Gauntlet - Aave V2 Ethereum AMM IR Deprecation

diffs/AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205_before_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205_after.md

@@ -0,0 +1,160 @@
+## Reserve changes
+
+### Reserve altered
+
+#### WBTC ([0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599](https://etherscan.io/address/0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599))
+
+| description | value before | value after |
+| --- | --- | --- |
+| reserveFactor | 20 % | 99 % |
+| interestRateStrategy | [0x8d02bac65cd84343eF8239d277794bad455cE889](https://etherscan.io/address/0x8d02bac65cd84343eF8239d277794bad455cE889) | [0xd102F58BF7B2509A2d8664be7C4A90102526B5c6](https://etherscan.io/address/0xd102F58BF7B2509A2d8664be7C4A90102526B5c6) |
+| baseVariableBorrowRate | 0 % | 5 % |
+| interestRate | ![before](/.assets/9ec14174f670884ad26c4e60158597a3ea46106e.svg) | ![after](/.assets/ae40eb9e5a19ec740fbcf7618e1a89e287803ba7.svg) |
+
+#### DAI ([0x6B175474E89094C44Da98b954EedeAC495271d0F](https://etherscan.io/address/0x6B175474E89094C44Da98b954EedeAC495271d0F))
+
+| description | value before | value after |
+| --- | --- | --- |
+| reserveFactor | 10 % | 99 % |
+| interestRateStrategy | [0x79F40CDF9f491f148E522D7845c3fBF61E56c33F](https://etherscan.io/address/0x79F40CDF9f491f148E522D7845c3fBF61E56c33F) | [0xA57cDBfE9FA29Ad842f53100d68789999c04AA36](https://etherscan.io/address/0xA57cDBfE9FA29Ad842f53100d68789999c04AA36) |
+| baseVariableBorrowRate | 0 % | 4 % |
+| variableRateSlope1 | 4 % | 10 % |
+| interestRate | ![before](/.assets/fb6c6adb04bffc12e5b75a6e30c81de7f9ea04a1.svg) | ![after](/.assets/856903063d3cc6003230aea391bcdd7080ae884e.svg) |
+
+#### USDC ([0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48](https://etherscan.io/address/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48))
+
+| description | value before | value after |
+| --- | --- | --- |
+| reserveFactor | 10 % | 99 % |
+| interestRateStrategy | [0x79F40CDF9f491f148E522D7845c3fBF61E56c33F](https://etherscan.io/address/0x79F40CDF9f491f148E522D7845c3fBF61E56c33F) | [0xA57cDBfE9FA29Ad842f53100d68789999c04AA36](https://etherscan.io/address/0xA57cDBfE9FA29Ad842f53100d68789999c04AA36) |
+| baseVariableBorrowRate | 0 % | 4 % |
+| variableRateSlope1 | 4 % | 10 % |
+| interestRate | ![before](/.assets/fb6c6adb04bffc12e5b75a6e30c81de7f9ea04a1.svg) | ![after](/.assets/856903063d3cc6003230aea391bcdd7080ae884e.svg) |
+
+#### WETH ([0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2](https://etherscan.io/address/0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2))
+
+| description | value before | value after |
+| --- | --- | --- |
+| reserveFactor | 10 % | 99 % |
+| interestRateStrategy | [0x8d02bac65cd84343eF8239d277794bad455cE889](https://etherscan.io/address/0x8d02bac65cd84343eF8239d277794bad455cE889) | [0xdb838A27f91b112D722c854636F2c23720ea007E](https://etherscan.io/address/0xdb838A27f91b112D722c854636F2c23720ea007E) |
+| baseVariableBorrowRate | 0 % | 6 % |
+| interestRate | ![before](/.assets/9ec14174f670884ad26c4e60158597a3ea46106e.svg) | ![after](/.assets/ed92e8398b27ac9c7c1d23461804e0a36d9ba830.svg) |
+
+#### USDT ([0xdAC17F958D2ee523a2206206994597C13D831ec7](https://etherscan.io/address/0xdAC17F958D2ee523a2206206994597C13D831ec7))
+
+| description | value before | value after |
+| --- | --- | --- |
+| reserveFactor | 10 % | 99 % |
+| interestRateStrategy | [0x79F40CDF9f491f148E522D7845c3fBF61E56c33F](https://etherscan.io/address/0x79F40CDF9f491f148E522D7845c3fBF61E56c33F) | [0x2223cd25f60F3e4035fcEfE44612773AFEbFd8ab](https://etherscan.io/address/0x2223cd25f60F3e4035fcEfE44612773AFEbFd8ab) |
+| baseVariableBorrowRate | 0 % | 6 % |
+| variableRateSlope1 | 4 % | 10 % |
+| interestRate | ![before](/.assets/fb6c6adb04bffc12e5b75a6e30c81de7f9ea04a1.svg) | ![after](/.assets/b2e6e45c0df35c14497c2de70f69481e8b9f59b2.svg) |
+
+## Raw diff
+
+```json
+{
+  "reserves": {
+    "0x2260FAC5E5542a773Aa44fBCfeDf7C193bc2C599": {
+      "interestRateStrategy": {
+        "from": "0x8d02bac65cd84343eF8239d277794bad455cE889",
+        "to": "0xd102F58BF7B2509A2d8664be7C4A90102526B5c6"
+      },
+      "reserveFactor": {
+        "from": 2000,
+        "to": 9900
+      }
+    },
+    "0x6B175474E89094C44Da98b954EedeAC495271d0F": {
+      "interestRateStrategy": {
+        "from": "0x79F40CDF9f491f148E522D7845c3fBF61E56c33F",
+        "to": "0xA57cDBfE9FA29Ad842f53100d68789999c04AA36"
+      },
+      "reserveFactor": {
+        "from": 1000,
+        "to": 9900
+      }
+    },
+    "0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48": {
+      "interestRateStrategy": {
+        "from": "0x79F40CDF9f491f148E522D7845c3fBF61E56c33F",
+        "to": "0xA57cDBfE9FA29Ad842f53100d68789999c04AA36"
+      },
+      "reserveFactor": {
+        "from": 1000,
+        "to": 9900
+      }
+    },
+    "0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2": {
+      "interestRateStrategy": {
+        "from": "0x8d02bac65cd84343eF8239d277794bad455cE889",
+        "to": "0xdb838A27f91b112D722c854636F2c23720ea007E"
+      },
+      "reserveFactor": {
+        "from": 1000,
+        "to": 9900
+      }
+    },
+    "0xdAC17F958D2ee523a2206206994597C13D831ec7": {
+      "interestRateStrategy": {
+        "from": "0x79F40CDF9f491f148E522D7845c3fBF61E56c33F",
+        "to": "0x2223cd25f60F3e4035fcEfE44612773AFEbFd8ab"
+      },
+      "reserveFactor": {
+        "from": 1000,
+        "to": 9900
+      }
+    }
+  },
+  "strategies": {
+    "0x2223cd25f60F3e4035fcEfE44612773AFEbFd8ab": {
+      "from": null,
+      "to": {
+        "baseVariableBorrowRate": "60000000000000000000000000",
+        "maxExcessUsageRatio": "200000000000000000000000000",
+        "optimalUsageRatio": "800000000000000000000000000",
+        "stableRateSlope1": "20000000000000000000000000",
+        "stableRateSlope2": "600000000000000000000000000",
+        "variableRateSlope1": "100000000000000000000000000",
+        "variableRateSlope2": "750000000000000000000000000"
+      }
+    },
+    "0xA57cDBfE9FA29Ad842f53100d68789999c04AA36": {
+      "from": null,
+      "to": {
+        "baseVariableBorrowRate": "40000000000000000000000000",
+        "maxExcessUsageRatio": "200000000000000000000000000",
+        "optimalUsageRatio": "800000000000000000000000000",
+        "stableRateSlope1": "20000000000000000000000000",
+        "stableRateSlope2": "600000000000000000000000000",
+        "variableRateSlope1": "100000000000000000000000000",
+        "variableRateSlope2": "750000000000000000000000000"
+      }
+    },
+    "0xd102F58BF7B2509A2d8664be7C4A90102526B5c6": {
+      "from": null,
+      "to": {
+        "baseVariableBorrowRate": "50000000000000000000000000",
