## TL; DR;

AlphaGrowth proposes the renewal of the Compound Growth program for a tenure of 12 months. After a successful 4 month trial that saw compound launch on Optimism, phased rollout of USDT markets, a 1.8M ARB grant won by the Compound growth program (valued at 33,515 at the time of writing), a 310K OP grant valued at (15,459 COMP) when received, and additional wins outlined below. 

Going forward the Growth program will assume greater responsibility within the community in expanding the Chains, markets, tokens and any third party integrations for the protocol. We aim to increase TVL by $500 Million and increase revenue for the Compound DAO by $10M in the coming year. For this the Growth program requires 75,246 COMP for 12 months, which includes

* 40,200 COMP in program expenses (including developer charges, chain-market launch ops, grant consultation,marketing planning and more)
* 18,504 COMP in Marketing fund (to be returned if unutilized)
* 18,504 COMP in Integrations fund (to be returned if unutilized)



![]()**Wins:**

The trial phase of the growth program, which spanned from December 2023 to April 2024, was successful in achieving a number of key milestones that will define the growth of the protocol in the coming year. For reference we accomplished the following wins in the last 4 months

* Launched Compound on OP network 2 weeks ago (currently $5MM TVL)

![]()<img height="232" width="557" src="https://static.tally.xyz/5153d13d-fa92-4c0d-aed2-2feb1ff77a2a_original.png" />

* Secured $3M grant from Arbitrum for Compound
* Kick started the process to launch USDT Markets on 4 existing chains
* Currently upgrading the rewards contract to be able to distribute rewards simultaneously in multiple tokens
* Marketing campaigns saw the following results:
 * USDC on Arbitrum saw active users increase from 1.6K wallets to 14K wallets and user counts are still rising.![](https://static.tally.xyz/cf5ab00a-932f-4803-892b-a8a8421adbd4_original.png)
 * [Source](https://risk.gauntlet.xyz/protocols/compound/markets/v3-arbitrum-usdc?fullscreen=market_health_timeseries_accounts)
 * OP USDC market achieved 12000 active users in the second week of marketing the deployment. [Source](https://risk.gauntlet.xyz/protocols/compound/markets/v3-optimism-usdc?fullscreen=market_health_timeseries_accounts)![](https://static.tally.xyz/255446f1-ff07-4079-8d16-55836518a4d6_original.png)



* The following new assets are in the process of being listed:
 * LRTs: ezETH, weETH, rsETH
 * LSTs: rETH, stETH, wstETH
 * Native: USDC(Base), USDC(ARB), USDC(OP), USDC(Polygon)
 * Proposed(Not Ready): gmBTC
* Started Integrations:
 * Sommelier Finance Vault → Automated position management 
 * Qi Dao Base Integration → PSM for Base [Link ](https://www.comp.xyz/t/integration-of-compound-tokens-on-base-qidao/5080)
 * BaseSwap [Link](https://questbook.app/dashboard/?grantId=0xeb047900b28a9f90f3c0e65768b23e7542a65163\&chainId=10\&role=community\&proposalId=65f359051080cbb344b2a812\&isRenderingProposalBody=true)
* \[PENDING] One $500K grant from an ETH L2
* \[PENDING] Two separate $5MM Bootstrap & $500K grants from two EVM L2s
* \[PENDING] Three $1M launch incentive grants from three ETH L2s




The trial phase of the growth program also presented opportunities for us to explore the strategies that work for Compound. We learned that some opportunities (like the following) take more time and effort.

* V2 ▶️V3 migrations:
* New Dapp integrations
* Wallet integrations
* Working with Institutional Custodians
* Centralized exchange integration

## Why Compound Growth?



The time to act is now, propelled by a combination of market, technology, and trending macro dynamics that uniquely position us to seize emerging opportunities. Currently, over eight blockchain networks have expressed interest, with three already committing verbally to provide $1 million each in incentives to support our launch. This surge in interest coincides with the need to deploy the ARB grant strategically, ensuring we capitalize on this moment of heightened engagement and potential growth.

On the technological front, we've broken new ground with the creation of a multi-token reward contract—a first of its kind, exclusively available today because of our innovation. This isn't just about having cutting-edge technology; it's about utilizing it effectively. Like a high-performance vehicle, it requires a skilled driver to navigate the path ahead, and we are uniquely equipped to steer this initiative towards success.

