KVORUM
aaveSource: Aave governance v3 · #397

Onboard sUSDe and USDe to Aave V3 Avalanche Instance

executedOct 25, 2025, 02:53 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

This proposal onboards sUSDe and USDe stablecoins to Aave v3 on Avalanche, enabling users to use these yield-bearing stablecoins as collateral. Both assets will have 50M supply caps, with USDe borrowable (42.5M borrow cap) and sUSDe non-borrowable. Ava Labs is providing 1000 AVAX weekly in incentives to bootstrap usage.

Type
protocol addition

Key changes

  • Onboard USDe as borrowable collateral with 70% LTV, 73% liquidation threshold, 50M supply cap, and 42.5M borrow cap(high)
  • Onboard sUSDe as non-borrowable collateral with 70% LTV, 73% liquidation threshold, and 50M supply cap(high)
  • Configure USDe Stablecoin E-mode allowing up to 89% LTV when using USDe as collateral and borrowing USDt, GHO, or USDC(medium)
  • Configure sUSDe Stablecoin E-mode allowing up to 89% LTV when using sUSDe as collateral and borrowing USDe, USDt, GHO, or USDC(medium)
  • Enable flashloans for both USDe and sUSDe(low)
  • Set oracle configurations using Capped USDT/USD for USDe and Capped sUSDe/USDe/USD for sUSDe with chainlink feeds(medium)

Notable concerns

  • sUSDe has high variable slope 2 rate of 300% creating steep borrowing costs at high utilization
  • sUSDe lower optimal utilization of 45% vs standard 80% may result in higher rates more quickly
  • sUSDe higher reserve factor of 45% vs USDe's 25% reduces yield for suppliers
  • Reliance on external incentives (1000 AVAX/week from Ava Labs) for bootstrapping adoption
ContractsAaveV3Avalanche
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

623 words

Simple Summary

This proposal seeks to onboard sUSDe and USDe to the Aave v3 protocol on Avalanche.

Motivation

The onboarding of sUSDe and USDe to the Aave Avalanche Instance will provide users with high quality yield bearing stablecoin collateral to help expand stablecoin usage on this instance.

As the Avalanche instance shows promise and potential for significant growth we believe the time is right for expanding collateral options on this network with a focus on those assets which have proven to be in demand on other Aave instances.

Ava Labs has committed 1000 AVAX per week in incentives to bootstrapping usage of these assets on the Avalanche Aave instance.

Specification

The table below illustrates the configured risk parameters for USDe and sUSDe

ParameterUSDesUSDe
Isolation Modefalsefalse
BorrowableENABLEDDISABLED
Collateral Enabledtruetrue
Supply Cap50,000,00050,000,000
Borrow Cap42,500,0001
Debt CeilingUSD 0USD 0
LTV70 %70 %
LT73 %73 %
Liquidation Bonus8.5 %8.5 %
Liquidation Protocol Fee10 %10 %
Reserve Factor25 %45 %
Base Variable Borrow Rate0 %0 %
Variable Slope 16.5 %10 %
Variable Slope 250 %300 %
Uoptimal80 %45 %
FlashloanableENABLEDENABLED
Siloed BorrowingDISABLEDDISABLED
Borrowable in IsolationDISABLEDDISABLED

Oracle details

USDesUSDe
OracleCapped USDT/USDCapped sUSDe / USDe / USD
PriceCap1.04e8-
Exchange Rate Feed-CL SUSDe/USDe
Base FeedCL USDT/USDCapped USDT/USD
MaxYearlyRatioGrowthPercent-15.19 %
MinimumSnapshotDelay-14 days

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for USDe, sUSDe and the corresponding aTokens.

Emode details

USDe Stablecoin E-mode Configuration

ParameterValueValueValueValue
AssetUSDeUSDtGHOUSDC
CollateralYesNoNoNo
BorrowableNoYesYesYes
Max LTV89%---
Liquidation Threshold92%---
Liquidation Bonus2%---

sUSDe Stablecoin E-mode Configuration

ParameterValueValueValueValueValue
AssetsUSDeUSDeUSDtGHOUSDC
CollateralYesNoNoNoNo
BorrowableNoYesYesYesYes
Max LTV89%----
Liquidation Threshold91%----
Liquidation Bonus4%----

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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