+        "maxExcessUsageRatio": "350000000000000000000000000",
+        "optimalUsageRatio": "650000000000000000000000000",
+        "stableRateSlope1": "100000000000000000000000000",
+        "stableRateSlope2": "1000000000000000000000000000",
+        "variableRateSlope1": "80000000000000000000000000",
+        "variableRateSlope2": "1000000000000000000000000000"
+      }
+    },
+    "0xdb838A27f91b112D722c854636F2c23720ea007E": {
+      "from": null,
+      "to": {
+        "baseVariableBorrowRate": "60000000000000000000000000",
+        "maxExcessUsageRatio": "350000000000000000000000000",
+        "optimalUsageRatio": "650000000000000000000000000",
+        "stableRateSlope1": "100000000000000000000000000",
+        "stableRateSlope2": "1000000000000000000000000000",
+        "variableRateSlope1": "80000000000000000000000000",
+        "variableRateSlope2": "1000000000000000000000000000"
+      }
+    }
+  }
+}
+```

src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/ARFCDeprecateAaveV2AMMMarketStep2.md

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+---
+title: "[ARFC] Deprecate Aave V2 AMM Market - Step 2"
+author: "Gauntlet"
+discussions: "https://governance.aave.com/t/arfc-deprecate-aave-v2-amm-market-step-2/16408/1"
+snapshot: "https://snapshot.org/#/aave.eth/proposal/0x0ade316f52d5f763160ea15538a71a4682ae1b708864e8d33497d8de40ad9973"
+---
+
+## Simple Summary
+
+A proposal for further deprecation recommendations on Aave AMM v2. For more details, see the full forum post [here](https://governance.aave.com/t/arfc-deprecate-aave-v2-amm-market-step-2/16408/2).
+
+## Motivation
+
+Gauntlet aims to reduce the remaining $94k borrow position and migrate users off the AMM market. Further analysis and information can be found in our forum [post](https://governance.aave.com/t/arfc-deprecate-aave-v2-amm-market-step-2/16408).
+
+## Specification
+
+Gauntlet recommends to increase reserve factor to 99% for the following assets:
+
+| Asset | Current RF | Recommended RF |
+| ----- | ---------- | -------------- |
+| WETH  | 0.1        | 0.99           |
+| DAI   | 0.1        | 0.99           |
+| USDC  | 0.1        | 0.99           |
+| WBTC  | 0.2        | 0.99           |
+| USDT  | 0.1        | 0.99           |
+
+Gauntlet recommends to adjust the IR params for the following assets:
+| Asset | Current Variable Base | Recommended Variable Base | Current Variable Slope1 | Recommended Variable Slope1 |
+| ----- | --------------------- | ------------------------- | ----------------------- | --------------------------- |
+| WETH | 0 | 0.06 | 0.08 | No Change |
+| DAI | 0 | 0.04 | 0.04 | 0.1 |
+| USDC | 0 | 0.04 | 0.04 | 0.1 |
+| WBTC | 0 | 0.05 | 0.08 | No Change |
+| USDT | 0 | 0.06 | 0.04 | 0.1 |
+
+## References
+
+- Implementation: [AaveV2EthereumAMM](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205.sol)
+- Tests: [AaveV2EthereumAMM](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205.t.sol)
+- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x0ade316f52d5f763160ea15538a71a4682ae1b708864e8d33497d8de40ad9973)
+- [Discussion](https://governance.aave.com/t/arfc-deprecate-aave-v2-amm-market-step-2/16408/1)
+
+## Disclaimer
+
+Gauntlet has not been compensated by any third party for publishing this ARFC.
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).
