[ARFC] Enable LBTC/WBTC liquid E-Mode on Aave v3 Core Instance
Author: ACI ( Aave Chan Initiative)
Date: 2024-12-10
ARFC has been updated 2024-12-19 with latest Risk Parameters provided by Risk Service Providers.
Summary
This proposal aims to enable LBTC/WBTC liquid E-Mode for the Main Instance. By implementing this change, we seek to enhance capital efficiency for borrowers using LBTC/WBTC as collateral.
TEMP CHECK and TEMP CHECK Snapshot have passed recently.
Motivation
The motivation behind this proposal stems from several key factors:
- High Utilization: LBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on other platforms.
- Capital Efficiency: Enabling liquid E-Mode for LBTC/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.
By implementing this proposal, we aim to optimize the use of LBTC/WBTC within the Aave ecosystem, attracting more liquidity for the protocol and increasing revenues.
Specification
This proposal will add LBTC/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 | 800 |
| Borrow Cap | 80 |
| Debt Ceiling | - |
| LTV | 70.00% |
| LT | 75.00% |
| Liquidation Bonus | 8.50% |
| 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 | LBTC | WBTC |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 84% | - |
| Liquidation Threshold | 86% | - |
| Liquidation Bonus | 3.00% | - |
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 if positive feedback from Service Providers and Community then escalate Snapshot.
- 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
775.68K AAVE100%
NAY
2.46 AAVE0%
Abstain
0.04 AAVE0%
Timeline
Dec 19, 2024Proposal created
Dec 20, 2024Proposal vote started
Dec 23, 2024Proposal vote ended
Feb 03, 2026Proposal updated