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title: [ARFC] Treasury Management - auraBAL author: @TokenLogic - @MatthewGraham, @defiJesus & @efecarranza created: 2023-11-08

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Summary

This publication proposes creating a permissioned and upgradeable contract to manage the auraBAL holding.

Motivation

Currently, the auraBAL resides in the GHO Liquidity Committee (GLC) SAFE. The Aave DAO has placed trust in the signers of this SAFE who have custody of the funds.

This publication proposes that TokenLogic create a permissioned contract, similar to the Strategic Asset Contract (SAM) to manage this position. The shortExecutor will be in absolute control of the funds and can grant/revoke the Guardian role to enable a SAFE to interact with the auraBAL contract.

During the initial deployment of the auraBAL contract, the Guardian role will be assigned to the GLC. The specification section below details the functions to be included on the auraBAL contract.

Specification

The below specification defines at a high level the functionality that the shortExecutor can assign to the Guardian role:

1. Mint auraBAL using B-80BAL-20wETH
2. Stake auraBAL to earn yield; 2.1) Compounder, or 2.2) Classic auraBAL
3. Claim rewards
4. Transfer rewards to either Treasury or SAM (vlAURA) or GLC (bribes)
5. (Optionally) Swap BAL rewards for B-80BAL-20wETH to mint for more auraBAL

In addition to the above, the Ethereum Executor can also perform the following functionality:

1. Assign the Guardian role
2. Revoke the Guardian role
3. Transfer auraBAL to Treasury
4. Upgrade the contract

Funding

To facilitate the development, this publication seeks the following funding:

Funding Amount: $14,344 USD, to be paid in GHO. Delivery Schedule: 5 weeks, which includes the review by @bgdlabs (estimated 2-3 weeks).

In line with our standard operating practice, the auraBAL contract will be shared with @bgdlabs for review to ensure their completeness.

The transfer of funds will occur with an AIP submission upon successfully completing the scope.

The Aave DAO is encouraged to vote on one of the following three options:

1. YAE
2. NAE
3. ABSTAIN

Next Steps

1. If consensus on ARFC stage is reached, escalate to ARFC snapshot stage.
2. If ARFC snapshot stage outcome is YAE, TokenLogic will commence building the contracts.
3. Upon delivering the scope, TokenLogic will submit a AIP to create a GHO allowance for equivalent 14,344 USD.

The DAO is expected to uphold outcome of the Snapshot vote.

Copyright

Copyright and related rights waived via CC0.