As stated in the Aavenomics paper, the AAVE asset is designed to become the center of gravity for Aave governance and the protocol.
The DeFi decentralized ethos has been mostly achieved with protocols on the financial side, creating an ecosystem of financial applications with users in control of their own assets. However, we believe that is only the halfway point of the decentralization objective. Users should also be be in control of the protocol. The AAVE asset is designed for this purpose. This AIP is the first binding step towards the community ownership of the Aave Protocol.
This AIP, if accepted by the community, will slowly deprecate the LEND asset in favour of the AAVE asset. As stated in the Aavenomics, this token upgrade will also create the Ecosystem Reserve (ER), the Safety Module (SM), and start the Safety Incentive (SI) rewards distribution. The Safety Module is designed as an additional line of defense for Aave liquidity providers and as a way for AAVE holders to “stake” their assets in exchange for a range of rewards.
This AIP’s purpose is also to dedicate a part of the ER to a kickstart incentives for the Safety Module’s first quarterly staker distribution.
AIP content in short
- Migration of LEND -> AAVE asset with the migration contract
- Activation of the quarterly plan of Safety Incentives (SI) allocation
- Start of the Safety Module with initial SI rewards of 400 AAVE/day
Safety Incentives Schedule
The bootstrapping phase of the Safety Module will be a step-by-step process in 2 main phases:
- Initial bootstrapping with launch of the Safety Module, the ability to stake and earn AAVE rewards, but no activation of the protocol protection (i.e slashing) and thus risk-free for stakers.
- Activation of the Safety Module, a new line of defense for the Aave Protocol users.
The initial bootstrapping phase rationale is designed to have lower rewards and a risk-free environment to allow the majority of LEND holders to migrate at their own pace. This encourages a careful approach while interacting with critical migration and staking smart-contracts.
After activation of the Safety Module, the Aave governance can adjust the Safety Incentive (SI) schedule and emissions rate.
The Safety Incentive’s allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the ER is empty.
Mainnet addresses and relevant notes
If this AIP is validated by a community vote, the following addresses will be involved in the migration process :
- 0x8a2efd9a790199f4c94c6effe210fce0b4724f52 AaveProtoGovernance : the governance contract
- 0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9 AAVE token contract : the ERC20 AAVE token contract
- 0x4da27a545c0c5b758a6ba100e3a049001de870f5 StakedAave : The Staking contract for AAVE
- 0x317625234562b1526ea2fac4030ea499c5291de4 LendToAaveMigrator : The migration contract
- 0x95a4949f09415b12da789e144b2522956620d005 AaveGenesisPayloadProposal : Contract in charge of enforcement of the AIP outcome
- 0xa133459b2502b0137e85a446fa8d4e300877a007 AaveGenesisExecutor : Contract enforcing a 24h delay on enforcement of AIP outcome to allow the community to be prepared to migrate
- 0x25f2226b597e8f9514b3f68f00f494cf4f286491 AaveIncentivesVault : Ecosystem Reserve
The migration process for every LEND holder will leverage the method
migrateFromLend() with a simple
uint256 input of the amount. Non-technical users will have a migration portal available on the Aave application
The contracts are deployed to the Ethereum mainnet but are not activated until the outcome of the current AIP vote. Please refrain from trying to use them before activation, as it will result in a failed transaction.
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