[TEMP CHECK] Deploy a Crypto.com Aave v3 Instance

Author: ACI (Aave Chan Initiative)

Date: 2024-09-10

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Summary

This proposal is for the creation of a specific Aave v3 instance in partnership with Crypto.com which will be used for their Earn product using WETH and cdcETH.

Motivation

Crypto.com is one of the world’s largest exchanges, currently listed as number 6 on DeFi Llama in terms of total assets. In addition to a large number of global users and partnerships, they have a staked ETH product called cdcETH with over $80m TVL.

The original TEMP CHECK proposal to onboard cdcETH to the main Aave v3 instance, ended in an abstain result, indicating a desire of the DAO to further explore opportunities at a later time.

After discussions with the CDC team, ACI believes there are good synergies in creating a specific instance of Aave v3 that will allow them to integrate their Earn product and create a dedicated location for looping of cdcETH via emode to kickstart the instance liquidity, before including stablecoins to offer more yield options to CDC earn users.

Specification

The Crypto.Com Aave v3 instance will target the following:

• We target $35M TVL for the CDC instance at start, with $20M+ on the WETH.
• Drive liquidity to the new instance with a combination of their CeDeFi Earn product, Wallet integration, 3rd party specialized platforms and CDC-owned liquidity.
• The Crypto.com team has committed to $1 million worth of incentives for the first 6 months of launch to bootstrap initial liquidity. The ACI is in favor of matching this incentive amount via the Ahab program to increase the adoption velocity of this potential instance.

Contract address: 0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e

Risk Parameters will be provided at ARFC stage by Risk Service Providers.

Useful Links

Audit: https://crypto.com/document/blocksec_securityaudit2024

Issuer: Crypto.com

DeFi Llama: https://defillama.com/protocol/crypto.com-staked-eth 2

Coingecko: https://www.coingecko.com/en/coins/crypto-com-staked-eth 1

Crypto.com Staking page: Crypto Staking — Crypto.com | Earn up to 16.64% per year by staking with us

Crypto.com Liquid Staking Q&A page: Liquid Staking | Crypto.com Help Center

Disclaimer

The Aave Chan Initiative is not directly affiliated with Crypto.com and did not receive compensation for creating this proposal.

Next Steps

1. If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
2. If the Snapshot outcome is YAE, this proposal will be escalated to the ARFC stage.
3. Publication of a standard ARFC, collect community & service providers feedback before escalating the proposal to the ARFC snapshot stage.
4. 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 under CC0