KVORUM
aaveSource: Aave governor v2 · #141

Add OP to Aave V3 on Optimism

executedJan 13, 2023, 12:48 PM UTCby300x3041…1623

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to add OP token as collateral on Aave V3 on Optimism. OP is the governance token of Optimism L2, with ~$202M market cap. The token would have conservative risk parameters (30% LTV, 40% liquidation threshold, 10% liquidation bonus) with a 20M supply cap and 2M debt ceiling. Borrowing disabled. The Optimism Foundation may seed initial liquidity incentives.

Type
protocol addition

Key changes

  • OP token onboarded as collateral asset on Aave V3 on Optimism with LTV of 30%, liquidation threshold of 40%, and liquidation bonus of 10%(high)
  • Supply cap set at 20M OP tokens with debt ceiling of 2M OP tokens(high)
  • Borrowing disabled for OP token; only usable as collateral, not for lending(medium)
  • Price feed sourced from Chainlink OP/USD oracle(medium)
  • Reserve Factor set at 20% with 10% liquidation protocol fee(low)

Notable concerns

  • Author is cofounder of Optimism and director at Optimism Foundation, presenting potential conflicts of interest
  • Optimism Foundation may seed incentives for initial pool liquidity bootstrapping
  • OP token has relatively recent launch (May 31, 2021) compared to mature collateral assets
  • Conservative parameters (30% LTV) suggest risk awareness but market adoption remains to be tested
Contracts0x42000000000000000000000000000000000000420x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

727 words

Author

Founder of OP Labs and a director at Optimism Foundation

Forum post

Proposal to add OP as collateral on Aave V3 (On Optimism)

Summary

The proposal seeks to onboard the OP token as a collateral asset in Aave V3 on Optimism. The Optimism Foundation could also seed incentives while the initial liquidity of the pool is bootstrapped.

Risk Parameters

The complete technical and risk parameters:

  • Loan-to-value: 30.00%
  • Liquidation threshold: 40.00%
  • Liquidation bonus: 10.00%
  • Price feed: OP/USD | Chainlink
  • A/S/V tokens (aToken/Variable/Stable): Standard implementation
  • Interest rate strategy: N/A
  • Borrowing enabled: No
  • Stable borrowing Enabled: No
  • Reserve Factor: 20.00%
  • Liquidation Protocol Fee: 10.00%
  • Debt Ceiling: 2M
  • Borrowable in Isolation: No
  • Supply Cap: 20M
  • Borrow Cap: N/A
  • eMode (efficiency mode): No
  • Unbacked Mint Cap: 0
  • Siloed Borrowing: N/A

Specifications

What is the link between the author of the AIP and the Asset?

Cofounder of Optimism and a director at the Optimism Foundation

Provide a brief high-level overview of the project and the token

Optimism is an EVM equivalent L2 scaling solution. The OP token is a governance token for the Optimism Collective. OP holders are currently able to vote on various decisions impacting the Collective, including the grants, protocol upgrades, inflation adjustments, and other fundamental changes. The Collective is committed to an iterative governance system that will evolve dynamically over time. Optimism hopes to use the launch of this token to establish a deeper partnership between the Optimism and Aave communities. This proposal would enable OP as collateral on AAVE V3 on Optimism.

Explain positioning of the token in the AAVE ecosystem. Why would it be a good borrow or collateral asset?

With the recent release of the OP token, we want to bolster initial growth for Aave V3 on Optimism. This will benefit the Aave community by creating a vibrant ecosystem around Aave V3, while being a strong first use case for OP.

Aave would be one of the first platforms to support OP as collateral. The OP token is one of the first and leading rollup technology ecosystem tokens, so the Aave community would be supporting the scaling of Ethereum and onboard the cohort of users coming with it. L2s being the home for AAVE v3 could also gain a lot from this synergy.

Overall, the use cases will create the opportunity to continue growing liquidity and usage of the Aave v3 pools on Optimism.

Provide a brief history of the project and the different components: DAO (is it live?), products (are the live?). How did it overcome some of the challenges it faced?

Initially launched at the end of 2021, Optimism is an EVM equivalent L2 scaling solution. Optimism currently supports 100+ dapps and over $500m in on-chain value. Optimism drastically improves Ethereum’s scalability while retaining its security through rollup technology - having already saved its users over $1B in gas fees.

How is the asset currently used?

It is used for governance on Optimism.

Emission schedule

At genesis there was an initial total supply of 4,294,967,296 OP tokens. The total token supply is set to inflate at a rate of 2% per year, unless changed through governance.

Token (& Protocol) permissions (minting) and upgradability.

Is there a multisig? What can it do? Who are the signers?

There is a multisig. It coontrols all funds in the chain. Members are anonymous in order to make the multisig more difficult to compromise.

