Aave

Simple Summary

This proposal updates the governance parameters (voting/proposition requirements) of the Level 2 Executor smart contract on the Aave Governance v2.

Motivation

All context/motivation of this proposal is extensively explained on the Aave Governance forum thread

Specification

This proposal upgrades Level 2 requirements the following way:

• Quorum of Level 2 Executor changes from 20% to 6.5%
• Vote differential of Level 2 Executor changes from 15% to 6.5%
• Proposition power required for Level 2 proposal changes from 2% to 1.25%.
• A delay of 7200 blocks is added between proposal creation and vote start. 1 day considering 12 seconds/block.

These updates are applied in practice by whitelisting on the Aave Governance v2 a newly deployed Executor smart contract.

As the current Level 2 Executor holds permissions of the Aave ecosystem, this proposal also migrates them from the old Executor to the new one; permissions being:

• Ownership of the Aave Governance v2 smart contract.
• Proxy admin of the AAVE token smart contract.
• Proxy admin of stkAAVE (Safety Module).

This proposal also migrates the Proxy admin of ABPT and stkABPT to the Short Executor as they don’t have influence on the Aave Governance

This proposal will be created via a fully decentralized smart contract (so-called Autonomous Proposal)

Security

• An extensive suite of tests can be found HERE

• We have executed a diff between the current Level 2 Executor and the new Executor, to verify that the changes are exclusively the ones expected. The diff can be found HERE.

• In order to properly verify that all permissions are transferred to the new Executor, we did a verification procedure described HERE

• SigmaPrime has audited the changes, and implemented an independent test suite, complementary to BGD’s. The audit report can be found HERE.

• Certora has reviewed the changes, and implemented an independent test suite, complementary to BGD’s. The audit report can be found HERE

Implementation

Smart contracts can be found here. Especifically for what concerns this proposal:

• New Executor https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/Executor.sol
• Proposal payload https://github.com/bgd-labs/aave-gov-level-2-update/blob/main/src/contracts/ProposalPayloadNewLongExecutor.sol

Copyright

Copyright and related rights waived via CC0.