IIP-154: Delegate Aave to Governance House EOA for DPI Aave ARC listing

Governance Proposal
1

IIP Number: 154
Title: Delegate Aave to Governance House EOA for DPI Aave ARC listing
Status: Proposed
Authors: @funkmasterflex @mringz
Gov Review: @asira
Created: April 27th, 2022

Simple Summary

This IIP requests authorization for Index Coop to delegate all of IndexCoop’s Aave voting rights to an External Owned Account (EOA). This is intended to be for the sole purpose of submitting and for voting a batch of AIPs regarding the ARC market, including: listing DPI as a collateral asset on Aave ARC market, listing DAI as a collateral asset on the Aave ARC market, adjusting the risk parameters to bring ARC inline with the V2 market, and enabling LM on ARC assets (including DPI).

Abstract

All Aave voting rights are to be delegated to the following address:

0xd2362DbB5Aa708Bc454Ce5C3F11050C016764fA6

By delegating to an EOA address we will be able to progress DPI towards being listed on Aave ARC. The submission must be performed from an EOA address and can not be performed from a multisig address.

Upon the completion of these actions, which will take multiple AIPs, the voting delegation power will revert back to its current configuration which is the standard multi-sig wallet for all IndexCoop assets. IndexCoop can pull back this delegation and revert to the standard multisig upon passage of another IIP.

Motivation

As Aave ARC rolls out it is critical that DPI is listed in the first round of collateral additions. Delegating to this EOA controlled by Governance House, IC will ensure that DPI is included in this first patch of additions, alongside other top tier DeFi assets such as DAI and stETH.

As of block 14668718 (Apr-27-2022 08:45:19 PM +UTC), IndexCoop holds over $15.5M worth of AAVE or 89,738.31448883 votes, which in conjunction with other Governance House delegates and partners, is sufficient to propose and reach quorum on all of these actions.

Specification

IndexCoop delegates the Aave voting power to an ethereum address: 0xd2362DbB5Aa708Bc454Ce5C3F11050C016764fA6.

Vote

FOR

  • Delegate Aave voting power to address 0xd2362DbB5Aa708Bc454Ce5C3F11050C016764fA6

AGAINST

  • Do not delegate Aave voting power.
13 Likes
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strongly in favor. DPI being listed alongside DAI and other top tier collateral on Aave ARC is a big win, and will continue to drive institutional adoption. Additionally, supporting the other initiatives (listing DAI, RF changes, LM) will show to other DAOs involved that we are strong reliable partners.

Disclosures:

  1. While I am presently employed by Aave Companies. The opinions stated above are solely my own and are not representative of the company or anyone else.
  2. Myself, 3SE Holdings and ELEV8 Crypto are all actively delegating various governance tokens to Governance House.
8 Likes
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Gm @funkmasterflex -

  1. Please specify ^here with more detail (how many AIPs, relevant details/spec of each, and when is this expected to conclude so the delegation can be returned to IC). Of note, there is no specification section provided in this proposal; will one be added prior to calling for a vote (copy of IIP template can be found here)?

  1. Will GH be providing execution of regular votes during this time? In my view this would be required as we cannot halt normal metagovernance operations for an undefined timeframe.

  2. Are you a member of GH @funkmasterflex? Who specifically will have access to the wallet/multisig that controls the EOA? Does GH or its members have a history of proven execution, and can some support be provided?

  3. Can you go into some more detail on why IC metagov should be used for the non-IC asset(s) you propose listing?

  4. Would GH be willing to set up a regular touchpoint with GovNest to increase working communication and alignment for this partnership, especially during the GH delegation-phase, should this come to pass? Who would be the best person to contact to set that up if so?

The intention here isn’t to bog anything down, quite the opposite; given this is our first foray into delegating for a batch of proposals I’d really like to make sure this is well established as a process to mitigate any snags such as the Flipside delegation. Thanks!

3 Likes
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Strongly in favour of this proposal. Listing DPI on Aave ARC will be huge for our community.

We want to move quickly here, what is the timeline we are working with to get this listed in time?

