[AAVE] Aave V3.5 Plasma Activation

Voting ended 6 months agoSucceeded

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 Plasma pool (3.5) by completing all the initial setup and listing USDT0, USDe, sUSDe, XAUt0, weETH, WETH as suggested by the risk service providers engaged with the DAO on the governance forum.

All the Aave Plasma V3 addresses can be found in the aave-address-book.

Motivation

All the governance procedures for the expansion of Aave v3 to Plasma have been finished, said:

Positive signaling and approval regarding the expansion on the governance forum, and snapshot.
Positive technical evaluation done by BGD Labs of the Plasma network, as described in the forum in detail.
Positive risk analysis and assets/parameters recommendation by the risk service providers.

Specification

The proposal will do the following:

List the following assets on Aave V3 Plasma: USDT0, USDe, sUSDe, XAUt0, weETH, WETH.
Set the risk steward as the risk admin by executing ACL_MANAGER.addRiskAdmin().
Set the guardian address as the pool admin by executing ACL_MANAGER.addPoolAdmin(). This is following the standard procedure of keeping pool admin on the Aave Guardian during the bootstrap period, for security.
Set ACI multi-sig as liquidity mining admin for all aTokens and underlying tokens by calling EMISSION_MANAGER.setEmissionAdmin() method.

The table below illustrates the configured risk parameters for the assets to be listed:

| -: | -: | -: | -: | -: | -: | | Isolation Mode | false | false | false | true | false | false | | Borrowable | ENABLED | ENABLED | DISABLED | DISABLED | DISABLED | ENABLED | | Collateral Enabled | true | true | true | true | true | true | | Supply Cap | 100,000 | 100,000 | 100,000 | 30 | 20 | 20 | | Borrow Cap | 50,000 | 50,000 | 1 | 1 | 1 | 10 | | Debt Ceiling | USD 0 | USD 0 | USD 0 | USD 18,000,000 | USD 0 | USD 0 | | LTV | 75 % | 72 % | 0.05 % | 70 % | 0.05 % | 80.5 % | | LT | 78 % | 75 % | 0.1 % | 75 % | 0.1 % | 83 % | | Liquidation Bonus | 4.5 % | 8.5 % | 8.5 % | 7.5 % | 7 % | 5.5 % | | Liquidation Protocol Fee | 10 % | 10 % | 10 % | 10 % | 10 % | 10 % | | Reserve Factor | 10 % | 25 % | 20 % | 20 % | 20 % | 15 % | | Base Variable Borrow Rate | 2.5 % | 2.5 % | 0 % | 0 % | 0 % | 0 % | | Variable Slope 1 | 4 % | 5 % | 9 % | 9 % | 9 % | 2.7% | | Variable Slope 2 | 20 % | 50 % | 75 % | 75 % | 75 % | 20% | | Uoptimal | 92 % | 85 % | 60 % | 60 % | 60 % | 92 % | | Flashloanable | ENABLED | ENABLED | ENABLED | ENABLED | ENABLED | ENABLED | | Siloed Borrowing | DISABLED | DISABLED | DISABLED | DISABLED | DISABLED | DISABLED | | Borrowable in Isolation | ENABLED | DISABLED | DISABLED | DISABLED | DISABLED | DISABLED |

Please note: As a matter of extra caution, XPL will be listed separately at a later time. Additionally, the plasma instance will be activated very limited interim caps, and this AIP also authorizes the Aave Protocol Guardian to increase it to the following pre-approved levels below once technical SP have triple checked everything:

| : | -: | -: | -: | --: | --: | | Supply Cap | 2,200,000,000 | 500,000,000 | 450,000,000 | 7,000 | 10,000 | 80,000 | | Borrow Cap | 2,000,000,000 | 50,000,000 | 1 | 1 | 1 | 10,000 |