ARC - Strategy for Aave treasury :

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governance.aave.com

TL;DR:

Dydymoon proposed a strategy to use the Aave treasury, valued at over $1.5M, to generate interest via Curve, potentially increasing the treasury by 56% annually. The strategy includes using Aave's CRV for rewards, voting, and fees, locking 1 CRV for 4 years in the Curve DAO, diversifying into several pools, and receiving an EPS airdrop from Ellipsis on BSC.

The discussion primarily revolves around a proposal put forth by Dydymoon to leverage the Aave treasury, currently valued at over $1.5M, to generate interest. The proposed strategy involves using Curve, a platform that strikes a balance between yield and security, to foster a mutually beneficial relationship between Aave and Curve.

The strategy entails using Aave governance's CRV to enhance rewards on pools, vote on gauge weights and proposals, and collect Curve trading fees. To maximize the boost, the proposal suggests locking 1 CRV for 4 years in the Curve DAO to obtain as many veCRV as possible. With the current assets, the treasury could purchase 67763 CRV. The proposal also recommends diversifying into several pools to increase the max $/veCRV.

If implemented, this strategy could potentially increase the treasury by 56% in a year, yielding approximately $688k from Curve pool earnings. Moreover, owning veCRV would make the address eligible to receive an EPS airdrop on BSC from Ellipsis, a Curve fork, every week for the next 50 weeks, potentially adding around $490k a year. A poll has been initiated to determine whether to proceed with this strategy1.

Posted 3 years ago

Last reply 3 years ago

Summary updated 2 months ago

Last updated 08/12 04:40