Macro trends further underscore the urgency. Recently, Compound experienced a significant dip, losing $400 million in Total Value Locked (TVL) as cryptocurrency prices, including ETH and BTC, have fallen. To counteract this and bolster our platform, it’s crucial to diversify by adding new assets and expanding our markets. This will not only help recoup the lost TVL but also enhance the flexibility and options available to our token holders, making our ecosystem more resilient and adaptable to changing market conditions.



## Priorities and Plan for Growth

* **Total Value Locked (TVL) Expansion:** Aim to increase TVL by $500 million across new and existing markets.
* **Treasury Growth:** Target generating $10 million in treasury growth for the DAO, ensuring the Growth program is cost-neutral.
* **Market Development:** Launch 8-15 new markets, including USDT markets on all applicable chains, with a focus on high TVL opportunities.
* **Chain Expansion:** Expand Compound to 4-6 additional blockchain networks, implementing quantitative criteria for chain selection.
* **Strategic Partnerships:** Establish high-value, industry-first partnerships and continue leveraging incentives from collaborations.
* **User Acquisition:** Significantly increase over 25,000 new users, leveraging successful campaigns and focusing on L2’s and new market launches solutions
* **Infrastructure Expansions:** Evaluate reputable partnerships for key infrastructure such as bridges and oracles and collaborate with new partners as new opportunities arrive.



### Growth methodology

**Asset and Market Expansion**: During our initial trial period, a significant focus was on enhancing ways to grow and sustain Compound. This next phase aims to bolster our financial foundation while expanding our market presence strategically. We plan to launch between 8 to 15 new markets, with a particular emphasis on USDT markets, setting a standard for new market criteria to ensure each has the potential for at least $20 million in TVL. This approach not only drives growth but also assures that the benefits to the DAO outweigh the costs of the Growth program.

**Chain Integration and User Growth:** We are set to push for expansion onto six more blockchain networks, making substantial inroads in Chain integration by setting precise, quantitative selection criteria. This method will help the community understand the advantages and challenges of each new deployment. Furthermore, our user acquisition strategy has already shown promising results, with significant increases in user numbers on platforms like Arbitrum. By continuing to focus on Layer 2 solutions and securing more partnerships with entities like Revolut and OKX DeFi, we aim to dramatically expand our user base and strengthen our market position.

Through these strategic initiatives, Compound is poised to not only expand its footprint but also to solidify its standing as a leader in the decentralized finance space, driving forward with confidence and innovative vigor.



## Contribution & Why Our Team is Essential

###

Compound operates within a dynamic and complex ecosystem, characterized by its decentralized nature and reliance on multiple contributors. Maintaining both high-quality standards and timely engagement in such an environment requires obsession. Our behind-the-scenes conversations play a critical role in reinforcing Compound's reputation as a consistent and reputable platform that is now ready to get creative in working with emerging market players.

Our team has spearheaded 15 key proposals and discussions during the trial phase of the Compound Growth Program, encompassing a range of topics from market expansions to contract upgrades. We our committed to driving Compound's governance forward.

Moreover, our proactive approach in generating new ideas and executing spontaneous projects has generated positive feedback and enthusiastic engagement from the community. These initiatives not only demonstrate our ability to anticipate and react to market needs in real time. Fostering the ongoing evolution of the Compound ecosystem.

Our business development team is unrivaled in the cryptocurrency space, comprising 14 dedicated professionals who span the entire spectrum of marketing, business development, and sales engineering. This allows us to identify new opportunities, close deals, and seamlessly integrate new partners, maint

... please visit link below to view full proposal



https://compound.finance/governance/proposals/246

ehCOMP-38

Event Horizon

[COMPOUND] Compound Growth Program 12-Month Term

## Simple Summary

This ARFC proposes the continuation of the collaboration with the Aave-chan Initiative (ACI) for an additional year, with a proposed budget of 1M GHO.

## Motivation

The ACI has demonstrated significant value to the Aave ecosystem across multiple fronts. The “initiative” launched ~18 months ago is now a team of 8 people strong, including various talents & providing multiple services, contributing to the DAO's success.
This proposal seeks to extend our collaboration for another year.

