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The Aave community is discussing a proposal to extend the Safety Module coverage to Ethereum V3, providing the same protection to V3 users as V2 users currently have. The community also suggests gradually phasing out V2 support, with the final decision to be determined by a snapshot vote.
The discussion primarily revolved around the proposal by MarcZeller to extend the Aave Ethereum V3 support for the Safety Module, a mechanism that allows AAVE & aBPT token holders to stake their tokens in return for a share of the Safety Incentives1. The Safety Module, which requires stakers to lock their liquidity for at least 10 days, provides coverage for excess protocol debt up to 30% of the staked funds in the event of a shortfall. The proposal aims to offer the same level of coverage to Aave V3 Ethereum Contracts users as V2 users currently enjoy.
Several community members, including EzR3aL, G-Blockchain, and Ghostlyenergy, contributed to the discussion with their suggestions2,3,5. The idea of covering both v3 and v2 markets was put forward, with a gradual decrease in rewards for v2 coverage to encourage users to transition to v3. There was also a proposal to extend coverage to all active V3 markets based on certain criteria, while continuing to cover V2 for one year post the launch of V3. The idea of discontinuing support for V1 & AMM three months after the snapshot vote was also suggested and agreed upon.
In conclusion, the community seems to be in favor of extending the Safety Module coverage to Aave Ethereum V3 and gradually phasing out the support for V2. The final decision, however, will be determined by a snapshot vote.
Posted 10 months ago
Last reply 10 months ago
Summary updated 2 months ago
Last updated 05/12 01:14