Add CRV to Ethereum v3
01Summary
Proposal to add CRV (Curve DAO token) as a new asset to Aave v3 on Ethereum with borrowing and collateral enabled. This aims to restore CRV lending revenue that declined after v2 reserves were frozen, and allow users to migrate positions from v2 to v3. Risk parameters have been reviewed and endorsed by Gauntlet.
- Type
- protocol addition
Key changes
- Add CRV token as a new asset to Aave v3 Ethereum with borrowing and collateral functionality enabled(high)
- Set supply cap at 62.50M CRV and borrow cap at 7.70M CRV to manage risk(high)
- Configure LTV at 55%, liquidation threshold at 61%, and liquidation bonus at 8.30%(high)
- Establish interest rate curve with variable base 3%, slope1 14%, slope2 300%, and optimal utilization at 70%(medium)
- Enable isolation mode with 20.90M debt ceiling and 20% reserve factor(medium)
- Disable stable borrowing for CRV asset(low)
Notable concerns
- CRV v2 reserves have been frozen, causing material revenue decline which this proposal aims to address
- Future proposal required to determine how CRV earnings will be utilized by Aave treasury
Generated by Kvorum
02Description
Summary
This proposal presents Aave the opportunity to onboard CRV to the Ethereum v3 Liquidity Pool.
Abstract
CRV is a strategic asset to Aave and any CRV earned from the pool could be used by Aave to support bootstrapping the adoption of GHO, StakedAToken and in the long term, perhaps help incentivize the Safety Module too.
The risk parameters provided within have been reviewed and endorsed by Gauntlet.
Motivation
Listing CRV on Aave v3 Ethereum compliments the community's recent on-market purchase of CRV to repay the excessive debt created on v2 Ethereum. CRV is a material contributor to Aave’s revenue through the continual borrowing demand for CRV. With serveral v2 CRV reserves being frozen, Month on Month revenue has fallen significantly in recently months.
The Polygon v3 deployment is the only liquidity pool with Borrowing enabled. The chart below shows how deposit rates on this deployment have been affect by the freezing and disabling borrowing on Polygon v2 and Ethereum v2 respectively during late November 2022.
By listing CRV on v3 Ethereum and with a suitable BorrowCap in place, users will have the ability to migrate there positions from v2 to v3.
Any CRV earned by Aave can be used in a number of different ways, with examples shown below:
- Treasury yield
- GHO adoption
- StakedAToken adoption
- Support Safety Module yield
How the CRV will be used is open for discuss and implementation via a separate proposal.
The risk parameters presented have been reviewed by Gauntlet and a supportive comment can be found on the forum.
The interest rate curve parameters have been sourced from Llama's ARFC CRV Interest Rate Curve Upgrade post and have also been reviewed by Gauntlet.
Specification
Ticker: CRV
Contract Address: 0xD533a949740bb3306d119CC777fa900bA034cd52
| Risk Parameter | Value |
|---|---|
| