# Activate Proof of Reserve
AI summary
This proposal aims to activate a 'Proof of Reserve' mechanism for Aave's V2 platform on Avalanche. This mechanism is designed to protect against a specific type of attack where unbacked tokens could be created on the Avalanche network, particularly for assets that are 'bridged' from Ethereum. It involves updating the Aave V2 Pool Configurator to include a Proof of Reserve Admin role.
If passed, this proposal will enhance the security of Aave V2 on Avalanche by mitigating the risk of 'infinite minting attacks' for bridged assets. This benefits users who deposit or borrow these assets by reducing the risk of their value being diluted. There are no direct financial losses or gains for any specific group, but overall protocol security is improved.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Activate Proof of Reserve
title: "Activate Proof of Reserve" author: "BGD Labs (@bgdlabs)" discussions: "https://governance.aave.com/t/bgd-technical-maintenance-proposals/15274/11"
Simple Summary
This proposal aims to add Proof of Reserve Admin role to the Avalanche V2 Pool Configurator in order to activate the proof of reserve mechanism.
Motivation
At the moment, in Aave v3 Avalanche there are multiple assets with a “bridged” nature: DAI.e, USDC.e, USDT.e, AAVE.e, LINK.e, WBTC.e, BTC.b and WETH.e.
These assets have 2 sides: one deposit account in the network where the a…