[TEMP CHECK] Onboard USDS and sUSDS to Aave v3

Title: [TEMP CHECK] Onboard USDS and sUSDS to Aave v3

Author: @ACI

Date: 2024-08-28

---

Summary

This proposal aims to onboard USDs and sUSDS, the rebranded DAI and sDAI tokens to Aave v3.

Motivation

DAI has been a cornerstone asset in the Aave ecosystem, with a long and successful history of supply across various versions of the protocol. MakerDAO marked a significant milestone with a rebranded to Sky, introducing USDS and sUSDS as the new iterations of DAI and sDAI. Given the established track record and widespread adoption of their predecessors, we propose to onboard these new assets to Aave v3.

By integrating USDS and sUSDS into Aave v3, we aim to maintain continuity for users who have relied on DAI and sDAI while embracing the evolution of these assets under the Sky brand.

Proof of Liquidity and Deposit Commitments

Sky protocol team has discussed providing both token incentives and liquidity provision when USDS is onboarded. ACI is in discussion with members of Sky protocol team to finalize these programs.

Specification

Based on discussion with members of Sky protocol team, we propose the following:

• sUSDS added as collateral and borrow asset to Aave v3 Main Instance
• USDS added as supply and borrow asset to Aave v3 Lido Instance
• Integration with Paraswap to allow users to seamlessly swap between DAI and USDS variants within the Aave system.

We invite all service providers and community members to weigh in on these suggestions.

Final contract addresses will be provided upon final launch of the Sky protocol.

Risk Parameters will be provided at ARFC Stage by Risk Service Providers.

Disclaimer:

This proposal is powered by Skywards. ACI is not directly affiliated with Sky and did not receive compensation for creation this proposal.

Next Steps

1. If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
2. If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
3. Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage
4. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal

Copyright:

Copyright and related rights waived under CC0