6effe210fce0b4724f52](https://etherscan.io/address/0x8a2efd9a790199f4c94c6effe210fce0b4724f52) AaveProtoGovernance : the governance contract\n- [0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9](https://etherscan.io/address/0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9#code) AAVE token contract : the ERC20 AAVE token contract\n- [0x4da27a545c0c5b758a6ba100e3a049001de870f5](https://etherscan.io/address/0x4da27a545c0c5b758a6ba100e3a049001de870f5) StakedAave : The Staking contract for AAVE\n- [0x317625234562b1526ea2fac4030ea499c5291de4](https://etherscan.io/address/0x317625234562b1526ea2fac4030ea499c5291de4) LendToAaveMigrator : The migration contract\n- [0x95a4949f09415b12da789e144b2522956620d005](https://etherscan.io/address/0x95a4949f09415b12da789e144b2522956620d005) AaveGenesisPayloadProposal : Contract in charge of enforcement of the AIP outcome\n- [0xa133459b2502b0137e85a446fa8d4e300877a007](https://etherscan.io/address/0xa133459b2502b0137e85a446fa8d4e300877a007) AaveGenesisExecutor : Contract enforcing a 24h delay on enforcement of AIP outcome to allow the community to be prepared to migrate\n- [0x25f2226b597e8f9514b3f68f00f494cf4f286491](https://etherscan.io/address/0x25f2226b597e8f9514b3f68f00f494cf4f286491#code) AaveIncentivesVault : Ecosystem Reserve\n\n\nThe migration process for every LEND holder will leverage the method `migrateFromLend()` with a simple `uint256` input of the amount. Non-technical users will have a migration portal available on the [Aave application](https://aave.com/)\n\nThe contracts are deployed to the Ethereum mainnet but are **not activated until the outcome of the current AIP vote**. Please refrain from trying to use them before activation, as it will result in a failed transaction.\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", + "basename": "AIP-1" }, "AIP-20": { "aip": 20, @@ -634,18 +631,18 @@ "content": "\n\n## Simple Summary\n\nFrax is the first algorithmic-stablecoin protocol, backed through on-chain collateral and algorithmically. Frax has two tokens, the FRAX stablecoin pegged at $1 and the FXS governance + seigniorage token, and aims to be a decentralized crypto-native unit of account with the upcoming Frax Price Index (FPI). FRAX has stayed at $1 for its entire existence, being the only non-traditional stablecoin to keep its peg perfectly in 8 months of release.\n\n## Abstract\n\nThe FRAX stablecoin is partially backed with on-chain collateral and partially backed algorithmically, according to a collateral ratio (CR) parameter that the system adjusts according to market conditions. In Frax v2, the protocol is able to mint FRAX into lending markets using [Algorithmic Market Operations](https://docs.frax.finance/amo/overview) (AMOs), smart contracts which have the ability to print FRAX up to certain thresholds adjustable by governance.\n\n## Motivation\n\nAs the value of Aave's TVL increases, borrow liquidity for stablecoins against volatile assets lent to Aave is one of the key benefits that is offered to lenders of the protocol. The flow of newly minted stablecoins to their decentralized lending market destination such as Aave is not always direct, and may face market inefficiencies through layers of actors.\n\nBy [deploying an AMO for Aave](https://docs.frax.finance/amo/frax-lending), the Frax protocol is able to mint FRAX to be borrowed by lenders of Aave, and thus offer an active and competitive alternative to other stablecoins such as USDC, USDT, and DAI. By allowing for responsive stablecoin liquidity, we aim to benefit lenders and the Aave ecosystem as a whole.\n\nAdditionally, With no collateral factor, there is 0 risk for Aave's money market in terms of the FRAX peg. Furthermore, if the FRAX peg broke and fell below $1, Aave borrowers would have less debt in dollar terms.\n\n## Specification\n\n1. What is the link between the author of the AIP and the Asset?\n\n\t- Co-founder of Frax.\n\n2. Provide a brief high-level overview of the project and the token\n\n\t- FRAX is the world's first fractionally-algorithmic stablecoin, stabilized with parts on-chain collateral and parts algorithmically.\n\n3. Explain positioning of token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?\n\n\t- Frax's AMOs are able to mint FRAX into the Aave lending market, allowing for highly competitive stablecoin borrowing rates for lenders.