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Temporary Freeze Of Long Tail V2 Assets 20240418 #24

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Original file line number Diff line number Diff line change
@@ -0,0 +1,25 @@
## Reserve changes

### Reserves altered

#### AAVE.e ([0x63a72806098Bd3D9520cC43356dD78afe5D386D9](https://snowscan.xyz/address/0x63a72806098Bd3D9520cC43356dD78afe5D386D9))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


## Raw diff

```json
{
"reserves": {
"0x63a72806098Bd3D9520cC43356dD78afe5D386D9": {
"isFrozen": {
"from": false,
"to": true
}
}
}
}
```
Original file line number Diff line number Diff line change
@@ -0,0 +1,90 @@
## Reserve changes

### Reserve altered

#### GUSD ([0x056Fd409E1d7A124BD7017459dFEa2F387b6d5Cd](https://etherscan.io/address/0x056Fd409E1d7A124BD7017459dFEa2F387b6d5Cd))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


#### sUSD ([0x57Ab1ec28D129707052df4dF418D58a2D46d5f51](https://etherscan.io/address/0x57Ab1ec28D129707052df4dF418D58a2D46d5f51))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


#### LUSD ([0x5f98805A4E8be255a32880FDeC7F6728C6568bA0](https://etherscan.io/address/0x5f98805A4E8be255a32880FDeC7F6728C6568bA0))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


#### AAVE ([0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9](https://etherscan.io/address/0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


#### FRAX ([0x853d955aCEf822Db058eb8505911ED77F175b99e](https://etherscan.io/address/0x853d955aCEf822Db058eb8505911ED77F175b99e))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


#### USDP ([0x8E870D67F660D95d5be530380D0eC0bd388289E1](https://etherscan.io/address/0x8E870D67F660D95d5be530380D0eC0bd388289E1))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


## Raw diff

```json
{
"reserves": {
"0x056Fd409E1d7A124BD7017459dFEa2F387b6d5Cd": {
"isFrozen": {
"from": false,
"to": true
}
},
"0x57Ab1ec28D129707052df4dF418D58a2D46d5f51": {
"isFrozen": {
"from": false,
"to": true
}
},
"0x5f98805A4E8be255a32880FDeC7F6728C6568bA0": {
"isFrozen": {
"from": false,
"to": true
}
},
"0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9": {
"isFrozen": {
"from": false,
"to": true
}
},
"0x853d955aCEf822Db058eb8505911ED77F175b99e": {
"isFrozen": {
"from": false,
"to": true
}
},
"0x8E870D67F660D95d5be530380D0eC0bd388289E1": {
"isFrozen": {
"from": false,
"to": true
}
}
}
}
```
Original file line number Diff line number Diff line change
@@ -0,0 +1,25 @@
## Reserve changes

### Reserves altered

#### AAVE ([0xD6DF932A45C0f255f85145f286eA0b292B21C90B](https://polygonscan.com/address/0xD6DF932A45C0f255f85145f286eA0b292B21C90B))

| description | value before | value after |
| --- | --- | --- |
| isFrozen | false | true |


## Raw diff

```json
{
"reserves": {
"0xD6DF932A45C0f255f85145f286eA0b292B21C90B": {
"isFrozen": {
"from": false,
"to": true
}
}
}
}
```
Original file line number Diff line number Diff line change
@@ -0,0 +1,15 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Avalanche, AaveV2AvalancheAssets} from 'aave-address-book/AaveV2Avalanche.sol';
import {IProposalGenericExecutor} from 'aave-helpers/interfaces/IProposalGenericExecutor.sol';
/**
* @title Temporary Freeze of Long-Tail V2 Assets
* @author Chaos Labs
* - Discussion: https://governance.aave.com/t/arfc-temporary-freeze-of-long-tail-v2-assets/17403
*/
contract AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418 is IProposalGenericExecutor {
function execute() external {
AaveV2Avalanche.POOL_CONFIGURATOR.freezeReserve(AaveV2AvalancheAssets.AAVEe_UNDERLYING);
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,41 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Avalanche, AaveV2AvalancheAssets} from 'aave-address-book/AaveV2Avalanche.sol';

import 'forge-std/Test.sol';
import {ProtocolV2TestBase, ReserveConfig} from 'aave-helpers/ProtocolV2TestBase.sol';
import {AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418} from './AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418.sol';

