[ARFC-Addendum] Update Boosters & diluters for Merit Round 2
Author: @ACI (Aave Chan Initiative)
Date: 2024-04-03
Simple Summary
This ARFC-Addendum proposes to make booster & diluters evolve inside Merit to adapt to the DeFi ecosystem landscape evolution, introducing new diluters & removing a booster action.
Motivation
Merit wETH has been a clear success with nearly 200k ETH, leaving other protocols to join Aave V3. 160k ETH specifically left Morpho V3 to join aave, forcing a re-balance, and has made Morpho the second largest borrower & fee payer (>11%) of wETH in Aave, forcing them to pay north of 1600 ETH to the aave DAO per year.
https://etherscan.io/token/0xeA51d7853EEFb32b6ee06b1C12E6dcCA88Be0fFE#balances
Merit GHO has also been a success and reinforced our Safety module (17M$), secondary liquidity, and peg. It allows the DAO to restart GHO minting while keeping the peg in check.
GHO is expected to provide 10% of all DAO overall revenue by next week.
However, we have to witness less collaborative behavior from some ecosystem actors. In light of this, it seems suboptimal for the Aave DAO to reward uncollaborative protocols & behaviors.
This is why we suggest stopping any subsidies to the makerDAO ecosystem; the Aave DAO has already paid millions via the AAVE and third-party LM programs and has been repaid by creating competitive forks and activating D3M in a protocol that has stolen millions of revenue from this DAO with no safety track record using a market sensible collateral.
With this proposal, a single $ in Morpho Blue or Spark will nullify any Merit Airdrop for the user. sDAI is considered a makerDAO product, not a Spark product; holding simply sDAI or having it in Aave will not dilute a user.
This proposal aims to be enabled for Merit Round 2 and all subsequent rounds.
Specification
Proposed Changes:
Conservative Option
- Remove "MakerDAO fren" Boosters. for the usage of sDAI as collateral
Aggresive Option
- Remove "MakerDAO fren" Boosters. for the usage of sDAI as collateral
- Include Morpho Blue & Spark users in the "User of Non-Aligned Protocol" diluter.
Next Steps
- If this proposal reaches a consensus on Snapshot, update the Merit reward system accordingly
Disclaimer
This proposal is made independently by the ACI.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
Conservative Option
535.71K AAVE99.1%
Aggressive Option
4.58K AAVE0.8%
Abstain
22.87 AAVE0%
Timeline
Apr 09, 2024Proposal created
Apr 10, 2024Proposal vote started
Apr 13, 2024Proposal vote ended
Feb 03, 2026Proposal updated