[ARFC] Deploy Aave v3 on Mantle
Author: ACI
Date: 2025-01-07
Proposal updated with latest Risk Service Providers recommendations on 2026-01-15 and also updated to include Tokenlogic's contributions about GHO, GSM Parameters and Budget.
Proposal edited on 2026-01-19 to update the proposal with latest forum discussion. Snapshot will be posted again.
Simple summary
The current [ARFC] proposes deploying Aave V3 on Mantle Network.
Motivation
Mantle Network is an EVM-compatible Layer 2 scaling solution for Ethereum (rollup), enabling existing Ethereum contracts and tools to operate with minimal modifications. By leveraging a modular architecture, Mantle combines an optimistic rollup design with innovative data availability solutions to reduce costs while maintaining Ethereum’s security. Data availability is managed by an external DA layer, currently powered by EigenDA technology through Mantle DA, with plans to fully adopt EigenDA upon its mainnet stable launch.
By deploying on Mantle, Aave can take advantage of Mantle’s integration with Bybit products, enabling seamless access to Bybit’s 30 million active users. This creates a significant opportunity to broaden Aave’s user base and make DeFi more accessible to a wider audience.
Mantle currently boasts a TVL of approximately $570 million, while its flagship LST (mETH) holds a TVL of $1.85 billion. More details here.
Benefits of deploying on Mantle
-
Accessibility and Distribution
As Mantle is closely integrated with Bybit, Aave’s deployment on Mantle positions the protocol in front of an expanding audience.
- This integration creates a gateway for tens of millions of potential new users to access Aave’s lending and borrowing products, making DeFi simpler and more accessible than ever before.
-
Incentive campaigns
Mantle’s ongoing incentive program, Metamorphosis Season 2 offers a powerful catalyst for user engagement and liquidity growth within the ecosystem.
- Restaking mETH into cmETH, participants earn Powder—soon to be convertible into COOK, the governance token of the mETH Protocol—and gain exposure to multiple streams of yield from staking, restaking, and additional protocol rewards. cmETH also accruing value through EigenLayer, Karak, Symbiotic and Veda points.
Specification
Risk Parameters will be provided by Service Providers and this section will be updated accordingly.
ARFC updated 2026-01-15
Specification
| Parameters | Value | Value | Value | Value | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|---|---|---|---|
| Asset | WETH | WMNT | USDT0 | USDC | USDe | GHO | sUSDe | fBTC | syrupUSDT | wrsETH |
| Isolation mode | Yes | Yes | No | No | No | No | No | No | No | No |
| Borrowable | Yes | No | Yes | Yes | Yes | Yes | No | No | No | No |
| Collateral Enabled | Yes | Yes | No | No | No | No | No | No | No | No |
| Supply Cap | 30,000 | 5,000,000 | 50,000,000 | 10,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 50 | 70,000,000 | 18,000 |
| Borrow Cap | 28,000 | - | 47,500,000 | 9,500,000 | 17,500,000 | 18,000,000 | - | - | - | - |
| Debt Ceiling | 30,000,000 | 2,000,000 | - | - | - | - | - | - | - | - |
| LTV | 80.50% | 40.00% | - | - | - | - | - | - | - | - |
| LT | 83.00% | 45.00% | - | - | - | - | - | - | - | - |
| Liquidation Bonus | 5.50% | 10.0% | - | - | - | - | - | - | - | - |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% | 10% | - | 10% | 10% | 10% | 10% |
| Variable Base | 0.0% | - | 0.0% | 0.0% | 0.0% | 2.0% | - | - | - | - |
| Variable Slope1 | 2.50% | - | 5.0% | 5.0% | 5.25% | 3.0% | - | - | - | - |
| Variable Slope2 | 8.00% | - | 10.0% | 10.0% | 12.0% | 40.0% | - | - | - | - |
| Uoptimal | 90.0% | - | 90.0% | 90.0% | 85.0% | 90.0% | - | - | - | - |
| Reserve Factor | 15% | - | 10% | 10% | 25% | 10% | - | - | - | - |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled |
| Flashloanable | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No | No | No | No | No | No | No | No |
| Borrowable in Isolation | No | No | Yes | Yes | Yes | Yes | No | No | No | No |
| E-Mode | 5 | - | 1, 2, 3, 4 | 1, 2, 3, 4 | 1, 2, 3, 4 | 1, 2, 4 | 1 | 3 | 4 | 5 |
E-Mode Configurations
sUSDe Stablecoins #1
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | sUSDe | USDe | USDT0 | USDC | GHO |
| Collateral | Yes | Yes | No | No | No |
| Borrowable | No | No | Yes | Yes | Yes |
| Max LTV | 90.00% | 90.00% | - | - | - |
| Liquidation Threshold | 92.00% | 92.00% | - | - | - |
