[AAVE] Onboard eBTC and Add eBTC/WBTC E-Mode

Simple Summary

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

Both TEMP CHECK and TEMP CHECK Snapshot have passed recently.

Motivation

The motivation behind this proposal stems from several key factors:

• High Utilization: eBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on the platform.
• Capital Efficiency: Enabling liquid E-Mode for eBTC/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.
• Enhanced Borrowing Capacity: This change will enable users to borrow larger amounts of other stablecoins against their eBTC/WBTC collateral, potentially increasing platform utilization and revenue.

By implementing this proposal, we aim to optimize the use of eBTC/WBTC within the Aave ecosystem, attracting more liquidity.

Specification

The table below illustrates the configured risk parameters for eBTC

| Parameter | Value | | | | | Network | Ethereum | | Isolation Mode | No | | Borrowable | No | | Collateral Enabled | Yes | | Supply Cap | 750 | | Borrow Cap | 1 | | Debt Ceiling | 0 | | LTV | 67% | | LT | 72% | | Liquidation Bonus | 10% | | Liquidation Protocol Fee | 10% | | Variable Base | 0% | | Variable Slope1 | 4% | | Variable Slope2 | 300% | | Uoptimal | 45% | | Reserve Factor | 50% | | Flashloanable | No | | Siloed Borrowing | No | | Oracle | 0x95a85D0d2f3115702d813549a80040387738A430 |

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

Finally, this proposal will add eBTC/WBTC liquid E-Mode

| Parameter | Value | Value | | | -- | -- | | Asset | eBTC | WBTC | | Collateral | Yes | No | | Borrowable | No | Yes | | Max LTV | 83% | - | | Liquidation Threshold | 85% | - | | Liquidation Bonus | 3.0% | - |

References

• Implementation: AaveV3Ethereum
• Tests: AaveV3Ethereum
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.

https://app.aave.com/governance/v3/proposal/?proposalId=282