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Proposal overview

Pause ETH Borrowing

Executed

Executed on 

Sep 07, 2022

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.

Your voting info

Voting results

YAE

528,290

AAVE

77.87%

NAY

150,169

AAVE

22.13%

Top 10 addresses

Votes

State
Executed

Executed on 

Sep 07, 2022
Quorum
Reached
Current votes

Required

528.29K

320.00K

Differential
Reached
Current differential

Required

378.12K

80,000.00

Total voting power

16,000,000

Proposal details

Created

Block

2 Sep 2022, 21:56 UTC +00:00

15461634

Started

Block

2 Sep 2022, 21:56 UTC +00:00

15461634

Ended

Block

6 Sep 2022, 00:36 UTC +00:00

15480834

Executed

7 Sep 2022, 00:08 UTC +00:00

Author

Paul Lei, Jonathan Reem, Nick Cannon, Watson Fu, Tony Salvatore, Sarah Chen