Author: @Trident Digital Technologies
Date: 2024-11-05
Summary
The proposal aims to onboard Paxos PAXG stablecoin, to the Aave v3 protocol Main Instance on Ethereum. $25K in lending incentives will be available over the three months following launch of the initiative, additionally further rewards may be made made available based on performance and/or utilization targets of the pool if for ex. significant TVL milestones are hit.
Motivation
PAXG, a gold backed digital currency offered by Paxos is NYDFS approved and has a multi year track record on chain. With Paxos as a centralised and trusted entity in the cryptocurrency industry, PAXG brings a unique value proposition focused as the premier on chain gold asset
Onboarding Paxos's PAXG extends Aave Protocol's already diverse collateral offering to its users. PAXG users on Aave Protocol will be able to utilize the value of their holdings without giving up their exposure to gold. Introducing PAXG is expected to increase liquidity and engagement within the protocol.
Onboarding PAXG aligns with Aave DAO commitment to offering diversification across widely held and in-demand resources. It will enable users to tap into Paxos’s liquidity and reputation while benefiting from Aave’s established lending and borrowing functionalities. PAXG is expected to benefit from a major integration like Aave Protocol and over time is expected to attract more mainstream users to Aave, contributing to the overall growth and adoption of both on-chain gold and the Aave protocol.
Specification
Ticker: PAXG
Contract address: 0x45804880De22913dAFE09f4980848ECE6EcbAf78
Risk Parameters will be provided by Risk Services Providers at the earliest possible and ARFC will be updated with that feedback.
Disclosure
Trident is affiliated with Paxos and may receive compensation for efforts undertaken herein. ACI (Aave Chan Initiative) is not afiliated with Paxos and has not received compensation for escalating this proposal.
Next Steps
- If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
- If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage.
- 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
772.06K AAVE100%
NAY
2.25 AAVE0%
Abstain
2.03 AAVE0%
Timeline
Nov 11, 2024Proposal created
Nov 12, 2024Proposal vote started
Nov 15, 2024Proposal vote ended
Feb 12, 2026Proposal updated