\n\n4. Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?\n\n\t- FRAX launched at the end of 2020 and currently has over $300M in circulating FRAX. FRAX has never once broken the peg of $1, even through sharp market downturns such as in March 2021. Frax's governance token FXS has maintained governance functionality since inception through a fork of Compound's GovernorAlpha.\n\n5. How is the asset currently used?\n\n\t- FRAX is currently used as a stablecoin in decentralized exchanges and other lending markets such as Rari's Fuse Protocol, where it is currently the most-borrowed and most-supplied stablecoin in several pools through Frax's AMOs.\n\n6. Emission schedule\n\n\t- There is no emission schedule; FRAX is mintable by anyone anytime by depositing corresponding amounts of collateral and FXS into the system's contracts.\n\n7. Token & protocol permissions and upgradability\n\n\t- The protocol is highly modular in terms of system parameters such as oracle addresses and AMO additions. The core contracts such as the token contract itself are non-proxy deployed and permissioned through governance's 2-day timelock, with a backup multisig admin address managed by the core Frax team.\n\n8. Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)\n\n - Market Cap: $307M\n - 24h Volume: $15M\n - Volatility: Extremely Low\n - Maturity: Early-Mid\n\n9. Social channels data (Size of communities, activity on Github)\n\n\t- 13K followers on Twitter, 6.2K members on Telegram, Github is updated frequently.\n\n10. Contracts date of deployments, number of transactions, number of holders for tokens\n\n - Date of Deployment: December 20th, 2020\n - Number of Transactions: 110,000+\n - Number of Holders: 1,600+\n\n## Rationale\n\nFrax's design rationale came as a synthesis of a crypto-native stablecoin with capital efficiency, allowing it to perform algorithmic market operations while managed by on on-chain DAO. As Frax expands, it can compound on its own network effects by being a highly liquid routing asset on DEXes and a default borrowing option for many lending market pools. To keep decentralization at the forefront, the USDC collateral is spread out through other lending markets and DEXes, and is planned to be rotated to ETH and ETH-equivalent collateral as the protocol matures. Furthermore, the Frax Price Index (FPI) allows for a shift away from the USD unit-of-account into the first major stable crypto-native unit-of-account.\n\n## Implementation\n\nThe FRAX price oracle will be served via [ChainLink](https://chain.link/), which includes the [FRAX/ETH feed](https://docs.chain.link/docs/ethereum-addresses).\n\nFRAX will only be used for depositing and lending and not as collateral, with a Loan-to-Value (LTV) value of 0%. The other parameters are as such:\n\n\n - Strategy: rateStrategyStableTwo\n - Base LTV As Collateral: 0\n - Liquidation Threshold: 0\n - Liquidation Bonus: 0\n - Borrowing Enabled: true\n - Stable BorrowRate Enabled: false\n - Reserve Decimals: 18\n - Reserve Factor: 2000\n\nFollowing the steps from the [Aave governance docs](https://docs.aave.com/developers/protocol-governance/governance/propose-your-token-as-new-aave-asset), the following contracts were generated:\n\n- Interest bearing aFRAX address: 0x6efD37b3015AeA0E19418f98661488A4D2D3C377\n- Variable Debt variableDebtFRAX address: 0x08FFf652bEF777634585707B17627c9274E3dB11\n- Stable Debt stableDebtFRAX address: 0x7E3Ddfceef69bEC3A38Fc9AE8D7A8c46D7788C6b\n- Strategy Implementation for FRAX address: 0xb0a73aC3B10980A598685d4631c83f5348F5D32c\n\n## Audits/Security Reviews\n\n[Trail of Bits Audit](https://github.com/trailofbits/publications/blob/master/reviews/FraxFinance.pdf)\n\n[CertiK Audit](https://www.certik.org/projects/fraxfinance)\n\n**Note that the risk assessment was performed in May 2021, when FRAX's market cap was $110M**\n\n**FRAX Smart Contract Risk**: **C**\n\nFrax has been live on the Ethereum mainnet for over 8 months.\n\n**FRAX Counterparty Risk**: **C+**\n\nCurrently the Frax protocol can be paused or modified by a multisig. The protocol is meant to be governance minimized with a gradual transition to DAO + comptrollers.