[AAVE] Onboard LBTC & Enable LBTC/WBTC liquid E-Mode on Aave v3 Core Instance

Voting ended about 1 year agoSucceeded

Simple Summary

This proposal aims to onboard LBTC and enable LBTC/WBTC liquid E-Mode for the Main Instance. By implementing this change, we seek to enhance capital efficiency for borrowers using LBTC/WBTC as collateral.

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Motivation

The motivation behind this proposal stems from several key factors:

High Utilization: LBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on other platforms.
Capital Efficiency: Enabling liquid E-Mode for LBTC/WBTC will allow borrowers to substantially improve their capital efficiency when using this asset as collateral.
Controlled Growth: Liquid E-Mode provides a mechanism for more precise control over the growth and borrow demand in relation to the overall stablecoin liquidity within Aave v3 on Core Instance.

By implementing this proposal, we aim to optimize the use of LBTC/WBTC within the Aave ecosystem, attracting more liquidity for the protocol and increasing revenues.

Specification

The table below illustrates the configured risk parameters for LBTC

| Parameter | Value | |

| --: | | Isolation Mode | false | | Borrowable | ENABLED | | Collateral Enabled | true | | Supply Cap (LBTC) | 800 | | Borrow Cap (LBTC) | 80 | | Debt Ceiling | USD 0 | | LTV | 70 % | | LT | 75 % | | Liquidation Bonus | 8.5 % | | Liquidation Protocol Fee | 10 % | | Reserve Factor | 50 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 4 % | | Variable Slope 2 | 300 % | | Uoptimal | 45 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | 0xF4030086522a5bEEa4988F8cA5B36dbC97BeE88c |

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for LBTC and the corresponding aToken.

E-mode

the following E-mode will be created

--
Asset
Collateral
Borrowable
Max LTV
Liquidation Threshold
Liquidation Bonus

References

Copyright

https://app.aave.com/governance/v3/proposal/?proposalId=233

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Discussion

[AAVE] Onboard LBTC & Enable LBTC/WBTC liquid E-Mode on Aave v3 Core Instance

Timeline

Jan 20, 2025Proposal created

Jan 21, 2025Proposal vote started

Jan 23, 2025Proposal vote ended

Mar 26, 2026Proposal updated

Motivation

The motivation behind this proposal stems from several key factors:

High Utilization: LBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on other platforms.

Capital Efficiency: Enabling liquid E-Mode for LBTC/WBTC will allow borrowers to substantially improve their capital efficiency when using this asset as collateral.

Controlled Growth: Liquid E-Mode provides a mechanism for more precise control over the growth and borrow demand in relation to the overall stablecoin liquidity within Aave v3 on Core Instance.

By implementing this proposal, we aim to optimize the use of LBTC/WBTC within the Aave ecosystem, attracting more liquidity for the protocol and increasing revenues.

Specification

The table below illustrates the configured risk parameters for LBTC

| Parameter | Value | |

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for LBTC and the corresponding aToken.

E-mode

the following E-mode will be created

Asset

Collateral

Borrowable

Max LTV

Liquidation Threshold

Liquidation Bonus