KVORUM
aaveSource: Aave governor v2 · #154

Add LUSD to Aave Ethereum V3 pool

executedFeb 19, 2023, 06:36 AM UTCby320x329c…3ed4

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to onboard LUSD stablecoin to Aave's Ethereum v3 Liquidity Pool as a non-collateral borrowable asset with a supply cap of 3M and borrow cap of 1.21M, supported by risk analysis from Gauntlet and Chaos Labs.

Type
protocol addition

Key changes

  • Add LUSD as borrowable asset on Ethereum v3 market with supply cap of 3,000,000 and borrow cap of 1,210,000(high)
  • LUSD configured as non-collateral asset (LTV=0, Liquidation Threshold=0)(high)
  • Reserve Factor set to 10% and Liquidation Protocol Fee set to 10%(medium)
  • Interest rate strategy: Base 0%, Slope1 4%, Uoptimal 80%, Slope2 87%(medium)
  • Enable flashloan functionality for LUSD(low)

Notable concerns

  • LUSD configured without collateral eligibility, limiting risk exposure but restricting use cases
Contracts0x5f98805A4E8be255a32880FDeC7F6728C6568bA00x349684Da30f8c9Affeaf21AfAB3a1Ad51f5d95A3
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

235 words

Simple Summary

This AIP proposal presents Aave with the opportunity to onboard LUSD to the Ethereum v3 Liquidity Pool.

Motivation

Supporting stablecoin diversity diversity is part of the Aave-Chan Initiative (ACI) delegate platform.

The ACI does not have any link nor is paid by Liquity or any entity to present this AIP.

The risk parameters provided introduce LUSD as a non-collateral asset.

Supply and borrow caps are suggested for this asset to limit risk exposure, the caps have been proposed by a join collaboration between Gauntlet & Chaos Labs.

Specification

Ticker: LUSD

Contract Address: 0x5f98805A4E8be255a32880FDeC7F6728C6568bA0

Risk ParameterValue
Isolation ModeNO
Enable BorrowYES
Enable CollateralNO
Loan To ValueN/A
Liquidation ThresholdN/A
Liquidation BonusN/A
Reserve Factor10%
Liquidation Protocol Fee10%
Borrow Cap1,210k
Supply Cap3,000K
Debt CeilingN/A
Base0%
Slope14%
Uoptimal80%
Slope287%

The proposal payload uses the GenericListingEngine to perform a new asset listing with the following parameters:

IGenericV3ListingEngine.Listing({
      asset: LUSD,
      assetSymbol: 'LUSD',
      priceFeed: LUSD_USD_FEED,
      rateStrategy: 0x349684Da30f8c9Affeaf21AfAB3a1Ad51f5d95A3,
      enabledToBorrow: true,
      stableRateModeEnabled: false,
      borrowableInIsolation: false,
      withSiloedBorrowing: false,
      flashloanable: true,
      ltv: 0,
      liqThreshold: 0,
      liqBonus: 0,
      reserveFactor: 10_00,
      supplyCap: 3_000_000,
      borrowCap: 1_210_000,
      debtCeiling: 0,
      liqProtocolFee: 10_00,
      eModeCategory: 0
    });

References

A list of relevant links like for this proposal e.g.

Security Considerations

The proposal Payload was reviewed by Bored Ghost Developing.

Deployed Contracts

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

The decoded on-chain action is a single call to execute() on the payload contract address 0x9d4948be1...786b439, which exactly matches the 'Deployed Contracts: AaveV3EthLUSDPayload' address stated in the proposal description. This is the standard Aave governance pattern where the executor payload contract encapsulates the full listing logic (asset onboarding via GenericListingEngine with the specified LTV, caps, reserve factor, etc.), and the on-chain proposal action itself is just a generic execute() call with no further decoded arguments. Because the calldata does not expose the internal parameters passed to the listing engine, I cannot directly verify each individual risk parameter (LTV=0, reserve factor 10%, caps 1,210k/3,000k, etc.) against the calldata — this is inherent to how BGD-style listing payloads work and is not itself a red flag. The address match confirms the payload target is the one being described, and there is no evidence of target mismatch, extra actions, or omitted actions in the single decoded action. Given the opacity of the execute() call, confidence is medium rather than high, but no discrepancy is identified between the description and what is decodable from the calldata.

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
#0fallback()chain 0x1
Target
0x9d49…b439
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters80
VP participating685.3K
Outcome (current)For
Current support100%

06Voters

80 total
Filter:
VoterChoice% of totalRationale
320x329c…3ed4For220.6K32.19%—4y ago
070x0703…961bFor90.2K13.17%—4y ago
620x62a4…816aFor81.2K11.85%—4y ago
B80xb83b…cf5cFor80.2K11.70%—4y ago
130x13bd…8548For80.2K11.70%—4y ago
550x55b1…f262For60.7K8.86%—4y ago
B90xb933…8dd1For42.9K6.26%—4y ago
160x1664…36d9For16.9K2.47%—4y ago
EA0xea17…6676For10.6K1.55%—4y ago
520x52ea…d4d4For996.90.15%—4y ago
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Showing 50

07Forum

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

Arguments for

  • Onboarding LUSD supports stablecoin diversity, which aligns with the Aave-Chan Initiative's delegate platform and mission.— MarcZeller
  • LUSD's immutable contracts and the proposed 0% LTV (no collateral use) make the risk exposure minimal and the proposal low-risk.— TokenBrice
  • LUSD is a highly decentralized stablecoin that proved resilient during 2022 market stress, strengthening the crypto ecosystem's values.— JesusCryptoPlaza
  • Widespread adoption of LUSD could drive strong ETH demand, enhancing Ethereum's security.— JesusCryptoPlaza
  • The proposed risk parameters are conservative and risk-averse, with supply/borrow caps set high enough to attract migrated V2 positions and new ones, consistent with Gauntlet's original recommendations.— ChaosLabs, Pauljlei
  • Risk teams and other delegates reviewed and endorsed the suggested risk parameters as appropriate given current market conditions.— Pauljlei, WintermuteGovernance
  • There is existing market demand for borrowing LUSD, as evidenced by significant supply and borrow volumes on Euler Finance.— TokenBrice

Arguments against

None surfaced.

Unresolved concerns

  • The initial supply and borrow caps may need to be revised upward relatively soon after implementation as demand grows.— TokenBrice

Notable participants

  • MarcZellerProposer of the ARC on behalf of the Aave-Chan Initiative, who escalated the proposal to Snapshot and later confirmed the vote's success.
  • TokenBriceLiquity-affiliated commenter who offered background on LUSD, expressed support, and raised the caps-revision concern.
  • JesusCryptoPlazaCommunity supporter who framed LUSD's decentralization and resilience as a value-add for Aave and Ethereum.
  • ChaosLabsRisk team that reviewed and endorsed the proposed parameters as conservative and appropriate.
  • PauljleiRisk reviewer (Gauntlet) confirming the parameters matched prior recommendations with no needed changes.
  • WintermuteGovernanceDelegate expressing straightforward support for the proposal.
Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
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