\n\n**FRAX Market Risk**: **B**\n\nThe current FRAX market cap is over $307,000,000 USD. The average 24H trading volume in the past month has been over $14,000,000 USD. FRAX's volatility is negligible on Curve and Uniswap v3.\n\n**FRAX Overall Risk**: **B-**\n\n## References\n\nWhitepaper - https://github.com/FraxFinance/frax-solidity/blob/master/frax_whitepaper_v1.pdf\n\nWebsite - https://frax.finance/\n\nTwitter - https://twitter.com/fraxfinance\n\nDocs - https://docs.frax.finance/\n\nGithub - https://github.com/FraxFinance\n\nToken Contract - https://etherscan.io/token/0x853d955aCEf822Db058eb8505911ED77F175b99e\n\n## Test Cases\n\n## Implementation\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).", "basename": "AIP-29" }, - "AIP-3": { - "aip": 3, - "title": "V1 upgrades for seamless transition to AAVE v2", + "AIP-2": { + "aip": 2, + "title": "Bootstrap of the AAVE Governance Fund", "status": "Implemented", - "author": "Marc Zeller (@marczeller)", + "author": "Emilio Frangella (@The3D_)", "shortDescription": "", - "discussions": "https://governance.aave.com/t/aip-3-upgrade-aave-v1-lendingpool-contract-for-seamless-migration-to-v2/1383", - "created": "2020-11-11T00:00:00.000Z", - "updated": "2020-11-11T00:00:00.000Z", - "preview": "## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are …", - "content": "\r\n\r\n## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are deposited in the Aave protocol reserve, several community members currently use these assets as collateral in loans and would like to migrate both from LEND to AAVE and from V1 to V2 in the future.\r\nOutside of the situation of the aLEND holders, having a Flashloan-powered migration tool usable for every asset available on V1 to allow seamless migration from v1 to v2 would significantly ease the process of upgrading the liquidity to the new version of AAVE.\r\n\r\nTo allow these new features, small modifications of the `repay()` method are needed to upgrade the efficiency of the process and allow v2 flashloans to access it.\r\n\r\n## AIP content in short\r\n\r\n- upgrade of `lendingPool` v1 smart-contract `repay()` method\r\n \r\n This AIP expected effect will be the increase of migrated LEND and faster & easier transition to Aave V2 of V1 liquidity of all assets alongside an increased volume of Flashloans.\r\n\r\n\r\n## Implementation details\r\n\r\n- Upgrade of the LendingPool contract https://etherscan.io/address/0x017788dded30fdd859d295b90d4e41a19393f423#code\r\n- Modify the repay() function as follows:\r\nOn LendingPool.sol, line 617, replace `onBehalfOf` with `msg.sender`\r\n\r\nThe upgrade having a minimum impact on v1 and is particularly simple on the technical side, for this reason, internal review by the Aave genesis team has been considered sufficient to validate it.\r\nthis upgrade details can be found in the Aave public github repo :\r\n\r\n- modification code : https://github.com/aave/aave-protocol/pull/28/\r\n\r\n- AIP 3 Proposal payload: https://etherscan.io/address/0x3f0cfa3cad621c3651faf9de014489e20e5bf9d1\r\n \r\n## Copyright\r\n\r\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\r\n", - "basename": "AIP-3" + "discussions": "https://governance.aave.com/t/proposal-to-stop-the-lend-burning-and-start-building-an-aave-governance-treasury/1012", + "created": "2020-11-05T00:00:00.000Z", + "updated": "2020-11-05T00:00:00.000Z", + "preview": "## AIP rationale\n\nThe Aave protocol V1 included the possibility to …", + "content": "\n\n## AIP rationale\n\nThe Aave protocol V1 included the possibility to burn LEND tokens by collecting flashloan premiums and borrowing fees. Up until now, 2.5M LEND have been burned, which will not be converted to AAVE.\nAs a result of the migration, the LEND liquidity has shrunk considerably, which makes it very hard to buy LEND on dexes for the burning.\n\nThe LEND burner currently holds around 20K of funds, distributed across all the different Aave V1 reserves (mostly stablecoins). The burner contract is here https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n\nThis AIP proposes to stop the LEND burning. Instead, the idea is to collect the fees accrued by AAVE V1 to bootstrap a protocol fund. \n\n## AIP content in short\n\n- Deprecation of the current TokenDistributor contract\n- Implementation of the following strategy instead of burning:\n \n 1. Remove the assets conversion to LEND and subsequent burning\n 2. The assets are moved to the AAVE Collector contract, under direct control of the AAVE governance (https://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c)\n\n- The implementation will keep the current redistribution of the referral fees (20% of the total) to continue with the referral distribution as until now.