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executedEnded 3 years ago ยท  Onchain

Pause ETH Borrowing

By gauntletgov.eth

Simple Summary

A proposal to pause ETH borrowing in the period leading up to the Ethereum Merge.

In addition, this AIP also transfers a one-time payment of 60 AAVE from the Aave treasury to the MakerDAO pause proxy in connection to the proposal.

Abstract

Ahead of the Ethereum Merge, the Aave protocol faces the risk of high utilization in the ETH market. Temporarily pausing ETH borrowing will mitigate this risk of high utilization.

Motivation

Full details are provided in the original forum post.

The risk of high utilization in the ETH market is driven by users potentially benefiting from the forked PoW ETH (ETHW) by borrowing ETH before the merge. High utilization interferes with liquidation transactions, thus increasing the chances of insolvency for the protocol. In addition, a high ETH borrow rate can make stETH/ETH recursive positions unprofitable, increasing the chances that users unwind their positions and drive the stETH/ETH price deviation further, causing additional liquidations and insolvency.

Specification

  • Calling disableBorrowingOnReserve to disable ETH borrowing.
  • Sending 60 AAVE to the MakerDAO pause proxy located at 0xBE8E3e3618f7474F8cB1d074A26afFef007E98FB from the ecosystem reserve.

Copyright

Copyright and related rights waived via CC0.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.

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Connect Wallet to Add Note
0
Votes 400
VoterCast PowerVote & Rationale
aave.standard-crypto.eth
166,667

YAE

0xaFDA...353a6E
94,642

NAY

0xc4a9...062935
92,530

YAE

0x55B1...09f262
67,853

YAE

lucasvo.eth
66,829

YAE

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VOTE POWER
0
Connect Wallet
Proposal Status
  • Published Onchain gauntletgov.eth
  • Fri September 02 2022, 09:56 pmVoting Period Starts
  • Tue September 06 2022, 12:07 amEnd Voting Period
  • Tue September 06 2022, 12:08 amQueue Proposal
  • Wed September 07 2022, 12:18 amExecute Proposal
Current Results

1-YAE

528,290.5

77.87%

2-NAY

150,169.81

22.13%
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