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12 Nov 2024, 6:55 AM
13 Nov 2024, 7:17 AM
16 Nov 2024, 7:17 AM
Passed
17 Nov 2024, 7:38 AM
Executed
PYUSD Reserve Configuration Update & Incentive Campaign
12 Nov 2024, 6:55 AM
13 Nov 2024, 7:17 AM
16 Nov 2024, 7:17 AM
Passed
17 Nov 2024, 7:38 AM
Executed
Author
karpatkey_TokenLogic
Simple Summary
This publication proposes amendments to the PYUSD Reserve in preparation for an upcoming incentive campaign.
Additionally, a co-incentive campaign is to be implemented to improve the PYUSD and GHO liquidity.
Motivation
Trident Digital with support from PayPal, presents the Aave DAO with an opportunity to promote the adoption of PYUSD on Aave Protocol and PYUSD/GHO liquidity on Balancer for an initial 6 month period.
Eligible Aave Protocol users are expected to receive up to 4.00% APR in Liquidity Mining (LM) rewards made available by Trident Digital on behalf of PayPal. The PYUSD reserve on Aave v3 is to be adjusted to align with the objectives of the PYUSD incentive campaign. Further details can be found on the governance forum.
PYUSD/GHO Liquidity
As part of the PYUSD growth iniative, a 8M PYUSD/GHO Elliptic Liquidity Pool (ECLP) with an asymmetric concentrated liquidity profile will be used on Balancer.
The pool will be funded and supported for an initial 6 month period with an additional 300k GHO made available to the ALC.
Specification
The following PYUSD Reserve parameters are to be updated:
Parameter | PYUSD |
---|---|
Borrowable | Yes |
Collateral | Yes |
Borrow Cap | 15M |
LTV | 75.00% |
LT | 78.00% |
Liquidation Penalty | 7.50% |
Liquidation Protocol Fee | 10.00% |
Create 300k GHO Allowance for the ALC SAFE.
ALC SAFE: 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
GHO: 0x40D16FC0246aD3160Ccc09B8D0D3A2cD28aE6C2f
Whilst not expected to be needed, in case aEthPYUSD Liquidity Mining rewards are to be distributed across Aave v3, the ACI is to be granted sufficient permission to do so.
EMISSION_MANAGER.setEmissionAdmin(PYUSD
,ACI Treasury
)
EMISSION_MANAGER.setEmissionAdmin(aEthPYUSD
,ACI Treasury
)
PYUSD: 0x6c3ea9036406852006290770BEdFcAbA0e23A0e8
aEthPYUSD: 0x0C0d01AbF3e6aDfcA0989eBbA9d6e85dD58EaB1E
ACI Treasury: 0xac140648435d03f784879cd789130F22Ef588Fcd
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.