[ARFC] Aave V3 Deployment on GnosisChain

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Title: [ARFC] Aave V3 Deployment on GnosisChain Author: Marc Zeller @marczeller - Aave Chan Initiative Date: 2023-08-31

Summary:

This ARFC proposes the deployment of Aave V3 on the GnosisChain. Following the positive feedback from the TEMP CHECK, the assets considered for this deployment include wETH, wstETH, GNO, USDC, wxDAI, and EURe.

Motivation:

The GnosisChain, with its historical significance in the ecosystem and its roots in the POA network, presents a valuable opportunity for Aave. The friendly fork RMM Market with RealT on the GnosisChain has already showcased the potential synergies between Aave's codebase and GnosisChain. This ARFC seeks to further these synergies, providing mutual benefits for both ecosystems.

Specification:

The ARFC suggests deploying Aave V3 on the GnosisChain with the following assets and risk parameters:

Risk Parameter	wETH	wstETH	GNO	USDC	wxDAI	EURe
Isolation Mode	NO	NO	YES	NO	NO	NO
Borrowable in Isolation	NO	NO	NO	YES	YES	NO
Stable Borrow	NO	NO	NO	NO	NO	NO
Enable Borrow	YES	YES	NO	YES	YES	YES
Enable Collateral	YES	YES	YES	YES	YES	NO
Loan To Value	80.5%	71%	31%	77%	77%	N/A
Liquidation Threshold	83%	76%	36%	80%	80%	N/A
Liquidation Bonus	6%	6%	10%	5%	5%	N/A
Reserve Factor	15%	15%	N/A	10%	10%	15%
Liquidation Protocol Fee	10%	10%	10%	20%	20%	10%
Supply Cap	4000 wETH	4000 wsETH	30000	1M USDC	1.5M xDAI	1.5M EURe
Borrow Cap	3500 wETH	400 wstETH	N/A	1M USDC	1.5M xDAI	1.5M EURe
Debt Ceiling	N/A	N/A	5M$	N/A	N/A	N/A
uOptimal	80%	45%	N/A	90%	90%	90%
Base	0%	0%	N/A	0%	0%	0%
Slope1	3.3%	7%	N/A	4%	4%	4%
Slope2	80%	300%	N/A	75%	75%	75%

Furthermore, we recommend the following parameters for the ETH eMode pool:

Parameter	ETH eMode Pool
Liquidation Threshold (LT)	93%
Loan-To-Value (LTV)	90%
Liquidation Bonus (LB)	1%

Even if both assets currently lack the maturity to be considered, the ACI is supportive mid-term of onboarding both wGHO and sDAI onboarding in the GnosisChain V3 pool.

Deployment Checklist:

• Risk service providers feedback ✅
• GnosisChain Infrastructure/technical evaluation Report ✅
• Oracle support ✅
• The graph support ✅
• Cross-chain messaging infrastructure for governance ❓

Disclaimer:

The Aave Chan Initiative (ACI) is not compensated in any form by Gnosis or any affiliated entities for creating this ARFC proposal. At the time of writing,

• The ACI is a customer of Monerium (EURe).
• The author is a Gnosischain staker for ~270 GNO.

Next Steps:

1. Submit the ARFC for a snapshot vote for approval.
2. If consensus is reached, proceed with the deployment AIP vote to activate Aave V3 on GnosisChain.

Copyright:

Copyright and related rights waived via CC0.