Enable Collateral Withdrawal from Aavegotchis Without Sacrifice

Author: coderdan (1484)
Quorum requirement: 20% (9M)
Vote duration: 10 days
Discussion: Discord Link

Summary

This proposal would allow Aavegotchi owners to withdraw the full amount of staked aToken collateral from their Aavegotchis on Polygon without sacrificing them. The intention is to facilitate a smooth migration to Geist, while providing flexibility to return to Polygon if desired.

Background

With the upcoming migration of Aavegotchis to Geist, Aavegotchi owners will have the option to bridge their Aavegotchis to Geist. During the bridging process, the staked aToken collateral would be locked in the bridge. Since we are not planning to bridge the aToken collaterals to Geist, the Pixelcraft team believes it would be in Gotchi owners’ best interest to allow the collateral to be unstaked on Polygon.

Motivation

Collateral Management: Since we are not bridging aTokens to Geist, users need a way to withdraw these assets without sacrificing their Aavegotchis. Currently, the only way to release the staked collateral (Spirit Force) is by sacrificing the Aavegotchi.

Proposal Details

If this proposal passes, Pixelcraft Studios will implement the following features and services for the DAO:

• Collateral Withdrawal Without Sacrifice: Update the Aavegotchi core contracts to allow users to withdraw collaterals from their Aavegotchis without sacrificing them.
• Batch Withdrawal UI: Develop a user interface similar to the "Batch Withdraw GHST" button to enable batch-withdrawing collaterals from multiple Aavegotchis.
• maToken OTC Support: Pixelcraft will offer OTC services for maTokens for those who prefer not to bridge tokens back to Ethereum for withdrawal.

Considerations

• Floor Price: Removing the collaterals could lower the floor price of Aavegotchis.
• DeFi-Backed Pet: Removing the collaterals means that Aavegotchis will no longer be “DeFi-backed crypto pets” that gain interest on tokens inside of them. As a core part of the Aavegotchi brand, this positioning is critical to us, and Pixelcraft is already working on a new gamified staking program using GHST that will allow us to carry on and even extend this important mechanism on Geist.

Voting Options

• Yes, release the collaterals.
  Enable collateral withdrawal without sacrificing Aavegotchis.
• No, keep the collaterals in.
  Maintain the current system where withdrawing collaterals requires sacrificing the Aavegotchi.

---

Thank you for your vote on this proposal! If this SigProp passes, we will begin implementing the functionality immediately, to be ready if the CoreProp also passes.