---

title: [ARFC] TokenLogic Phase II - Extension
author: @TokenLogic
created: 2026-05-05

---

Summary

In response to the launch of Aave V4 and recognizing Aave Labs’ role as the primary technical innovator, this proposal presents TokenLogic as the team responsible for managing finances and supporting operations at Aave.

Upon implementation, TokenLogic will be responsible for:

• Finances: Responsible for managing Aave's finances, budget, reporting, KPI monitoring, user acquisition cost monitoring, popular use case analysis and investor relations insights in alignment with key stakeholders, such as Aave Labs.

• Market Structure: Provide market structure recommendations, perform capital-efficiency and interest-rate analyses, including Borrow Rate parameter recommendations, and design all incentive campaigns across Aave V3 and V4, in collaboration with other Service Providers.

• GHO Stablecoin: In conjunction with Aave Lab’s oversight, upgrade the GSMs to facilitate allocating to off-chain yield sources such as RWAs, develop cross-chain sGHO, and continue to lead the growth efforts supporting Aave's GHO stablecoin.

• Tooling: Provide and maintain tooling, such as Aave Seatbelt, Aave Robot, bridging, and swaps, among others, for Aave V3 and V4.

• Liquidation Engine: Support Chainlink's SVR rollout and upgrades; contribute quantitative analysis; present recommendations; collaborate with other service providers; and support the configuration of Aave V4 liquidation parameters to balance risk and expand revenue.

• Aave V4: Research and develop at least one Spoke that unlocks a new type of collateral, or that allows liquidity to move between networks using CRE. Responsible for leading efforts to develop the reinvestment feature strategy implementation and provide general operational support with asset onboardings and parameter updates via AIP.

• Business Development and Growth: Focusing on driving institutional adoption, strategic partnerships, and ecosystem growth across Aave Protocol.

Upon implementation, this proposal will cancel the existing 100072 stream and replace it with a new $2M Allowance, a new $2.5M EthLidoGHO stream and a new 5k AAVE stream over 12 months. The existing KPI's remain unchanged.

Motivation

The launch of Aave V4 marks a defining moment for the protocol and the operational demands on the ecosystem grow in parallel. The recent restructuring of Aave's service provider landscape has concentrated responsibility across fewer teams, requiring those that remain to broaden their scope and deepen their commitments.

TokenLogic has consistently delivered across treasury management, GHO development, incentive design, and analytics. At Aave's request, over the past year, we have expanded beyond our original mandate driving business development initiatives and building tooling infrastructure that underpins Aave's daily operations.

With fewer service providers and a significantly broader mandate, we are now responsible for delivering across finance, GHO, incentive design, tooling maintenance, V4 feature development, and business development. This proposal ensures TokenLogic is resourced to meet those demands and continue delivering at the pace that Aave's growth requires.

Scope of Work

This section outlines the full scope of services to be provided by TokenLogic. Upon implementation, subject to a vote by AAVE token holders, this proposal replaces the existing Phase II proposal and recognizes TokenLogic's new focus within the Aave ecosystem. Whilst delivering the scope below, TokenLogic will work closely with Aave Labs, Certora, LlamaRisk to ensure product delivery schedules are executed seamlessly.

Note : Detailed scope available on the discussion link.

Finance

TokenLogic manages Aave's financial operations, ensuring that protocol revenue is optimally allocated across growth initiatives, operational expenses, and strategic reserves. As Aave's financial complexity grows with multichain deployments, new product lines, and an expanding set of strategic partnerships, a dedicated and proactive treasury function is essential to sustaining growth and maintaining long-term stability.

Treasury Management

TokenLogic focuses on ensuring the Aave DAO's expenses and initiatives are funded efficiently. We support financial planning, budgeting, forecasting, risk management, and capital optimization to safeguard long-term stability. Our responsibilities span cash flow management, treasury operations, expense payments, and financial analysis, providing data-driven insights that guide strategic decision-making and business growth.

