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The Aave community has voted in favor of incorporating sDAI as a collateral-only asset into the Aave V3 Ethereum pool, despite concerns about GHO liquidity and potential inflation of GHO's supply. The implementation will consider community suggestions, including the possibility of listing sDAI as both a collateral and borrowable asset post-onboarding, and will monitor the impact on the peg of GHO.
The online forum discussion revolved around the proposal to incorporate sDAI as a collateral-only asset into the Aave V3 Ethereum pool. The community expressed general support for the proposal, emphasizing the potential benefits of the recent increase in the DSR (Dai Savings Rate) to 8%. However, concerns were raised about GHO liquidity and the depeg of $GHO. The risks of listing sDAI as collateral and its potential impact on the peg of GHO were also discussed, with some users suggesting listing sDAI in isolation mode or with strict supply caps to minimize the risk of inflation of GHO's supply without corresponding demand.
Monet-supply and Gauntlet's suggestions for adjustments to the proposed parameter changes were discussed further. Monet-supply suggested that the increase in DAI RF on V3 from 10% to 20% could potentially increase Aave's revenue from DAI on v3, but it might also reduce the yield earned on aDAI and lead to a decline in borrowable DAI liquidity on Aave. They proposed that this issue could be mitigated if aDAI had a mechanism to sweep idle funds to the DSR.
Gauntlet echoed monet-supply's concerns and recommended separating proposals for onboarding sDAI and changing interest rate parameters for DAI and WETH. They also noted that raising Uopt from 80% to 90% adds risk due to less liquidatable DAI available.
However, MarcZeller disagreed with Gauntlet's recommendations, arguing that they would lead to a decrease in overall protocol revenue and available liquidity. He proposed to adapt the AIP payload to achieve a 3.8% APR cost slope1 objective by changing the base rate to 0 from 1% and keeping the slope1 parameter unchanged. He also agreed with monet-supply's suggestion to list sDAI as both a collateral and borrowable asset, suggesting to explore this after collecting market data post onboarding.
The proposal was escalated to AIP stage, with voting scheduled to begin the following day. The AIP vote concluded with a majority in favor of the proposal. The sDAI will be integrated as a collateral-only asset into the Aave V3 Ethereum pool. The community's concerns and suggestions will be taken into account in the implementation process. The team will monitor the impact on the peg of GHO and the potential inflation of GHO's supply. They will also consider the possibility of listing sDAI as both a collateral and borrowable asset after collecting market data post-onboarding.
In conclusion, the community has voted in favor of onboarding sDAI as collateral. The team will monitor the impact on the peg of GHO and consider the suggestions made by monet-supply and Gauntlet during the implementation process. User MarcZeller reported that a proposal was executed today.
Posted 4 months ago
Last reply 3 months ago
Summary updated 3 months ago
Last updated 09/12 13:52