[Proposal] Increase AAVE capTier from cap3 to cap4 ($10M -> $30M)

This is a proposal to raise the liquidity mining cap from $10M to $30M for $AAVE

The Proposal

After the activation of the Balancer Based Safety Module yesterday, the liquidity for $AAVE quickly crossed the 30M mark as new LPs join the AAVE/BAL incentivized Safety Module. Current APY by staking in the Safety Module is 350%, only considering the AAVE rewards, which will presumably attract a lot of liquidity, making Balancer the best protocol to trade AAVE on chain.

What is The Safety Module?

The Aave Safety Module acts as a collateral for the whole Aave ecosystem. AAVE holders, and now - with the new Balancer Based Stake - AAVE/ETH holders benefit from long term rewards for securing the protocol from insolvency, while at the same time bearing the risk of being slashed in case of shortfall events.
Having a very liquid onchain market and a consistent capital allocated in the Safety Module greatly increases the safety of the Aave ecosystem and the Aave protocol liquidity providers.

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Thank you for this proposal. If it’s okay with you, I’ll put it to a vote from Thursday to Sunday this week. We have another cap change proposal that is also ready, and I’ll run them at the same time.

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Definitely in favor of increasing this cap.

I would say AAVE is a token that should have the highest cap possible and given the recent addition of BAL to Aave V2, it only makes sense to return the favor.

I would personally support taking the Aave x Balancer partnership as far as both teams are willing to!

Will be voting in favor of this come this weekend :handshake:

@The3D This proposal is up for a vote beginning in 34 minutes and lasting through the weekend. Please inform your community!


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