[ARFC] Add sUSDE to Aave V3 Base Instance

[ARFC] Add sUSDE to Aave V3 Base Instance

Author: sreno

Date: 2025-02-03

ARFC edited by ACI under Skywards. Also Risk Parameters added after Risk Service Providers feedback 2025-02-17

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Summary

--EDITED: removed USDE-- This publication presents the community an opportunity to expand sUSDE integration on the AAVE platform by adding sUSDE collateral option to Base.

sUSDE is an innovative stable-coin derivative producing real yield through perpetual arbitrage and ETH backing yield.

Motivation

• Expanding sUSDE integration into Base would allow any size L2 participant to access sUSDE yields while avoiding the expensive gas fees incurred from ETH main-net. -Adding sUSDE to Base V3 market would allow Base sUSDE to be used productively through lending. This would facilitate the same 'Borrow USDC/USDT then stake/swap for sUSDE' arbitrage which happens within the ETH V3 main market, but on Base.

Ethena lacks strong foundations on Base L2 for their native yieldbearing stable-coin, sUSDE. The addition of sUSDE to Base V3 AAVE market would facilitate this expansion to the untapped L2 market for Ethena.

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

Updated price feeds for USDE and sUSDE could mean one or both will not have to be added to Base V3 in an isolated market.

Specification

Ticker: USDE and sUSDE USDE L2 Contract Address: [0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34] (https://basescan.org/address/0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34) sUSDE L2 Contract Address: [0x211Cc4DD073734dA055fbF44a2b4667d5E5fE5d2] (https://basescan.org/address/0x211Cc4DD073734dA055fbF44a2b4667d5E5fE5d2)

Risk Parameters updated 2025-02-17

sUSDe Market Configuration (Base Instance)

Parameter	Value
Isolation Mode	No
Borrowable	No
Collateral Enabled	Yes
Supply Cap	1,200,000
Borrow Cap	-
Debt Ceiling	-
LTV	70.00%
LT	73.00%
Liquidation Bonus	8.50%
Liquidation Protocol Fee	10.00%
Variable Base	-
Variable Slope1	-
Variable Slope2	-
Uoptimal	-
Reserve Factor	-
Stable Borrowing	Disabled
Flashloanable	No
Borrowable in Isolation	No
E-Mode Category	Stablecoin

sUSDe Liquid E-mode Configuration

Parameter	Value	Value	Value
Asset	sUSDe	GHO	USDC
Collateral	Yes	No	No
Borrowable	No	Yes	Yes
Max LTV	88%	-	-
Liquidation Threshold	90%	-	-
Liquidation Bonus	4.0%	-	-

Useful Links

Project: https://ethena.fi/ Docs: https://docs.ethena.fi/solution-design/key-addresses

Disclaimer

The current proposal has been edited by ACI, under Skywards. ACI has not received payment from original author and has not been compensated for future actions regarding this proposal.

Edit: The original author holds sUSDE but has not been compensated by Ethena for writing this proposal.

Next Steps

1. Publish an ARFC, collect community & service provider feedback before moving forward with governance.
2. if feedback is positive, escalate to ARFC snapshot vote stage
3. 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.