KVORUM
aaveSource: Aave governance v3 · #313

Configuration maintenance

executedMay 25, 2025, 03:17 PM UTCbyF70xf71f…1e02

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal fixes inconsistent pool configurations across multiple Aave chains by: (1) disabling stablecoin and LST borrowing within specific eMode categories to prevent unintended borrows, (2) permanently disabling borrowing for FRAX, SNX, LBTC, rsETH, sUSD, and MaticX on various chains that were previously disabled via borrowCap workarounds, and (3) reverting the renFIL interest rate strategy on Aave V2 Ethereum to prevent excessive growth on an illiquid asset.

Type
parameter change

Key changes

  • Disable stablecoin borrowing in eMode categories across Arbitrum, Avalanche, and Optimism(medium)
  • Disable LST (Liquid Staking Token) borrowing in correlated eMode categories across all affected chains, keeping only WETH borrowable in most ETH-correlated modes(medium)
  • Permanently disable borrowing for FRAX on Mainnet, Arbitrum, and Avalanche; SNX and LBTC on Mainnet; rsETH on Mainnet; sUSD on Optimism; and MaticX on Polygon(medium)
  • Revert renFIL interest rate strategy on Aave V2 Ethereum to ZeroInterestRateStrategy to address excessive interest rates on illiquid asset(high)

Notable concerns

  • renFIL borrowers currently face excessively high interest rates due to near-zero secondary market liquidity, making debt repayment difficult
ContractsAaveV2EthereumAaveV3EthereumAaveV3PolygonAaveV3AvalancheAaveV3OptimismAaveV3ArbitrumAaveV3BaseAaveV3GnosisAaveV3ScrollAaveV3ZkSync
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

500 words

Simple Summary

This proposal aims to fix inconsistent / suboptimal configurations across various pools.

Motivation

eModes

When Aave v3.2 went live, the existing eModes were just migrated to liquid eModes. What this means that if an asset was flagged as e.g. eMode 1 on v3.2 it was enabled as borrowable and as collateral on eMode 1. This was done to not disrupt existing positions and also to isolate the upgrade from any configuration changes. As some time has passed now, it is a good idea to disable unintended eMode configurations, namely we propose to:

  • deprecate stablecoin eModes by disabling all borrowable assets
  • deprecated LSTs from being borrowable in the "correlated" eModes category

This will not have any effects on existing positions, but will prevent increased borrows of the disabled assets within the eMode.

Borrowable

Some assets that were originally listed as borrowable have later been "disabled" by setting their borrowCap to 1 via risk stewards. While this workaround suits the needs, the "correct" thing to do, is to disable borrowing. Therefore this proposal permanently disables borrowing for:

  • FRAX, SNX, LBTC and rsETH on Mainnet
  • sUSD on Optimism
  • MaticX on Polygon
  • FRAX on Arbitrum
  • FRAX on Avalanche

v2 Rates

In aip 261 the rates for v2 assets were aligned to standardize interest rates. This resulted in some unintended increase in interest rate on renFil, which has close to zero secondary market liquidity and thus makes it almost impossible for borrowers to repay their debt. Therefore we recommend reverting to the previous ZeroInterestRateStrategy to cut growth.

Specification

The proposal uses the config engine to implemented the described changes.

descriptionborrowable beforeborrowable after
Arbitrum: StablecoinsDAI, USDC, USD₮0, EURS, USDC
Arbitrum: ETH correlatedWETH, wstETH, weETHWETH
Avalanche: StablecoinsDAI.e, USDC, USDt, FRAX, MAI
Avalanche: AVAX correlatedWAVAX, sAVAXWAVAX
Base: ETH correlatedWETH, cbETH, wstETH, weETHWETH
Ethereum: ETH correlatedWETH, wstETH, cbETH, rETH, weETH, osETH, ETHxWETH
Gnosis: ETH correlatedWETH, wstETHWETH
Optimism:StablecoinsDAI, USDC, USDT, sUSD, USDC
Optimism: ETH correlatedWETH, wstETH, rETHWETH
Polygon: Matic correlatedWPOL, stMATIC, MaticXWPOL
Polygon: ETH correlatedWETH, wstETHWETH
Scroll: ETH correlatedWETH, wstETH, weETHWETH
ZkSync: ETH correlatedWETH, wstETHWETH

In addition it calls to revert the interest rate on Aave V2 Ethereum:

AaveV2Ethereum.POOL_CONFIGURATOR.setReserveInterestRateStrategyAddress(
      AaveV2EthereumAssets.renFIL_UNDERLYING,
      0x311C866D55456e465e314A3E9830276B438A73f0
);

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

2 total
#0fallback()chain 0x1
Target
0xf791…a72d
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#1fallback()chain 0x1
Target
0x6e6c…5661
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

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07Forum

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