Best of governance.aave.com on Kiwi News
Most upvoted by Kiwi News readers
16 stories from governance.aave.com have been shared on Kiwi News since 2 October 2023, with 33 upvotes and 5 comments in total. The latest was shared on 22 April 2026. They are listed below, most upvoted first.
Text under a title is an AI summary of the linked article.
- Aave fee switch proposal
The ACI submits a temp check seeking governance feedback on a multi-step roadmap for a protocol fee switch, defined as updated AAVEnomics, that would redistribute net excess revenue to key ecosystem actors. The proposal would segregate StkGHO coverage so it protects only GHO debt, stating that the current $424M Safety Module cannot effectively clear $424M of excess debt because of slippage and peg risk. It also proposes removing AAVE from the Umbrella update, ending the seize-and-sell approach, having the Aave Liquidity Committee manage AAVE secondary liquidity, and replacing the GHO borrow rate discount with a new anti-GHO token.
- AAVE Governance Temp Check to Deploy Aave v3 on Tron
The Aave Chan Initiative (ACI) has posted a Temp Check seeking community input on deploying Aave V3 on Tron Mainnet. The proposal argues that Tron, with about $73bn of bridged value, nearly $69bn of it in stablecoins, is the second-ranking EVM blockchain by bridged TVL after Ethereum, and that Aave has overlooked it. It states that the Tron DAO has committed to deposit funds at deployment to bootstrap liquidity, with more details to be shared at the ARFC stage. Risk parameters are to be provided by Service Providers, and if the Temp Check reaches consensus, the proposal moves to a Snapshot vote, then an ARFC, then a final AIP vote.
- $AAVE token alignment
Ernesto Boado, co-founder of BGD Labs, has posted an Aave Governance proposal asking AAVE token holders to take control of Aave's brand assets, including domains, social handles, naming rights and GitHub organisations, through a DAO-controlled legal vehicle with anti-capture protections. He argues that private parties should not have unilateral control over these assets or be able to attribute the name "Aave" to themselves, and cites concerns that the brand is being used for private monetisation. The proposal states that it does not concern Aave Labs' contributor status, is not tied to the previous swap features thread, and includes no executable payload, with an on-chain vote proposed.
- Aave Cowswap Integration- Tokenholder Questions
- Aave: "We have re-enabled repay with collateral"
Aave Labs disabled all swap-related functions in its user interface after BGD Labs reported that small token balances in periphery contracts used for swaps were exploited. The contracts are separate from the core protocol and had accumulated residual tokens from swap transactions, which they were not designed to handle. Aave Labs states that no user funds were impacted and that the lost tokens belonged to the Aave DAO. Users can still manage positions through other functions in the Aave Labs interface or through third-party interfaces, and the team says a fuller update will follow.
- Gauntlet leaves Aave
Gauntlet, the independent risk manager for Aave since 2020, is ending its work with the protocol and terminating its payment stream as soon as possible. Co-founder John Morrow says the company found it difficult to navigate inconsistent guidelines and unwritten objectives from the largest stakeholders over the past year. He cites a duplicate proposal during TUSD offboarding (AIP-291/285), which became known as the "AIP-371 fiasco," along with criticism of its ARB emissions distribution work and of an economic audit by its Applied Research team. Gauntlet says it hopes to work with Aave again someday.
- Improve Liquidity Buffer for USDC on Aave v3 Ethereum Core
A proposal argues that USDC on Aave v3 Ethereum Core needs a parameter recalibration, because the pool has been essentially pinned at 99.87% utilization for four days, with the variable borrow rate flat near its 14% ceiling. It suggests raising Slope 2 from about 10% to 50% and lowering optimal utilization from 92% to 85%, with an interim Risk Steward step to 40% and 87%. Pool supply fell about $60M in 24 hours as repayments were matched by queued withdrawals. The proposal asks LlamaRisk and Aave Labs to execute the interim change, followed by full-governance ratification within 5–7 days.
- „The WETH interest rate model has been adjusted via the Risk Steward„
On 18 April 2026, the Aave Guardian was alerted to a potential exploit involving rsETH and, starting at 18:52 UTC, froze rsETH and wrsETH markets across all deployments where the asset is listed. All Aave pools remain safe and operational, and the incident is scoped to rsETH rather than stemming from a vulnerability in the Aave protocol itself. Freezing the markets prevents new deposits and new borrows against rsETH as collateral, while existing positions are unaffected by the freeze itself. The Protocol Security Council applied equivalent measures on Aave V4, disabling new supply and borrow activity against rsETH, while Kelp, LayerZero and other teams investigate the underlying cause.
