Reserve Factor Updates Late August

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Created

7 Sep 2024, 11:54 AM

Open for voting

8 Sep 2024, 12:17 PM

Voting closed

11 Sep 2024, 12:17 PM

Passed

Finished

13 Sep 2024, 8:01 AM

Executed

Reserve Factor Updates Late August

Created

7 Sep 2024, 11:54 AM

Open for voting

8 Sep 2024, 12:17 PM

Voting closed

11 Sep 2024, 12:17 PM

Passed

Finished

13 Sep 2024, 8:01 AM

Executed

Author

karpatkey_TokenLogic

Creator

0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922

Copy

Simple Summary

This AIP shall implement the following parameter adjustments:

  • Increase Slope1 across Polygon v2 by 75bps;
  • Increase Reserve Factor (RF) on Ethereum v2 and Avalanche v2 by 5.00%; and,
  • Increase USDC.e and USDbC RF by 5.00% on Arbitrum, Optimism, Polygon, and Base.

Motivation

This AIP will reduce deposit yield for assets on Ethereum v2 and Avalanche v2 instances of Aave Protocol by increasing the RF by 5.00%. By increasing the RF a greater portion of the interest paid by borrowers is directed to the Aave DAO's treasury.

This results in a lower deposit rate for users and encourages migration from v2 instances of the Aave Protocol to v3. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.

The RF across all USDC.e and USDbC reserves will be increased by 5.00% to encourage migration from bridged USDC to native USDC on each respective network.

By increasing the Slope1 parameter by 75bps on Polygon v2, the cost of capital to users increases and further encourages migration to Polygon v3.

Specification

Slope1 Parameter 75bps Increases:

AssetMarketCurrent Slope1Proposed Slope1
DAIPolygon v212.75%13.50%
USDTPolygon v212.75%13.50%
wBTCPolygon v27.75%8.50%
wETHPolygon v27.75%8.50%
USDCPolygon v212.75%13.50%
wMATICPolygon v29.75%10.50%

Reserve Factor 5.00% Increases:

AssetMarketCurrent RFProposed RF
DAI.eAvalanche v265.00%70.00%
USDC.eAvalanche v265.00%70.00%
USDT.eAvalanche v265.00%70.00%
wAVAXAvalanche v265.00%70.00%
WBTC.eAvalanche v270.00%75.00%
WETH.eAvalanche v265.00%70.00%
DAIEthereum v270.00%75.00%
LINKEthereum v275.00%80.00%
USDCEthereum v270.00%75.00%
USDTEthereum v270.00%75.00%
wBTCEthereum v275.00%80.00%
wETHEthereum v270.00%75.00%
USDC.eArbitrum35.00%40.00%
USDC.eOptimism35.00%40.00%
USDC.ePolygon35.00%40.00%
USDbCBase35.00%40.00%
USDC.eGnosis10.00%15.00%

References

Copyright

Copyright and related rights waived via CC0.

by BGD Labs