KVORUM
aaveSource: Aave governance v3 · #245

Aave v3 Linea Activation

executedFeb 10, 2025, 10:35 AM UTCbyF70xf71f…1e02

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal activates the Aave V3 pool on Linea by completing initial setup and listing 7 assets (USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH) with specified risk parameters, setting risk and pool admins, configuring liquidity mining admin, and establishing three ETH-correlated e-modes. The deployment has completed all governance procedures including positive signaling, technical evaluation, and risk analysis.

Type
protocol addition

Key changes

  • List 7 assets on Aave V3 Linea: USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH with configured risk parameters(high)
  • Set risk steward as risk admin via ACL_MANAGER.addRiskAdmin()(medium)
  • Set guardian address as pool admin via ACL_MANAGER.addPoolAdmin() during bootstrap period(medium)
  • Set ACI multi-sig as liquidity mining admin for all aTokens and underlying tokens via EMISSION_MANAGER.setEmissionAdmin()(medium)
  • Create three ETH-correlated e-modes: wstETH (Max LTV 93.5%, LT 95.5%), weETH (Max LTV 90%, LT 93%), ezETH (Max LTV 90%, LT 93%)(medium)
  • Configure supply caps, borrow caps, LTV, liquidation thresholds, and interest rate parameters for each listed asset(high)

Notable concerns

  • ezETH and weETH have borrowing disabled and very low borrow caps (1 unit) despite being collateral-enabled
  • High reserve factors for ezETH (45%) and weETH (45%) may limit borrowing incentives
  • Guardian retains pool admin during bootstrap period, creating temporary centralization risk
  • Multiple e-mode configurations require careful user education to avoid liquidation risks
ContractsAaveV3LineaACL_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

951 words

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 Linea pool (3.2) by completing all the initial setup and listing USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH as suggested by the risk service providers engaged with the DAO on the governance forum.

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

Motivation

All the governance procedures for the expansion of Aave v3 to Linea 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 Linea 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 Linea: USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH
  • 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:

ParameterWETHWBTCUSDCUSDTwstETHezETHweETH
Isolation Modefalsefalsefalsefalsefalsefalsefalse
BorrowableENABLEDENABLEDENABLEDENABLEDENABLEDDISABLEDDISABLED
Collateral Enabledtruetruetruetruetruetruetrue
Supply Cap1,2002512,000,0007,800,0008001,2001,200
Borrow Cap1,1001211,000,0007,150,00040011
Debt CeilingUSD 0USD 0USD 0USD 0USD 0USD 0USD 0
LTV80 %73 %75 %75 %75 %72 %72.5 %
LT83 %78 %78 %78 %79 %75 %75 %
Liquidation Bonus6 %7 %5 %5 %7 %7.5 %7.5 %
Liquidation Protocol Fee10 %10 %10 %10 %10 %10 %10 %
Reserve Factor15 %20 %10 %10 %5 %45 %45 %
Base Variable Borrow Rate0 %0 %0 %0 %0 %0 %0 %
Variable Slope 12.7 %7 %5.5 %5.5 %7 %7 %7 %
Variable Slope 280 %300 %60 %60 %300 %300 %300 %
Uoptimal90 %45 %90 %90 %45 %45 %45 %
FlashloanableENABLEDENABLEDENABLEDENABLEDENABLEDENABLEDENABLED
Siloed BorrowingDISABLEDDISABLEDDISABLEDDISABLEDDISABLEDDISABLEDDISABLED
Borrowable in IsolationDISABLEDDISABLEDENABLEDENABLEDDISABLEDDISABLEDDISABLED
OracleETH/USDBTC/USDCapped USDC/USDCapped USDT/USDCapped wstETH/ETH/USDCapped ezETH/ETH/USDCapped weETH/ETH/USD

E-Modes

The followings E-modes will be created:

wstETH correlated E-Mode

ParameterValueValue
AssetwstETHWETH
CollateralYesNo
BorrowableNoYes
Max LTV93.5%-
Liquidation Threshold95.5%-
Liquidation Penalty1.00%-

weETH correlated E-Mode

ParameterValueValue
AssetweETHWETH
CollateralYesNo
BorrowableNoYes
Max LTV90%-
Liquidation Threshold93%-
Liquidation Penalty1.00%-

ezETH correlated E-Mode

ParameterValueValue
AssetezETHWETH
CollateralYesNo
BorrowableNoYes
Max LTV90%-
Liquidation Threshold93%-
Liquidation Penalty1.00%-

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 linea contracts with the production instance, which can be found here.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

0 total

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05Tally

Summed from votes

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Outcome (current)—
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06Voters

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07Forum

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