Aave V1 Offline Plan Proposal Approved With Overwhelming Support

On April 17th, the snapshot voting page showed that the ARFC proposal from the Aave community regarding the “Aave V1 offline plan” was approved with 99.98% support. The proposal proposes to implement a new rate strategy for all assets listed on the platform to offline Aave V1, encouraging users to migrate their assets to Aave V2 or Aave V3. Next, submit the proposal as an AIP for on chain governance approval.

The ARFC proposal from the Aave community regarding the “Aave V1 offline plan” has been voted through

Overview

On April 17th, the Aave community voted to approve the ARFC proposal regarding the Aave V1 offline plan. The proposal received an overwhelming 99.98% of support from the community, making it one of the most popular proposals in the platform’s history.
This proposal suggests that a new rate strategy be implemented for all assets listed on the platform to offline Aave V1. By doing so, users are motivated to move their assets to either Aave V2 or Aave V3. If users choose not to migrate their assets, there is a risk of their assets being “offline” and un-retrievable.

What is Aave V1?

Aave V1 is the initial version of the Aave platform, launched in 2017 as ETHLend. It was rebranded to Aave in 2018, and soon established itself as one of the leading DeFi platforms for lending and borrowing assets. Aave V1 is currently operating on an older codebase that makes it more vulnerable to attacks from hackers.

Why the Proposal was Approved

The Aave community approved the proposal for various reasons. One reason is that, with the new rate strategy, users will be urged to migrate their assets to the newer and safer Aave V2 or Aave V3. Aave V2 is the more recent version of the platform that addresses the security concerns of Aave V1. With Aave V2, users can enjoy better security, higher efficiency, and improved overall performance.
Another reason is that Aave V1’s liquidity provision will begin to decrease, and as most assets will be offline, users who remain on Aave V1 will lose lending and borrowing fees. In other words, users will suffer more financial loss if they stay on Aave V1. Additionally, Aave V1 has some bugs, and it is crucial to focus on the newer versions of the platform, rather than Aave V1, for better security and stability.

AIP Approval for On-Chain Governance

Now that the Aave V1 offline plan has been approved through the Aave Snapshot voting page, the next step is to present it as an AIP (Aave Improvement Proposal) to the Aave governance forum. Once that is done, the Aave governance community will vote on the proposal, and if it passes the voting requirements, it will be enacted on the Aave network.

Conclusion

The Aave V1 offline plan proposal passed with an overwhelming amount of support. This was because it is essential to focus on newer versions of Aave to ensure better security, stability, and performance. It is essential to motivate users to migrate their assets to newer versions by implementing a new rate strategy. This strategy will also assist in reducing liquidity on the Aave V1 platform, causing users to lose fees, and increasing the chances of experiencing bugs.

FAQs

1. When will the changes take effect?
The changes will take place when the proposal passes on-chain governance approval. This may take some time, but the changes will be executed as soon as possible.
2. What happens to users’ assets if they don’t migrate to Aave V2 or V3?
If users don’t migrate their assets, they risk losing their assets as they will become un-retrievable or “offline” following the adjustment of assets to offline Aave V1.
3. Can users still use Aave V1 after the rate strategy is implemented?
Yes, users can still use Aave V1 after the rate strategy is implemented. However, they will lose out on lending and borrowing fees and create a more significant financial loss for themselves when compared with migrating to Aave V2 or V3.