Title: [ARFC] Aave V3 Deployment on zkEVM L2
Author: @marczeller - Aave-Chan Initiative
Date: 2023-09-22
Summary:
Proposal for the deployment of Aave V3 on zkEVM L2, with limited assets onboarding ("MVP V3") to establish a strategic Aave presence early in this new network while staying conservative in terms of risk.
Abstract:
This ARFC proposes the deployment of a Minimal Viable Product (MVP) version of Aave V3 on the zkEVM L2 network, an EVM-equivalent zk-rollup developed by the Polygon team.
Motivation:
The deployment of Aave V3 on zkEVM L2 aims to establish a strategic presence on this new network early on, promoting L2 diversity and expanding Aave's reach in the DeFi space.
Specification:
The proposal outlines the deployment of Aave V3.0.1 on zkEVM L2 with three collaterals (WETH, WMATIC & USDC) and one borrowable asset (USDC). Risk parameters are provided for community discussion and feedback from risk service providers.
Recommended Initial Parameters
| Risk Parameter | WETH | USDC | WMATIC |
|---|---|---|---|
| Isolation Mode | NO | NO | NO |
| Enable Borrow | YES | YES | YES |
| Borrowable in Isolation | NO | YES | NO |
| Enable Collateral | YES | YES | YES |
| Loan To Value | 80% | 77% | 68% |
| Liquidation Threshold | 82.5% | 80% | 73% |
| Liquidation Bonus | 5% | 5% | 10% |
| Reserve Factor | 15% | 10% | 20% |
| Liquidation Protocol Fee | 10% | 10% | 10% |
| Borrow Cap | 280 | 1.26M | 375K |
| Supply Cap | 350 | 1.4M | 500K |
| Debt Ceiling | N/A | N/A | N/A |
| Base | 1% | 0% | 0% |
| Slope1 | 3.8% | 4% | 6.1% |
| Uoptimal | 80% | 90% | 75% |
| Slope2 | 80% | 60% | 100% |
Deployment Checklist:
- Risk service provider's feedback ✔
- Infrastructure/technical evaluation report ✔
- Oracle recommendation ✔
- The graph support ✔
- Cross-chain messaging infrastructure for governance ✔
Disclaimer:
The Aave-Chan Initiative (ACI) is not associated with or compensated by Polygon for publishing this ARFC.
As part of its delegate platform, the ACI promotes L2 diversity.
Marc Zeller is a former DeFi strategy advisor for the Polygon Foundation but resigned from this role at the time of the ACI service provider proposal publication.
This ARFC is created to facilitate the Aave community's discussion and decision-making regarding the deployment of Aave V3 on zkEVM L2.
Next Steps:
- Conduct a snapshot vote for the Aave community to approve or reject the deployment.
- If approved, proceed with the necessary technical implementations for deployment on zkEVM L2.
Copyright:
Copyright and related rights waived via CC0.
Off-Chain Vote
Discussion
Timeline
Sep 22, 2023Proposal created
Sep 23, 2023Proposal vote started
Sep 26, 2023Proposal vote ended
Jan 31, 2026Proposal updated