Title: [ARFC] stS Loop Incentive Program author: @TokenLogic
created: 2025-06-16

Summary

This ARFC proposes the launch of a 3-month stS loop incentive program on Aave. The goal is to deepen stS liquidity on Aave, align incentives with Beets, and ensure Aave remains the exclusive lending market for stS.

Motivation

Beets has committed to Aave as the exclusive home for stS liquidity and will not incentivize or market any external stS lending market. This commitment aligns with the broader “Just Use Aave” strategy and presents a strong opportunity to consolidate stS liquidity on Aave v3.

To support this integration and unlock meaningful TVL, this ARFC outlines a clear path forward to bootstrap stS<>wS loop participation via:

• Cashback incentives based on stS collector revenue.
• Clarity around exclusivity boundaries regarding Beets’ Boosted Pools.

Incentive Program Structure

Phase 1: 3 months

• 100% of stS collector revenue will be recycled to users participating in the stS<>wS loop.
• A fixed budget of 40,000 wS will be allocated for cashback distribution, for the first month.
• The budget will be managed via the dedicated MASiv SAFE, funded directly by the Aave Collector upon approval.

Phase 2: Months 4 to 6

• 50% of Aave's stS collector revenue will be recycled to users continuing to engage with the loop.
• Rewards will be distributed on a weekly basis, proportional to looped positions and verified through on-chain criteria.

Exclusivity Clarification

• stS Lending: Aave will remain the exclusive lending market for stS. Beets has committed not to support stS lending on any external markets for the duration of the program.
• Beets Boosted Pools: Exclusivity applies only to stS. Beets will continue to operate and incentivize Boosted Pools for other assets not listed on Aave, including long-tail or non-collateral markets. Any future exclusivity for Boosted Pools would be subject to separate governance and agreement.

Specification

Collector Allowance

An allowance from the Aave Collector will be requested to fund the 40,000 wS budget via a single transaction to the designated MASiv Nested SAFE.

The initial Allowance is for 40,000 wS from Sonic instance.

• Asset: aSonwS 0x18eFE565A5373f430e2F809b97De30335B3ad96A
• Amount: 40,000
• Spender: Masiv nested safe0x565B80842eCEDad88A2564Ea375CE875Ed3bAdeC
• Method: approve() aSonwS on the Aave Collector contract to the Masiv address.

Next Steps

1. Gather feedback from the community.
2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage.
3. If Snapshot outcome is YAE, an AIP will implement this proposal.

Disclaimer

TokenLogic does not receive any payment for this proposal.

Copyright

Copyright and related rights waived via CC0.

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