title: [BIP-XXX] Migrate BAL to Aave Ethereum v3
status: Proposed
author: @Llama - TokenLogic & @solarcurve
created: 2023-03-22
Summary
The proposal presents the Balancer community the opportunity to migrate BAL depostied in Aave v2 to Aave v3 on Ethereum.
Abstract
This proposal continues to builds on BIP-52 and BIP-163 by presenting the community the ability to migrate the Aave v2 BAL deposit to v3 on Ethereum.
BIP-52 was the first proposal to suggest depositing BAL into Aave deployments to earn yield. BIP-164 was approved by the community and an additional 44.5k units of BAL was deposited into Aave v3 on Polygon. This proposal is focuses on migrating the exisitng 102.75K units of BAL on Aave v2 to v3 on Ethereum, plus an initial 47.27k unit of BAL brining the total deposited amount up to 150k units.
An AIP will be submitted this week to list BAL on Ethereum v3 with a Supply Cap of 700k units. By migrating, Balancer DAO would make up near on 1/7th of the Supply Cap and this would be extended to 21.4% upon depositing the full 150k units of BAL.
Motivation
After reading the Karpatkey proposal and learning that BAL falls outside of the defined remit, we would like to suggest that BAL be deposited into Aave v3 markets to earn yield.
There is currently 102.75K units of BAL, valued at $668.14K, deposited in Aave v2. This Aave reserve is frozen, meaning users can not borrow any more BAL and they can only repay existing BAL debt.
The graphic below best respents our expectations of what Balancer DAO will receive by having funds deposited into an active Aave reserve. The below shows historical yield on Aave v3 on Polygon.
Specification
Upon @Llama deploying the BAL liquidity pool on Aave v3 Ethereum, Balancer DAO is to migrate the full BAL holding on Aave v2 to v3 using the migration tool developed by Bored Ghost Developing.
Address: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
Deposit additional BAL into the Aave v3 BAL Reserve such that a total of 150k units is deposited into Aave v3 BAL Reserve. BAL is to be sourced from address shown above.
Aave v3 BAL Reserve: 0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2
The DAO Multisig at eth:0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will call withdraw on
0x7d2768dE32b0b80b7a3454c06BdAc94A69DDc7A9 with arguments:
asset: 0xba100000625a3754423978a60c9317c58a424e3D BAL token contract
amount: 102947018282743658528243 current amount of BAL our aave v2 position has
to: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f DAO Multisig
This will withdraw ~103k BAL back to the DAO Multisig from Aave v2.
Then to deposit 150k BAL to Aave v3, the DAO Multisig eth:0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f will call approve on 0xba100000625a3754423978a60c9317c58a424e3D with the following arguments:
spender: 0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2
amount: 150000000000000000000000
This will approve aave v3 to spend 150k BAL from the DAO Multisig.
The DAO Multisig will then call deposit on 0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2 with arguments:
asset: 0xba100000625a3754423978a60c9317c58a424e3D BAL token contract
amount: 150000000000000000000000
onBehalfOf: 0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f DAO Multisig
referralCode: 0 doesn’t matter
This will deposit 150k BAL into Aave v3.
Copyright
Copyright and related rights waived via CC0.