## Specification

Proposal duration: ~365 Days
Proposal Budget: 1M GHO

Note: this proposal is intended to be a continuation of ACI’s previous streams due to governance mandatory delays to avoid a “gap” in ACI’s engagement, the AIP payload will be adjusted to approximately reflect an engagement from May 5th, 2024 and then for a year after execution.

## References

- Implementation: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/9cc085fed28b1de905ec3c5fbd869a1701abd32d/src/20240506_AaveV3Ethereum_ACIAdAstra/AaveV3Ethereum_ACIAdAstra_20240506.sol)
- Tests: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/9cc085fed28b1de905ec3c5fbd869a1701abd32d/src/20240506_AaveV3Ethereum_ACIAdAstra/AaveV3Ethereum_ACIAdAstra_20240506.t.sol)
- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x477b3dd277c13cc1b0c1086a04b87d221edd5d09ffd588a246457e6dc3bf2b77)
- [Discussion](https://governance.aave.com/t/arfc-aci-phase-iii-ad-astra/17515)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).



https://app.aave.com/governance/v3/proposal/?proposalId=99

ehAAVE-158

[AAVE] ACI Ad Astra

## Simple Summary

Reduce stablecoin LTs and LTVs across all markets.

## Motivation

Following a successful implementation of [Phase I](https://governance.aave.com/t/generalized-lt-ltv-reduction-on-aave/16766) of our plan to reduce stablecoin LTs and LTVs, we would like to propose the next phase. Additionally, we have updated our recommended final state for all associated stablecoins, with LTVs and LTs harmonized across all chains at 75% and 78%, respectively.

Please note that given the [proposal](https://governance.aave.com/t/arfc-risk-parameters-for-dai-update/17211) to adjust DAI and sDAI risk parameters, it has been excluded from this proposal.

## Specification

### Ethereum

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 76%         | 75%             | 79%        | 78%            | $2,600           |
| USDT  | 76%         | 75%             | 79%        | 78%            | $0               |
| sDAI  | 63%         | 75%             | 77%        | 78%            |                  |

### Gnosis

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 76%         | 75%             | 79%        | 78%            | $0               |
| sDAI  | 63%         | 75%             | 77%        | 78%            |                  |

### Base

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 76%         | 75%             | 79%        | 78%            | $3.80            |
| USDbC | 76%         | 75%             | 79%        | 78%            | $0.40            |

### Scroll

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 76%         | 75%             | 79%        | 78%            | $103             |

### Polygon

| Asset  | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
|
-- |
|
- |
-- |
- |
| USDC   | 76%         | 75%             | 79%        | 78%            | $0               |
| USDT   | 76%         | 75%             | 79%        | 78%            | $833             |
| USDC.e | 76%         | 75%             | 79%        | 78%            | $4,700           |

### Arbitrum

| Asset  | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
|
-- |
|
- |
-- |
- |
| USDC   | 76%         | 75%             | 79%        | 78%            | $0               |
| USDT   | 76%         | 75%             | 79%        | 78%            | $5.30            |
| USDC.e | 76%         | 75%             | 79%        | 78%            | $1,000           |

### Optimism

| Asset  | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
|
-- |
|
- |
-- |
- |
| USDC   | 76%         | 75%             | 79%        | 78%            | $3,700           |
| USDT   | 76%         | 75%             | 79%        | 78%            | $63              |
| USDC.e | 78%         | 75%             | 84%        | 80%            | $5,800           |

### BNB

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 76%         | 75%             | 79%        | 78%            | $3,700           |
| USDT  | 76%         | 75%             | 79%        | 78%            | $0               |

### Avalanche

| Asset | Current LTV | Recommended LTV | Current LT | Recommended LT | New Liquidations |
|
-- |
-- |
|
- |
-- |
- |
| USDC  | 80%         | 75%             | 85%        | 81%            | $23,700          |