/**
* @dev Test for AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418
* command: make test-contract filter=AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418
*/
contract AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418_Test is ProtocolV2TestBase {
AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418 internal proposal;

function setUp() public {
vm.createSelectFork(vm.rpcUrl('avalanche'), 44360962);
proposal = new AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418();
}

/**
* @dev executes the generic test suite including e2e and config snapshots
*/
function test_defaultProposalExecution() public {
(ReserveConfig[] memory allConfigsBefore, ReserveConfig[] memory allConfigsAfter) = defaultTest(
'AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418',
AaveV2Avalanche.POOL,
address(proposal)
);

address[] memory assetsChanged = new address[](1);
assetsChanged[0] = AaveV2AvalancheAssets.AAVEe_UNDERLYING;

_noReservesConfigsChangesApartFrom(allConfigsBefore, allConfigsAfter, assetsChanged);

ReserveConfig memory configAfter = _findReserveConfig(allConfigsAfter, assetsChanged[0]);

assertEq(configAfter.isFrozen, true);
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,20 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Ethereum, AaveV2EthereumAssets} from 'aave-address-book/AaveV2Ethereum.sol';
import {IProposalGenericExecutor} from 'aave-helpers/interfaces/IProposalGenericExecutor.sol';
/**
* @title Temporary Freeze of Long-Tail V2 Assets
* @author Chaos Labs
* - Discussion: https://governance.aave.com/t/arfc-temporary-freeze-of-long-tail-v2-assets/17403
*/
contract AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418 is IProposalGenericExecutor {
function execute() external {
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.USDP_UNDERLYING);
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.GUSD_UNDERLYING);
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.LUSD_UNDERLYING);
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.FRAX_UNDERLYING);
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.sUSD_UNDERLYING);
AaveV2Ethereum.POOL_CONFIGURATOR.freezeReserve(AaveV2EthereumAssets.AAVE_UNDERLYING);
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,47 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Ethereum, AaveV2EthereumAssets} from 'aave-address-book/AaveV2Ethereum.sol';

import 'forge-std/Test.sol';
import {ProtocolV2TestBase, ReserveConfig} from 'aave-helpers/ProtocolV2TestBase.sol';
import {AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418} from './AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418.sol';

/**
* @dev Test for AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418
* command: make test-contract filter=AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418
*/
contract AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418_Test is ProtocolV2TestBase {
AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418 internal proposal;

function setUp() public {
vm.createSelectFork(vm.rpcUrl('mainnet'), 19682923);
proposal = new AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418();
}

/**
* @dev executes the generic test suite including e2e and config snapshots
*/
function test_defaultProposalExecution() public {
(ReserveConfig[] memory allConfigsBefore, ReserveConfig[] memory allConfigsAfter) = defaultTest(
'AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418',
AaveV2Ethereum.POOL,
address(proposal)
);

address[] memory assetsChanged = new address[](6);
assetsChanged[0] = AaveV2EthereumAssets.USDP_UNDERLYING;
assetsChanged[1] = AaveV2EthereumAssets.GUSD_UNDERLYING;
assetsChanged[2] = AaveV2EthereumAssets.LUSD_UNDERLYING;
assetsChanged[3] = AaveV2EthereumAssets.FRAX_UNDERLYING;
assetsChanged[4] = AaveV2EthereumAssets.sUSD_UNDERLYING;
assetsChanged[5] = AaveV2EthereumAssets.AAVE_UNDERLYING;

