[AAVE] Add AAVE token to Aave V3 Base Instance

Voting ended 10 months agoSucceeded

Simple Summary

This publication presents the community an opportunity to expand AAVE governance token integration on the AAVE platform by adding AAVE collateral option to Base.

AAVE token has wide integrations into all other major AAVE instances including ETH Mainnet, Arbitrum, Optimism, Polygon, and Avalanche. Adding AAVE to the Base instance is the next logical step in AAVE token integration within the AAVE lending platform.

Motivation

AAVE token is a versatile governance token which is already accepted collateral on all major AAVE instances.
The Base Market is growing in TVL, the addition of collateral options already found on other AAVE instances will increase Base Market growth.
There is deep liquidity on Base chain for the AAVE token already. Price impact of just 0.77% for $1m ETH/AAVE trades using jumper.exchange on Base.
Aerodrome (Base DEX) has $10m TVL in WETH/AAVE concentrated liquidity.

Base has seen expansion in its TVL now surpassing Arbitrum by ~15%. Base chain is a small but significant part of total Defi TVL (all chains) of 3%. Source: https://defillama.com/chains

Specification

The table below illustrates the configured risk parameters for AAVE

| Parameter | Value | |

| --: | | Isolation Mode | false | | Borrowable | DISABLED | | Collateral Enabled | true | | Supply Cap (AAVE) | 30,000 | | Borrow Cap (AAVE) | 1 | | Debt Ceiling | USD 0 | | LTV | 60 % | | LT | 65 % | | Liquidation Bonus | 10 % | | Liquidation Protocol Fee | 10 % | | Reserve Factor | 20 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 10 % | | Variable Slope 2 | 300 % | | Uoptimal | 45 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | Chainlink AAVE/USD | | Oracle Latest Answer | (2025-05-07) USD 169.65627000 |

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

References

Implementation: AaveV3Base
Tests: AaveV3Base
Snapshot
Discussion

Copyright

https://app.aave.com/governance/v3/proposal/?proposalId=310

Off-Chain Vote

YAE

193 HVAXVC98%

NAY

4 HVAXVC2%

Quorum:19700%

Download mobile app to vote

Discussion

[AAVE] Add AAVE token to Aave V3 Base Instance

Timeline

May 14, 2025Proposal created

May 15, 2025Proposal vote started

May 17, 2025Proposal vote ended

Mar 26, 2026Proposal updated

Simple Summary

This publication presents the community an opportunity to expand AAVE governance token integration on the AAVE platform by adding AAVE collateral option to Base.

Motivation

AAVE token is a versatile governance token which is already accepted collateral on all major AAVE instances.

The Base Market is growing in TVL, the addition of collateral options already found on other AAVE instances will increase Base Market growth.

There is deep liquidity on Base chain for the AAVE token already. Price impact of just 0.77% for $1m ETH/AAVE trades using jumper.exchange on Base.

Aerodrome (Base DEX) has $10m TVL in WETH/AAVE concentrated liquidity.

Base has seen expansion in its TVL now surpassing Arbitrum by ~15%. Base chain is a small but significant part of total Defi TVL (all chains) of 3%. Source: https://defillama.com/chains

Specification

The table below illustrates the configured risk parameters for AAVE

| Parameter | Value | |

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