What is this about?

The Aave community is engaged in a discussion regarding a proposal to update the Aave DAO's stable coin holdings to ensure sufficient capitalization for the next 6 months. This is in response to anticipated new service provider proposals. The proposal includes a detailed budget for various service providers and highlights the need for additional GHO as the DAO transitions from using AAVE for payments. It also involves plans for asset transfers and migrations to make sure funds are available in the correct forms and locations. An amendment to AIP #2 has been proposed by TokenLogic to prepare for Gauntlet's funding, which involves depositing and swapping various stable coins into Aave v3 and v2 Ethereum, and GHO¹².

How is the community reacting?

• TokenLogic and R3genFinance are leading the proposal, with TokenLogic actively providing detailed information and clarifications¹.
• EzR3aL commended the transparency and management of the treasury².
• 0xkeyrock.eth and Lbsblockchain expressed their support for the proposal, valuing its clarity^3,6.
• Jengajojo recommended including a 10% buffer in the budget for unforeseen expenses⁴.
• Kene_StableLab voiced concerns about whether the funds allocated for certain verticals are sufficient⁷.
• PennBlockchain supported the idea of paying service providers in GHO but was wary of the effects of asset swaps and fund transfers⁹.
• The community's response has been largely positive, with appreciation for the proposal's clarity and the establishment of a 6-month financial runway. There is also enthusiasm for a dashboard to monitor expenses and runways.

Why this is positive?

• Ensures the DAO is well-capitalized for the upcoming 6 months.
• Promotes clarity on the DAO's financial obligations and establishes a 6-month financial runway.
• Encourages transparency and improved treasury management.
• Facilitates the transition to GHO for payments, which is considered to have price stability.

Why this is negative?

• Concerns about whether the funds allocated are sufficient for certain service provider verticals.
• Possible impact on Aave's operations on Polygon due to the transfer of funds from Polygon to Ethereum.
• Risks associated with converting assets into GHO and the potential liquidity implications.

Next actions

• A Snapshot vote on the proposal has been initiated, with the start and end dates provided⁵.
• A preliminary frontend for tracking Aave's financials has been developed, which will aid in understanding the DAO's runway based on current treasury funds¹⁰.
• A detailed DAO budget publication is expected to be shared in Q4 2023¹.
• A separate proposal will be presented to discuss funding for the GSM and other recent funding requests¹².