[AAVE] May Funding Update

Simple Summary

This publication presents the May Funding Update, consisting of the following key activities:

• Bridge funds to Ethereum;
• Consolidate funds from the Collector;
• Merit, Ahab allowances
• Create 6M USD Allowance for AAVE buybacks; and,
• Acquire 4M GHO for Operations.

Motivation

This publication combines near term operational needs and migrating assets held on L2s and side chains in preparation for funding future incentive campaigns.

The below outlines the objectives of this publication:

• Consolidating funds to Ethereum; and,
• Support near term operational requirements;

Bridge Funds to Ethereum

Each month, the DAO will bridge its funds held on sidechains and Layer 2 networks back to Ethereum, where they will be allocated to support ongoing incentive and buyback programs. With the Umbrella upgrade pending, Horizon and AAVE buybacks already underway, consolidating assets on Ethereum ensures that sufficient capital is available and accessible when needed.

Acquire GHO

In the short term, we anticipate multiple initiatives will seek funding from the DAO. This proposal, once enacted, will secure a sufficient amount of GHO to support the DAO’s operations. This ensures the DAO remains consistently well-capitalized.

Upcoming anticipated expenses include:

• Renewal of Service Provider agreements;
• Merit and ALC distributions; and,
• Incentive campaign(s).

Acquire ETH

The Aave DAO continues its treasury rebalancing by converting a portion of its MATIC holdings into ETH. This action builds upon the funding update initiated in April, during which the first batch of Polygon-based assets was bridged back to Ethereum mainnet.

The ETH acquired through this reallocation will be directed toward the Frontier program, where it will support Ethereum decentralization efforts while simultaneously generating yield for the DAO.

Specification

This proposal shall be submitted as several AIPs that align with operational readiness timelines and ease of review given the volume of funds being moved.

Bridge Assets to Ethereum

Bridge the following assets to Ethereum.

| Polygon | Arbitrum | Optimism | | : : | : -: | : -: | | DAI | DAI | DAI | | USDT | USDC.e | USDT | | USDC.e | | USDC.e | | WPOL | | | WBTC | | | MATICX | | | ETH |

Transfer Assets

Transfer all AAVE to the Ecosystem Reserve.

Deposit Assets

Deposit 115 ETH held on the Treasury into the Core instance of Aave.

Ethereum - Swaps

Swap the following from the Collector as outlined in the table below:

| Ethereum | Amount | Swap | | : : | : -: | :--: | | USDT | 2.00M | GHO | | USDC | 2.00M | GHO | | DAI | All | USDS | | LUSD | All | WETH | | CVX | All | WETH | | FRAX | All | WETH |

Create Allowances

Acquire WETH

Create a MATIC and stMATIC allowance for the Aave Finance Committee to then swap each asset to ETH and transfer to the Treasury.

• Asset: MATIC 0x7D1AfA7B718fb893dB30A3aBc0Cfc608AaCfeBB0
• Amount: All Available Balance ~580,156
• Asset: stMATIC 0x9ee91F9f426fA633d227f7a9b000E28b9dfd8599
• Amount: All Available Balance ~28,547
• Spender: AFC 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
• Method: approve() MATIC and stMATIC on the Aave Collector contract to the AFC safe

AAVE Buybacks

Create a 3M aEthUSDT and 3M aEthUSDC allowance for the Aave Finance Committee to perform 6 weeks of AAVE buybacks.

• Asset: aEthUSDT 0x23878914EFE38d27C4D67Ab83ed1b93A74D4086a
• Amount: 3M
• Asset: aEthUSDC 0x98C23E9d8f34FEFb1B7BD6a91B7FF122F4e16F5c
• Amount: 3M
• Spender: AFC 0x22740deBa78d5a0c24C58C740e3715ec29de1bFa
• Method: approve() aEthUSDT and `aEthUSDC on the Aave Collector contract to the AFC safe

Merit + Ahab Programs

Create allowances to the Merit and Ahab, 3M aEthLidoGHO and 800 aEthWETH from Aave v3 Prime and Core respectively on Ethereum:

• Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
• Amount: 3M
• Asset: aEthWETH 0x4d5F47FA6A74757f35C14fD3a6Ef8E3C9BC514E8
• Amount: 800
• Spender: Merit 0xdeadD8aB03075b7FBA81864202a2f59EE25B312b
• Method: approve() aEthLidoGHO and aEthWETH on the Aave Collector contract to the Merit safe

Gnosis Liquidity Mining Rewards

• Asset: aGnoEURe 0xEdBC7449a9b594CA4E053D9737EC5Dc4CbCcBfb2
• Amount: 25k
• Spender: Merit 0xdef1FA4CEfe67365ba046a7C630D6B885298E210
• Method: approve() aEthLidoGHO and aEthWETH on the Aave Collector contract to the Merit safe

Gas Reimbursement Transfer 0.5847 ETH to ACI to reimburse expenses incurred.

This reimburses associated gas costs linked to AIP submissions and administering various incentive reward programs.

ACI Receiving Address: 0xdef1FA4CEfe67365ba046a7C630D6B885298E210

References

• Implementation: AaveV3Ethereum, AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum
• Tests: AaveV3Ethereum, AaveV3Polygon, AaveV3Optimism, AaveV3Arbitrum
• Snapshot: Direct-to-AIP
• Discussion

Copyright

Copyright and related rights waived via CC0.

https://app.aave.com/governance/v3/proposal/?proposalId=304