XG177

[TEMP CHECK] Onboard CDCETH to Aave V3 on Ethereum

Voting ended over 1 year agoSucceeded

[TEMP CHECK] Onboard CDCETH to Aave V3 on Ethereum

Author: Jlok & ACI

Date: 2024-07-15

Summary:

This proposal is to explore community interest in adding Crypto.com Staked ETH CDCETH) to Aave V3 on the Ethereum mainnet. CDCETH is an ERC-20 token issued on both Ethereum and the Cronos Chain that represents the underlying staked ETH on the Crypto.com platform.

Motivation

Crypto.com was founded in 2016 with the vision of making cryptocurrency in every wallet. As of June 2024, [Crypto.com (http://crypto.com/) has more than 100 million users worldwide and is the industry leader in regulatory compliance, security, and privacy.

Crypto.com launched its on-chain staking product on its Main App and Exchange platform, with Ethereum as one of the most staked assets on the platform.

To enhance the liquidity and capital efficiency of staked ETH, Crypto.com introduced a Liquid Staking Token (LST) - Crypto.com Staked ETH (CDCETH) in November 2023 and reached $100M+ TVL (Defillama page here).

Currently, CDCETH’s on-chain liquidity on Ethereum is concentrated in the CDCETH/ETH pair on Curve (here) and Uniswap (here), with plans to launch a pool on Balancer next and incentivize to grow liquidity across these venues.

Other liquidity venues can be found on the DeFi protocols on the Cronos chain and the order book on the Crypto.com Exchange platform, with support from multiple market makers.

The liquidity on the Cronos side can be bridged to Ethereum through the Crypto.com platform.

Integrating CDCETH as a collateral asset on Aave V3 serves a meaningful demand from CDCETH users on the Crypto.com platform to utilize the LST as collateral to borrow on Aave. The platform aims to drive wide adoption of CDCETH on Aave V3 as collateral for borrowing by various promotional activities and integration with its product lines, such as social media posts when CDCETH is successfully onboarded.

Confidential banners/listings on the Crypto.com non-custodial wallet and banners within the Main App platform to direct CDCETH holders to use Aave via the non-custodial wallet. Onboarding CDCETH on Aave will create an entry point for a large number of CDCETH users and Crypto.com users to make good use of the asset on Aave and also greatly improve CDCETH’s utility as a LST, resulting in a positive feedback loop for CDCETH & Aave adoption & increased revenues for both parties.

Proof of Liquidity (POL) and Deposit Commitments

Crypto.com is committed to providing initial supply-side liquidity of up to $5M CDCETH and liquidity mining programs of $100K in CDCETH over 3 months as a start.

Integration of CDCETH pool on Aave V3 with Crypto.com’s non-custodial wallet and Main App will be added to the pipeline once the pool is live, providing the gateway to over 100M global users on the platform.

Specification

Contract address: 0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e Rate Provider contract for current exchange rate: 0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e (12. exchangeRate)

Risk Parameters will be provided at ARFC stage by Risk Service Providers.

Audits & Relevant links

Audit: https://crypto.com/document/blocksec_securityaudit2024 Issuer: Crypto.com Whitepaper: CDCETH DeFillama: https://defillama.com/protocol/crypto.com-staked-eth Coingecko: https://www.coingecko.com/en/coins/crypto-com-staked-eth Crypto.com Staking page: https://crypto.com/staking Crypto.com Liquid Staking Q&A page: https://help.crypto.com/en/articles/8398277-liquid-staking

Community: Twitter/X: https://twitter.com/cryptocom Telegram: Crypto.com News on Telegram: Crypto.com Discord: Crypto.com

Disclaimer

The ACI is not directly affiliated with Crypto.com and did not receive compensation for the creation of this proposal. The co-author is a team member of Crypto.com.

Next Steps

If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
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.