Author: ACI

Date: 13/09/2024

Summary

Superlend is building a lending and borrowing aggregator platform that allows users to manage their positions across multiple chains and protocols, always accessing the best APRs for lending and the lowest rates for borrowing. The Superlend project was Initially conceived during the Etherlink Accelerator in Singapore as a lending and borrowing platform on Etherlink.

Superlend's goals include launching their own dedicated money markets using the Aave V3 codebase on Etherlink and Arbitrum, while also integrating Aave V3 markets already deployed by the Aave DAO across the EVM ecosystem, such as on Ethereum, Base, and Polygon, into their aggregator. For the Arbitrum deployment, they are planning to deploy an instance of Aave V3 that will exclusively support ETH and ETH-correlated assets (such as LRTs and LSTs), similar to Aave's Lido instance on Ethereum. These deployments and integrations will enable users to seamlessly manage their positions within the robust and secure Aave framework, while also allowing Superlend to offer innovative cross-chain liquidity management features. Additional details for the Arbitrum proposal will be provided in the future as they finalize the risk parameters and asset selection. Leveraging Aave's well-audited and secure infrastructure allows them to accelerate their development without compromising on security, avoiding the complexities and costs associated with building from scratch.

In recognition of the value provided by the Aave community, Superlend proposes a revenue-sharing model, committing to share 15% of the revenue generated from these markets with the Aave DAO.

Motivation

The Aave V3 codebase has established itself as a cornerstone in the DeFi ecosystem, renowned for its reliability, security, and quality. Successful projects like the Spark Protocol and RealT further affirm Aave's technology and reputation. Superlend's objectives are twofold: launching their own innovative money markets using the Aave V3 codebase on Etherlink and Arbitrum, and integrating the various Aave V3 markets already deployed by the Aave DAO across the EVM ecosystem (such as those on Ethereum and Polygon) into their aggregator. For the Arbitrum deployment, they plan to deploy an instance of Aave V3 focused exclusively on ETH and ETH-correlated assets, similar to the Lido instance that Aave has deployed on Ethereum. By doing so, they aim to provide users with a cohesive experience that leverages the strength of Aave's framework while also showcasing the unique features and innovations that Superlend can bring to the market.

One of Superlend's other motivations for deploying on Etherlink and Arbitrum-like chains using the Aave V3 codebase is to enable a feature for their aggregator that allows users to keep their USDC in the best APY protocol across chains with a single click. After extensive testing with the LayerZero-like cross-chain protocol Across+, as well as flash-loan scripts, they discovered that integrating an Aave deployment with the Portal feature activated, along with a third-party bridge provider, could allow users to move their USDC positions from Compound on Arbitrum to Aave on Optimism seamlessly. In this scenario, Superlend markets can serve as a "temporary station" where liquidity is parked for a few seconds during the transfer. Before making such a feature live, they would, of course, share it first in the forum and seek feedback when it's ready.

Superlend's vision aligns with deploying "friendly" forks of Aave V3, customized for specific use cases and ecosystems, and integrating these Aave V3 deployments by the Aave DAO as a prominent part of their aggregator. Keeping the open-source ethos at the forefront, they believe it is fair and respectful to seek the Aave community's approval first, ensuring a mutually beneficial path forward for both Aave and Superlend.

As Aave continues to explore areas like off-chain collateral and new developments such as GHO, projects like Superlend have the opportunity to add value and drive the adoption of Aave's technology. Their proposal to deploy an Aave V3 fork on Etherlink and Arbitrum represents a strategic opportunity to extend Aave's influence within the rapidly evolving cross-chain DeFi landscape. In appreciation of this opportunity, they propose a revenue-sharing model to ensure mutual benefit from this collaboration.

Superlend has confirmed plans to allocate a portion of its community token supply towards a potential airdrop or distribution specifically for stkAAVE holders, and they wish to leverage the existing set of holders and delegates, aligning with AAVE DAO's governance model. Specific details will be announced closer to the event. Currently, Superlend's priority remains product development and refinement.

Specification

Market Deployment

• Aave V3 Codebase: Superlend will deploy their money markets on Etherlink and Arbitrum using the Aave V3 codebase. For the Arbitrum deployment, they plan to focus exclusively on ETH and ETH-correlated assets, similar to Aave's Lido instance on Ethereum. Additionally, there could be a second market on Arbitrum dedicated to USDC or similar assets to support their cross-chain liquidity management feature, which would use the Aave Portal feature. These markets will operate independently from their aggregator platform but will be fully integrated within the Superlend ecosystem. These deployments are integral to both their goal of launching innovative Superlend markets and their broader strategy to integrate the existing Aave V3 markets deployed by the Aave DAO across the EVM ecosystem (e.g., on Ethereum and Polygon) into their aggregator.
  • Test their proposed deployment that they have live on Etherlink testnet here.
  • Find the addresses of their deployed contracts on the testnet here.
• Revenue Sharing: Superlend proposes sharing 15% of the revenue generated from these markets with the Aave DAO, provided that their quarterly revenue exceeds $200,000. These contributions will be made on a quarterly basis.

Governance and Risk Management

• Governance Model: Initially, the markets will be governed through a 5/8 multi-sig model. As the project matures, they plan to transition to a more decentralized governance structure, aligning with the principles of Aave's governance model.
• Risk Management: Superlend has partnered with ChainRisk for continuous risk parameter tuning and will onboard additional partners as needed to ensure comprehensive risk management for these markets.

Disclaimer

The ACI has not been compensated for the publication of this proposal.

Next Steps

1. If consensus is reached on the ARFC, escalate the proposal to the Snapshot stage.
2. If the Snapshot outcome is favorable, Superlend markets will be deployed on Etherlink and Arbitrum, adhering to the revenue-sharing and governance commitments outlined.

Copyright

Copyright and related rights waived via CC0.