IIP-1 LEND to AAVE Migration

Governance Proposal
1

Simple Summary

Migrate LEND to AAVE tokens in the DeFi Pulse Index Set.

Abstract

Aave is conducting a protocol upgrade to convert LEND governance tokens to AAVE governance tokens.
This IIP proposes a specific LEND to AAVE upgrade path.

Motivation

99% of the Aave community have voted for the LEND to AAVE migration. The new Aave token features new tokenomics and governance features such as staking. For the DPI Set to accurately represent a stake in the Aave protocol the DPI Set must migrate its LEND tokens to AAVE tokens.
On October 8th 2020, LEND liquidity is $2.6M on Uniswap and $10M on Sushiswap (down from $16m 2 days ago). AAVE liquidity is $4.6m on Uniswap (up from $3.6m 2 days ago). It is still advantageous to stay in LEND using Sushi for the time being but liquidity is drying up fast.

FOR:

  • Upgrade LEND to AAVE tokens according to the IIP-1 proposal.

AGAINST:

  • Do not upgrade LEND to AAVE tokens.
  • Upgrade LEND to AAVE tokens according to a different specification.

Specification

Overview

Authorize the addition of the Set Protocol WrapModule to the DPI. Authorize the treasury to execute the LEND to AAVE Migration via the AAVEMigrationWrapAdapter contract in the WrapModule. Under the hood, the AAVEMigrationWrapAdapter calls the migrateFromLEND function to convert the LEND to AAVE tokens in DPI.

Rationale

This specification uses AAVEs migration infrastructure and existing Set V2 infrastructure. It mimics the token wrap/unwrap functionality which is commonly used throughout the Set V2 system.

Copyright

Copyright and related rights waived via CC0.

Github IIP Link

Accept IIP-001
  • Accept. Execute LEND to AAVE Migration described in IIP-001
  • Reject. Do not execute IIP-001 migration

0 voters

3 Likes
2

Are we going to use snapshot voting? Or how will the formal voting process be conducted?

1 Like
3

Going to suggest some guidelines later. For this we will likely not use snapshot voting.

4

Where are the links to the modules referenced in the iip?

2 Likes
5

The Wrap module is currently under smart contract audit. The Aave wrapper is very simple and will likely not undergo audit. It is nearly completed
We’ll update the IIP and this forum with links to the modules as soon as they are published for community review.

1 Like
6

@dylan,

This IIP implies that DPI is subject to INDEX governance. Does that mean the Set Lab and DeFi Pulse have transferred the ownership of the DPI set (and associated fees) to INDEX coop?

If so, I don;t think I’ve ever seen that explicitly stated.

Regards
OA

7

@over-analyser,

I do not think the DPI set has been transferred to the INDEX Coop multi-sig yet, but you can expect that to happen in the near future.

More clarity will be added to the relationship between DeFi Pulse and the Index Coop in the future, but for reference the gist is the DPI Set is subject to INDEX governance (with some caveats).

DeFi Pulse simply publishes weights for their own methodology.
The INDEX Coop on its own accord updates the DPI Set to match those published weights.
If the INDEX Coop decides they don’t like the new weights, they can vote to not update the Set (though that may in some sense diminish the appeal of the Set to DPI holders)

2 Likes
8

@dylan Thank you, That helps.

9

The wrap modules have been documented. You can find them here:

Technical Specification

The smart contract implementations can be found here:

Test Cases

Test cases are documented here:

This proposal will likely be tallied at the end of the week. If there remains supermajority (>90%) support it will likely be executed by the Index Coop multi-sig early next week.