Market data (Market Cap, 24h Volume, Volatility, Exchanges, Maturity)

Security Considerations

OP has undergone audits. Constant internal reviews are performed to ensure OP’s economic and technical safety.

The protocol currently has around $936.43M TVL.

Other links

Contract addresses: 0x4200000000000000000000000000000000000042

Chainlink Oracle: 0x0D276FC14719f9292D5C1eA2198673d1f4269246 (Optimism)

Proposal's technical implementation

This asset listing will be executed via Aave's cross-chain governance module, described here: https://github.com/aave/governance-crosschain-bridges.

Proposal Payload on Optimism: 0x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF

BGD Labs has provided support on the technical aspects of the listing and Certora has reviewed the proposal's payload.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The proposal description explicitly states the technical implementation: the listing will be executed via Aave's cross-chain governance module by calling the Proposal Payload contract deployed at 0x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF on Optimism. The single decoded on-chain action is exactly this: an execute(address) call passing that same payload address. The target address in the calldata matches the address disclosed in the description verbatim, so there is no target mismatch. The granular risk parameters (LTV, liquidation threshold, caps, etc.) described in the prose are implemented inside the payload contract's bytecode, which is not separately decoded here — only the top-level dispatch call is visible in the calldata provided. Since the visible action is a faithful, boilerplate execution of the disclosed payload and matches the description's stated mechanism, there is no discrepancy between what is claimed and what is decoded at this level of detail. Confidence is set to medium rather than high because the specific numeric risk parameters cannot be independently verified from the single decoded action (they are presumably set inside the payload contract), so a reviewer should note that full parameter verification would require inspecting the payload contract's internal calls, but nothing in the available calldata contradicts the description.You are an expert smart-contract auditor... (same instructions as above)Please review this proposal.since I sent an empty response.Please respond using the standard JSON format.<discrepancies>[]</discrepancies>{

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0execute(address)chain 0x1
Target
0x5f5c…6711
Value
0 wei
Function
execute(address)
Arguments
{
  "0": "0x6f76EeDCB386fef8FC57BEE9d3eb46147e488eEF"
}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

AIForum synthesis by Kvorumclaude-sonnet-5
sentiment · mixedthread · constructive

Arguments for

  • Onboarding OP as collateral strengthens the strategic partnership between Optimism and Aave and makes Aave the first major platform to support OP as collateral.— ben-chain, BristolBlockchain, fig
  • Optimism is a leading, mature L2 with substantial TVL, liquidity, and user growth, making it a strong ecosystem for Aave V3 to build around.— BristolBlockchain, fig, GCao
  • The OP token has low smart contract risk, being a standard OpenZeppelin ERC20/ERC20Votes implementation with wide token distribution.— ben-chain
  • The initially proposed risk parameters (LTV, liquidation threshold, supply cap) were considered reasonable starting points for a volatile asset.— BristolBlockchain
  • Enabling OP as collateral would let Aave Grants DAO and similar teams earn yield on OP received through governance funding.— fig

Arguments against

  • The on-chain proposal was submitted without a Gauntlet market risk assessment, violating community best practices for asset listings.— Pauljlei, fig, GCao
  • Listing a new volatile asset as collateral during turbulent market conditions is generally not advisable.— Pauljlei, fig
  • Gauntlet's eventual risk analysis recommended not enabling OP as collateral initially, and if it must be collateral, using far more conservative parameters (lower LTV/LT, lower supply cap, isolation mode with a $2M debt ceiling) than proposed.— Pauljlei
  • There was no prior review from BGD Labs before the on-chain vote was pushed, raising process concerns.— fig

Unresolved concerns

  • Whether the proposal will be resubmitted with Gauntlet's recommended conservative parameters (lower LTV/LT, reduced supply cap, isolation mode) before being enabled as collateral.— Pauljlei
  • Whether the community will establish and follow a consistent, formal process (Snapshot plus risk review) for future asset listings like this one.— fig, GCao
  • Whether Gauntlet's 'No' vote and its call to delay the proposal will actually halt or alter the on-chain vote outcome.— Pauljlei, GCao

Notable participants

  • ben-chainProposer of the ARC and Optimism Foundation cofounder/director who provided the initial specification and later updated technical parameters.
  • figOP delegate and Aave Grants DAO representative who raised process concerns, sought clarifications, and ultimately expressed conditional support.
  • BristolBlockchainCommunity member expressing clear support for the proposal and its parameters.
  • PauljleiGauntlet representative who conducted the market risk assessment, voted No on the on-chain proposal, and recommended more conservative parameters.
  • bgdlabsTechnical proposal facilitator who clarified BGD's review process and confirmed no technical issues with the submission.
  • GCaoCommunity member (Blockchain at Michigan) who abstained pending proper risk review and echoed process concerns.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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