[ARFC] Acquire CRV with treasury USDT

Reading time saved: 40 minutes

65 replies, 6006 views, 209 likes



The Aave DAO community had a mixed response to MarcZeller's proposal to acquire CRV tokens using USDT from the treasury, aiming to support the DeFi ecosystem and participate in the Curve wars. Despite debates on risk exposure, sustainability of Curve wars, and potential dilution of existing participants, the proposal was successfully executed, with aCRV transferred to the Aave DAO treasury and USDT used to repay 2M USDT debt on Aave V2.

The discussion primarily focused on MarcZeller's proposal for an ARFC to strategically acquire CRV tokens using USDT from the Aave DAO treasury. The aim was to support the DeFi ecosystem and position Aave DAO in the Curve wars, benefiting GHO secondary liquidity1. However, the proposal was met with mixed reactions. Some members, such as Figue, Ska, Tristan, Oneski22, and Xela, supported the proposal, seeing it as a strategic move to boost liquidity and enter the Curve War4,5,10,11,12. On the other hand, X38x, Lmihaylov, and Marblemonkey opposed the proposal, citing increased risk exposure, potential black swan events, and the unsustainability of the "Curve wars"2,18,20.

The proposal also sparked a debate about the decision to lock CRV into veCRV instead of sdCRV, with Hubert questioning the decision and MrKris supporting it15,16. ApuMallku suggested buying CRV at a discount as a better alternative to having a huge bad debt19. Jojo questioned the proposal's goal and suggested exploring alternatives for creating a sustainable economic support model for GHO21. Lmihaylov proposed implementing a liquidity parameter for partial automation to enhance risk management22.

The discussion also touched on the potential dilution of existing participants in the Curve Wars due to an increase in veCRV supply30. Fernando from Balancer (Fcmartinelli)) questioned the benefits of moving away from Balancer32, while ApuMallku clarified that the proposal was about expanding liquidity venues, not shifting liquidity from Balancer to Curve33. Mmoossttaaffaa proposed shifting all revenue from GHO minting to incentivize GHO liquidity across DeFi, suggesting the use of Uniswap v3 for building deep liquidity with important pairs like ETH, USDC, and USDT37.

Despite the concerns and debates, MarcZeller announced the successful execution of the proposal, with aCRV transferred to the Aave DAO treasury and USDT used to repay 2M USDT debt on Aave V269. This marked the conclusion of the discussion, with the community looking forward to the potential benefits and impacts of the strategic acquisition of CRV tokens.

Posted 4 months ago

Last reply 4 months ago

Summary updated 2 months ago

Last updated 03/12 08:00