Strategic Importance

As Aave continues to grow, we are witnessing an increase in the volume of strategic opportunities, rising cash flow demands, and suppressed market conditions, all of which require continuous, thorough analysis and oversight to avoid overcommitting funds whilst maintaining an aggressive pursuit of growth.

Asset Management Tooling

Continue to expand Aave's financial stewardship tooling and introduce new asset management tooling to optimize and scale fund management.

Analytics

Continue to build and maintain the Aave Analytics platform to provide users with the most up-to-date and detailed analysis of the Aave Protocol and Aave's finances. TokenLogic will continue to expand the data analysis offering, providing new insights and creating an investor relations section.

Incentive Campaign

TokenLogic designs and iteratively optimizes incentive campaigns across all Aave deployments. Our approach combines rigorous quantitative analysis with close coordination across ecosystem partners and service providers to maximize the impact of incentive.

GHO Stablecoin

TokenLogic will continue to support the ongoing technical development in close collaboration with Aave Labs and drive the adoption of Aave's GHO Stablecoin. The scope is broadly defined as five key areas : Growth, Liquidity, GHO stewards, Technical Develoment and RWA Exposure.

Aave V3 and V4

Aave V4 Liquidation Analysis & Configuration

Aave V4 has a configurable liquidation engine that lets Aave determine how user positions can be liquidated. These parameters shape the trade-off between borrower protection and execution reliability and directly influence how the liquidation surplus is distributed among borrowers, liquidators, and the protocol. This work is also tied to Umbrella.

Aave V3 and V4 Interest Rate Analysis

Interest rate parameters such as Base Rate, Slope1, UOptimal, and Slope2 determine how borrowing costs are priced across Aave markets, while Reserve Factor in Aave V3 and the equivalent Liquidity Fee in Aave V4 determine how borrower interest is split between suppliers and the DAO. Together, these are some of the protocol's most important levers for balancing borrower demand, supplier competitiveness, utilization, and revenue generation.

Aave V3 and V4 SVR Monitoring & Configuration

SVR (Smart Value Recapture) is a Chainlink subsystem, currently integrated with Aave V3 and soon to be introduced in Aave V4, that redirects non-toxic liquidation MEV back to the protocol, creating an additional source of DAO revenue.

Aave V3 and V4 Tooling

Amidst the restructuring of responsibilities within Aave, TokenLogic will support by assuming responsibility for continuing to improve the DAO's tooling from BGDLabs, including Helpers such as Aave Robot, Aave Seatbelt, address book, and permissions book.

Aave V4 - Technical Development

The following highlights TokenLogic's technical contribution to the Aave V4 protocol, which will be carried out in collaboration with Aave Labs, the primary technical team overseeing Aave V4 development. Our focus is on unlocking new revenue sources for Aave by expanding access to new collateral types and enhancing the protocol's overall capital efficiency.

Business Development

TokenLogic has been at the forefront of Aave's business development efforts, driving strategic partnerships and network launches that have materially expanded the protocol's reach and revenue. While not formally recognized under the previous scope, our contributions have delivered significant results. Under this extended scope, in collaboration with Aave Labs, TokenLogic's contribution to broader Business Development and Institutional Sales efforts is formally recognised.

Specification

Upon implementation:

• TokenLogic's contribution to the Aave ecosystem includes the scope of work defined in the Scope section above.

• Cancel Stream 100072, 2.5M aEthLidoGHO over 12 months.

• The existing KPI program remains unchanged.

• Create a 2M aEthLidoGHO Allowance.

• Create a 12-month 2.5M aEthLidoGHO stream.

• Create a 12-month 5k AAVE stream.

Following on from past funding updates, and for avoidance of doubt, the Audit, Gas and Legal costs are to be reimbursed through periodic funding updates.

Next Steps

If the ARFC snapshot outcome is YAE, escalate to the AIP stage.

Disclaimer

TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100072 and the KPI as outlined in this publication.

TokenLogic supports and maintains an independent delegate voting platform within the Aave community.