[ARFC] Add fUSDC to Ethereum v3

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title: [ARFC] Add fUSDC to Ethereum v3 author: @marczeller - Aave-Chan Initiative created: 2023-05-23

Summary

This ARFC presents the community with the opportunity to add fUSDC to the Ethereum v3 Liquidity Pool.

Abstract

fUSDC is a yield-bearing token representing USDC deposits in Flux, a fork of Compound V2. Adding fUSDC to Ethereum v3 would allow fUSDC holders to borrow stablecoins on Aave and leverage their fUSDC position, boosting the stablecoin utilization rate on Aave, while attracting new stablecoin deposits thanks to boosted supply rates.

Motivation

fUSDC is a new financial primitive with arguably the best risk-adjusted yield available in DeFi. Adding support for fUSDC on Ethereum V3 in isolated mode would allow fUSDC holders to borrow stablecoins on Aave and leverage their fUSDC position, boosting the stablecoin utilization rate on Aave, while attracting new stablecoin deposits thanks to boosted supply rates.

Specification

Ticker: fUSDC

Contract Address: [0x465a5a630482f3abd6d3b84b39b29b07214d19e5](https://etherscan.io/address/0x465a5a630482f3abd6d3b84b39b29b07214d19e5)

Parameter	Value
Isolation Mode	Yes
Borrowable	No
Collateral Enabled	Yes
Supply Cap	220M (~$4.45M)
Borrow Cap	N/A
Debt Ceiling	$1M
LTV	77%
LT	79%
Liquidation Bonus	4.5%
Liquidation Protocol Fee	20%
Variable Base	0.00%
Variable Slope1	4.00%
Variable Slope2	60.00%
Uoptimal	90.00%
Reserve Factor	10.00%
Stable Borrowing	Disabled

Next Steps

• If the ARFC snapshot vote passes, move the proposal to the Aave Improvement Proposal (AIP) stage for final approval and implementation.

Disclaimer

@marczeller and the Aave-Chan Initiative are not associated with or compensated by Flux Finance for publishing this AFRC.

Copyright

Copyright and related rights waived via CC0.