Aave V3.5 Plasma Activation

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 Plasma pool (3.5) by completing all the initial setup and listing USDT0, USDe, sUSDe, XAUt0, weETH, WETH as suggested by the risk service providers engaged with the DAO on the governance forum.

All the Aave Plasma V3 addresses can be found in the aave-address-book.

Motivation

All the governance procedures for the expansion of Aave v3 to Plasma have been finished, said:

• Positive signaling and approval regarding the expansion on the governance forum, and snapshot.
• Positive technical evaluation done by BGD Labs of the Plasma network, as described in the forum in detail.
• Positive risk analysis and assets/parameters recommendation by the risk service providers.

Specification

The proposal will do the following:

• List the following assets on Aave V3 Plasma: USDT0, USDe, sUSDe, XAUt0, weETH, WETH.
• Set the risk steward as the risk admin by executing ACL_MANAGER.addRiskAdmin().
• Set the guardian address as the pool admin by executing ACL_MANAGER.addPoolAdmin(). This is following the standard procedure of keeping pool admin on the Aave Guardian during the bootstrap period, for security.
• Set ACI multi-sig as liquidity mining admin for all aTokens and underlying tokens by calling EMISSION_MANAGER.setEmissionAdmin() method.

The table below illustrates the configured risk parameters for the assets to be listed:

Parameter	USDT0	USDe	sUSDe	XAUt0	weETH	WETH
Isolation Mode	false	false	false	true	false	false
Borrowable	ENABLED	ENABLED	DISABLED	DISABLED	DISABLED	ENABLED
Collateral Enabled	true	true	true	true	true	true
Supply Cap	100,000	100,000	100,000	30	20	20
Borrow Cap	50,000	50,000	1	1	1	10
Debt Ceiling	USD 0	USD 0	USD 0	USD 18,000,000	USD 0	USD 0
LTV	75 %	72 %	0.05 %	70 %	0.05 %	80.5 %
LT	78 %	75 %	0.1 %	75 %	0.1 %	83 %
Liquidation Bonus	4.5 %	8.5 %	8.5 %	7.5 %	7 %	5.5 %
Liquidation Protocol Fee	10 %	10 %	10 %	10 %	10 %	10 %
Reserve Factor	10 %	25 %	20 %	20 %	20 %	15 %
Base Variable Borrow Rate	2.5 %	2.5 %	0 %	0 %	0 %	0 %
Variable Slope 1	4 %	5 %	9 %	9 %	9 %	2.7%
Variable Slope 2	20 %	50 %	75 %	75 %	75 %	20%
Uoptimal	92 %	85 %	60 %	60 %	60 %	92 %
Flashloanable	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED
Siloed Borrowing	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED
Borrowable in Isolation	ENABLED	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED

Please note: As a matter of extra caution, XPL will be listed separately at a later time. Additionally, the plasma instance will be activated very limited interim caps, and this AIP also authorizes the Aave Protocol Guardian to increase it to the following pre-approved levels below once technical SP have triple checked everything:

Parameter	USDT0	USDe	sUSDe	XAUt0	weETH	WETH
Supply Cap	2,200,000,000	500,000,000	450,000,000	7,000	10,000	80,000
Borrow Cap	2,000,000,000	50,000,000	1	1	1	10,000

Oracle details:

	USDT0	USDe	sUSDe	weETH	WETH	XAUt0
Oracle	Capped USDT/USD	Capped USDT/USD	Capped sUSDe / USDe / USD	Capped weETH / eETH(ETH) / USD	ETH/USD	XAU/USD
PriceCap	1.04e8	1.04e8	-	-	-	-
Exchange Rate Feed	-	-	CL SUSDe/USDe	CL weETH/ETH	-	-
Base Feed	CL USDT/USD	CL USDT/USD	Capped USDT/USD	-	-	-
MaxYearlyRatioGrowthPercent	-	-	15.19 %	8.75 %	-	-
MinimumSnapshotDelay	-	-	14 days	7 days	-	-

EMode Configurations:

USDe Stablecoin E-Mode

Parameter	Value	Value
Asset	USDe	USDT0
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	90%	-
Liquidation Threshold	93%	-
Liquidation Bonus	2%	-

sUSDe Stablecoin E-Mode

Parameter	Value	Value	Value
Asset	USDe	sUSDe	USDT0
Collateral	Yes	Yes	No
Borrowable	No	No	Yes
Max LTV	90%	90%	-
Liquidation Threshold	92%	92%	-
Liquidation Bonus	4.0%	4.0%	-

weETH WETH E-Mode

Parameter	Value	Value
Asset	weETH	WETH
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	93%	-
Liquidation Threshold	95%	-
Liquidation Bonus	1.00%	-

weETH Stablecoin E-Mode

Parameter	Value	Value
Asset	weETH	USDT0
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	75%	-
Liquidation Threshold	78%	-
Liquidation Bonus	7.50%	-

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for the underlying tokens listed and their corresponding aTokens.

Security procedures:

• The proposal execution is simulated within the tests and the resulting pool configuration is tested for correctness.
• The deployed pool and other permissions have been programmatically verified, which can be found on the aave-permissions-book.
• In addition, we have also checked the code diffs of the deployed plasma contracts with the production instance, which can be found here.

References

• Implementation: AaveV3Plasma
• Tests: AaveV3Plasma
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.