Onboard eBTC and Add eBTC/WBTC E-Mode
01Summary
Proposal to onboard eBTC as collateral on Aave V3 Core Instance and establish a liquid E-Mode for eBTC/WBTC pairs to enhance capital efficiency for borrowers. eBTC configured with 67% LTV, 750 supply cap, and E-Mode allowing up to 83% LTV when paired with WBTC for stablecoin borrowing.
- Type
- protocol addition
Key changes
- Onboard eBTC as collateral asset on Ethereum with 67% LTV, 72% liquidation threshold, and 750 supply cap(high)
- Enable eBTC/WBTC liquid E-Mode allowing eBTC collateral at 83% LTV (85% liquidation threshold) paired with WBTC as borrowable asset for enhanced capital efficiency(high)
- Set 0xac140648435d03f784879cd789130F22Ef588Fcd as emission admin for eBTC and corresponding aToken(medium)
- Configure risk parameters including 10% liquidation bonus, 50% reserve factor, 0% variable base rate, and 45% optimal utilization(medium)
Notable concerns
- E-Mode significantly increases LTV from 67% to 83%, potentially increasing liquidation risk in adverse market conditions
- High variable slope2 of 300% creates steep borrowing costs if utilization exceeds optimal 45% threshold
- Borrow cap of 1 appears unusually restrictive relative to 750 supply cap
Generated by Kvorum
02Description
Simple Summary
This proposal aims to onboard eBTC for the Core Instance, and add a WBTC liquid E-Mode. By implementing this change, we seek to enhance capital efficiency for borrowers using eBTC/WBTC as collateral.
Both TEMP CHECK and TEMP CHECK Snapshot have passed recently.
Motivation
The motivation behind this proposal stems from several key factors:
- High Utilization: eBTC/WBTC has demonstrated significant usage as collateral for borrowing stablecoins on the platform.
- Capital Efficiency: Enabling liquid E-Mode for eBTC/WBTC will allow borrowers to substantially improve their capital efficiency when using this asset as collateral.
- Controlled Growth: Liquid E-Mode provides a mechanism for more precise control over the growth and borrow demand in relation to the overall stablecoin liquidity within Aave v3 on Core Instance.
- Enhanced Borrowing Capacity: This change will enable users to borrow larger amounts of other stablecoins against their eBTC/WBTC collateral, potentially increasing platform utilization and revenue.
By implementing this proposal, we aim to optimize the use of eBTC/WBTC within the Aave ecosystem, attracting more liquidity.
Specification
The table below illustrates the configured risk parameters for eBTC
| Parameter | Value |
|---|---|
| Network | Ethereum |
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap | 750 |
| Borrow Cap | 1 |
| Debt Ceiling | 0 |
| LTV | 67% |
| LT | 72% |
| Liquidation Bonus | 10% |
| Liquidation Protocol Fee | 10% |
| Variable Base | 0% |
| Variable Slope1 | 4% |
| Variable Slope2 | 300% |
| Uoptimal | 45% |
| Reserve Factor | 50% |
| Flashloanable | No |
| Siloed Borrowing | No |
| Oracle | 0x95a85D0d2f3115702d813549a80040387738A430 |
Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for eBTC and the corresponding aToken.
Finally, this proposal will add eBTC/WBTC liquid E-Mode
| Parameter | Value | Value |
|---|---|---|
| Asset | eBTC | WBTC |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 83% | - |
| Liquidation Threshold | 85% | - |
| Liquidation Bonus | 3.0% | - |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave v3 governance pattern: the on-chain action is a single execute() call to a pre-deployed payload contract (0x07ae852f84...), which is the conventional mechanism for Aave listings, E-Mode additions, and risk parameter changes. The decoded calldata contains no arguments or sub-calls, meaning the specific numeric parameters (LTV, LT, caps, E-Mode values, emission admin address) described in the prose cannot be directly verified against on-chain decoded data — they are encoded inside the payload contract referenced by the governance forum links and Solidity source, not in this top-level call. This is typical and expected for Aave proposals of this type, not itself a red flag. Because there is no decoded detail to compare against the prose's specific claims (percentages, caps, addresses), I cannot confirm or deny a mismatch with high confidence. I found no evidence of contradiction — the single action target and function signature (execute() payload pattern) are consistent with what a proposal of this scope would produce. Given the lack of granular calldata to check against the detailed specification table, confidence in this analysis is low, and no discrepancies are flagged since none can be substantiated from the available data.
Generated by Kvorum
04Actions
- Target
- 0x07ae…ed0d
- 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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