+
+_By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos._

src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/ARFCDeprecateAaveV2AMMMarketStep2_20240205.s.sol

@@ -0,0 +1,58 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {GovV3Helpers, IPayloadsControllerCore, PayloadsControllerUtils} from 'aave-helpers/GovV3Helpers.sol';
+import {EthereumScript} from 'aave-helpers/ScriptUtils.sol';
+import {AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205} from './AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205.sol';
+
+/**
+ * @dev Deploy Ethereum
+ * deploy-command: make deploy-ledger contract=src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/ARFCDeprecateAaveV2AMMMarketStep2_20240205.s.sol:DeployEthereum chain=mainnet
+ * verify-command: npx catapulta-verify -b broadcast/ARFCDeprecateAaveV2AMMMarketStep2_20240205.s.sol/1/run-latest.json
+ */
+contract DeployEthereum is EthereumScript {
+  function run() external broadcast {
+    // deploy payloads
+    address payload0 = GovV3Helpers.deployDeterministic(
+      type(AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205).creationCode
+    );
+
+    // compose action
+    IPayloadsControllerCore.ExecutionAction[]
+      memory actions = new IPayloadsControllerCore.ExecutionAction[](1);
+    actions[0] = GovV3Helpers.buildAction(payload0);
+
+    // register action at payloadsController
+    GovV3Helpers.createPayload(actions);
+  }
+}
+
+/**
+ * @dev Create Proposal
+ * command: make deploy-ledger contract=src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/ARFCDeprecateAaveV2AMMMarketStep2_20240205.s.sol:CreateProposal chain=mainnet
+ */
+contract CreateProposal is EthereumScript {
+  function run() external {
+    // create payloads
+    PayloadsControllerUtils.Payload[] memory payloads = new PayloadsControllerUtils.Payload[](1);
+
+    // compose actions for validation
+    IPayloadsControllerCore.ExecutionAction[]
+      memory actionsEthereum = new IPayloadsControllerCore.ExecutionAction[](1);
+    actionsEthereum[0] = GovV3Helpers.buildAction(
+      type(AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205).creationCode
+    );
+    payloads[0] = GovV3Helpers.buildMainnetPayload(vm, actionsEthereum);
+
+    // create proposal
+    vm.startBroadcast();
+    GovV3Helpers.createProposal(
+      vm,
+      payloads,
+      GovV3Helpers.ipfsHashFile(
+        vm,
+        'src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/ARFCDeprecateAaveV2AMMMarketStep2.md'
+      )
+    );
+  }
+}

src/20240205_AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2/AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205.sol

@@ -0,0 +1,106 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV2EthereumAMM, AaveV2EthereumAMMAssets, ILendingPoolConfigurator} from 'aave-address-book/AaveV2EthereumAMM.sol';
+import {AaveV2PayloadEthereumAMM} from 'aave-helpers/v2-config-engine/AaveV2PayloadEthereumAMM.sol';
+import {EngineFlags} from 'aave-helpers/v3-config-engine/EngineFlags.sol';
+import {IAaveV2ConfigEngine} from 'aave-helpers/v2-config-engine/IAaveV2ConfigEngine.sol';
+import {IV2RateStrategyFactory} from 'aave-helpers/v2-config-engine/IV2RateStrategyFactory.sol';
+
+/**
+ * @title [ARFC] Deprecate Aave V2 AMM Market - Step 2
+ * @author Gauntlet
+ * - Snapshot: https://snapshot.org/#/aave.eth/proposal/0x0ade316f52d5f763160ea15538a71a4682ae1b708864e8d33497d8de40ad9973
+ * - Discussion: https://governance.aave.com/t/arfc-deprecate-aave-v2-amm-market-step-2/16408/1
+ */
+contract AaveV2EthereumAMM_ARFCDeprecateAaveV2AMMMarketStep2_20240205 is AaveV2PayloadEthereumAMM {
+  function _postExecute() internal override {
