Aave v3 BNB Activation
01Summary
Activate Aave V3 on BNB Chain by completing initial setup and listing 6 assets (CAKE, WBNB, BTCB, ETH, USDC, USDT) with risk parameters recommended by Gauntlet and Chaos Labs. Pool admin will be held by Aave Guardian during bootstrap period for security.
- Type
- protocol addition
Key changes
- Activate Aave V3 pool on BNB Chain with initial setup including ACL configuration, pool implementation, and 6 asset listings(high)
- Set risk steward and freezing steward as risk admin via ACL_MANAGER.addRiskAdmin()(medium)
- Set guardian address as pool admin via ACL_MANAGER.addPoolAdmin() for bootstrap period security(medium)
- Update pool implementation via ADDRESSES_PROVIDER.setPoolImpl() to align with current implementation on other networks(medium)
- List CAKE with 55% LTV, 10% liquidation bonus, and isolation mode enabled with $7M debt ceiling(high)
- List WBNB with 70% LTV and 10% liquidation bonus as standard collateral(high)
- List BTCB with 70% LTV and 10% liquidation bonus as standard collateral(high)
- List ETH with 80% LTV and 10% liquidation bonus as standard collateral(high)
Notable concerns
- Pool admin role temporarily held by Aave Guardian multisig during bootstrap period may create centralization risk
- CAKE asset uses isolation mode which limits its use as collateral
- No stable borrowing enabled for any assets may limit protocol functionality
Generated by Kvorum
02Description
Simple Summary
This proposal allows the Aave governance to activate the Aave V3 Bnb pool (3.0.2) by completing all the initial setup and listing CAKE, WBNB, BTCB, ETH, USDC and USDT as suggested by the risk service providers engaged with the DAO (Gauntlet and Chaos Labs) on the governance forum.
All the Aave Bnb V3 addresses can be found in the aave-address-book.
Motivation
All the governance procedures for the expansion of Aave v3 to Bnb have been finished, said:
- Positive signaling and approval regarding the expansion on the governance forum, temp check snapshot, and final snapshot.
- Positive technical evaluation done by BGD Labs of the Bnb chain network, as described in the forum in detail.
- Positive risk analysis and assets/parameters recommendation by the service providers Gauntlet and Chaos Labs.
Specification
The proposal will do the following:
- Set risk steward and freezing 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 the new pool impl by executing
ADDRESSES_PROVIDER.setPoolImpl()to align with the current implementation on all networks. - List the following assets on Aave V3 Bnb: CAKE, WBNB, BTCB, ETH, USDC and USDT.
The table below illustrates the initial suggested risk parameters for each asset:
Asset Listing Configurations:
| CAKE | WBNB | BTCB | ETH | USDC | USDT | |
|---|---|---|---|---|---|---|
| Loan To Value | 55% | 70% | 70% | 80% | 77% | 75% |
| Liquidation Threshold | 61% | 75% | 75% | 82.5% | 80% | 80% |
| Liquidation Bonus | 10% | 10% | 10% | 10% | 5% | 5% |
| Reserve Factor | 20% | 20% | 20% | 15% | 10% | 10% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% | 10% | 10% |
| Supply Cap | 5,000,000 | 50,000 | 400 | 4,000 | 50,000,000 | 50,000,000 |
| Borrow Cap | 2,250,000 | 22,500 | 180 | 5,000 | 45,000,000 | 45,000,000 |
| uOptimal | 45% | 45% | 45% | 80% | 90% | 90% |
| Base Variable Borrow Rate | 0% | 0% | 0% | 0% | 0% | 0% |
| Variable Rate Slope1 | 7% | 7% | 7% | 3.30% | 6% | 6% |
| Variable Rate Slope 2 | 300% | 300% | 300% | 80% | 60% | 75% |
| Stable Rate Slope 1 | 7% | 7% | 7% | 4% | 6% | 6% |
| Stable Rate Slope 2 | 300% | 300% | 300% | 80% | 60% | 75% |
| Base Stable Rate Offset | 2% | 2% | 2% | 2% | 1% | 1% |
| Stable Rate Excess Offset | 8% | 8% | 8% | 8% | 8% | 8% |
| Optimal Stable To Total Debt Ratio | 20% | 20% | 20% | 20% | 20% | 20% |
| Debt Ceiling | $7M | $0 | $0 | $0 | $0 | $0 |
| Enable Borrow | Yes | Yes | Yes | Yes | Yes | Yes |
| Isolation Mode | Yes | No | No | No | No | No |
| Enable Collateral | Yes | Yes | Yes | Yes | Yes | Yes |
| Borrowable In Isolation | No | No | No | No | Yes | Yes |
| Stable Borrow | No | No | No | No | No | No |
| Price Feed Address | CAKE/USD | BNB/USD | BTC/USD | ETH/USD | USDC/USD | USDT/USD |
| Flashloanable | Yes | Yes | Yes | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No | No | No | No |
| E-mode Category Id | 0 | 0 | 0 | 0 | 0 | 0 |
Security
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.
In addition, we have also checked the code diffs of the deployed base contracts with the deployed contracts on Ethereum and other networks.
As a matter of caution, the POOL_ADMIN role will be given for the first weeks to the Aave Guardian multisig.
References
- Implementation: AaveV3BNB
- Tests: AaveV3BNB
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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04Actions
This proposal carries no on-chain actions.
05Tally
Summed from votes
06Voters
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07Forum
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