KVORUM
aaveSource: Aave governance v3 · #3

Stablecoin IR Curves Updates

executedJan 12, 2024, 12:24 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to increase the Slope1 parameter (lower borrow rate curve) from 5% to 6% for stablecoins across all Aave V2 and V3 deployments (Ethereum, Avalanche, Polygon, Optimism, Arbitrum, Base, Metis, and Gnosis) to stabilize borrowing rates and achieve equilibrium utilization below the optimal point. Some assets with existing 7% Slope1 (USDC.e, USDbC) remain unchanged.

Type
parameter change

Key changes

  • Increase Slope1 parameter from 5% to 6% for majority of stablecoin markets across all deployments (USDC, USDT, DAI, FRAX, LUSD, sUSD, GUSD, USDP, MAI, xDAI)(high)
  • Assets with existing 7% Slope1 (USDC.e on Polygon V3, Optimism V3, Arbitrum V3, and USDbC on Base V3) remain unchanged(medium)

Notable concerns

  • The proposal aims to address continued volatility in stablecoin borrow rates following a previous increase (AIP-375)
  • Additional monitoring and recommendations may be required following implementation based on usage and equilibrium rate observations
ContractsAaveV2EthereumAaveV2PolygonAaveV2AvalancheAaveV3EthereumAaveV3PolygonAaveV3AvalancheAaveV3OptimismAaveV3ArbitrumAaveV3BaseAaveV3MetisAaveV3Gnosis
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

710 words

Simple Summary

A proposal to increase stablecoin Interest Rate parameters across all Aave deployments.

Motivation

Following the implementation of AIP-375 to increase stablecoin borrow rates across Aave V2 and V3 deployments, we continue to observe volatility in borrow rates across Aave deployments. As we highlighted in the recent proposal, we recommend a more aggressive increase of the Slope1 parameter to stabilize borrows under the UOptimal point.

Adjust Slope1 of stablecoins to 6%

The analysis indicates a necessity for further refinement of stablecoin interest rates, to achieve a more predictable and stable borrowing rate with an equilibrium utilization under the UOptimal point. Therefore, we propose increasing Slope1 to 6% for stablecoins across all Aave deployments, in this iteration. Following this increase, we will continue monitoring the usage and equilibrium rate and make additional recommendations as necessary.

Specification

MarketAssetCurrent Slope1Rec Slope1
Ethereum V2USDC5%6%
Ethereum V2USDT5%6%
Ethereum V2DAI5%6%
Ethereum V2FRAX5%6%
Ethereum V2sUSD5%6%
Ethereum V2GUSD5%6%
Ethereum V2LUSD5%6%
Ethereum V2USDP5%6%
Ethereum V3USDC5%6%
Ethereum V3USDT5%6%
Ethereum V3DAI5%6%
Ethereum V3FRAX5%6%
Ethereum V3LUSD5%6%
Avalanche V2USDC5%6%
Avalanche V2USDT5%6%
Avalanche V2DAI5%6%
Avalanche V3USDC5%6%
Avalanche V3USDT5%6%
Avalanche V3DAI5%6%
Avalanche V3MAI5%6%
Avalanche V3FRAX5%6%
Polygon V2USDC5%6%
Polygon V2USDT5%6%
Polygon V2DAI5%6%
Polygon V3USDC.e7%No Change
Polygon V3USDC5%6%
Polygon V3USDT5%6%
Polygon V3DAI5%6%
Polygon V3MAI5%6%
Optimism V3USDC.e7%No Change
Optimism V3USDC5%6%
Optimism V3USDT5%6%
Optimism V3DAI5%6%
Optimism V3sUSD5%6%
Optimism V3LUSD5%6%
Optimism V3MAI5%6%
Arbitrum V3USDC5%6%
Arbitrum V3USDC.e7%No Change
Arbitrum V3USDT5%6%
Arbitrum V3DAI5%6%
Arbitrum V3LUSD5%6%
Arbitrum V3FRAX5%6%
Arbitrum V3MAI5%6%
Base V3USDC5%6%
Base V3USDbC7%No Change
Metis V3USDC5%6%
Metis V3USDT5%6%
Gnosis V3USDC5%6%
Gnosis V3xDAI5%6%

References

Disclaimer

Chaos Labs has not been compensated by any third party for publishing this ARFC.

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal description details a specific, well-scoped parameter change (raising Slope1 from 5% to 6% for a defined list of stablecoins across 11 Aave deployments, explicitly excluding a few bridged-asset markets already at 7%). However, the decoded calldata only shows two generic execute() fallback calls to two contract addresses on Ethereum mainnet, with no visible sub-calls, parameters, or target reserves. This is the standard pattern for BGD Labs/Aave governance proposals, where the top-level governance executor calls execute() on payload contracts that internally delegatecall to per-market logic (and potentially trigger cross-chain execution via bridge adapters for L2 deployments). Because the actual parameter-setting logic is not exposed in the decoded calldata (only opaque execute() calls), it is not possible to directly verify that the Slope1 values match 6% for each listed market, or that the excluded markets are indeed left unchanged. This is a limitation of the decoded data rather than evidence of a mismatch — the pattern is consistent with legitimate, previously-used Aave governance payloads (as linked in the References section for each chain). Given the inability to inspect the nested calls, I set confidence to low and do not flag any specific value/target discrepancies, since doing so would require speculation beyond what the calldata shows. No claims in the description are contradicted by the visible calldata, and the general shape (two mainnet payload executions) is typical for a proposal that fans out changes to multiple chains via linked implementation contracts referenced in the proposal's own documentation.

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

04Actions

2 total
#0fallback()chain 0x1
Target
0x91c2…337a
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#1fallback()chain 0x1
Target
0x8b97…36a9
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

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VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.