Gauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v3
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Proposal
Proposal
title: Gauntlet Recommendations to Lower WETH Variable Base to 0 on Arbitrum, Optimism v3 author: Paul Lei, Watson Fu, Nick Del Zingaro, Walter Li, Jonathan Reem, Nick Cannon, Sarah Chen, Dana Tung discussions: https://governance.aave.com/t/gauntlet-interest-rate-recommendations-for-weth-and-wmatic-on-v2-and-v3/14588
Summary
A proposal to make a followup to Gauntlet's previous WETH IR recommendations.
The community voted to pass option 1 on Gauntlet's previous snapshot, which lowered slope 1 for WETH on all v3 to 3.3%. On the other hand, option 2 recommended to remove the base rate for WETH to match v3 Ethereum.
Option 1 was intended to be a superset of option 2 and also intended to lower the base rate to 0 for WETH. This language was not specified in the snapshot. As a result, we only included lowering WETH slope 1 in AIP-327.
To be extra clear with the community, we put out this new AIP specifically for lowering the base rate to 0 for WETH. Given current borrowing profiles on v3, we decide to move forward with Arbitrum and Optimism v3.
Again, this will help to
- drive additional revenue to Aave.
- adjust current risk profile for LST to depend less on onchain liquidity, which has been steadily declining over the past few months. This may be adding risk to the current borrow composition against LST collateral.
Specification
| Chain | Asset | Action | Current Value | New Value |
|---|---|---|---|---|
| Optimism | WETH | Lower Variable Base | 1% | 0% |
| Arbitrum | WETH | Lower Variable Base | 1% | 0% |
Implementation
The proposal implements changes on Optimism and Arbitrum v3 using the following payloads:
References
- Discussion: https://governance.aave.com/t/gauntlet-interest-rate-recommendations-for-weth-and-wmatic-on-v2-and-v3/14588/8
- Snapshot: https://snapshot.org/#/aave.eth/proposal/0x38a04c265542ec82202b9bb22ef4548290fbe7cde068f7c1c4fa9cd67c3c491b
Disclaimer
Gauntlet has not received any compensation from any third-party in exchange for recommending any of the actions contained in this proposal.
Copyright
Copyright and related rights waived via CC0.
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