x23.ai

alpha

Proposal: Adapt contracts slightly to improve DeFi composability

Reading time saved: 2 minutes

1 replies, 2169 views, 9 likes

governance.aave.com

TL;DR:

The Enzyme core development team has proposed a minor code addition to AAVE to support stkAAVE Liquidity Mining, addressing a security issue in Aave's incentive contracts and increasing composability opportunities. The proposal, backed by high-profile managers, includes a function that uses msg.sender instead of 'to', allowing more portfolio managers to allocate to Aave via Enzyme and economically benefiting the Aave community.

The Enzyme core development team has proposed a minor code addition to AAVE to natively support stkAAVE Liquidity Mining on Enzyme. This proposal is aimed at addressing a security issue in Aave's incentive contracts, which currently only contain claiming functions that specify the recipient address. This is problematic for Enzyme vaults, which lack fully-trusted originators of claiming transactions. The proposed solution is to add a claiming function to the incentive contract that uses msg.sender instead of 'to', eliminating the need for a trusted transaction originator. This addition would not necessitate any changes to storage layout and would increase composability opportunities with Enzyme and similarly architected protocols1.

Enzyme, a decentralized asset management infrastructure built on Ethereum, allows asset managers to build on-chain investment Vaults. These Vaults can interact with AAVE by lending, and efforts are being made to incorporate borrowing functionality. The proposal is designed to provide Enzyme users with liquidity mining options1. Since its v2 release in January, Enzyme has experienced a 1,750% increase in TVL, reaching approximately $100m. High-profile managers such as USF Fund, The Yang Express, Techemy Capital, Rhino, and Apophis have gained significant traction and continue to attract new users1.

The proposal includes the addition of a function claimRewardsToSelf(address[] calldata assets, uint256 amount) to the liquidity mining incentives contract, which reuses the logic of claimRewards() but uses msg.sender instead of 'to'1. This proposal is backed by Son_of_Ishtar, who manages the Apophis portfolio, which has allocations to both $AAVE token and Aave v2 lending. He believes that the proposal would economically benefit the Aave community by allowing more portfolio managers to allocate to Aave via Enzyme if the rewards were harvestable2.

Posted 3 years ago

Last reply 3 years ago

Summary updated 2 months ago

Last updated 04/12 00:18