[AAVE] [ARFC] Treasury Management - Deploy AURA to vlAURA

Voting ended over 2 years agoSucceeded

title: [ARFC] Treasury Management - Deploy AURA to vlAURA author: @karpatkey_TokenLogic - @MatthewGraham, @Sisyphos & @efecarranza created: 2023-11-26

Summary

This publication proposes transferring the AURA holding from the Ethereum Treasury to the GHO Liquidity Committee (GLC) SAFE.

Motivation

The Aave DAO holds 845,090.43 vlAURA on the GLC SAFE and also 443,674 AURA in the Treasury. This publication proposes transferring the AURA from the Treasury to GLC SAFE and consolidating the vlAURA holding. The GLC is to lock the AURA for vlAURA.

The Aave DAO is expected to receive 413,849.57 units of vlAURA upon locking 443,674 AURA.

The Aave DAO will benefit by earning yield, 3.10% APR in auraBAl from holding vlAURA. In addition, the GLC has delegated the vlAURA to Paladin to earn additional yield. It is our understanding this is temporary strategy until Balancer liquidity pools feature as part of the overal GHO liquidity strategy.

At the time of writing, delegating vlAURA to Paladin is generating approximately 0.0135 USD per week per vlAURA. This is roughly $11k per week and an annualise yield >65%. The yield offered by Paladin from vlAURA delegation is nominated in USDC. This is on par with yield offered by Hidden Hand.

Screenshot 2023-11-24 at 14.04.20

The GLC is tasked with managing the vlAURA holding on behalf of the Aave DAO.

Specification

This proposal encompasses the following actions:

Transfer all AURA to GLC SAFE Address

GLC SAFE Address: 0x205e795336610f5131Be52F09218AF19f0f3eC60

Disclaimer

TokenLogic and karpatkey receive no compensation for the creation of this proposal. TokenLogic and karpatkey are delegates within the Aave ecosystem and are currently applying to become a Service Provider to the Aave DAO.