Aave V3.5 Plasma Activation














Aave V3.5 Plasma Activation







Author

BGD Labs (@bgdlabs)

Creator

0xf71fc92e2949ccF6A5Fd369a0b402ba80Bc61E02

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:

ParameterUSDT0USDesUSDeXAUt0weETHWETH
Isolation Modefalsefalsefalsetruefalsefalse
BorrowableENABLEDENABLEDDISABLEDDISABLEDDISABLEDENABLED
Collateral Enabledtruetruetruetruetruetrue
Supply Cap100,000100,000100,000302020
Borrow Cap50,00050,00011110
Debt CeilingUSD 0USD 0USD 0USD 18,000,000USD 0USD 0
LTV75 %72 %0.05 %70 %0.05 %80.5 %
LT78 %75 %0.1 %75 %0.1 %83 %
Liquidation Bonus4.5 %8.5 %8.5 %7.5 %7 %5.5 %
Liquidation Protocol Fee10 %10 %10 %10 %10 %10 %
Reserve Factor10 %25 %20 %20 %20 %15 %
Base Variable Borrow Rate2.5 %2.5 %0 %0 %0 %0 %
Variable Slope 14 %5 %9 %9 %9 %2.7%
Variable Slope 220 %50 %75 %75 %75 %20%
Uoptimal92 %85 %60 %60 %60 %92 %
FlashloanableENABLEDENABLEDENABLEDENABLEDENABLEDENABLED
Siloed BorrowingDISABLEDDISABLEDDISABLEDDISABLEDDISABLEDDISABLED
Borrowable in IsolationENABLEDDISABLEDDISABLEDDISABLEDDISABLEDDISABLED

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:

ParameterUSDT0USDesUSDeXAUt0weETHWETH
Supply Cap2,200,000,000500,000,000450,000,0007,00010,00080,000
Borrow Cap2,000,000,00050,000,00011110,000

Oracle details:

USDT0USDesUSDeweETHWETHXAUt0
OracleCapped USDT/USDCapped USDT/USDCapped sUSDe / USDe / USDCapped weETH / eETH(ETH) / USDETH/USDXAU/USD
PriceCap1.04e81.04e8----
Exchange Rate Feed--CL SUSDe/USDeCL weETH/ETH--
Base FeedCL USDT/USDCL USDT/USDCapped USDT/USD---
MaxYearlyRatioGrowthPercent--15.19 %8.75 %--
MinimumSnapshotDelay--14 days7 days--

EMode Configurations:

USDe Stablecoin E-Mode

ParameterValueValue
AssetUSDeUSDT0
CollateralYesNo
BorrowableNoYes
Max LTV90%-
Liquidation Threshold93%-
Liquidation Bonus2%-

sUSDe Stablecoin E-Mode

ParameterValueValueValue
AssetUSDesUSDeUSDT0
CollateralYesYesNo
BorrowableNoNoYes
Max LTV90%90%-
Liquidation Threshold92%92%-
Liquidation Bonus4.0%4.0%-

weETH WETH E-Mode

ParameterValueValue
AssetweETHWETH
CollateralYesNo
BorrowableNoYes
Max LTV93%-
Liquidation Threshold95%-
Liquidation Bonus1.00%-

weETH Stablecoin E-Mode

ParameterValueValue
AssetweETHUSDT0
CollateralYesNo
BorrowableNoYes
Max LTV75%-
Liquidation Threshold78%-
Liquidation Bonus7.50%-

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for the underlying tokens listed and their corresponding aTokens.

Security procedures:

  • The proposal execution is simulated within the tests and the resulting pool configuration is tested for correctness.
  • The deployed pool and other permissions have been programmatically verified, which can be found on the aave-permissions-book.
  • In addition, we have also checked the code diffs of the deployed plasma contracts with the production instance, which can be found here.

References

Copyright

Copyright and related rights waived via CC0.

by BGD Labs