Onboard USDe to Aave V4 Core Instance on Avalanche

Simple Summary

This proposal onboards USDe to the Aave V4 Core Instance on Avalanche. It configures the new Ethena Ecosystem Spoke, where USDe is collateral only and USDt and USDC are borrowable, grants the Governance Level 1 Executor the role required to configure spokes, raises the USDt add cap on the Main Spoke, and updates the USDt and USDC interest rate parameters on the Core Hub.

Motivation

USDe is Ethena Labs' synthetic dollar. It targets a value of one US dollar by pairing staked collateral with offsetting perpetual futures positions, held largely offchain. Ethena Labs has extended USDe and its staked form to Avalanche, where spot and lending venues across the network support it.

Onboarding USDe to the Aave V4 Core Instance on Avalanche:

• Adds a synthetic dollar stablecoin to the Aave V4 Core Instance on Avalanche.
• Supports demand from Ethena's expansion of USDe to Avalanche.
• Extends USDe's collateral footprint within the Aave protocol, where it is already listed on other Aave instances.

Specification

This proposal lists USDe on the Core Hub of the Aave V4 Core Instance on Avalanche, and configures USDe, USDt and USDC reserves on the new Ethena Ecosystem Spoke.

USDe: 0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34

The Ethena Ecosystem Spoke is deployed at 0xaf22446124e566e54845f65b722E4dCbf12b650A. The payload wires it to the Aave V4 Access Manager on Avalanche 0xe069096bDAfF9bAD15b2f1079EaF0f1685a24522, sets its liquidation configuration, and enables the Giver, Taker and Config Position Managers and the Signature Gateway on it.

USDe is listed on the Core Hub as a non-borrowable asset, with a 0.00% liquidity fee, the Core Hub's interest rate strategy 0x446eb3913b3fd3a9219A07B0f6AbE98BD0fAeed4, and no Tokenization Spoke. USDt and USDC are already listed on the Core Hub.

This proposal grants the SPOKE_CONFIGURATOR_DOMAIN_ADMIN_ROLE on the Aave V4 Access Manager on Avalanche to the Governance Level 1 Executor. The role is required to configure spokes through the Spoke Configurator. The grant is permanent and aligns Avalanche with Aave V4 on Ethereum.

Spoke configuration

Hub	Spoke	Reserve	Collateral Factor	Max Liquidation Bonus	Borrowable	Collateral Risk	Liquidation Fee	Risk Premium Threshold	Receive Shares
Core	Ethena Ecosystem Spoke	USDe	93.00%	2.00%	FALSE	16.50%	10.00%	0	TRUE
Core	Ethena Ecosystem Spoke	USDt	0.00%	-	TRUE	-	-	1100%	TRUE
Core	Ethena Ecosystem Spoke	USDC	0.00%	-	TRUE	-	-	1100%	TRUE

Dynamic liquidation configuration

Parameter	Value
Target Health Factor	1.0277
Health Factor for Max Bonus	0.99
Liquidation Bonus Factor	1.00

Caps

Hub	Spoke	Reserve	Add Cap	Draw Cap
Core	Ethena Ecosystem Spoke	USDe	60,000,000	0
Core	Ethena Ecosystem Spoke	USDt	0	50,000,000
Core	Ethena Ecosystem Spoke	USDC	0	3,000,000

Main Spoke cap update

Hub	Spoke	Reserve	Add Cap
Core	Main	USDt	60,000,000

Interest Rate Strategy

Hub	Reserve	Rate Growth Before Optimal	Rate Growth After Optimal	Optimal Usage Ratio
Core	USDt	4.90%	20.00%	94.00%
Core	USDC	4.50%	20.00%	-

Oracle configuration

USDe and USDt are priced with the Capped USDt/USD feed:

Parameter	Value
Price feed	0x5b7810a910B4a878AaA4800a824E5E5796838009
Base aggregator	USDT / USD 0xEBE676ee90Fe1112671f19b6B7459bC678B67e8a
Price cap	1.04 USD

USDC is priced with the Capped USDC/USD feed:

Parameter	Value
Price feed	0xb0D7A8bbDcdb1203850b742bB4d7f57a1F1C8483
Base aggregator	USDC / USD 0xF096872672F44d6EBA71458D74fe67F9a77a23B9
Price cap	1.04 USD

USDe is priced with the Capped USDt/USD feed rather than a USDe market feed or a CAPO adapter, consistent with the approach adopted across all Aave instances for USDe-denominated assets.

Disclaimer

This proposal was prepared by Aave Labs in its capacity as a contributor to the Aave ecosystem. Aave Labs has no financial relationship with Ethena Labs or any of its affiliates and has not received compensation from Ethena in connection with this proposal.

References

• Implementation: AaveV4Avalanche
• Tests: AaveV4Avalanche
• Discussion