Add XAUt to Aave v3 Core Instance
Add XAUt to Aave v3 Core Instance
Author
Aave-Chan Initiative
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
The proposal aims to onboard Tether’s XAUt gold-denominated stablecoin, to the Aave v3 Core Instance.
Motivation
XAUt is a gold backed digital currency offered by Tether.
XAUt represents a unique opportunity to bring gold-backed assets into DeFi lending markets. Adding XAUt to Aave v3 would:
- Diversify the protocol’s offerings with a historically stable store of value
- Enable users to use gold-backed tokens as collateral or for lending, creating new DeFi use cases
- Allow users a hedge against market volatility through exposure to physical gold
- Attract traditional finance users who are familiar with gold as an asset class
The addition of XAUt aligns with Aave’s goal of expanding DeFi accessibility while maintaining strong risk management practices through the use of established, well-backed assets.
Specification
The table below illustrates the configured risk parameters for XAUt
| Parameter | Value |
|---|---|
| Isolation Mode | true |
| Borrowable | DISABLED |
| Collateral Enabled | true |
| Supply Cap (XAUt) | 5,000 |
| Borrow Cap (XAUt) | 1 |
| Debt Ceiling | USD 3,000,000 |
| LTV | 70 % |
| LT | 75 % |
| Liquidation Bonus | 6 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 10 % |
| Variable Slope 2 | 300 % |
| Uoptimal | 45 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
oracle details
| Parameter | Value |
|---|---|
| Oracle | Chainlink XAU/USD |
Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for XAUt and the corresponding aToken.
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.