[AAVE] [DRAFT] [STIP - Round 1]

[MarcZeller]

Hello, we would like to thank everyone for their feedback and participating in this discussion

the proposal overall budget and timeframe has been update, we will answer to feedback:

@CastleCapital

GHO’s Track Record and Peg Stability

• GHO is still largely experimental and hasn’t found its product-market fit, struggling to maintain a stable peg.
• No empirical evidence provided to support its potential success within Arbitrum.
• Our recommendation for change: Reallocate some of the proposed grant towards more established features of the Aave protocol that could bring immediate value to Arbitrum’s ecosystem.

The Grant has been rebalanced to support outside of GHO Aave V3 arbitrum users:

• LM program for wsETH & ARB supply, incentives for WETH, USDC borrowers & GHO minters
  LST/ETH actions are extremely popular in DeFi and Aave V3 emode allows for the most efficient leverage of LSTs onchain. Many users appreciate L2s for these actions as transactions fees on Mainnet makes these strategies costly.

@CastleCapital

Our recommendation for change: Provide a more detailed set of KPIs to measure the success of the grant’s initiatives.

We appreciate this feedback and will update during the day the proposal to add more details

@CastleCapital

Our recommendation for change: Include detailed calculations or projections to justify the grant size and a clearer breakdown of the distribution plan.

We appreciate this Feedback but Aave being decentralized, this plan will be detailed by the GLC and the ACI has no role in detailing on their behalf to the token the distribution plan, the track record & reputation of the members of the GLC should be indicative of their ability to allocate these funds efficiently.

@Bobbay

Grant timeline is incorrect according to the aim of STIP

• All ARB incentives should be utilised by the end of Jan 2024.

The proposal has been updated to be compressed top a period of 3 months to be compliant with the program

@Bobbay

• Remove the following due to being incompatible with STIP and its aims
• 75k Vote infrastructure support allowing Aave Arbitrum users to participate in governance in a trustless and gasless way to allow a more inclusive DAO.
• 75k ARB GHO grant for Onramp & Offramp Arbitrum native GHO support & Arbitrum native BD efforts by the ACI
• 900k Support of DAO-funded via AIPs Arbitrum native features and projects
• 300k ARB Aave Grant DAO budget
• Reduce the 2.5M ARB GHO minting incentives to a more feasible number and place a larger focus on the utilisation of Aave rather than GHO
• This would also enable other grants to get accepted within the arb ecosystem as way over 50M arb has been requested from protocols.

non-compliant parts of the grant application have been removed and the overall grant request has been reduced from 4M to 2M ARB.

Be we still believe that what we wanted to do add value to both ecosystem, removed actions will be proposed to be founded on the Aave DAO side via a AIP to achieve those objective and be part of a matching program.