| Liquidation Bonus | 4.00% | 4.00% | - | - | - |
USDe Stablecoins #2
| Parameter | Value | Value | Value | Value |
|---|---|---|---|---|
| Asset | USDe | USDT0 | USDC | GHO |
| Collateral | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes |
| Max LTV | 90.00% | - | - | - |
| Liquidation Threshold | 93.00% | - | - | - |
| Liquidation Bonus | 2.00% | - | - | - |
fBTC Stablecoins #3
| Parameter | Value | Value | Value | Value |
|---|---|---|---|---|
| Asset | fBTC | USDT0 | USDC | USDe |
| Collateral | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes |
| Max LTV | 75.00% | - | - | - |
| Liquidation Threshold | 79.00% | - | - | - |
| Liquidation Bonus | 8.00% | - | - | - |
syrupUSDT Stablecoins #4
| Parameter | Value | Value | Value | Value |
|---|---|---|---|---|
| Asset | syrupUSDT | USDT0 | USDC | GHO |
| Collateral | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes |
| Max LTV | 90.00% | - | - | - |
| Liquidation Threshold | 92.00% | - | - | - |
| Liquidation Bonus | 4.00% | - | - | - |
wrsETH Correlated #5
| Parameter | Value | Value |
|---|---|---|
| Asset | wrsETH | WETH |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 93.00% | - |
| Liquidation Threshold | 95.00% | - |
| Liquidation Bonus | 1.00% | - |
CAPO
| Asset | maxYearlyRatioGrowthPercent | ratioReferenceTime | MINIMUM_SNAPSHOT_DELAY |
|---|---|---|---|
| syrupUSDT | 8.45% | Monthly | 7 |
| sUSDe | 15.19% | Monthly | 14 |
| wrsETH | 6.67% | Monthly | 14 |
GHO Stablecoin
Facilitator & Bridging
Mint an additional new 20M GHO to fund the remoteGSM on Mantle.
- OwnableFacilitator Mint Cap: 100M GHO (No change from Plasma proposal)
- Additional Mint: 20M GHO (additional to Plasma Mint)
GhoReserve
Deploy GhoReserve on Mantle to hold bridged GHO initially.
Configure stataUSDT0 GSM as an entity with a draw capacity of 20M GHO.
Deploy a GhoDirectMinter facilitator on Ethereum to enable GHO issuance for Mantle.
- Mint Cap: 20M GHO
As required, future Minting of GHO on Ethereum, to be supplied into the remoteGSM on Mantle, will be performed via direct submission of AIPs.
CCIP Bridge Configuration:
- Bucket Capacity: 20M GHO
- Inbound Capacity: 1.5M GHO
- Outbound Capacity: 1.5M GHO
- Refill Rate: 300 GHO/sec
Currently, the CCIP Bridge to Mantle Network is v1.5 and requires upgrading to v1.6 before GHO lanes are to be established. TokenLogic will work closely with Chainlink to sync upgrade timelines and extend the new GHO lanes to/from Mantle.
GSM Parameters (stataUSDT0)
| Parameter | Value |
|---|---|
| GHO Bucket Cap | 10M GHO |
| stataUSDT0 Exposure Cap | 8.5M |
| Freeze Lower Bound | $0.990 |
| Freeze Upper Bound | $1.010 |
| Unfreeze Lower Bound | $0.995 |
| Unfreeze Upper Bound | $1.005 |
| Mint GHO Fee | 0% |
| Burn GHO Fee | 0.15% |
USDT deposits into stataUSDT0 trigger GHO transfers using Ethereum-held inventory via GSM.
GHO Steward Configuration
GhoAaveSteward
updateGhoBorrowCap: ±100%updateGhoBorrowRate: ±5% on optimal usage ratio, base variable rates, slopesupdateGhoSupplyCap: Up to +100%
GhoGsmSteward
updateGsmExposureCap: ±100%updateGsmBuySellFees: ±0.5% per side (FixedFeeStrategy)
Both stewards remain callable only by the GHO steward protocol.
Budget
The Aave and Mantle teams will each provide incentive budgets to support the growth of Aave Protocol for the initial 6-month period post-launch, subject to achieving growth expectations and prevailing market conditions.
- Mantle: 8M units of MNT value at around 8.8M USD, assuming MNT is trading at $1.10ea.
- Aave DAO: To provide incentive rewards via the pre-approve Extended Ahab Budget facility and additionally, 1.5M GHO via the Aave Liquidity Committee to promote GHO’s adoption on Mantle.
For GHO, Ethereum:
Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
Amount: 1.5M
Spender: Aave Liquidity Committee (ALC) 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
Method: approve() aEthLidoGHO on the Aave Collector contract to the ALC address.
Disclaimer
This proposal is powered by Skywards. The ACI is not directly affiliated with Mantle and did not receive any compensation for creating this proposal.
Next Steps
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
- 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 via CC0.
Off-Chain Vote
YAE
654.79K AAVE100%
NAY
15.22 AAVE0%
Abstain
2.47 AAVE0%
Discussion
Timeline
Jan 19, 2026Proposal created
Jan 20, 2026Proposal vote started
Jan 23, 2026Proposal vote ended
Feb 03, 2026Proposal updated