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Proposal 176. Aave v2 Ethereum - update BUSD rate strategy and RF


Voting link

https://app.aave.com/governance/proposal/?proposalId=176


Governance forum discussion

https://governance.aave.com/t/arfc-busd-offboarding-plan/12170


BGD analysis


Proposal types

🔧 📊 params-update


Context

This proposal updates the interest rate strategy of BUSD and its Reserve Factor on Aave v2 Ethereum, as following step of the off-boarding initiated with its freezing.


Proposal creation

Transaction: https://etherscan.io/tx/0xbbdeef6cc543e4d73513fdba0a88bbb4705f7dc65d79789ce7ce7a5f3d8bdeba

- id: 176
- creator: 0x329c54289ff5d6b7b7dae13592c6b1eda1543ed4
- executor: 0xee56e2b3d491590b5b31738cc34d5232f378a8d5
- targets: [0xbbf4723d70043fa338d8b519b041b476648902a6]
- values: [0]
- signatures: [execute()]
- calldatas: [0x]
- withDelegatecalls: [true]
- startBlock: 16797486
- endBlock: 16816686
- strategy: 0xb7e383ef9b1e9189fc0f71fb30af8aa14377429e
- ipfsHash: 0xe8a784a9b0773932a347ed6f74027008c088f76ac0165b97d6e78e4d46903f57

Aave Seatbelt report

Ethereum

https://github.com/bgd-labs/seatbelt-for-ghosts/blob/main/reports/Aave/0xEC568fffba86c094cf06b22134B23074DFE2252c/176.md

There is a infrastructural problem on Tenderly, which causes the state transitions to show erroneously. We have double checked both payload code and events emitted, and everything seems correct


Technical analysis

The proposal payload does the following:

  • Replaces the current interest rate strategy of BUSD on Aave v2 Ethereum for a new one with the following changes:

    • Base variable borrow: 0% -> 3%
    • Variable borrow slope 1: 4% -> 7%
    • Variable borrow slope 2: 100% -> 200%
    • Stable borrow slope 1: 0% -> 7%
    • Stable borrow slope 2: 0% -> 200%
    • Optimal point: 80% -> 20%

  • Additionally, the proposal updates the the Reserve Factor from 10% to 99.9%.


BGD validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ The proposal includes a proper tests suite, checking all necessary post-conditions.

✅ BGD reviewed the payload before the proposal was submitted.

✅ Only one payload used via delegatecall

✅ BGD reviewed the procedure followed to submit the proposal.