Technical Review: Aave Safety Module v1.5

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AaveCompanies' technical assessment of BGD Labs' proposed changes to the stkAAVE and stkABPT contracts found no high-risk security issues but highlighted some design and code style points. Key findings include a limitation preventing 100% slashing of staked AAVE, continued AAVE rewards for stkAAVE holders post-slashing, changes to event emissions impacting integrations, and the addition of GHO logic offering borrow rate discounts to stkAAVE holders.

The technical assessment conducted by AaveCompanies on BGD Labs' proposed changes to the stkAAVE and stkABPT contracts has yielded some noteworthy findings. While no high-risk security concerns were identified, several points related to code style, design decisions, and newly implemented mechanics were highlighted.

One of the key points was the technical limitation that prevents the Aave DAO from slashing 100% of the AAVE staked at the stkAAVE contract. This could potentially pose a problem in the event of low AAVE liquidity staked and a shortfall event necessitating a large slash. Another point of interest is the fact that stkAAVE holders continue to earn AAVE rewards with no risk during the post-slashing state. This is due to a period following a slashing event where certain features are disabled, allowing users to withdraw their unslashed AAVE tokens.

The new implementation of stkAAVE brings changes to event emissions that could impact integrations. These events, while bearing the same names, have different signatures, and applications dependent on these events are advised to adjust their logic based on the block number of the upgrade execution. A valuable addition to the new implementation is the inclusion of GHO logic, which offers discounts on the borrow rate of GHO to stkAAVE holders.

In conclusion, AaveCompanies did not identify any key technical issues that would impact the upgrade. They expressed appreciation for BGD Labs' engagement and responses to their questions. This suggests a positive outlook for the proposed changes, with the potential for enhanced benefits for stkAAVE holders.

Posted 9 months ago

Last reply 9 months ago

Summary updated 2 months ago

Last updated 09/12 13:52