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Proposal overview

Lower Reserve Factor for AMPL

Executed

Executed on 

Aug 08, 2021

Simple Summary

This is a sibling proposal to AIP-26 and proposes lowering the AMPL reserve factor from 20% to 10%.

Motivation

Following API-12, AMPL borrowing & depositing went live on the AAVE v2 market [date=2021-07-24 time=20:22:00 timezone="UTC"]. Since then, there has been a near 100% utilization rate of deposited assets.

The reserveFactor allows the FeeCollector smart contract to receive part of the interest paid by takers of liquidity. Each asset on Aave has its own reserveFactor.

AIP-26 raises the maximum borrowing rate for AMPL and would result in more fees coming into the system. This AIP proposes (in tandem) lowering the AMPL reserve factor from 20% to 10%. This shares more of the revenue with AMPL suppliers to further incentivize deposits.

Relevant Links

Implementation

call setReserveFactor(0xd46ba6d942050d489dbd938a2c909a5d5039a161, 1000)

On the lending pool configurator contract

https://etherscan.io/address/0x311bb771e4f8952e6da169b425e7e92d6ac45756

Copyright

Copyright and related rights waived via CC0.

Your voting info

Voting results

YAE

373,144

AAVE

100.00%

NAY

0

AAVE

0%

Top 10 addresses

Votes

State
Executed

Executed on 

Aug 08, 2021
Quorum
Reached
Current votes

Required

373.14K

320.00K

Differential
Reached
Current differential

Required

373.14K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

4 Aug 2021, 19:32 UTC +00:00

12960538

Started

Block

4 Aug 2021, 19:32 UTC +00:00

12960538

Ended

Block

7 Aug 2021, 19:32 UTC +00:00

12979738

Executed

8 Aug 2021, 20:03 UTC +00:00

Author

Ahmed Naguib Aly (@ahnaguib), Nithin Ottilingam (@nithinkrishna), Brandon Iles (@brandoniles)