📜 Introduction

What is AAVE ?

Aave is an Ethereum-based protocol that offers automated crypto loans. Users can deposit cryptocurrency as collateral and borrow other cryptocurrencies, up to a certain percentage of the collateral value. This is known as the loan-to-value (LTV), and Aave limits the borrowed amount to 80% of the current value of the pledged collateral

What is Aave Governance ?

Aave Governance consists of the proposition and decision-making proccess for the different risk parameters changes, improvements and incentives that constitute the policies, and upgrades to governance itself

Governance is executed with proposals and users can participate in these proposals becoming voters after making a simple transaction (vote) in the Ethereum network.

🔎 Methodology

In this article we are going to focuses on gas usage on the Ethereum network which spent by Voters on Aave Governance; for this purpose I'll use these tables to delve deeper into the ecosystem and find out questions :

ethereum.aave.ez_votes & ethereum.core.ez_decoded_event_logs -> filter voting acitvity on the platform and calculate successful transactions

ethereum.core.fact_transactions -> join vote transactions by tx-hash to find amount of gas fees

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💡 Tips

By default, all results and observations are related to the last 180 days; also you can change it

Charts with "All time" tags don't change with Timespan parameter

Also notice that only transcations with "successed" tag has been calculated

🤔 Questions?!

1. Governace Activity ?
   • Total Votes and Voters
   • Daily Votes and Unique Voters Over Time
   • Average & Median Votes per Proposal
   • Daily Average number of voters and Votes
2. Governance Gas Usage?
   • Total Gas Fees in ETH & USDC
   • Daily Cumulative Gas Fees in ETH & USDC
   • Average gas for a single vote in ETH
   • Distribution of Fees Paid by Voter
   • Top Gas Guzzlers on Aave Governance
   • Proposals by Spent Gas Fees

Insight

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According to the metrics we can realize 12.3K Votes cast by 5.3K Voters which show indicate that more than 2 vote done by every voters

In range of 180 days we can see avrage 29.5 voters per day which is casting over 68 votes

In case of Proposals we had 84 voted proposal at all which had 146 votes per proposal

If look closer in votes over time we can see some spikes in chart activity, on first days of December 2022 which total votes rich to the highest amount 1.2K votes; if we compare the activity before and after December we can realize that the amount of voters to the proposal has been deacresed over time compare to the months before December

in Overall we can see at range of 180 days the number of Votes and Voters has decreased after December 2022 which prove lower interactions to the proposals specially in 2023

Insight

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In range of 180 days we can see 17.8 $ETH has been spent for gas fee which is equale to 24.5K USD indicate almost 136 USD for every single day; moreover every single vote cost 0.00145 $ETH casting 2.5 USD according to ETH price

If we look gas spent over time we can see some big amount of ETH has been spent on December and November; on Dec 2th we can realize that 1.76K USD spent on gas fee which is 13 times bigger than average days; moreover in second place Nov 12th had 1.25K USD

Also by looking at cumulative charts we can see the sharpness of line on November and December has increased which indicate huge amount of gas spent on these month

As mentioned earlier By approaching to 2023 the amount of spent gas fee dropped significantly which show lower user interactions

Insight

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the data prove that in range of 180 days 45.5% of voters, totaling 2410 , have paid 0 to 2 dollar per vote which idicate that voters are paid reasonably affordable range

On the other hand we had voters who paid greater than 5 USD which observed more than 21% of voters; he majority of these users incurring higher costs

Moreover in 180 days past these addresses spent most gas fee for voting :

1. 0x62a43123fe71f9764f26554b3f5017627996816a -> Flipsidecrypto 307 $USD
2. 0x070341aa5ed571f0fb2c4a5641409b1a46b4961b -> Franklindao.eth 290 $USD
3. 0xea172676e4105e92cc52dbf45fd93b274ec96676 -> stablelab.eth 280 $USD

Insight

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In left side you can see proposals in range 180 days past which show gas spent on each of them

as you can see proposal number 127 had the highest amount spent gas fee in last 6 month (totaling 3.8K USD) which sar more than avrage gas used

also after this proposal the amount of spent gas fee decreased signficantly compared to past proposal

Despite of lower spent gas fee over time we can see avrage spent gas fee increased which rich 5 USD on proposal 173 from 127

Conclusion

According to the Metrics :

There was 17.806 $ETH (totaling $24,507 USD) spent gas fees by the voters in the past 180 days

There was 6.195 $ETH ($9,631 USD) spent in gas fees by the voters in the past 90 days

The average gas spent for a single vote over the last 180 days equals 0.00145 ETH

As we mentioned earlier by approching to new year the amount of Voters and spent gas on proposals dropped signficantly which show lower user interaction on Aave protocol which can be related to these reasons :

1. One of the main reason can be high cost of Voting; so user are abstaining to vote on every proposal. the distributions of spent gas fee can prove that almost 45% of voters rather to spent reasonable gas fee on proposals between 0 to 2 USD
2. The second reason is maybe there isn't very interesting proposals which influent on user so they are rather to note vote ; as we can see the highest spent gas fee were on proposal 127 and we can't see any other spike in past 6 month

Hope you Enjoyed 🖤

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