[ARFC] Deploy Aave v3 on Plasma

Author: ACI

Date: 2025-03-15

Proposal has been updated with latest Risk Parameters 2025-09-05

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Simple Summary

This ARFC proposes the deployment of an Aave V3 Instance on Plasma.

Motivation

Plasma is a high-performance, scalable, and secure blockchain purpose-built for stablecoins. Built from the ground up, it delivers zero fees, lightning-fast transactions, and the robust security that stablecoins like USD₮ require.

The network offers a performant location to the deploy the Aave protocol, and the Plasma team are planning to support Aave’s launch on the network.

Specification

Risk Parameters will be provided by Risk Service Providers during the ARFC stage and ARFC will be updated accordingly.

Proposal has been updated with latest Risk Parameters 2025-09-05

Specification

Parameter	Value	Value	Value	Value	Value	Value	Value
Asset	USD₮	USDe	sUSDe	XAUt	WETH	weETH	XPL
Isolation Mode	No	No	No	Yes	No	No	No
Borrowable	Yes	Yes	No	No	Yes	No	No
Collateral Enabled	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Supply Cap	2,200,000,000	500,000,000	450,000,000	7,000	80,000	10,000	50,000,000
Borrow Cap	2,000,000,000	50,000,000	-	-	10,000	-	-
Debt Ceiling	-	-	-	-	-	-	-
LTV	75%	72%	0.05%	70%	80.5%	0.05%	0.00%
LT	78%	75%	0.1%	75%	83%	0.1%	0.1%
Liquidation Bonus	4.50%	8.50%	8.50%	7.50%	5.5%	7%	8%
Liquidation Protocol Fee	10%	10%	10%	10%	10%	10%	10%
Variable Base	2.5%	2.5%	-	-	0%	-	-
Variable Slope1	4.0%	5.0%	-	-	2.7%	-	-
Variable Slope2	20%	50%	-	-	20%	-	-
Uoptimal	92%	85%	-	-	92%	-	-
Reserve Factor	10%	25%	-	-	15%	-	-

USDe Stablecoin E-Mode

Parameter	Value	Value
Asset	USDe	USD₮
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	90%	-
Liquidation Threshold	93%	-
Liquidation Bonus	2.0%	-

sUSDe Stablecoin E-Mode

Parameter	Value	Value	Value
Asset	USDe	sUSDe	USD₮
Collateral	Yes	Yes	No
Borrowable	No	No	Yes
Max LTV	90%	90%	-
Liquidation Threshold	92%	92%	-
Liquidation Bonus	4.0%	4.0%	-

weETH WETH E-Mode

Parameter	Value	Value
Asset	weETH	WETH
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	93%	-
Liquidation Threshold	95%	-
Liquidation Bonus	1.00%	-

CAPO Parameters sUSDe

Token	Snapshot Delay	maxYearlyGrowthRatio
sUSDe	14 days	15.19%

POL and Incentives

Upon confirmation of the Aave deployment on Plasma, the Plasma Foundation will:

• Supply 10M USDT
• Ensure that in any future incentive campaign, Aave is the only lending protocol receiving incentive distributions.
• Integrate and boost adoption of the GHO stablecoin within its ecosystem, targeting real-world and institutional use cases.
• Collaborate with liquidity providers, institutional capital allocators, and partners to expand supply in Aave v3 for BTC and USDT.
• Offer Aave DAO or ACI an opportunity to serve as an early validator, thereby securing the Plasma Bitcoin bridge and participating in consensus.
• Have Aave DAO redistribute any airdrops or incentive distributions from the Plasma ecosystem to protocol users through liquidity mining.
• Entrust ACI, on behalf of Aave DAO, to manage any liquidity mining campaign on a Plasma Aave V3 deployment.

Useful Links

• Website: https://www.plasma.to/
• Docs: https://docs.plasma.to/

Disclaimer

This proposal is powered by Skywards. ACI is not directly affiliated with Plasma and did not receive compensation for this proposal.

Next Steps

1. Publish an ARFC to continue gathering community and Service Providers feedback.
2. Escalate proposal to ARFC Snapshot.
3. 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.