[ARFC] Chaos Labs - Incremental Reserve Factor Updates - Aave V2 Ethereum
Simple Summary
A proposal for a series of Reserve Factor (RF) increases across all V2 Ethereum assets.
Motivation
In line with our V2 to V3 migration plan, we propose a series of RF increases on Aave V2 Ethereum.
By progressively increasing the reserve factors, the interest rate for supplying these assets on V2 will be increasingly less attractive, thus encouraging suppliers to transition positions to V3.
This proposal intends to incrementally increase the reserve factors by 5% at each step. After implementing each increment, we'll assess user elasticity and the impact of the updates before moving forward with additional increases. We will ensure a minimum gap of 2 weeks between each subsequent update.
Please note that a separate proposal will be made for frozen assets on V2.
Specification
| Asset | Current RF | Recommended RF |
|---|---|---|
| DAI | 10% | 15% |
| FRAX | 20% | 25% |
| GUSD | 10% | 15% |
| LUSD | 10% | 15% |
| sUSD | 20% | 25% |
| TUSD | 20% | 25% |
| USDC | 10% | 15% |
| USDP | 10% | 15% |
| USDT | 10% | 15% |
| 1INCH | 20% | 25% |
| CRV | 20% | 25% |
| ENS | 20% | 25% |
| LINK | 20% | 25% |
| MKR | 20% | 25% |
| SNX | 35% | 40% |
| UNI | 20% | 25% |
| WBTC | 20% | 25% |
| ETH | 15% | 20% |
Next Steps
- Following community feedback, submit the ARFC for a snapshot vote for final approval.
- If consensus is reached, submit the first Aave Improvement Proposal (AIP) to implement the proposed updates.
- Subsequent increments will be done directly through an AIP to reduce the governance overhead.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
Timeline
Jun 26, 2023Proposal created
Jun 27, 2023Proposal vote started
Jun 30, 2023Proposal vote ended
Oct 26, 2023Proposal updated