[CORE] Approving AAVE as an Option for UP v2 Strategies
Background
On June 5th, 2022, UP v2 was overwhelmingly approved by the UNFI DAO.
Among the many features of UP v2 is utilizing the funds in the rising reserve to sustainably earn all UP holders passive returns by routing rewards into the backed value of the token.
As outlined in the UP v2 Litepaper, “These returns may be via native token staking, when available. On chains where staking options are limited or better options are available, verified third-party sites may be used to earn a return.”
It should be noted that any decision regarding delegating reserves to validator nodes must also take into account unstake periods. For example, delegators on Harmony must wait seven epochs to complete a full unstake and be able to remove funds. Epochs are currently ~18 hours, so that is an unstake period that is more than 5 days.
Aave is an open source, non-custodial protocol for earning interest on deposits and borrowing assets, available on multiple blockchains. AAVE offers instant withdrawal of deposits as well as smart contract interoperability, making AAVE a potential pathway for generating returns from UP reserves.
Referendum
The purpose of this referendum is to approve AAVE as an option to earn yield with a portion of the reserve funds backing UP token on supported blockchains. Various strategies may be employed to maximize returns for increasing the backed value of UP, as determined by the Unifi Guardians.
Forum for Discussion
Off-Chain Vote
Approve AAVE
58.43K UNFI100%
Reject AAVE
26.33 UNFI0%
Timeline
Jun 15, 2022Proposal created
Jun 15, 2022Proposal vote started
Jun 21, 2022Proposal vote ended
Oct 26, 2023Proposal updated