Author: ACI (Aave Chan Initiative)
Date: 2024-11-06
Risk Parameters have been updated accordingly with Risk Service Providers feedback 2024-11-20
Summary
This proposal aims to enable tBTC/WBTC liquid E-Mode for the Main Instance. By implementing this change, we seek to enhance capital efficiency for borrowers using tBTC/WBTC as collateral, particularly for borrowing other stablecoins.
Motivation
The motivation behind this proposal stems from several key factors:
- High Utilization: tBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on the platform.
- Capital Efficiency: Enabling liquid E-Mode for tBTC/WBTC will allow borrowers to substantially improve their capital efficiency when using this asset as collateral.
- Controlled Growth: Liquid E-Mode provides a mechanism for more precise control over the growth and borrow demand in relation to the overall stablecoin liquidity within Aave v3 on Mainnet.
- Enhanced Borrowing Capacity: This change will enable users to borrow larger amounts of other stablecoins against their tBTC/WBTC collateral, potentially increasing platform utilization and revenue.
By implementing this proposal, we aim to optimize the use of tBTC/WBTC within the Aave ecosystem, attracting more liquidity for stablecoins.
Specification
This proposal will add tBTC/WBTC liquid E-Mode
Risk Parameters have been updated 2024-11-20 as per latest feedback provided by Risk Service Providers.
tBTC/WBTC E-Mode
| Parameter | Value | Value |
|---|---|---|
| Asset | tBTC | WBTC |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 93% | - |
| Liquidation Threshold | 95% | - |
| Liquidation Bonus | 1.50% | - |
Useful links
Disclaimer
This proposal is directly powered by ACI (Aave Chan Initiative). ACI did not received compensation for creation of this proposal.
Next Steps
- If consensus is reached on this ARFC, escalate this proposal to the 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
436.8K AAVE95.5%
NAY
1.11 AAVE0%
Abstain
20.52K AAVE4.5%
Timeline
Nov 20, 2024Proposal created
Nov 21, 2024Proposal vote started
Nov 24, 2024Proposal vote ended
Feb 03, 2026Proposal updated