aaveSource: Aave governor v2 · #149
Add cbETH to Aave V3 Ethereum
executedFeb 5, 2023, 02:15 PM UTCby620x62a4…816a
01Summary
AISummary by Kvorumclaude-haiku-4-5
Flipside Crypto proposes adding cbETH (Coinbase Wrapped Staked ETH) to Aave's Ethereum V3 pool with a 67% loan-to-value ratio, 10,000 supply cap, and 1,200 borrow cap. The asset will be borrowable but not in isolation mode or with stable rates.
- Type
- protocol addition
Key changes
- List cbETH as collateral and borrowable asset in Aave V3 Ethereum pool with 67% LTV and 74% liquidation threshold(high)
- Set supply cap at 10,000 cbETH and borrow cap at 1,200 cbETH to manage risk exposure(high)
- Configure standard interest rate strategy with 15% reserve factor and 10% liquidation protocol fee(medium)
- Disable stable rate borrowing and isolation mode borrowing for cbETH(medium)
- Enable flashloan functionality for cbETH(low)
Notable concerns
- Price feed adapter deployed by Bored Ghost Developing requires reliance on Chainlink cbETH/ETH feed accuracy
- Supply and borrow caps limit cbETH liquidity available in the pool
- Stable borrowing disabled which may reduce attractiveness to certain user strategies
Contracts0xBe9895146f7AF43049ca1c1AE358B0541Ea497040x5f4d15d761528c57a5C30c43c1DAb26Fc54527310x24701A6368Ff6D2874d6b8cDadd461552B8A52830xC51e6E38d406F98049622Ca54a6096a23826B4260xd91d1331db4f436daf47ec9dd86decb8eef946b4
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
02Description
272 words
Summary
Flipside Crypto presents a proposal to onboard cbETH to Aave's Ethereum V3 pool. cbETH (Coinbase Wrapped Staked ETH) is an ERC-20 compliant token on Ethereum that represents underlying staked ETH on the Coinbase platform.
Motivation
cbETH adds greater functionality to the recently deployed V3 pool, using robust risk controls. cbETH allows Aave to attract new users and deposits, pre-Shanghai upgrade. We are excited to add new, quality assets - bringing valuable liquidity to the latest Aave pool.
Risk Parameters
The complete technical and risk parameters:
| Parameter | Value |
|---|---|
| Loan-to-value | 67% |
| Liquidation threshold | 74% |
| Liquidation bonus | 7.5% |
| Price feed | 0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731 adapter of cbETH/ETH Chainlink |
| A/S/V tokens (aToken/Variable/Stable) | Standard implementation |
| Interest rate strategy | 0x24701A6368Ff6D2874d6b8cDadd461552B8A5283 |
| Borrowing enabled | Yes |
| Stable borrowing Enabled | No |
| Reserve Factor | 15% |
| Liquidation Protocol Fee | 10% |
| Debt Ceiling | N/A |
| Borrowable in Isolation | No |
| Supply Cap | 10,000 |
| Borrow Cap | 1,200 |
| eMode (efficiency mode) | No |
| Unbacked Mint Cap | 0 |
| Siloed Borrowing | N/A |
Specification
The proposal payload uses the GenericListingEngine to perform a new asset listing with the following parameters:
IGenericV3ListingEngine.Listing({
asset: 0xBe9895146f7AF43049ca1c1AE358B0541Ea49704,
assetSymbol: 'cbETH',
priceFeed: 0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731,
rateStrategy: 0x24701A6368Ff6D2874d6b8cDadd461552B8A5283,
enabledToBorrow: true,
stableRateModeEnabled: false,
borrowableInIsolation: false,
withSiloedBorrowing: false,
flashloanable: true,
ltv: 67_00,
liqThreshold: 74_00,
liqBonus: 7_50,
reserveFactor: 15_00,
supplyCap: 10_000,
borrowCap: 1_200,
debtCeiling: 0,
liqProtocolFee: 10_00,
eModeCategory: 0
});
References
Deployed Contracts
Security Considerations
The CLSynchronicityPriceAdapterPegToBase: cbETH/USD feed was deployed by Bored Ghost Developing as an adapter of the Chainlink cbETH/ETH price feed.
Proposal's Technical Implementation
All the components involved in this proposal (token's implementations, interest rate strategy, oracle feed, proposal payload) have been reviewed by Bored Ghost Developing.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
AIMismatch analysis by Kvorum
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
1 total
#0fallback()chain 0x1
- Target
- 0xd91d…46b4
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
Against0.0%201.1
For100.0%451.8K
Voters50
VP participating452K
Outcome (current)For
Current support100%
06Voters
50 total
No votes recorded yet.
