{"title":"AIP 7: Aavenomics quarterly upgrade","shortDescription":"This AIP will increase the responsibility of AAVE stakers for their service of protecting the Aave protocol by the formal activation of the slashing and adjust the emission accordingly","description":"---\naip: 7\ntitle: Aavenomics Quarterly Upgrade\nstatus: Proposed\nauthor: Marc Zeller (@marczeller)\ndiscussions: https://governance.aave.com/t/arc-aavenomics-quarterly-upgrade/1631\ncreated: 2021-01-05\nupdated: 2021-01-05\n---\n\n## AIP rationale\n\nOn the 25th of September 2020, with the results of AIP-1, the Aave protocol kickstarted its initial phase of Aavenomics and Safety Incentives with a scheduled distribution of 400 AAVE per day to Safety module stakers.\n\nWith the implementation of the Aave Protocol V2 and the soft deadline of first-quarter reached, this proposal will allow an upgrade of the reserve emission model for the Safety module.\n\nThis AIP will increase the responsibility of AAVE stakers for their service of protecting the Aave protocol by the formal activation of the slashing.\n\nThe slashing officially enforces the currently implicit responsibility and risk of the participation in the stakings modules of Aave. In the worst-case scenario of critical failure, an amount to be decided will be slashed from stakers deposits.\n\nIn this phase 0 of the slashing, the auction mechanism will not be automatized yet and if a slash were to happen it would be done through governance and direct compensation.\n\n\n## AIP content in short\n\n- Increasing the Safety Incentives: As the possibility of slashing will now be formally introduced, staking reward should reflect the risk. Hence we propose to increase the Safety Incentives to 550 AAVE per day\n- Slashing %: The maximum slashing amount is set to 30%\n\n\n## Implementation details\n\nThe payload to be executed is available at\n\nhttps://etherscan.io/address/0x4ab8ba929e4cc780cb82be34eea29a9ea7a58049#code\n\nThe payload will upgrade the Aave reserve contract to a new implementation\n\nhttps://etherscan.io/address/0xa335e2443b59d11337e9005c9af5bc31f8000714#code\n\nAnd introduce a reserve controller, with the rights of approving transfers/transferring assets out of the Aave Reserve, under control of the Aave governance short executor\n\nhttps://etherscan.io/address/0x1e506cbb6721b83b1549fa1558332381ffa61a93#code\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n"}