KVORUM
aaveSource: Aave governance v3 · #247

Decrease Slope1 Parameter for Stablecoins on Aave V3

executedFeb 10, 2025, 06:30 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Chaos Labs proposes reducing the target borrow rate (Slope1 parameter) for stablecoins across Aave V3 to 9.50% on most networks, with 10.50% for bridged stablecoins where native versions exist. This change responds to consistently low stablecoin utilization across all Aave deployments to better align borrowing incentives with market conditions. GHO, USDS, and pyUSD are excluded from this change.

Type
parameter change

Key changes

  • Reduce Slope1 parameter for native stablecoins (USDC, DAI, USDT, LUSD, FRAX, crvUSD, USDe, sUSD, EURS, FDUSD, m.DAI, m.USDC, m.USDT, DAI.e, USDt, AUSD, EURe, USDC.e on most networks, USD//C on Gnosis, USDbC on Base) from current rates (11.50%-13.00%) to 9.50%(high)
  • Reduce Slope1 parameter for bridged stablecoins (USDC.e on Arbitrum, Optimism, and Polygon; USDbC on Base; USD//C on Gnosis) from 12.00%-13.00% to 10.50%(high)
  • Reduce Slope1 parameter for Metis stablecoins (m.DAI, m.USDC, m.USDT) and Avalanche DAI.e from 12.00%-12.50% to 9.50%(high)

Notable concerns

  • Stablecoin utilization across all Aave deployments remains relatively low with none registering average weighted utilization above 80%, indicating reduced demand for stablecoin borrowing
  • The parameter changes are implemented via direct-to-AIP process, bypassing standard governance procedures
  • GHO, USDS, and pyUSD are managed separately and excluded from these recommendations, creating inconsistent rate treatment across the stablecoin ecosystem
ContractsAaveV3EthereumAaveV3EthereumLidoAaveV3EthereumEtherFiAaveV3ArbitrumAaveV3OptimismAaveV3PolygonAaveV3BaseAaveV3MetisAaveV3AvalancheAaveV3GnosisAaveV3BNBAaveV3ScrollAaveV3ZkSync
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

792 words

Simple Summary

In light of recent market changes, Chaos Labs recommends setting the target borrow rate for all stablecoins to 9.50%. These changes will be implemented via the direct-to-AIP process.

Motivation

The utilization for stablecoins across Aave has continued to fall, calling for a further reduction in target rates to better align utilization. The chart below shows the average stablecoin utilization on Aave, weighted by the amount of total borrows of each asset.

Utilization across the largest markets remains relatively low; the same has held true on all deployments, with none registering an average weighted utilization above 80%.

As a result, we recommend setting the target rate for all stablecoins to 9.50%; bridged stablecoins on networks where native versions are available should be set to 10.50%. Please note that GHO, USDS, and pyUSD are managed separately and thus are not included in these recommendations.

Specification

ProtocolInstanceAssetCurrent Slope1Rec. Slope1
Aave V3Ethereum CoreUSDC11.50%9.50%
Aave V3Ethereum CoreDAI11.50%9.50%
Aave V3Ethereum CoreUSDT11.50%9.50%
Aave V3Ethereum CoreLUSD11.50%9.50%
Aave V3Ethereum CoreFRAX11.50%9.50%
Aave V3Ethereum CorecrvUSD11.50%9.50%
Aave V3Ethereum CoreUSDe11.50%9.50%
Aave V3Ethereum PrimeUSDC11.50%9.50%
Aave V3Ethereum EtherFiUSDC12.50%9.50%
Aave V3Ethereum EtherFiFRAX12.50%9.50%
Aave V3ArbitrumDAI11.50%9.50%
Aave V3ArbitrumUSDC.e12.50%10.50%
Aave V3ArbitrumUSDT11.50%9.50%
Aave V3ArbitrumLUSD11.50%9.50%
Aave V3ArbitrumUSDC11.50%9.50%
Aave V3ArbitrumFRAX11.50%9.50%
Aave V3OptimismDAI11.50%9.50%
Aave V3OptimismUSDC.e12.50%10.50%
Aave V3OptimismUSDT11.50%9.50%
Aave V3OptimismsUSD11.50%9.50%
Aave V3OptimismLUSD11.50%9.50%
Aave V3OptimismUSDC11.50%9.50%
Aave V3PolygonDAI11.50%9.50%
Aave V3PolygonUSDC.e12.50%10.50%
Aave V3PolygonUSDT11.50%9.50%
Aave V3PolygonEURS11.50%9.50%
Aave V3PolygonUSDC11.50%9.50%
Aave V3BaseUSDbC12.50%10.50%
Aave V3BaseUSDC11.50%9.50%
Aave V3Metism.DAI12.50%9.50%
Aave V3Metism.USDC12.50%9.50%
Aave V3Metism.USDT12.50%9.50%
Aave V3AvalancheDAI.e12.00%9.50%
Aave V3AvalancheUSDC12.00%9.50%
Aave V3AvalancheUSDt12.00%9.50%
Aave V3AvalancheFRAX12.00%9.50%
Aave V3AvalancheAUSD5.50%9.50%
Aave V3GnosisUSD//C13.00%10.50%
Aave V3GnosisWXDAI11.50%9.50%
Aave V3GnosisEURe11.50%9.50%
Aave V3GnosisUSDC.e12.00%9.50%
Aave V3BNBUSDC11.50%9.50%
Aave V3BNBUSDT11.50%9.50%
Aave V3BNBFDUSD11.50%9.50%
Aave V3ScrollUSDC11.50%9.50%
Aave V3ZkSyncUSDC11.50%9.50%
Aave V3ZkSyncUSDT11.50%9.50%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal follows Aave's standard direct-to-AIP governance pattern: the on-chain vote executes a small number of 'payload' contracts via a generic execute() fallback call, and the actual parameter changes (Slope1 rate updates across many Aave V3 markets) are encoded inside those payload contracts' bytecode, not visible in the decoded calldata provided here. All three decoded actions are simple parameterless execute() calls to Ethereum-mainnet payload addresses, consistent with the References section which links to per-network Solidity payload implementations (Ethereum, Polygon, Avalanche, Optimism, Arbitrum, Metis, Base, Gnosis, Scroll, BNB, ZkSync, etc.). Because the decoded calldata does not expose the specific interest-rate-strategy parameters being set, I cannot directly verify that each individual asset's Slope1 is being moved to exactly 9.50% or 10.50% as claimed in the specification table. However, there is nothing in the decoded actions that contradicts the description, no unexpected targets, transfers, or role grants, and the number/pattern of execute() calls is typical for this type of multi-market risk-parameter update. Given the opacity of the payload internals, I mark confidence as low rather than flagging a discrepancy, since a low-confidence result should not be treated as a red flag — it simply means the underlying calldata cannot be fully cross-checked against the granular claims in the specification table with the information available.

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

3 total
#0fallback()chain 0x1
Target
0xe9dd…296c
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#1fallback()chain 0x1
Target
0x4da7…718a
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#2fallback()chain 0x1
Target
0x272d…96d7
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

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.