+    ILendingPoolConfigurator(AaveV2EthereumAMM.POOL_CONFIGURATOR).setReserveFactor(
+      AaveV2EthereumAMMAssets.WETH_UNDERLYING,
+      99_00
+    );
+    ILendingPoolConfigurator(AaveV2EthereumAMM.POOL_CONFIGURATOR).setReserveFactor(
+      AaveV2EthereumAMMAssets.DAI_UNDERLYING,
+      99_00
+    );
+    ILendingPoolConfigurator(AaveV2EthereumAMM.POOL_CONFIGURATOR).setReserveFactor(
+      AaveV2EthereumAMMAssets.USDC_UNDERLYING,
+      99_00
+    );
+    ILendingPoolConfigurator(AaveV2EthereumAMM.POOL_CONFIGURATOR).setReserveFactor(
+      AaveV2EthereumAMMAssets.WBTC_UNDERLYING,
+      99_00
+    );
+    ILendingPoolConfigurator(AaveV2EthereumAMM.POOL_CONFIGURATOR).setReserveFactor(
+      AaveV2EthereumAMMAssets.USDT_UNDERLYING,
+      99_00
+    );
+  }
+
+  function rateStrategiesUpdates()
+    public
+    pure
+    override
+    returns (IAaveV2ConfigEngine.RateStrategyUpdate[] memory)
+  {
+    IAaveV2ConfigEngine.RateStrategyUpdate[]
+      memory rateStrategies = new IAaveV2ConfigEngine.RateStrategyUpdate[](5);
+    rateStrategies[0] = IAaveV2ConfigEngine.RateStrategyUpdate({
+      asset: AaveV2EthereumAMMAssets.WETH_UNDERLYING,
+      params: IV2RateStrategyFactory.RateStrategyParams({
+        optimalUtilizationRate: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: _bpsToRay(6_00),
+        variableRateSlope1: EngineFlags.KEEP_CURRENT,
+        variableRateSlope2: EngineFlags.KEEP_CURRENT,
+        stableRateSlope1: EngineFlags.KEEP_CURRENT,
+        stableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+    rateStrategies[1] = IAaveV2ConfigEngine.RateStrategyUpdate({
+      asset: AaveV2EthereumAMMAssets.DAI_UNDERLYING,
+      params: IV2RateStrategyFactory.RateStrategyParams({
+        optimalUtilizationRate: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: _bpsToRay(4_00),
+        variableRateSlope1: _bpsToRay(10_00),
+        variableRateSlope2: EngineFlags.KEEP_CURRENT,
+        stableRateSlope1: EngineFlags.KEEP_CURRENT,
+        stableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+    rateStrategies[2] = IAaveV2ConfigEngine.RateStrategyUpdate({
+      asset: AaveV2EthereumAMMAssets.USDC_UNDERLYING,
+      params: IV2RateStrategyFactory.RateStrategyParams({
+        optimalUtilizationRate: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: _bpsToRay(4_00),
+        variableRateSlope1: _bpsToRay(10_00),
+        variableRateSlope2: EngineFlags.KEEP_CURRENT,
+        stableRateSlope1: EngineFlags.KEEP_CURRENT,
+        stableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+    rateStrategies[3] = IAaveV2ConfigEngine.RateStrategyUpdate({
+      asset: AaveV2EthereumAMMAssets.USDT_UNDERLYING,
+      params: IV2RateStrategyFactory.RateStrategyParams({
+        optimalUtilizationRate: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: _bpsToRay(6_00),
+        variableRateSlope1: _bpsToRay(10_00),
+        variableRateSlope2: EngineFlags.KEEP_CURRENT,
+        stableRateSlope1: EngineFlags.KEEP_CURRENT,
+        stableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+    rateStrategies[4] = IAaveV2ConfigEngine.RateStrategyUpdate({
+      asset: AaveV2EthereumAMMAssets.WBTC_UNDERLYING,
+      params: IV2RateStrategyFactory.RateStrategyParams({
+        optimalUtilizationRate: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: _bpsToRay(5_00),
+        variableRateSlope1: EngineFlags.KEEP_CURRENT,
+        variableRateSlope2: EngineFlags.KEEP_CURRENT,
+        stableRateSlope1: EngineFlags.KEEP_CURRENT,
+        stableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+
+    return rateStrategies;
+  }
+}