[AIP-51] Secure AAVE DAO auraBAL mint and AURA accumulation through Swap

Author: Yogis, Karpatkey


This proposal aims to strengthen Aave DAO’s and AURA DAO’s collaboration by executing an AAVE<>AURA swap via the Aura DAO Treasury. The deal involves swapping $200,000 worth of AURA for AAVE, specifically exchanging 2,965.35 AAVE for 238,544 AURA. Aura will then convert the AAVE into stkAAVE and delegate any voting power to Karpatkey. Aura will also provide another 238,544 AURA on behalf of the Aura Ecosystem fund to enable it to diversify into USDC, which should be provided by the AEF ahead of time. This is part of a larger accumulation strategy from AAVE DAO, which involves them minting ~157k auraBAL, and accumulating over 1m units of AURA.


Aave DAO has recently voted to approve enhancing its liquidity incentive strategy on Balancer. One of the significant steps in this direction is the proposed swap with the Aura DAO, to better position itself to boost the incentives of their GHO liquidity pools. This move is expected to benefit both communities and foster a stronger partnership. It also involves them purchasing $400k USDC worth of AURA on the market, and minting ~157k auraBAL units to stake on Aura.


  • This proposal primarily involves the exchange of $200,000 worth of AURA and AAVE, with a price referenced in the following document.

  • The AEF will provide 238,544 AURA ahead of time to the Treasury multisig

  • The swap will be executed at the agreed-upon rates using a smart contract provided by ACI, an AAVE DAO contributor, ensuring fairness and transparency for both parties.

  • Aura DAO will receive 2,965.35 AAVE in the Aura DAO treasury address 0xfc78f8e1af80a3bf5a1783bb59ed2d1b10f78ca9 and 200k USDC into the AEF address 0x3BC0Cb287f74504347D50fe3aDA6d90214E6F512

  • Aura DAO is committed to holding the AAVE assets in their treasury for at least 12 months provided the corresponding Aura tokens in the AAVE treasury remain locked. Aura DAO will hold this in the form of stkAAVE

  • Aura DAO will delegate any voting power from stkAAVE to the karpatkey Delegate Platform


  • Aura Treasury will give approval to the “Short_executor” (address: 0xEE56e2B3D491590B5b31738cC34d5232F378a8D5) to spend the 477,088.51 AURA

  • Once the AAVE AIP has been executed, the Aura Treasury will then hold 2,965.35 AAVE

  • Aura Treasury will convert this to stkAAVE by approving and then calling Stake on the address 0x4da27a545c0c5b758a6ba100e3a049001de870f5

  • Aura Treasury will then call delegate on stkAAVE, providing the address of Karpatkey - 0x8787FC2De4De95c53e5E3a4e5459247D9773ea52


This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of executing the swap based on the above specification.


  • 10/17/23 Added details about AEF execution due to implementation details arising

Aura now doing its purple chad move!


Huge names, huge swaps. Let’s do this.


Aave coming to Aura as their strategy to sustain their GHO pools on balancer (their primary source of liquidity), is a win-win-win. Aave gets boosted incentive performance, Aura adds an important partner and Balancer deepens the relationship with Aave.


I am in full support of this proposal


I am a supporter of this proposal.

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