Risk Parameters have been updated by Risk Service Providers and ARFC has been updated accordingly 2025-04-01
Summary
This publication presents the community an opportunity to expand AAVE governance token integration on the AAVE platform by adding AAVE collateral option to Base.
AAVE token has wide integrations into all other major AAVE instances including ETH Mainnet, Arbitrum, Optimism, Polygon, and Avalanche. Adding AAVE to the Base instance is the next logical step in AAVE token integration within the AAVE lending platform.
Motivation
- AAVE token is a versatile governance token which is already accepted collateral on all major AAVE instances.
-The Base Market is growing in TVL, the addition of collateral options already found on other AAVE instances will increase Base Market growth. -There is deep liquidity on Base chain for the AAVE token already. Price impact of just 0.77% for $1m ETH/AAVE trades using jumper.exchange on Base. -Aerodrome (Base DEX) has $10m TVL in WETH/AAVE concentrated liquidity.
Base has seen expansion in its TVL now surpassing Arbitrum by ~15%. Base chain is a small but significant part of total Defi TVL (all chains) of 3%. Source: https://defillama.com/chains
Specification
Ticker: AAVE AAVE L2 (Base) contract address: [0x63706e401c06ac8513145b7687A14804d17f814b] (https://basescan.org/address/0x63706e401c06ac8513145b7687a14804d17f814b)
Risk Parameters have been updated and ARFC has been updated accordingly 2025-04-01
| Parameter | Value |
|---|---|
| Asset | AAVE |
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap | 30,000 |
| Borrow Cap | - |
| Debt Ceiling | - |
| LTV | 60% |
| LT | 65% |
| Liquidation Penalty | 10% |
| Liquidation Protocol Fee | 10% |
| Variable Base | - |
| Variable Slope1 | - |
| Variable Slope2 | - |
| Uoptimal | - |
| Reserve Factor | - |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
| E-Mode Category | N/A |
Useful Links
https://aave.com/docs/primitives/aave
Disclaimer
Edit: The original author does not hold AAVE token and has not been compensated for the writing of this proposal.
Next Steps
- Publish an ARFC, collect community & service provider feedback before moving forward with governance.
- if feedback is positive, escalate to ARFC snapshot vote stage
- if 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.
Off-Chain Vote
YAE
684.82K AAVE100%
NAY
0.01 AAVE0%
Abstain
0 AAVE0%
Timeline
Apr 01, 2025Proposal created
Apr 02, 2025Proposal vote started
Apr 05, 2025Proposal vote ended
Feb 12, 2026Proposal updated