Aave

Aave is the leading cross-chain lending protocol by all relevant KPIs, i.e. TVL, supplied, and borrowed assets. With the latest version (v3) present on ten networks, Aave Protocol currently generates revenue across ten networks and 18 deployments (v1, v2 incl. Centrifuge and ARC, v3 incl. Spark), consolidating a cross-chain treasury that's now worth around $130M.

Aave developed GHO as a stablecoin native to the ecosystem and controlled by Aave Governance. Technically, GHO is a collateral-backed stablecoin minted by users who lock up collateral assets in Aave's v3 protocol.

All these developments led to impressive growth and an increasing complexity in managing AaveDAO's finances.

Defining the standard in non-custodial, on-chain asset management infrastructure

karpatkey’s commitment, approved by AIP-407, is to focus on the following:

• Treasury Management;
• Strategic Assets' Liquidity;
• Safety Module; and
• GHO’s success.

Our scope encompasses:

• Asset Management Architecture Creation: Establishing a non-custodial asset management architecture with role-based controls aligned with Aave’s guidelines.
• Aave Liquidity Committee Formation: Managing liquidity incentives and supporting GHO’s price recovery through targeted strategies.
• Diversification and Yield Optimisation: Securing Aave’s financial future through strategic asset allocation and yield-generating activities.
• Enhanced Safety Module Strategy: Implementing a diversified SM to reduce dependence on AAVE tokens and optimise its efficiency.
• Financial Operations: Secure runway to meet DAO commitments and services, swapping and bridging assets as required, ensuring efficient business as usual.

karpatkey will act to ensure that AaveDAO's treasury is managed to ensure the DAO's perpetuity and to support current and new growth initiatives in Aave's Ecosystem.