## References

- Implementation: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Ethereum_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Polygon_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Avalanche_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Optimism](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Optimism_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Arbitrum](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Arbitrum_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Base](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Base_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Gnosis](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Gnosis_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3Scroll](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Scroll_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol), [AaveV3BNB](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3BNB_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.sol)
- Tests: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Ethereum_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Polygon_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Avalanche_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Optimism](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Optimism_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Arbitrum](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Arbitrum_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Base](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Base_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Gnosis](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Gnosis_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3Scroll](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3Scroll_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol), [AaveV3BNB](https://github.com/bgd-labs/aave-proposals-v3/blob/781a82ff1d61529dc6d76da76cc47b524976f6c0/src/20240425_Multi_GeneralizedLTLTVReductionsOnAaveV3Step2/AaveV3BNB_GeneralizedLTLTVReductionsOnAaveV3Step2_20240425.t.sol)
- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x4067d91ef5864925136d10ec9419f032a70f7e6489740386e348488426656274)
- [Discussion](https://governance.aave.com/t/arfc-generalized-lt-ltv-reductions-on-aave-v3-step-2-04-23-2024/17455)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).



https://app.aave.com/governance/v3/proposal/?proposalId=100

ehAAVE-159

[AAVE] Generalized LT/LTV Reductions on Aave V3 Step 2

The goldCOMP DeFi vault (https://humpysgold.eth.limo/#/vaults/comp) created by the Golden Boys is an exciting new strategy designed to provide COMP holders yields on their COMP tokens. When a user places COMP into the goldCOMP vault, the depositor receives goldCOMP, a semi-liquid wrapped token representing their initial deposit. These goldCOMP tokens can be placed in a 99/1 Balancer pool to earn yields averaging 10% annually, creating a passive income stream for COMP holders who plan to hold COMP for a long period of time. The depositor’s goldCOMP can be burnt to receive the initial COMP during regular withdrawal windows with no risk of slashing or penalty. GoldCOMP is an exciting investment opportunity for any COMP holder, aimed to enrich the Compound Finance ecosystem.

The proposal seeks a 1 year investment of 92,000 COMP of Treasury funds into the goldCOMP DeFi vault, to generate interest on 5% of treasury’s non-interest bearing COMP holdings.

Should this proposal pass, Compound DAO transfers 92,000 COMP tokens to the Golden Boys multi-sig wallet.
The Golden Boys multi-sig wallet will deposit the 92,000 COMP into goldCOMP vault to receive goldCOMP
The Golden Boys multi-sig wallet stakes the full amount of received goldCOMP tokens into the 99/1 goldCOMP/wETH Balancer Pool
The Golden Boys multi-sig converts the yields generated by goldCOMP from Balancer Pool into COMP, then transfer COMP back to the COMPtroller on the first day of every quarter.
After 365 days, Golden Boys multi-sig wallet withdraws 92,000 COMP from goldCOMP Vault, receives COMP and transfer back to Compound DAO COMPtroller.

Proposal Operations:

Transfer 92,000 COMP to 0x941dcEA21101A385b979286CC6D6A9Bf435EB1C2



https://compound.finance/governance/proposals/247

ehCOMP-39

[COMPOUND] Treasury to Invest 5% of COMP holdings into goldCOMP Vault

## Simple Summary

This AIP is composed of two actions: (1) a continuation of proposal 73 on Governance V3 that increases the Reserve Factor (RF) for assets on Ethereum V2 by 5.00%, up to a maximum of 99.99%; and (2) to start periodically increasing the RF across Avalanche V2.

## Motivation

This AIP will reduce deposit yield for assets on Ethereum & Avalanche V2 by increasing the RF. With this upgrade being passed, users will be further encouraged to migrate from Ethereum V2 to V3.

Increasing the RF routes a larger portion of the interest paid by users to Aave DAO's Treasury. User's funds are not at risk of liquidation and the borrowing rate remains unchanged.

Of the assets with an RF set at 99.99%, there is no change. All other asset reserves will have the RF increased by up to 5.00%.

