[ARFC] Remove Frax from Isolation Mode and onboard sFRAX to Aave v3 Mainnet
Author: ACI
Date: 2024-08-02
ARFC updated with Risk Parameters provided by Risk Service Providers 2024-08-08
Summary
This is an ARFC to finalize onboarding of sFRAX with a CAPO feed and remove FRAX from isolation mode.
Motivation
FRAX and Aave DAO have found more synergies over the last months. The FRAX team has responded with major updates to security on sfrxETH in response to BGD Labs feedback. FRAX has also initated governance proposals to add GHO to Frax Lend. There are ongoing conversations to have a FRAX AMO included into Aave v3. sFRAX was previously accepted for onboarding in a previous ARFC vote before the introduction of CAPO feeds.
This proposal suggests finalizing the sFRAX onboarding by inviting risk service provider teams to provide CAPO recommendations.
In addition this proposal suggests removing FRAX from isolation mode to facilitate further AMO deployments.
Specification
- sFRAX CAPO recommendations will be provided by risk service providers as part of this ARFC.
- FRAX will be removed from isolation mode on Aave v3 instances.
- FRAX will receive same parameters as DAI and a Reserve Factor of 15%
Risk Parameters have been provided by Risk Service Providers so ARFC has been updated accordingly.
| MINIMUM_SNAPSHOT_DELAY | ratioReferenceTime | maxYearlyRatioGrowthPercent |
|---|---|---|
| 7 Days | monthly | 50% |
sFRAX
| Parameter | Recommendation |
|---|---|
| Isolation Mode | NO |
| Borrowable in Isolation | NO |
| Stable Borrow | NO |
| Enable Borrow | NO |
| Enable Collateral | YES |
| Loan To Value | 70.00% |
| Liquidation Threshold | 75.00% |
| Liquidation Bonus | 6.00% |
| Reserve Factor | 20.00% |
| Liquidation Protocol Fee | 20.00% |
| Supply Cap(sFRAX) | 10.00M |
| Borrow Cap(sFRAX) | N/A |
| Uoptimal | N/A |
| Base | N/A |
| Slope1 | N/A |
| Slope2 | N/A |
Useful Links
[ARFC] Add FRAX on Ethereum v3 Forum Thread3
[ARFC] Add FRAX on Ethereum v3 Forum Thread3 Snapshot
Disclaimer
This proposal is powered by Skywards. The Aave Chan Initiative is not directly affiliated with FRAX and did not receive compensation for creation this proposal.
Next Steps
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
- 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.
Off-Chain Vote
YAE
778.06K AAVE88.2%
NAY
1.31 AAVE0%
ABSTAIN
104.13K AAVE11.8%
Timeline
Aug 08, 2024Proposal created
Aug 09, 2024Proposal vote started
Aug 12, 2024Proposal vote ended
Feb 12, 2026Proposal updated