KVORUM
aaveSource: Aave governance v3 · #310

Add AAVE token to Aave V3 Base Instance

executedMay 18, 2025, 08:58 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to add AAVE token as a collateral option on the Aave V3 Base instance, with a 30,000 AAVE supply cap, 60% LTV, and borrowing disabled. This expands AAVE token integration across all major Aave deployments and supports Base market growth.

Type
protocol addition

Key changes

  • Add AAVE token as collateral to Aave V3 Base instance with supply cap of 30,000 AAVE(high)
  • Set LTV at 60% and liquidation threshold at 65% for AAVE collateral(high)
  • Disable borrowing of AAVE (borrow cap set to 1) while enabling it as collateral only(high)
  • Enable flashloan functionality for AAVE on Base(medium)
  • Set liquidation bonus at 10% and liquidation protocol fee at 10%(medium)
  • Configure Chainlink AAVE/USD oracle for price feeds on Base(medium)

Notable concerns

  • AAVE borrowing is disabled (capped at 1), limiting use cases for borrowing the token
  • Debt ceiling set to USD 0 restricts leveraged borrowing against AAVE collateral
ContractsAaveV3Base
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
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02Description

371 words

Simple Summary

This publication presents the community an opportunity to expand AAVE governance token integration on the AAVE platform by adding AAVE collateral option to Base.

AAVE token has wide integrations into all other major AAVE instances including ETH Mainnet, Arbitrum, Optimism, Polygon, and Avalanche. Adding AAVE to the Base instance is the next logical step in AAVE token integration within the AAVE lending platform.

Motivation

  • AAVE token is a versatile governance token which is already accepted collateral on all major AAVE instances.
  • The Base Market is growing in TVL, the addition of collateral options already found on other AAVE instances will increase Base Market growth.
  • There is deep liquidity on Base chain for the AAVE token already. Price impact of just 0.77% for $1m ETH/AAVE trades using jumper.exchange on Base.
  • Aerodrome (Base DEX) has $10m TVL in WETH/AAVE concentrated liquidity.

Base has seen expansion in its TVL now surpassing Arbitrum by ~15%. Base chain is a small but significant part of total Defi TVL (all chains) of 3%. Source: https://defillama.com/chains

Specification

The table below illustrates the configured risk parameters for AAVE

ParameterValue
Isolation Modefalse
BorrowableDISABLED
Collateral Enabledtrue
Supply Cap (AAVE)30,000
Borrow Cap (AAVE)1
Debt CeilingUSD 0
LTV60 %
LT65 %
Liquidation Bonus10 %
Liquidation Protocol Fee10 %
Reserve Factor20 %
Base Variable Borrow Rate0 %
Variable Slope 110 %
Variable Slope 2300 %
Uoptimal45 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
OracleChainlink AAVE/USD
Oracle Latest Answer(2025-05-07) USD 169.65627000

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for AAVE and the corresponding aToken.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

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05Tally

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06Voters

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07Forum

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