[ARFC] Aave V3 Deployment on BNB Chain
Title: [ARFC] Aave V3 Deployment on BNB Chain
Author: @marczeller - Aave-Chan Initiative
Date: 2023-04-04
Summary:
This ARFC proposes the deployment of Aave V3 on the BNB Chain, expanding Aave's presence and tapping into the growing DeFi ecosystem and user base of BNB Chain.
Abstract:
Upon approval by the Aave community, Aave V3 will be deployed on the BNB Chain with a selection of suitable assets for collateral, including BNB, WBTC, BETH, WETH, USDC, and USDT. This deployment aims to enhance the growth and collaboration between the Aave and BNB Chain communities, providing new opportunities for both ecosystems.
Motivation:
Deploying Aave V3 on the BNB Chain presents potential benefits for both Aave and BNB Chain ecosystems. Aave would gain access to BNB Chain's user base, DeFi ecosystem, and potential additional revenue. In return, BNB Chain would benefit from having a flagship DeFi project like Aave on its platform, further diversifying DeFi options available to its users.
Specification:
The ARFC suggests deploying Aave V3 on the BNB Chain with the following assets for collateral: CAKE, BNB, BTCB, WETH, USDC, and USDT. The table below provides the suggested risk parameters for each asset.
| Risk Parameter | CAKE | BNB | BTCB | WETH | USDC | USDT |
|---|---|---|---|---|---|---|
| Isolation Mode | YES | NO | NO | NO | NO | NO |
| Enable Borrow | NO | NO | YES | YES | YES | YES |
| Borrowable in Isolation | NO | NO | NO | NO | YES | YES |
| Enable Collateral | YES | YES | YES | YES | YES | YES |
| Emode Category | N/A | N/A | N/A | N/A | N/A | N/A |
| Loan To Value | 55.00% | 70.00% | 70.00% | 80.00% | 77.50% | 75.00% |
| Liquidation Threshold | 61.00% | 75.00% | 75.00% | 82.50% | 80.00% | 80.00% |
| Liquidation Bonus | 10.00% | 10.00% | 10.00% | 10.00% | 5.00% | 5.00% |
| Reserve Factor | 20.00% | 20.00% | 20.00% | 15.00% | 10.00% | 10.00% |
| Liquidation Protocol Fee | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Borrow Cap | 1,800,000 | 42,000 | 115 | 3,300.00 | 20,000,000* | 20,000,000* |
| Supply Cap | 5,300,000 | 46,000 | 210 | 6,000.00 | 50,000,000* | 50,000,000* |
| Debt Ceiling | $10,000,000 | N/A | N/A | N/A | N/A | N/A |
| Stable Borrowing | NO | NO | NO | NO | NO | NO |
| uOptimal | 45% | 45% | 45% | 80% | 90% | 80% |
| Base | 0% | 0% | 0% | 1% | 0% | 0% |
| Slope1 | 7% | 7% | 7% | 3.80% | 4% | 4% |
| Slope2 | 300% | 300% | 300% | 80% | 60% | 75% |
Deployment Checklist:
- Risk service providers feedback ✔
- BGD Labs Infrastructure/technical evaluation Report ✔
- Oracle recommendation ✔ (Chainlink)
- The graph support ✔
- Cross-chain messaging infrastructure for governance ✔
Disclaimer
The Aave-Chan Initiative (ACI) is not compensated in any form by Binance & BNB for creating this ARFC proposal. This ARFC has been prepared solely to facilitate community discussion. At the time of writing, the author owns ~70$ worth of assets on the BNB chain.
Next Steps
- Integrate BGD Labs Infrastructure/technical evaluation report once available.
- Refine the ARFC based on community feedback and risk service provider recommendations.
- If consensus is reached and the proposal is refined, submit the ARFC for a snapshot vote for final approval.
- If consensus is reached, submit a deployment AIP to activate Aave V3 BNB.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
Discussion
Timeline
Jul 12, 2023Proposal created
Jul 13, 2023Proposal vote started
Jul 16, 2023Proposal vote ended
Dec 18, 2025Proposal updated