Author: ACI
Date: 2024-10-07
ARFC has been updated with latest Risk Parameters provided by Risk Service Providers. 2024-10-14
Summary
This is an ARFC to remove FRAX from isolation mode, and set LTV to 0%. This is a reboot with minor changes of a previous ARFC which passed Snapshot but has not yet been implemented.
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 removing FRAX from isolation mode to facilitate further AMO deployments.
Furthermore, this proposal sets LTV to 0% as there is no use-case for FRAX to act as collateral.
Specification
- FRAX will be removed from Isolation Mode on Aave v3 instances.
- FRAX will receive same parameters as DAI, a Reserve Factor as other stables, and LTV of 0%.
| Parameter | Recommendation |
|---|---|
| Isolation Mode | NO |
| Borrowable in Isolation | NO |
| Stable Borrow | NO |
| Enable Borrow | NO |
| Enable Collateral | YES |
| Loan To Value | 0% |
| Liquidation Threshold | 75.00% |
| Liquidation Bonus | 6.00% |
| Reserve Factor | 10.00% |
| 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 |
| Debt Ceiling | - |
Useful Links
[ARFC] Remove Frax from Isolation Mode and onboard sFRAX to Aave v3 Mainnet
[ARFC] Remove Frax from Isolation Mode and onboard sFRAX to Aave v3 Mainnet Snapshot
[ARFC] Add FRAX on Ethereum v3 Forum Thread
[ARFC] Add FRAX on Ethereum v3 Forum Thread 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
622.98K AAVE80.8%
NAY
0.01 AAVE0%
Abstain
148.06K AAVE19.2%
Timeline
Oct 14, 2024Proposal created
Oct 15, 2024Proposal vote started
Oct 18, 2024Proposal vote ended
Feb 12, 2026Proposal updated