[AAVE] [ARFC] Onboarding sfrxETH to Aave V3 Ethereum Market
Title: [ARFC] Onboarding sfrxETH to Aave V3 Ethereum Market Author: @0xTogbe - Aave Chan Initiative Created: 2023-11-27
Summary
This ARFC proposes the addition of sfrxETH from Frax to Aave V3 Ethereum to enhance LST liquidity and asset diversity.
Motivation
sFrxETH is the Staked version of FrxETH from the Frax Ecosystem. Users can freely mint frxETH in exchange for ETH deposits.
The Aave-Chan Initiative supports LST diversity in Aave V3 as shown with our historical support of cbETH, rETH, and, parallel to this proposal, our support for ETHx.
This proposal is a reboot of ARC Proposal: Onboarding sfrxETH from Frax Protocol to Aave V3 Ethereum Market 10 from January. More details for sFrxETH can be found in the first proposal.
Specification
- Contract Address: sfrxETH : 0xac3e018457b222d93114458476f3e3416abbe38f 2
After review of initial Risk Parameters by Risk Managers (Gauntlet & Chaos Labs) there are currently two possibilities: to apply Conservative Risk Parameters or to apply Aggressive Risk Parameters.
Conservative Risk Parameters Option:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (sfrxETH) | 40,000 |
| Borrow Cap (sfrxETH) | 4,000 |
| Debt Ceiling | - |
| LTV | 71.00% |
| LT | 74.50% |
| Liquidation Bonus | 7.5% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.0% |
| Variable Slope1 | 7.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 15.00% |
| Stable Borrowing | Disabled |
| Flahloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
| E-Mode Category | ETH-correlated |
Aggressive Risk Parameters Option:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (sfrxETH) | 55,000 |
| Borrow Cap (sfrxETH) | 5,500 |
| Debt Ceiling | - |
| LTV | 74.50% |
| LT | 77.00% |
| Liquidation Bonus | 5% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.0% |
| Variable Slope1 | 7.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 15.00% |
| Stable Borrowing | Disabled |
| Flahloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
| E-Mode Category | ETH-correlated |
Next Steps
- Solicit feedback from the Aave community.
- If community sentiment is favorable, proceed with the ARFC snapshot.
- Success in the snapshot leads to the development of an AIP.
Disclaimer
This proposal is powered by Skywards. The Aave Chan Initiative is not directly affiliated with Frax Protocol and did not receive compensation for creation this proposal.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
Conservative Option
6 HVAXVC85.7%
Aggressive Option
1 HVAXVC14.3%
NAY
0 HVAXVC0%
Timeline
Dec 07, 2023Proposal created
Dec 08, 2023Proposal vote started
Dec 10, 2023Proposal vote ended
Apr 09, 2026Proposal updated