[ARFC] Enable eBTC/WBTC liquid E-Mode on Aave v3 Core Instance
Author: ACI ( Aave Chan Initiative)
Date: 2024-12-10
ARFC updated 2024-12-19 with latest Risk Parameters provided by Risk Service Providers.
Summary
This proposal aims to enable eBTC/WBTC (Etherfi) liquid E-Mode for the Core Instance. By implementing this change, we seek to enhance capital efficiency for borrowers using eBTC/WBTC as collateral.
Both TEMP CHECK and TEMP CHECK Snapshot have passed recently.
Motivation
The motivation behind this proposal stems from several key factors:
- High Utilization: eBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on the platform.
- Capital Efficiency: Enabling liquid E-Mode for eBTC/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 Core Instance.
- Enhanced Borrowing Capacity: This change will enable users to borrow larger amounts of other stablecoins against their eBTC/WBTC collateral, potentially increasing platform utilization and revenue.
By implementing this proposal, we aim to optimize the use of eBTC/WBTC within the Aave ecosystem, attracting more liquidity.
Specification
This proposal will add eBTC/WBTC liquid E-Mode. Risk Parameters have been provided by Risk Service Providers and ARFC has been updated accordingly.
| Parameter | Value |
|---|---|
| Network | Ethereum |
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap | 80 |
| Borrow Cap | 8 |
| Debt Ceiling | - |
| LTV | 67% |
| LT | 72% |
| Liquidation Bonus | 10% |
| Liquidation Protocol Fee | 10% |
| Variable Base | 0.0% |
| Variable Slope1 | 4.0% |
| Variable Slope2 | 300% |
| Uoptimal | 45% |
| Reserve Factor | 50% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
E-mode
| Parameter | Value | Value |
|---|---|---|
| Asset | eBTC | WBTC |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 83% | - |
| Liquidation Threshold | 85% | - |
| Liquidation Bonus | 3.0% | - |
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
- Publication of ARFC and escalate this proposal to ARFC Snapshot if there’s positive feedback.
- 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
766.17K AAVE100%
NAY
2.09 AAVE0%
Abstain
0.06 AAVE0%
Timeline
Dec 19, 2024Proposal created
Dec 20, 2024Proposal vote started
Dec 23, 2024Proposal vote ended
Feb 03, 2026Proposal updated