## Specification

For Ethereum V2, the following parameters are to be updated as follows:

| Asset | Previous Reserve Factor | New Reserve Factor |
| :
: | :
: | :
-: |
|  DAI  |         45.00%          |       50.00%       |
| FRAX  |         50.00%          |       55.00%       |
| GUSD  |         40.00%          |       45.00%       |
| LINK  |         50.00%          |       55.00%       |
| LUSD  |         45.00%          |       50.00%       |
| sUSD  |         50.00%          |       55.00%       |
| USDC  |         45.00%          |       50.00%       |
| USDP  |         40.00%          |       45.00%       |
| USDT  |         45.00%          |       50.00%       |
| WBTC  |         50.00%          |       55.00%       |
| WETH  |         45.00%          |       50.00%       |

For Avalanche V2, the following parameters are to be updated as follows:

| Asset | Previous Reserve Factor | New Reserve Factor |
| :
: | :
: | :
-: |
| DAIe  |         40.00%          |       45.00%       |
| USDCe |         40.00%          |       45.00%       |
| USDTe |         40.00%          |       45.00%       |
| WAVAX |         40.00%          |       45.00%       |
| WBTCe |         45.00%          |       50.00%       |
| WETHe |         40.00%          |       45.00%       |

## References

- Implementation: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/d90e14550053f219ecc816ecaa0fa9b3f5215872/src/20240506_Multi_ReserveFactorUpgrades/AaveV2Ethereum_ReserveFactorUpgrades_20240506.sol), [AaveV2Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/d90e14550053f219ecc816ecaa0fa9b3f5215872/src/20240506_Multi_ReserveFactorUpgrades/AaveV2Avalanche_ReserveFactorUpgrades_20240506.sol)
- Tests: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/d90e14550053f219ecc816ecaa0fa9b3f5215872/src/20240506_Multi_ReserveFactorUpgrades/AaveV2Ethereum_ReserveFactorUpgrades_20240506.t.sol), [AaveV2Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/d90e14550053f219ecc816ecaa0fa9b3f5215872/src/20240506_Multi_ReserveFactorUpgrades/AaveV2Avalanche_ReserveFactorUpgrades_20240506.t.sol)
- [Discussion for Ethereum Reserve Factor Updates](https://governance.aave.com/t/arfc-ethereum-v2-reserve-factor-adjustment/16764/8)
- [Snapshot for Ethereum Reserve Factor Updates](https://snapshot.org/#/aave.eth/proposal/0x26a03c08359c340f63b78b0c3e96d37aa0adeda65814643b0886d4719048ea7e)
- [Discussion for Avalanche Reserve Factor Updates](https://governance.aave.com/t/arfc-avalanche-v2-reserve-factor-adjustment/17040/4)
- [Snapshot for Avalanche Reserve Factor Updates](https://snapshot.org/#/aave.eth/proposal/0x770ff4e02634c77aaa09952345551168920f7878b32ab03fcef92763a5fb70ab)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).



https://app.aave.com/governance/v3/proposal/?proposalId=102

ehAAVE-160

[AAVE] Reserve Factor Upgrades

## Simple Summary

This proposal presents April's funding update, including the following key activities:

- Migrating holdings from v2 to v3 (Polygon and Ethereum)
- Extending the DAO's GHO runway to cover upcoming expenses
- Returning RealT's supplied WXDAI to RealT
- Migrating AGD's allowance to GHO
- Reimburse BGD Labs for the costs paid towards external security reviews
- Send LINK and MATIC to refill Aave Robot and Aave Delivery Infrastructure

The forum discussion for BGD labs' reimbursements can be found [here](https://governance.aave.com/t/arfc-bgd-security-budget-request-december-2023/15783) and the Snapshot can be found [here](https://snapshot.org/#/aave.eth/proposal/0xf95bc210e3e93c2112c694cb158db22c93504155b48c03d9358e4c41c33ee782).

## Motivation

With the upcoming extension of [Merit](https://governance.aave.com/t/arfc-merit-is-forever-reward-system-program-extension/17336) and the funding request from [Chaos Labs](https://governance.aave.com/t/arfc-chaos-labs-engagement-amendment/17324), this proposal will swap sufficient assets to GHO to ensure enough funds are available as required.

This proposal cancels the existing USDT Allowance to the Aave Grants DAO and replaces it with a GHO Allowance of equal size, 612.9k. This represents a continuation of transitioning to using GHO as the preferred means of covering DAO expenses.

Also within this proposal, there is the corrective action of returning [3504 RealT WXDAI](https://gnosisscan.io/tx/0xf70a507847da2ad4acbecc35cd84c2f5d2489b0b0eb0e16af49c9262ca95707e) sent by RealT to the Aave Gnosis Chain collector by accident. Details on the agreement with realT can be found [here](https://snapshot.org/#/aave.eth/proposal/0xff69be7580614ebc1a455591c1bd651d8f0af12070d277d7d8846beb3c7c964b).