\n\n## Implementation details\n\n- Upgrade of the TokenDistributor contract https://etherscan.io/address/0xe3d9988f676457123c5fd01297605efdd0cba1ae \n- Modify the distribute() function as follows:\n\n 1. Remove LEND burning\n 2. Move the assets to 0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\nDistribution to the current referral fees wallet will be kept.\n \n## Proposal data\n\nAIP2 Payload:\n\nhttps://etherscan.io/address/0x4b7c3e3ea48f80a78487067cd08b9a8430eb8eb5\n\nNew TokenDistributor Implementation:\n\nhttps://etherscan.io/address/0x62C936a16905AfC49B589a41d033eE222A2325Ad\n\nAave Collector contract:\n\nhttps://etherscan.io/address/0x464c71f6c2f760dda6093dcb91c24c39e5d6e18c\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n", + "basename": "AIP-2" }, "AIP-32": { "aip": 32, @@ -698,6 +695,19 @@ "content": "\n## **AAVE AIP 37**\n\nUpdate to the Liquidity Mining Distribution\n\nThe latest liquidity mining proposal went live on August 24th.\n\nA misconfiguration was found in the latest liquidity mining distribution: new assets added to the program are **not receiving rewards**. This AIP fixes the misconfiguration, increasing the rewards proportionally for those assets by taking into account when they should have started receiving rewards and the execution timestamp of this update.\n\nThe new emission rate will be determined by the formula listed in this AIP’s [payload](https://etherscan.io/address/0xC5Dc99a421e3FB9d64c7B5BBb47a5e072370eDE8#code). The new emission rate will go live once this AIP is executed.\n", "basename": "AIP-37" }, + "AIP-3": { + "aip": 3, + "title": "V1 upgrades for seamless transition to AAVE v2", + "status": "Implemented", + "author": "Marc Zeller (@marczeller)", + "shortDescription": "", + "discussions": "https://governance.aave.com/t/aip-3-upgrade-aave-v1-lendingpool-contract-for-seamless-migration-to-v2/1383", + "created": "2020-11-11T00:00:00.000Z", + "updated": "2020-11-11T00:00:00.000Z", + "preview": "## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are …", + "content": "\r\n\r\n## AIP rationale\r\n\r\nAt the time of writing, 14,732,165 aLEND are deposited in the Aave protocol reserve, several community members currently use these assets as collateral in loans and would like to migrate both from LEND to AAVE and from V1 to V2 in the future.\r\nOutside of the situation of the aLEND holders, having a Flashloan-powered migration tool usable for every asset available on V1 to allow seamless migration from v1 to v2 would significantly ease the process of upgrading the liquidity to the new version of AAVE.\r\n\r\nTo allow these new features, small modifications of the `repay()` method are needed to upgrade the efficiency of the process and allow v2 flashloans to access it.\r\n\r\n## AIP content in short\r\n\r\n- upgrade of `lendingPool` v1 smart-contract `repay()` method\r\n \r\n This AIP expected effect will be the increase of migrated LEND and faster & easier transition to Aave V2 of V1 liquidity of all assets alongside an increased volume of Flashloans.\r\n\r\n\r\n## Implementation details\r\n\r\n- Upgrade of the LendingPool contract https://etherscan.io/address/0x017788dded30fdd859d295b90d4e41a19393f423#code\r\n- Modify the repay() function as follows:\r\nOn LendingPool.sol, line 617, replace `onBehalfOf` with `msg.sender`\r\n\r\nThe upgrade having a minimum impact on v1 and is particularly simple on the technical side, for this reason, internal review by the Aave genesis team has been considered sufficient to validate it.\r\nthis upgrade details can be found in the Aave public github repo :\r\n\r\n- modification code : https://github.com/aave/aave-protocol/pull/28/\r\n\r\n- AIP 3 Proposal payload: https://etherscan.io/address/0x3f0cfa3cad621c3651faf9de014489e20e5bf9d1\r\n \r\n## Copyright\r\n\r\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\r\n", + "basename": "AIP-3" + }, "AIP-4": { "aip": 4, "title": "Activation of Aave Protocol Governance V2",