Add X Layer Loop Tool & Margin Trading to FlashBorrowers

Simple Summary

This AIP adds the X Layer Loop Tool contract and the X Layer Margin Trading contract to the Aave V3 X Layer FlashBorrowers whitelist, allowing them to access flash liquidity without incurring the Aave Flashloan Fee.

Motivation

X Layer has developed a Loop Tool to simplify position management and looping activity on the Aave V3 X Layer instance. The tool will be integrated into OKX Wallet as a user facing product, allowing users to create leveraged positions on Aave without manually performing multiple supply, borrow and re-supply transactions.

X Layer has also requested that a separate contract supporting its margin trading product be added to the FlashBorrowers whitelist. This contract differs from the Loop Tool contract and supports retail margin trading activity on X Layer through OKX Wallet.

Certain transactions performed through the Loop Tool and margin trading product rely on Aave flash liquidity to execute the required position changes. Whitelisting the contracts as FlashBorrowers removes the Flashloan Fee from these transactions, reducing execution costs for users and encouraging greater usage of Aave V3 on X Layer.

The X Layer team has confirmed that the whitelisted contracts will not be used by OKX's / X Layer's own liquidation bots; they are intended solely to support user facing looping and position management activity. This proposal provides a Flashloan Fee waiver only to the two specified contracts and does not change any reserve or risk parameters of the Aave V3 X Layer instance.

Specification

The payload calls addFlashBorrower on the Aave V3 X Layer ACL_MANAGER for the following contracts:

Contract	Address
X Layer Loop Tool	0x714A871d3B471FF7Ee6A1896B16c5f55884fd910
X Layer Margin Trading	0x18a6704775570afA8dB0D3FC0242515D90d120C0

Once whitelisted, the contracts are exempt from Flashloan Fees on the Aave V3 X Layer instance.

References

• Implementation: AaveV3XLayer
• Tests: AaveV3XLayer
• Discussion

Copyright

Copyright and related rights waived via CC0.