[AAVE] Clinic steward activation

Voting ended about 1 year agoSucceeded

Simple Summary

Enabling a new Aave ClinicSteward smart contract, with capabilities to liquidate and repay non-healthy positions. The contract will utilize Aave Collector funds for the repayment.

Motivation

Since the initial Aave v3 activation three years ago, due to the nature of liquidations, the system has accrued a minimal bad debt of approximately $400’000.

This amount is pretty irrelevant in comparison with the ~$12 billion outstanding borrowings, but given the imminent activation of the Umbrella system (to automatically cover bad debt), and the recent upgrade of Aave to v3.3 (formally accounting for deficit/bad-debt post-liquidation), we believe it is appropriate to raise a proposal to clean the “legacy” bad debt, and this way start with clean accounting.

The Aave ClinicSteward is a smart contract that simply facilitates for a permissioned entity to execute the clean-up on behalf of the DAO, by authorizing a constraint budget from the Aave Collector for exclusive usage on liquidations/repayments of unhealthy positions (liquidatable).

Specification

The Stewards were deployed with the following configuration:

the governance executor lvl1 was granted the DEFAULT_ADMIN role on each network
a multisig with 2/3 multisig with ACI/TokenLogic/Karpatkey as signers was granted the CLEANUP_ROLE admin

The proposal:

grants the ClinicSteward the FUNDS_ADMIN role in the Aave DAO.
grants an EOA/Bot controlled by ACI the CLEANUP_ROLE to cleanup debt on behalf of the Aave DAO.

The stewards themselves implement a $ cap, which is pre-configured to the following amounts:

Ethereum core $30’000
Ethereum prime $5’000
Polygon $30’000
Avalanche $350’000
Arbitrum $60’000
Optimism $5’000
Base $15’000
Metis $1’000
Gnosis Chain $1’000
BNB Chain $2’000
Scroll $1’000
ZKSync $1’000
Linea $1’000

References

Copyright

https://app.aave.com/governance/v3/proposal/?proposalId=270

Off-Chain Vote

YAE

138 HVAXVC97.9%

NAY

3 HVAXVC2.1%

Quorum:14100%

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Discussion

[AAVE] Clinic steward activation

Timeline

Mar 14, 2025Proposal created

Mar 15, 2025Proposal vote started

Mar 17, 2025Proposal vote ended

Mar 26, 2026Proposal updated

Motivation

Since the initial Aave v3 activation three years ago, due to the nature of liquidations, the system has accrued a minimal bad debt of approximately $400’000.

Specification

The Stewards were deployed with the following configuration:

the governance executor lvl1 was granted the DEFAULT_ADMIN role on each network

a multisig with 2/3 multisig with ACI/TokenLogic/Karpatkey as signers was granted the CLEANUP_ROLE admin

The proposal:

grants the ClinicSteward the FUNDS_ADMIN role in the Aave DAO.

grants an EOA/Bot controlled by ACI the CLEANUP_ROLE to cleanup debt on behalf of the Aave DAO.

The stewards themselves implement a $ cap, which is pre-configured to the following amounts:

Ethereum core $30’000

Ethereum prime $5’000

Polygon $30’000

Avalanche $350’000

Arbitrum $60’000

Optimism $5’000

Base $15’000

Metis $1’000

Gnosis Chain $1’000

BNB Chain $2’000

Scroll $1’000

ZKSync $1’000

Linea $1’000