This proposal will follow the Direct-To-AIP as outlined in this [proposal](https://governance.aave.com/t/arfc-funding-update/16675).

Certain permissionless actions on the aave governance requires interaction (transaction) by someone for the governance system to run. This is done by the Aave Robot, which spends LINK tokens for the gas amount spent during the automation of these permissionless actions.

During the past months BGD labs had spent in total of 1640 LINK for the Aave Robot, and 4000 MATIC for funding the Aave Delivery Infrastructure which is used to pay for the bridging fees in order for the governance system to work.

BGD has paid the following amounts for security reviews so reimbursement is in order:

- Compensation to Mixbytes for the review of Governance v3 Tokens: $30'000
- Compensation to Emanuele Ricci (@stermi) for the review done on Aave 3.1 Feature: $12'000
- Engagement with Spearbit for Aave v3 Ad-hoc Review: $109'200

## Specification

## BGD Reimbursements

- Transfer 42'000 aUSDC v2 Ethereum to `0xb812d0944f8F581DfAA3a93Dda0d22EcEf51A9CF`
- Transfer 109'200 aUSDT v2 Ethereum to `0xb812d0944f8F581DfAA3a93Dda0d22EcEf51A9CF`
- Transfer 1640 aLINK v2 Ethereum to `0xb812d0944f8F581DfAA3a93Dda0d22EcEf51A9CF`
- Transfer 4000 aMATIC v2 Polygon to `0xbCEB4f363f2666E2E8E430806F37e97C405c130b`

## aDI BOT Refill

- Transfer 20,000 MATIC to `0xF6B99959F0b5e79E1CC7062E12aF632CEb18eF0d`

### Migrating AGD's allowance to GHO

The following Allowance is to be cancelled and replaced with GHO:

- Cancel aUSDT Allowance
- Increase GHO Allowance by 613,000 units

The AGD mulisig `eth:0x89C51828427F70D77875C6747759fB17Ba10Ceb0` will be able to use the allowance function on `0x464C71f6c2F760DdA6093dCB91C24c39e5d6e18c` to claim the GHO.

### Merit Allowances

- Allowance of 3.0M GHO for the Merit program
- Allowance of 645 aEthWETH for the Merit program

### Returning RealT's supplied WXDAI to RealT

Transfer 3,504 armmv3WXDAI to `0x7DA9A33d15413F499299687cC9d81DE84684E28E` on Gnosis Chain.

### Consolidate GHO funding and Migrate funds from V2 to V3

#### Part A

Perform the following Swaps, Migrate Eth v2 to v3 and bridge from Polyon to Ethereum.

| Withdraw & Swap to GHO | Migrate Eth v2 to v3 |    Pol to Eth     | Migrate Pol v2 to v3 |
| :
--: | :
: | :
: | :
: |
|    aEthUSDC (1.4M)     |    awBTC (All-1)     |  aPolDAI (All-1)  |    amUSDT (All-1)    |
|      aDAI (All-1)      |    awETH (All-1)     |  amUSDC (All-1)   |                      |
|     aUSDC (All-1)      |    aLINK (All-1)     | aPolMATIC (All-1) |                      |
|   aUSDT (All-0.65M)    |     aSNX (All-1)     |   amDAI (All-1)   |                      |
|    aEthDAI (All-1)     |                      |  aPolUSDC(All-1)  |                      |

Deposit wETH and wBTC in the Treasury into Aave v3.

Assets migrated from Polygon to Ethereum are to be deposited into Aave v3 where practical, with the exception of DAI and USDC which will be swapped to GHO during Part B.

## References

- Implementation: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV2Ethereum_AprilFinanceUpdate_20240421.sol), [AaveV2Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV2Polygon_AprilFinanceUpdate_20240421.sol), [AaveV3Gnosis](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV3Gnosis_AprilFinanceUpdate_20240421.sol)
- Tests: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV2Ethereum_AprilFinanceUpdate_20240421.t.sol), [AaveV2Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV2Polygon_AprilFinanceUpdate_20240421.t.sol), [AaveV3Gnosis](https://github.com/bgd-labs/aave-proposals-v3/blob/24ea0fb8557d38c0acabfe52e0e5750883a1ab1c/src/20240421_Multi_AprilFinanceUpdate/AaveV3Gnosis_AprilFinanceUpdate_20240421.t.sol)
- [Discussion](https://governance.aave.com/t/arfc-april-finance-update/17390)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).



https://app.aave.com/governance/v3/proposal/?proposalId=103

ehAAVE-161

[AAVE] April Finance Update

## Simple Summary

This is a ARFC proposal for adding borrow/lend support for StakeWise’s new over-collateralized staked ETH token, osETH, on AAVE V3 Ethereum.