- Aavenomics implementation: Part one
This ARFC proposal seeks governance approval for the first part of implementing updated Aavenomics, covering AAVE tokenomics, excess revenue redistribution, deprecating LEND, and changes to AAVE secondary liquidity management. It proposes creating an Aave Finance Committee, with Tokenlogic and ACI leading it, to manage Umbrella liquidity targets and budgets across several networks. It also proposes removing about 320k remaining AAVE from the LEND migration contract, which the proposal values at roughly $65M, and creating Anti-GHO, a non-transferable token generated by AAVE and StkBPT stakers at 50% of GHO revenue, or about 6M per year.
- Aave 2030
Aave Labs proposes an "Aave 2030" plan, a three-year technical contributor grant to the Aave DAO for developing new protocol, network and brand initiatives, with annual review and renewal. The plan's cornerstone is Aave V4, with a V4 prototype targeted for Q4 2024 and code completion for Q2 2025. Other proposed work includes a Cross-Chain Liquidity Layer, RWA products built around GHO, an Aave Network, and a new visual identity. For the first year, Aave Labs requests a grant with a budget of 15M, though the article's text is cut off before the currency is specified.
- [ARFC] Aave Umbrella - activation
Aave DAO has presented the implementation of Aave Umbrella, a system where users stake Aave v3 aTokens such as aUSDC or aUSDT to cover potential deficit (bad debt) on Aave pools in exchange for rewards, and states that it is now fully ready for production activation. The article says Umbrella replaces the current Safety Module's AAVE and stkABPT staking, arguing that aTokens are better suited to cover bad debt because they only need to be burnt, whereas AAVE would need to be sold. Slashing is triggered objectively by measurable deficit rather than by governance votes. Rewards follow an emission curve designed to reach maximum rates at a target liquidity level.
- Repay with Collateral not working
- Ending the ACI Frontier program
Marc Zeller of the Aave Chan Initiative (ACI) announced that ACI is ending the Frontier staking program effective immediately, citing the rsETH collateral situation and the potential risk of a wETH shortfall and bad debt on Aave V3 Core and other instances. All ETH staked through Frontier will be unstaked and made available to the Aave DAO to protect wETH depositors, and ACI is renouncing all latent revenue tied to the service up to the exit. Frontier began in January 2024 with 32 Stader minipools funded with 128 wETH and was expanded in May 2024. The unwind involves exiting all Frontier validators and transferring the unstaked ETH to the Aave Finance Committee or another address governance designates.
- Post-Mortem: Exchange Rate Misallignment on wstETH Core and Prime Instances
A misconfiguration in the CAPO risk oracle lowered the wstETH/stETH exchange rate used on Aave's Ethereum Core and Prime instances, triggering about 10938 wstETH in E-Mode liquidations. The root cause was that the snapshot ratio could only increase by 3% every 3 days, while the snapshot timestamp fully advanced to a 7-day-old reference, producing a cap of roughly 1.1939 below the live rate. The effective exchange rate fell about 2.85%, and no bad debt was incurred. Aave says it recaptured 141 ETH through BuilderNet refunds and will use these funds to compensate affected users, with DAO treasury funds covering any shortfall.
- BGD. Aave Safety Module - Umbrella
BGD proposes Umbrella, a new version of the Aave Safety Module that replaces stkAAVE and stkABPT with staked aTokens as coverage assets. Under this design, suppliers of aTokens on each Aave v3 pool can opt in to the STK mode, making their aToken balance slashable to cover shortfall events in that same asset. Slashing would be triggered automatically once bad debt crosses a configurable threshold, rather than through governance votes, and slashed aTokens would be burned, requiring no sales to cover deficits. Each Aave pool on each network would have its own Umbrella.
- Aave Governance v3 - Activation plan
Aave Governance v3 is set to replace v2 through two linked migration proposals that will simultaneously disable v2 and enable v3, a process expected to take about 21 days. The migration moves AAVE, stkAAVE and aAAVE voting to Polygon PoS and Avalanche C-Chain as initial voting networks, with Ethereum as a backup, and resets all delegations after the proposals execute. Voting on Polygon and Avalanche will be free for holders, as the Aave DAO subsidizes the aggregated voting cost through Gelato, and all cross-chain communication will move to a.DI.