Aave DAO Stance on Ethereum POW Fork

Simple Summary

This ARC calls for the Aave DAO to commit to selecting the Ethereum Mainnet running under the Proof of Stake consensus over any Ethereum fork running an alternative consensus (such as Proof of Work).

Motivation

Ethereum is undergoing a long-awaited core change, switching its consensus mechanism from Proof of Work to Proof of Stake. More information about this change and its impact can be found through this succinct summary by BGD Labs as well as here & here.

The Aave Protocol code will be fully functional following the Ethereum consensus change as has been demonstrated through testing. This includes the deployment of Aave V3 on the Ropsten and Goerli testnets for public testing during their merges.

There is general consensus from builders involved in the protocol’s development that it is effectively impossible to sustain a viable Aave Market on any Ethereum fork running an alternative consensus (such as Proof of Work). To ensure continued existence of the protocol for the community, the Aave DAO should consider signaling strongly that the Aave Protocol should commit to the Ethereum Mainnet, running under Proof of Stake consensus.

The Aave protocol is one of the largest DeFi applications in the world as measured by TVL and is an essential piece of infrastructure powering hundreds of other dApps and experiences in the DeFi ecosystem. The DAO should send a clear signal to the DeFi ecosystem about where it stands with respect to the Ethereum merge.

The DAO’s formal position will be determined via this governance vote.

Specification

• Formally signal the Aave DAO Deployment on the Ethereum Mainnet running under the Proof of Stake consensus is “the canonical” governance of the Aave DAO & Markets.
• Authorize the Community Guardian to take the necessary actions to shut down Aave Deployments on any forks arising from the Ethereum Paris Hard Fork (the Merge).