[TEMP CHECK] Add rlUSD to Aave v3 Main Market on Ethereum

Author: ACI

Date: 2024-10-08

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Summary

The proposal aims to onboard Ripple's RLUSD stablecoin to the Aave v3 protocol Main Market on Ethereum.

Motivation

RLUSD, a new stablecoin offered by Ripple, is expected to receive NYDFS regulatory approval in the coming weeks and launch on Ethereum soon thereafter.

Ripple, a trusted entity in the cryptocurrency industry, introduces RLUSD with a unique value proposition focused on cross-border payments through its global payment network. RLUSD intends to bridge TradFi with DeFi use cases, starting with its flagship payments products serving customers in over 70 markets. They aim to establish RLUSD as the de facto stablecoin for lending/borrowing, DeFi, repo, Treasury functions, payments, etc., all within the highest levels of compliance.

Onboarding Ripple's RLUSD extends Aave Protocol's diverse stablecoin offerings to its users. RLUSD users on Aave Protocol may potentially benefit from future rewards programs. This introduction is expected to increase liquidity and engagement within the protocol.

Aligning with Aave DAO’s commitment to offering diversification across widely held and in-demand assets, onboarding RLUSD will enable users to leverage Ripple’s liquidity and reputation while benefiting from Aave’s established lending and borrowing functionalities. The initial slow launch of RLUSD is expected to benefit from a major integration like Aave Protocol and attract more mainstream users, contributing to the growth and adoption of the platform.

Specification- Ticker: RLUSD

• Contract addresses will be added during the ARFC stage once RLUSD is fully launched. - Risk parameters will be provided by Risk Service Providers as soon as possible, and the ARFC will be updated with that feedback

Disclosure

The Aave Chan Initiative is not directly affiliated with Ripple and did not receive compensation for creating this proposal.

Next Steps

1. If consensus is reached on this [TEMP CHECK], escalate the proposal to the Snapshot stage.
2. If the Snapshot outcome is YAE, escalate the proposal to the ARFC stage.
3. Publish a standard ARFC and collect community & service provider feedback before escalating the proposal to the ARFC Snapshot stage.
4. 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 via CC0.