Onboard AUSD
01Summary
Proposal to onboard AUSD, a USD-backed stablecoin issued by Agora, to Aave V3 on Avalanche. AUSD would be enabled for borrowing with a 19M supply cap and 17.4M borrow cap, but not as collateral. The stablecoin has $70M+ TVL across multiple chains and is backed by VanEck and major custodian bank reserves.
- Type
- protocol addition
Key changes
- Enable AUSD as a borrowable asset on Aave V3 Avalanche with 19,000,000 supply cap and 17,400,000 borrow cap(high)
- AUSD configured with 0% LTV and 0% LT, making it non-collateraliziable and only usable for borrowing, not as collateral(high)
- Enable flash loan functionality for AUSD(medium)
- Set reserve factor at 10% with variable borrow rate curve (5.5% slope 1, 75% slope 2, 90% uOptimal)(medium)
- Designate 0xac140648435d03f784879cd789130F22Ef588Fcd as emission admin for AUSD and corresponding aToken(low)
Notable concerns
- AUSD cannot be used as collateral due to 0% LTV/LT configuration, limiting its utility within the Aave protocol
- New stablecoin integration carries risks despite institutional backing by VanEck and major custodian bank
Generated by Kvorum
02Description
Simple Summary
This proposal seeks to onboard AUSD, a secure digital dollar backed 1:1 by USD fiat, to Aave V3 on Avalanche. AUSD, issued by Agora, serves as a stable and liquid alternative to USDT and USDC. With a growing AUM and robust liquidity, AUSD will enhance Aave’s liquidity pool, offering users a reliable and efficient stablecoin option with strong institutional backing.
Motivation
Agora offers AUSD, a digital dollar minted 1:1 with USD fiat. AUSD is designed to be a secure digital currency, utilizing one of the world’s largest custodian banks to safeguard assets. AUSD enables users to participate in trading, lending and payments. It is the most cost-efficient stablecoin to transact with due to its gas-optimized smart contract, making it ideal for traders and payments.
Agora operates an open partnership model, allowing collaboration with a diverse range of customers who meet KYB (Know Your Business) requirements and operate in jurisdictions we can serve. This approach contrasts with single partnership models (eg. Exchange-Backed Stables), ensuring that AUSD can be widely adopted across different ecosystems, providing liquidity and stability without conflicts of interest.
AUSD is currently available on Ethereum, Avalanche, Sui and Mantle, garnering $70+ million in TVL and $12+ million in daily DEX volume since contract deployment. The reserve assets are managed by VanEck ($100B+ asset manager) and custodied with one of the largest global banks, ensuring security and safety. AUSD’s unique value proposition also includes zero-fee minting and redemption facilities, making it an attractive asset for all ecosystem participants.
By integrating AUSD into Aave, users will gain access to a stable, liquid asset that supports trading, lending, and other decentralized finance activities. This integration aligns with Aave’s mission to decentralize finance while offering secure and reliable stablecoin options.
Specification
The table below illustrates the configured risk parameters for AUSD
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | false |
| Supply Cap (AUSD) | 19,000,000 |
| Borrow Cap (AUSD) | 17,400,000 |
| Debt Ceiling | USD 0 |
| LTV | 0 % |
| LT | 0 % |
| Liquidation Bonus | 0 % |
| Liquidation Protocol Fee | 0 % |
| Reserve Factor | 10 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 5.5 % |
| Variable Slope 2 | 75 % |
| Uoptimal | 90 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0x83f32c0882B12Ef16214c417efF11FD9e764bf34 |
Additionaly 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for AUSD and the corresponding aToken.
References
- Implementation: AaveV3Avalanche
- Tests: AaveV3Avalanche
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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04Actions
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05Tally
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06Voters
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07Forum
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