Simple Summary

Upgrade the Aave v3 Protocol across all networks from v3.3 to v3.4.

Motivation

The motivation behind this proposal is to upgrade the Aave instances to version 3.4, which includes several improvements most notably:

• The “standardisation” of the custom a/v GHO on Ethereum Core, into the usual a/v Token model for any other asset, including all migration steps required on the protocol layer, not to affect users.
• Multi-call support.
• Introduction of the configurable Position Manager for users, to optionally allow switching emode or collateral enable/disable on behalf of the user.
• Removal of the “unbacked” logic from the protocol.
• Changes of different variables to immutables, given their constant nature.
• Migration to Errors, instead of error codes.
• Flash loan fee simplification.

And extensive list of features and Changelog can be found HERE

Specification

The upgrade payload updates the implementations of the PoolConfigurator, Pool,PoolDataProvider, AToken & VariableDebtToken on all networks.

On Aave V3 Ethereum, the proposal performs some additional actions, to account for aligning vGHO from being a custom implementation to the standard implementation.

It is important to note that stakers of stkAAVE will no longer receive a discount on vGHO after the upgrade. Due to technical limitations, the pending discount will be lost upon upgrade time. The stkAAVE discount only manifests whenever a user interacts with the vGHO (by either repaying or borrowing). To reduce the impact of this loss, Dolce vita will iterate the users and call vGHO.rebalanceUserDiscountPercent(user) for every user that receives a discount within < 24h before proposal execution. This will reduce the loss to less then 1 day of discount accrual.

By upgrading the implementation of vGHO & aGHO the existing aGHO facilitator will be removed and the new aGHO will follow the same pattern as the current prime GHO facilitator, namely the whole GHO capacity will be pre-minted to aGHO instead of minting on demand. Therefore it is expected that on the upgrade we will see:

• ~177M GHO being minted to the new facilitator
• ~177M GHO being transferred to aGHO
• ~177M GHO being burned from aGHO
• ~23M GHO being minted to the new facilitator
• ~23M GHO being deposited into aGHO

The exact numbers, will depend on the current state of the system and the amount of vGHO that is currently in circulation at the time of execution.

For a more detailed breakdown of the steps performed during the upgrades please check here

Security procedures

• The upgrade was extensively unit tested and fuzzed.
• Certora adapted its formal properties to ensure the upgrade's correctness.

In addition 4 audits by Independent Auditors were conducted.

• Stermi
• Certora
• Enigma
• Blackthorn

References

• Implementation: AaveV3EthereumCore, AllOtherInstances
• Tests: AaveV3EthereumCore, AllOtherInstances
• Upgrade diff: v3.3 - v3.4
• Onchain Diffs: Per network diffs
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.