[ARFC] Aave V3 Deployment on Base
Title: [ARFC] Aave V3 Deployment on Base
Author: @fig - Flipside Crypto
Date: 07-27-2023
Summary:
This ARFC proposes the deployment of Aave V3 on the Base upon Mainnet launch, expanding Aave’s presence and tapping into the future growth, budding DeFi ecosystem, and unique users home to Base.
Abstract:
When / if approved by the Aave community, Aave V3 will be deployed on Base Mainnet with a selection of assets for collateral, including wETH, wstETH, cbETH, and USDC.
This deployment aims to expand Aave to a new ecosystem, capturing the growth and infrastructure allowed by Coinbase’s products and distribution -- providing new opportunities for both ecosystems.
Motivation:
By enabling Base on Aave, it creates valuable (and differentiated) revenue opportunities for Aave, capturing the growth and interest of users who live on the Coinbase platform.
This allows Aave to leverage Coinbase integrations, fiat onramps, and access to 110mm+ users and $80B+ assets in the Coinbase ecosystem.
For Base, deploying Aave V3's codebase expands the on-chain experience by fostering a diversity of DeFi platforms and introducing trusted, flagship lending protocols.
Specification:
The ARFC suggests deploying Aave V3 on Base with the following assets for collateral: wETH, wstETH, cbETH, and USDC.
The table below illustrates the initial suggested risk parameters for each asset, a combination of reccomendations provided by @Gauntlet and @ChaosLabs.
| Risk Parameter | WETH | wstETH | USDC | cbETH |
|---|---|---|---|---|
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80% | 80% | 82.5% | 75% |
| Liquidation Threshold | 82.5% | 82.5% | 85% | 77.5% |
| Liquidation Bonus | 5% | 7.5% | 5% | 7.5% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Supply Cap | 200 | 100 | 1,000,000 | 100 |
| Borrow Cap | 160 | 20 | 800,000 | 20 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.8% | 4.5% | 3.5% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled |
| Flahloanable | YES | YES | YES | YES |
| Siloed Borrowing | NO | NO | NO | NO |
| Borrowed in Isolation | NO | NO | YES | NO |
Deployment Checklist:
- Feedback from at least one Risk Service Provider: Yes (Gauntlet & Chaos Labs)
- Infrastructure/technical evaluation report by BGD Labs: Yes (BGD Report)
- Oracle recommendation: Yes (Chainlink Docs & Announcement)
- The graph support: Yes
- Cross-chain messaging infrastructure for governance: Yes
Disclaimer:
The information provided above about Base is from public sources and Flipside Crypto cannot guarantee that it is or will stay accurate.
For full disclosure, Coinbase partnered with Flipside Crypto upon the announcement of the network to make Base on-chain data available for free, for analysts.
Coinbase has not compensated Flipside to create this proposal and we are doing this because we believe that the deployment would be in the best interest of the Aave.
This ARFC has solely been prepared for technical evaluation and further community feedback.
Next Steps:
- Integrate BGD Labs Infrastructure/technical evaluation report once available.
- Refine the ARFC based on community feedback and updated risk service provider recommendations.
- Submit the ARFC for a Snapshot vote for final approval.
- If consensus is reached, submit a deployment AIP to activate Aave V3 Base (upon Mainnet launch)
Copyright:
Copyright and related rights waived via CC0.
Off-Chain Vote
Discussion
Timeline
Jul 27, 2023Proposal created
Jul 28, 2023Proposal vote started
Jul 31, 2023Proposal vote ended
Oct 11, 2024Proposal updated