[AAVE] Onboarding wETH to Aave V3 Celo Instance

Voting ended 10 months agoSucceeded

Simple Summary

This AIP proposes the onboarding of Wrapped Ether (wETH) as a supported asset on the Aave V3 Celo Instance. The integration aims to expand the protocol’s utility and provide users with additional opportunities for lending and borrowing.

Motivation

The addition of wETH to Aave V3 on Celo would:

Increase TVL and protocol revenue
Provide users with a major DeFi asset for lending/borrowing
Enable cross-chain strategies involving ETH
Enhance the protocol’s competitive position in the Celo ecosystem

Specification

The table below illustrates the configured risk parameters for WETH

| Parameter | Value | |

| : | | Isolation Mode | false | | Borrowable | ENABLED | | Collateral Enabled | true | | Supply Cap (WETH) | 500 | | Borrow Cap (WETH) | 450 | | Debt Ceiling | USD 0 | | LTV | 78 % | | LT | 80 % | | Liquidation Bonus | 7.5 % | | Liquidation Protocol Fee | 10 % | | Reserve Factor | 15 % | | Base Variable Borrow Rate | 0 % | | Variable Slope 1 | 2.7 % | | Variable Slope 2 | 80 % | | Uoptimal | 90 % | | Flashloanable | ENABLED | | Siloed Borrowing | DISABLED | | Borrowable in Isolation | DISABLED | | Oracle | Chainlink ETH/USD |

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