## Motivation

Liquid staking tokens (LSTs) have proven to be popular collateral assets on Aave, with Lido’s stETH the largest Reserve across all Aave deployments and rETH quickly reaching its supply caps. As productive assets, LSTs are high quality collateral to borrow against. Given their high correlation to ETH, LSTs are commonly used as collateral to borrow ETH and engage in yield leveraged staking, with several communities having built products that automate such strategies on top of Aave. The introduction of eMode only made such strategies more popular.

osETH in particular is overcollateralized by design, providing in-built slashing protection and consequently an increased level of protection for the Aave protocol.

As StakeWise V3 provides solo stakers to ability to mint osETH against their own nodes, on-boarding osETH will benefit Aave, StakeWise, and the Ethereum ecosystem as a whole, and be an important step in the pursuit to diversify Ethereum staking and encourage staking from home.

The onboarding of osETH will consequently create increased osETH demand and increased revenues for both Aave and StakeWise protocols, whilst also bolstering the liquidity and peg stability of osETH.

## Specification

The table below illustrates the configured risk parameters for **osETH**

| Parameter                          |                                                                                                                 Value |
|
- |
--: |
| Isolation Mode                     |                                                                                                                 False |
| Borrowable                         |                                                                                                               ENABLED |
| Collateral Enabled                 |                                                                                                                  true |
| Supply Cap (osETH)                 |                                                                                                                10,000 |
| Borrow Cap (osETH)                 |                                                                                                                 1,000 |
| Debt Ceiling                       |                                                                                                                 USD 0 |
| LTV                                |                                                                                                                72.5 % |
| LT                                 |                                                                                                                  75 % |
| Liquidation Bonus                  |                                                                                                                 7.5 % |
| Liquidation Protocol Fee           |                                                                                                                  10 % |
| Reserve Factor                     |                                                                                                                  15 % |
| Base Variable Borrow Rate          |                                                                                                                   0 % |
| Variable Slope 1                   |                                                                                                                   7 % |
| Variable Slope 2                   |                                                                                                                 300 % |
| Uoptimal                           |                                                                                                                  45 % |
| Stable Borrowing                   |                                                                                                              DISABLED |
| Stable Slope1                      |                                                                                                                   0 % |
| Stable Slope2                      |                                                                                                                   0 % |
| Base Stable Rate Offset            |                                                                                                                   0 % |
| Stable Rate Excess Offset          |                                                                                                                   0 % |
| Optimal Stable To Total Debt Ratio |                                                                                                                   0 % |
| Flashloanable                      |                                                                                                               ENABLED |
| Siloed Borrowing                   |                                                                                                              DISABLED |
| Borrowable in Isolation            |                                                                                                              DISABLED |
| Oracle                             | [0x0A2AF898cEc35197e6944D9E0F525C2626393442](https://etherscan.io/address/0x0A2AF898cEc35197e6944D9E0F525C2626393442) |

## References

- Implementation: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/87868950652279e22329757789e49f35ea1eb0cd/src/20240320_AaveV3Ethereum_OsETHOnboarding/AaveV3Ethereum_OsETHOnboarding_20240320.sol)
- Tests: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/87868950652279e22329757789e49f35ea1eb0cd/src/20240320_AaveV3Ethereum_OsETHOnboarding/AaveV3Ethereum_OsETHOnboarding_20240320.t.sol)
- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x3dc8b06441d0f1dcd6f4a53d06d62e9bb1ac87ced19020d9c735854bbf68b835)
- [Discussion](https://governance.aave.com/t/arfc-onboard-oseth-to-aave-v3-on-ethereum/16913)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).



https://app.aave.com/governance/v3/proposal/?proposalId=104