[ARFC] Aave V3 Caps update Framework

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The Aave community has adopted the Aave Risk Framework Change (ARFC) and proposed the creation of Risk Stewards to streamline governance and increase efficiency. The ARFC allows a direct-to-AIP vote for cap changes or FreezeReserve() implementation under certain conditions, while Risk Stewards, controlled by a 2-of-2 multi-sig, limit the power of roles in Aave v3.

The discussion revolved around the Aave Risk Framework Change (ARFC) proposed by MarcZeller for Aave V3 Caps update Framework. The ARFC aims to streamline the governance process by allowing a direct to AIP vote for cap changes or FreezeReserve() implementation under certain conditions. This proposal is applicable to all V3 liquidity pools and Aave pools in terms of freezing reserves. The snapshot vote has now made the Caps update framework a part of Aave governance guidelines, and the "direct-to-AIP" process can be activated if the proposal meets the conditions defined in the framework1,2.

Bgdlabs proposed the creation of Risk Stewards, a set of smart contracts to limit the power of roles in Aave v3 that can call functions on the PoolConfigurator of the protocol. The Aave governance would retain full control of permissions management, with the ability to remove all permissions from a Risk Steward at any point. The control of the RiskSteward smart contract would be on a 2-of-2 multi-sig, composed by Gauntlet and Chaos Labs. This proposal was supported by MarcZeller, Dtalwar from Gauntlet, Chaos Labs, and Fig from Flipside4,5,6,7,8.

MarcZeller further clarified that the risk stewards proposal is a pilot program, and in case of disagreement between the multisig signers, the ARFC will fall back to the “Direct-to-AIP” framework allowing the governance to express their opinion on the topic via a vote. They also suggested the potential addition of "governance coordinators", but advised to let the current system mature before adding more complexity9.

In conclusion, the discussion led to the adoption of the Aave Risk Framework Change (ARFC) and the proposal for the creation of Risk Stewards. These changes aim to streamline the governance process, increase efficiency, and adapt to changing market conditions. The Aave community has shown support for these proposals, indicating a positive step towards improving the governance process.

Posted 10 months ago

Last reply 8 months ago

Summary updated 2 months ago

Last updated 08/12 04:39