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Thanks for the thoroughness Mel. I appreciate you sending the template, but this proposal is based on multiple delegations from the past including IIP 68 and 129. (Both of which passed overwhelmingly) IIP-129: Metagov Delegation Request - Delegate Aave to EOA for DPI Borrow Enable and DPI on ARC AIPs - #5 by overanalyser
IIP-68: Delegate Aave to EOA Address

  1. The specification section is consistent with prior requests for delegation. The number of AIP payloads as well as their exact content is not known at this time, as has been the case for every prior delegation request. Specifically the multi DAO package we are looking to join contains the following proposals which will be executed across a number of AIPs based on the dev feedback of Gov House & Aave community devs: 1) list DAI & DPI on the Aave Arc market, 2) update ARC market risk factors, 3) update ARC market aToken Implementations to support LM, 4) activate LM on Aave ARC market.

  2. As has been consistent with prior requests for delegation, the delegatee will execute votes on behalf of IC. IC BD as well as the metagov committee already have regular comms with Gov House and their membership has handled IC delegation prior.

  3. I am not a part of Governance House. The wallet will be controlled by GH, it is an EOA per Aave requirements. The EOA was provisioned by ELEV8 Crypto, the current manager of the IC MetaGov EOA, and is under the control of the GH dev team. This is all consistent with prior delegation requests. I’d also add that these individuals, both IC members and ecosystem partners, are some of the most experienced and technical DeFi operators. I trust their ability to setup and launch these AIPs while also ensuring operational security.

  4. Providing assistance to help build out the Aave Arc market with highly credible assets is not only important to our ecosystem partners, but also our future product suite. As stewards of the ecosystem, I hope we can push forward our voting power even more if we see fit. In this instance, I do not see any reason why listing DAI would not be of benefit to IC. I’d also remind others that we use these different assets to build out some of our strategies. I think there is a clear case for building our strategies specifically for institutional investors using Arc.

  5. Regular touch points have already been established with the relevant nests/work groups within IC. I am happy to make this connection clearer with the Gov Nest.

5 Likes
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With this added clarity, I’d urge @GovNest to post this IIP as soon as possible

4 Likes
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I’d hate to put words in the mouth of those executing, but once our delegation is completed the proposals can be immediately posted. While it may take a bit longer to complete LM and risk parameter updates, DPI listing should be completed as soon as possible.

3 Likes
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Hey @funkmasterflex, as per your request, the 48-hour formal discussion period for this IIP has begun. A GovRep (@asira ) has been assigned to review and run this proposal through the IIP Process.

The soonest this vote can be queued is 1st May 2022, the recommendation here would be 2nd May 2022, as the former date falls on a Sunday.

For future reference, an overview of the IIP Process can be found here, and guidelines for the usage of the GovNest account can be found here.

4 Likes
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@funkmasterflex is this section saying that the delegation powers will revert to their current state within the IC multi-sig wallet under both circumstances either 1) all of the actions are completed or 2) we pass another IIP to pull them back?

Since we are looking to delegate for multiple actions, what is the action if only some of them are voted on or pass? Would it be prudent to include a timebox (2/4/6 months?) where the delegation automatically reverts back to IC multi-sig? This could be extended by another IIP if needed under unusual circumstances. This puts the ‘passive’ outcome as IC owned governance power reverting back to IC and the ‘input-required’ outcome as extending the third-party holding of our governance power for longer.

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Hi Steven, to your first question; yes.

To the second part; no. We will not be taking such action as you suggested because it is inconsistent with past delegation and creates another burdensome obstacle as our partners move quickly.

1 Like
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@GovNest I have received the request to review IIP-154 and a review is in process. I will queue a snapshot vote to begin once the 48-hour discussion period has elapsed on 2nd May 2022 at 6 pm UTC.

As mentioned, the formal discussion period has begun and any feedback should be provided within the 48-hour period.

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@GovNest @funkmasterflex The 48-hour discussion period has elapsed and IIP-154 is now live on snapshot.

1 Like
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Help me understand the burden we would be placing on on a partner if we had a reasonable time box on the delegation.

I know that delegating metagovernance will likely become a more common item across our ecosystem and I am hoping we can have a discussion as a DAO setting up a smart framework that we can employ going forward. I am curious what benefit vs risk there is to IC by leaving delegation and other metagovernance actions open-ended with no cutoff time included.

1 Like
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Adding these steps for something as commonplace as delegation is unnecessary as we try to launch on Arc imminently. As a reminder, INDEX always has the ability to take back this delegation through voting. This by itself is more than enough to ensure a safe delegation and is by no means open ended.

If you’d like to pursue new ways to delegate voting for DeFi or create a “smart framework” I’d recommend you connect with Gov Nest.

2 Likes
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@GovNest IIP-154 has been approved by the community with a total vote FOR of 96.04% and 257,000 INDEX.

2 Likes