07Forum
- [ARC] Add Support for cbETH ↗discourse · high confidence
AIForum synthesis by Kvorumclaude-sonnet-5
sentiment · mixedthread · constructive
Arguments for
- cbETH would onboard new retail users from Coinbase into DeFi, diversify liquid-staking derivatives, and serve as efficient collateral that keeps earning staking rewards.— fig, AndrewA
- Listing on Aave V3 with isolation mode, supply/borrow caps and (later) eMode can safely manage the token's risk while giving it useful borrow/collateral utility.— MarcZeller, AndrewA, BristolBlockchain, ChaosLabs, Pauljlei
- Independent risk providers (Gauntlet and Chaos Labs) converged on conservative parameters (caps, LTV/LT, interest curve) that make listing outside isolation mode acceptable.— ChaosLabs, Pauljlei, AndrewA
- Certora's formal verification found the cbETH token contract complies with standard ERC20 behavior, with rule failures attributable to intended design features rather than bugs.— yuradmt
- Coinbase mitigates slashing/correlated-risk concerns by using multiple diversified node operators, clients, hosting environments and geographies for staking.— AndrewA
- Given the conservative caps proposed, the ACI supports enabling eMode for cbETH even before the Shanghai upgrade to keep Aave competitive.— MarcZeller
Arguments against
- On-chain liquidity for cbETH is too thin and heavily reliant on centralized Coinbase exchange volume, creating risk during liquidations or market stress.— Doo_StableNode, jasperthegovghost, Jstar, G-Blockchain, BristolBlockchain
- Listing on Aave V2 is undesirable because it would fragment liquidity and V3 is imminent with better risk controls (isolation mode, caps, eMode).— MarcZeller, sakulstra, G-Blockchain, Pauljlei, BristolBlockchain
- cbETH represents low-quality, centralized credit risk with unquantifiable regulatory exposure, offering little clear benefit to the protocol.— tbm, recizk, Asango
- Coinbase's validator set reportedly engages in OFAC transaction censorship, raising decentralization/censorship-resistance concerns that should factor into risk parameters like debt ceilings.— JesusCryptoPlaza
- The Uniswap cbETH/ETH liquidity is concentrated in narrow price ranges rather than full-range, which could undermine oracle reliability and liquidation execution.— miguelmtz
- It is inconsistent to list cbETH before rETH, which has significantly deeper on-chain liquidity, and claims that withdrawals will make cbETH instantly liquid are misleading.— jasperthegovghost
Unresolved concerns
- Potential securities/regulatory risk for cbETH in light of the Kraken SEC settlement remains only informally addressed, without a formal legal analysis.— Asango, MarcZeller
- Concerns about Coinbase's validator censorship (OFAC compliance) and its implications for Aave's decentralization values were raised but not directly resolved or incorporated into parameters.— JesusCryptoPlaza
- Whether on-chain liquidity will grow sufficiently over time to support larger caps and safer mass-liquidation handling remains an open, ongoing question.— Doo_StableNode, Jstar
- The impact of narrow-range Uniswap liquidity on oracle pricing and liquidation efficiency was flagged but not fully resolved beyond risk providers stating it was 'taken into account.'— miguelmtz
Notable participants
- figProposal author from Flipside Crypto who presented the cbETH listing case and coordinated community responses.
- AndrewACoinbase representative and co-author who defended the proposal, answered liquidity/node-operator concerns, and drove the V3 parameter discussion.
- MarcZellerACI representative who opposed V2 listing but became a key advocate for a well-parameterized V3 listing with isolation mode and later eMode.
- Doo_StableNodeEarly and persistent critic raising on-chain liquidity concerns and collateral risk.
- ChaosLabsRisk provider who delivered initial and updated risk parameter recommendations for the V3 listing.
- PauljleiGauntlet representative who contributed risk analysis and eMode parameter recommendations.
- G-BlockchainCommunity member opposing V2 listing and echoing liquidity concerns while favoring V3 with isolation mode.
- jasperthegovghostVocal critic questioning the wisdom of listing cbETH ahead of more liquid alternatives like rETH.
- bgdlabsTechnical contributor who raised cross-cutting risk points affecting cbETH and other ETH-correlated assets.
- JstarRaised concerns about liquidity depth and node operator decentralization affecting systemic risk.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
08Similar proposals
AI · embeddings
- aaveexecutedOnboard CbBTC on Mainnet and Base81%
- aaveexecutedActivate Emode for cbETH Aave Ethereum V379%
- aaveexecutedAddition of cbBTC/Stablecoin E-Mode to Aave V3 Base Instance76%
- aaveexecutedOnboard tETH to Aave v3 Prime Instance76%
- aaveexecutedAdd FBTC to Aave v3 Main Market on Ethereum76%
- aaveexecutedCore & Base - BTC Correlated Asset Update74%
- aaveexecutedOnboard LBTC & Enable LBTC/WBTC liquid E-Mode on Aave v3 Core Instance73%
- aaveexecutedOnboard eBTC and Add eBTC/WBTC E-Mode73%
- aavecanceledOnboard eBTC and Add eBTC/WBTC E-Mode72%
- aaveexecutedSTG onboarding on AaveV3 Ethereum Market72%