KVORUM
aaveSource: Aave governance v3 · #166

Aave v3 zkSync Activation

executedSep 19, 2024, 01:01 PM UTCbyF70xf71f…1e02

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal activates the Aave V3 zkSync pool by listing 5 assets (USDC, USDT, WETH, wstETH, ZK) with specified risk parameters, setting the guardian as pool admin, and designating ACI as liquidity mining admin for ZK. The pool launches with conservative supply and borrow caps (~$10,000 per asset) that the guardian can raise after technical validation.

Type
protocol addition

Key changes

  • List USDC, USDT, WETH, wstETH, and ZK assets on Aave V3 zkSync with specified LTV, liquidation thresholds, and borrow/supply caps(high)
  • Set guardian address as pool admin during bootstrap period for security(high)
  • Designate ACI as liquidity mining admin for ZK token(medium)
  • Implement ETH correlated eMode category with 90% LTV and 93% liquidation threshold(medium)
  • Deploy with conservative supply and borrow caps (~$10,000 per asset) allowing guardian to increase caps after technical validation(medium)

Notable concerns

  • ZkSync compiler dependency issue previously discovered has been addressed with zksolc 1.5.3, but pool launches with reduced caps as extra security precaution
  • Risk parameters were updated post-snapshot based on risk service provider recommendations
  • ZK token placed in isolation mode with $800,000 debt ceiling and limited borrowing capabilities compared to stablecoins
  • Supply and borrow caps intentionally set at low levels requiring guardian action to reach voted expected levels, introducing potential delays in full pool functionality
ContractsAave V3 zkSync PoolACL_MANAGEREMISSION_MANAGER
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

955 words

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 zkSync pool (3.1) by completing all the initial setup and listing USDC, USDT, WETH, wstETH, ZK as suggested by the risk service providers engaged with the DAO on the governance forum.

Please note: Due to the issue on the dependencies of the ZkSync Era compiler, the instance has been re-deployed with the fixed compiler version zksolc 1.5.3 with no changes on the protocol code.

All the Aave zkSync V3 addresses can be found in the aave-address-book.

Motivation

All the governance procedures for the expansion of Aave v3 to zkSync have been finished, said:

  • Positive signaling and approval regarding the expansion on the governance forum, temp check snapshot, and final snapshot.
  • Positive technical evaluation done by BGD Labs of the zkSync 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 zkSync: USDC, USDT, WETH, wstETH, ZK
  • 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 as liquidity mining admin for the ZK token by calling EMISSION_MANAGER.setEmissionAdmin() method.

Note: The risk params suggested by risk service providers have changed post-snapshot, and the updated one's from the forum are being used.

The table below illustrates the initial suggested risk parameters for each asset:

Emode Category IdLTVLiquidation ThresholdLiquidation Bonus
1 (ETH correlated)90%93%1%
ParameterUSDCUSDTWETHwstETHZK
Supply Cap* 100,000,000* 3,000,000* 1,000* 300* 18,000,000
Borrow Cap* 900,000* 2,700,000* 900* 30* 10,000,000
BorrowableENABLEDENABLEDENABLEDENABLEDENABLED
Collateral Enabledtruetruetruetruetrue
LTV75 %75 %75 %71 %40 %
LT78 %78 %78 %76 %45 %
Liquidation Bonus5 %5 %6 %7 %10 %
Liquidation Protocol Fee10 %10 %10 %10 %20 %
Reserve Factor10 %10 %15 %5 %20 %
Base Variable Borrow Rate0 %0 %0 %0 %0 %
Variable Slope 15.5 %5.5 %2.7 %4.5 %9 %
Variable Slope 260 %60 %80 %80 %300 %
Uoptimal90 %90 %90 %45 %45 %
OracleCapped USDC/USDCapped USDT/USDETH/USDCapped wstETH/ETH/USDZK/USD
FlashloanableENABLEDENABLEDENABLEDENABLEDENABLED
Isolation Modefalsefalsefalsefalsetrue
Debt CeilingUSD 0USD 0USD 0USD 0USD 800,000
Borrowable in IsolationENABLEDENABLEDDISABLEDDISABLEDDISABLED
Siloed BorrowingDISABLEDDISABLEDDISABLEDDISABLEDDISABLED
Stable BorrowingDISABLEDDISABLEDDISABLEDDISABLEDDISABLED
Emode CategoryN/AN/A1 (ETH correlated)1 (ETH correlated)N/A

* For extra caution and security, the zkSync instance is being activated with low supply and borrow caps (approximately $10'000 value each asset) to allow for extensive internal testing for a few days. This proposal authorizes the Aave Protocol Guardian to raise the caps to the voted expected levels once the technical providers confirm everything working correctly, on the Aave governance forum

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 zkSync contracts with the production instance, which can be found here. zkSync uses the Aave v3.1 version, and there are some minor diffs because production instances didn't require this change to be applied

Below are the per contract comparative diffs of the contract modifications relative to Gnosis network:

Following the issue on the dependencies of the ZkSync Era compiler during previous activation, as a matter of extra security procedures we have:

  • Improved the coverage on the tests, adding some more fork test scenarios covering the issue of bitmap corruption and verifying that the zksolc 1.5.3 fixes the issue. The tests can be found here.

  • Reduced the supply and borrow caps further, allowing the guardian to slowly increase it over time.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

0 total

This proposal carries no on-chain actions.

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.