Title: [ARFC] Onboard fdUSD to Aave v3 on BSC
Author: ACI (Aave Chan Initiative)
Date: 2024-01-23
Summary
The proposal aims to onboard fdUSD, a fiat-backed stablecoin, to the Aave v3 protocol on the BNB Chain (BSC).
Motivation
fdUSD is a dollar-pegged stablecoin that provides stability and value preservation for users on the BNB Chain. It is issued by FD121 Ltd. (First Digital Labs), a subsidiary of First Digital Group that is incorporated in Hong Kong.
As part of the approved deployment on BSC, fdUSD will be a key asset for supply liquidity and borrow demand. As this is a net-new asset for Aave, we propose this ARFC to confirm community approval to add fdUSD as an asset for the launch of the BSC deployment of Aave. The proposal seeks to leverage the strong demand for stablecoins and the growing popularity of the BSC ecosystem to provide users with enhanced liquidity options.
Benefits of listing fdUSD:
- Enhanced liquidity options for Aave users on the BSC deployment
- Increased utility for fdUSD as it becomes available for lending and borrowing
- Strengthened collaboration between Aave and the BSC ecosystem, fostering growth and innovation
- Aave’s BSC deployment will be integrated with Binance’s web3 wallet, making easy access for Binance users to deposit fdUSD in Aave through the Earn program.
Market Impact:
Listing fdUSD contributes to the overall growth of Aave by expanding the range of assets available for lending and borrowing on the BSC pool.
As a main asset for use in Binance launch pools, we expect there to be good borrow demand for this asset.
Chains to be deployed/listed:
The intention is to list fdUSD on the Aave’s upcoming BNB Chain deployment.
Proof of Liquidity (POL) and Deposit Commitments:
- Collaborations with external parties are in place to bootstrap liquidity and contribute to a robust and diverse liquidity environment for fdUSD. BNB chain partners have committed to providing an initial supply side liquidity of up to 5m fdUSD.
- Plans for implementing liquidity mining programs tailored to Aave’s BSC deployment are under consideration.
Specification
Ticker: fdUSD
Contract Adress: 0xc5f0f7b66764f6ec8c8dff7ba683102295e16409
Chainlink Oracle: 0x390180e80058a8499930f0c13963ad3e0d86bfc9
Based on Risk Service providers, the following Risk Parameters are proposed:
| Risk Parameter | FDUSD |
|---|---|
| Isolation Mode | NO |
| Enable Borrow | YES |
| Borrowable in Isolation | YES |
| Enable Collateral | YES |
| Emode Category | NO |
| Loan To Value | 70% |
| Liquidation Threshold | 75% |
| Liquidation Bonus | 5.00% |
| Reserve Factor | 20.00% |
| Liquidation Protocol Fee | 10.00% |
| Borrow Cap | 7,500,000 |
| Supply Cap | 8,000,000 |
| Debt Ceiling | N/A |
| Stable Borrowing | NO |
| uOptimal | 90% |
| Base | 0% |
| Slope1 | 6% |
| Slope2 | 75% |
Useful Links
- fdUSD - First Digital Labs website.
- fdUSD Whitepaper
- TEMP CHECK https://governance.aave.com/t/temp-check-onboard-fdusd-to-aave-v3-on-bsc/16131
- Snapshot https://snapshot.org/#/aave.eth/proposal/0xd5ffa15a59b5b29cd4ba2dc4439f1cfb57673faa4d8644120a02dbc5b47505d5
Disclaimer
ACI worked with relevant partners in the BNB Chain ecosystem to craft this proposal. ACI holds no conflict of interest or relationship with the fdUSD protocol, and no compensation has been received for publishing this proposal.
Next Steps
- If consensus on ARFC stage is reached and risk service providers provide feedback on risk parameters, escalate to ARFC snapshot stage.
- If ARFC snapshot stage outcome is YAE, escalate to AIP stage
Copyright:
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
505.48K AAVE100%
NAY
45.43 AAVE0%
Abstain
12.26 AAVE0%
Discussion
Timeline
Jan 29, 2024Proposal created
Jan 30, 2024Proposal vote started
Feb 02, 2024Proposal vote ended
Feb 03, 2026Proposal updated