_noReservesConfigsChangesApartFrom(allConfigsBefore, allConfigsAfter, assetsChanged);

for (uint i = 0; i < assetsChanged.length; i++) {
ReserveConfig memory configAfter = _findReserveConfig(allConfigsAfter, assetsChanged[i]);
assertEq(configAfter.isFrozen, true);
}
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,15 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Polygon, AaveV2PolygonAssets} from 'aave-address-book/AaveV2Polygon.sol';
import {IProposalGenericExecutor} from 'aave-helpers/interfaces/IProposalGenericExecutor.sol';
/**
* @title Temporary Freeze of Long-Tail V2 Assets
* @author Chaos Labs
* - Discussion: https://governance.aave.com/t/arfc-temporary-freeze-of-long-tail-v2-assets/17403
*/
contract AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418 is IProposalGenericExecutor {
function execute() external {
AaveV2Polygon.POOL_CONFIGURATOR.freezeReserve(AaveV2PolygonAssets.AAVE_UNDERLYING);
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,41 @@
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import {AaveV2Polygon, AaveV2PolygonAssets} from 'aave-address-book/AaveV2Polygon.sol';

import 'forge-std/Test.sol';
import {ProtocolV2TestBase, ReserveConfig} from 'aave-helpers/ProtocolV2TestBase.sol';
import {AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418} from './AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418.sol';

/**
* @dev Test for AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418
* command: make test-contract filter=AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418
*/
contract AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418_Test is ProtocolV2TestBase {
AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418 internal proposal;

function setUp() public {
vm.createSelectFork(vm.rpcUrl('polygon'), 55970246);
proposal = new AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418();
}

/**
* @dev executes the generic test suite including e2e and config snapshots
*/
function test_defaultProposalExecution() public {
(ReserveConfig[] memory allConfigsBefore, ReserveConfig[] memory allConfigsAfter) = defaultTest(
'AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418',
AaveV2Polygon.POOL,
address(proposal)
);

address[] memory assetsChanged = new address[](1);
assetsChanged[0] = AaveV2PolygonAssets.AAVE_UNDERLYING;

_noReservesConfigsChangesApartFrom(allConfigsBefore, allConfigsAfter, assetsChanged);

ReserveConfig memory configAfter = _findReserveConfig(allConfigsAfter, assetsChanged[0]);

assertEq(configAfter.isFrozen, true);
}
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,33 @@
---
title: "Temporary Freeze of Long-Tail V2 Assets"
author: "Chaos Labs"
discussions: "https://governance.aave.com/t/arfc-temporary-freeze-of-long-tail-v2-assets/17403"
---

## Simple Summary

A proposal to freeze USDP, GUSD, LUSD, FRAX, sUSD and AAVE on Aave V2.

## Motivation

As part of the deprecation plan for V2 markets, and given the recent market volatility and specifically the [USDP price spike](https://governance.aave.com/t/usdp-price-spike-impact-04-16-2024/17391), we advise reducing additional exposure to all non-major assets across V2, disabling new supply and borrows.

To minimize the governance overhead, we recommend a temporary freeze vote of all non-major assets across V2, namely USDP, GUSD, LUSD, FRAX, sUSD, and AAVE, via the [direct-to-AIP framework](https://governance.aave.com/t/arfc-direct-to-aip-framework/13913).

We plan to submit a follow-up proposal to deprecate these assets through the standard governance process so that the community can decide on the future utilization of these assets.

Furthermore, we would like to highlight the [upcoming implementation of CAPO on v2 assets](https://governance.aave.com/t/bgd-technical-maintenance-proposals/15274/30), mitigating the risk of upward Oracle manipulation. This enhancement aims to protect borrowers from unexpected liquidations due to price spikes or potential manipulation incidents, such as the recent surge in USDP prices

## Specification

The proposal will call the freezeReserve() function for USDP, GUSD, LUSD, FRAX, sUSD and AAVE.

## References

- Implementation: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418.sol), [AaveV2Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418.sol), [AaveV2Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418.sol)
- Tests: [AaveV2Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Ethereum_TemporaryFreezeOfLongTailV2Assets_20240418.t.sol), [AaveV2Polygon](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Polygon_TemporaryFreezeOfLongTailV2Assets_20240418.t.sol), [AaveV2Avalanche](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20240418_Multi_TemporaryFreezeOfLongTailV2Assets/AaveV2Avalanche_TemporaryFreezeOfLongTailV2Assets_20240418.t.sol)
- [Discussion](https://governance.aave.com/t/arfc-temporary-freeze-of-long-tail-v2-assets/17403)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).
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