Onboard USDe Aave V3 Ethereum
01Summary
Proposal to add USDe (Ethena's synthetic dollar) to Aave V3 on Ethereum with specific risk parameters including 80M supply cap, 72M borrow cap, 72% LTV, and isolation mode enabled.
- Type
- protocol addition
Key changes
- Add USDe token to Aave V3 on Ethereum as a borrowable and collateral-enabled asset(high)
- Enable isolation mode for USDe with $40M debt ceiling to limit risk exposure(high)
- Set supply cap at 80,000,000 USDe and borrow cap at 72,000,000 USDe(high)
- Configure LTV at 72% and liquidation threshold at 75% with 8.5% liquidation bonus(high)
- Set base variable borrow rate at 0% with variable slope 1 at 9% and slope 2 at 75%(medium)
- Reserve factor set to 25% for protocol revenue(medium)
- Enable USDe as borrowable in isolation mode and enable flash loans(medium)
Notable concerns
- Isolation mode restricts use as collateral with other assets, limiting composability
- High borrow cap of 72M USDe creates significant exposure to a relatively new synthetic asset
- Variable slope 2 of 75% creates steep borrow rate increases at high utilization
Generated by Kvorum
02Description
Simple Summary
This proposal seek approval for the addition of USDe to Aave V3 on Ethereum
Motivation
Ethena’s synthetic dollar, USDe, provides a stable crypto-native solution for a cash and carry structured product. The staked version of USDe, sUSDe, earns yield from the protocol and has high potential for strong borrow demand.
Specification
The table below illustrates the configured risk parameters for USDe
| Parameter | Value |
|---|---|
| Isolation Mode | true |
| Borrowable | ENABLED |
| Collateral Enabled | true |
| Supply Cap (USDe) | 80,000,000 |
| Borrow Cap (USDe) | 72,000,000 |
| Debt Ceiling | USD 40,000,000 |
| LTV | 72 % |
| LT | 75 % |
| Liquidation Bonus | 8.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 25 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 9 % |
| Variable Slope 2 | 75 % |
| Uoptimal | 80 % |
| Stable Borrowing | DISABLED |
| Stable Slope1 | 9 % |
| Stable Slope2 | 75 % |
| Base Stable Rate Offset | 0 % |
| Stable Rate Excess Offset | 0 % |
| Optimal Stable To Total Debt Ratio | 0 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | ENABLED |
| Oracle | 0x55B6C4D3E8A27b8A1F5a263321b602e0fdEEcC17 |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows Aave's standard governance pattern: a single on-chain action that calls execute() on a pre-deployed, pre-audited payload contract (referenced in the description's 'Implementation' link). The actual parameter-setting logic (LTV, LT, caps, interest rate curve, oracle address, isolation mode, etc.) is encoded inside that payload contract's bytecode, not exposed as discrete calldata arguments in this decoded action. Because of this, the granular numeric claims in the Specification table cannot be directly verified against the decoded calldata — there is only one opaque execute() call. This is expected and standard for Aave V3 listing proposals, not a red flag by itself. The high-level intent (onboard USDe with a full risk parameter configuration) is consistent with the single execute() action targeting what appears to be the listing payload contract. No value, target, or omission mismatches can be identified given the information available, but confidence is medium rather than high because the underlying parameter values are not independently visible in the provided calldata for line-by-line verification.
Generated by Kvorum
04Actions
- Target
- 0x22e4…c72d
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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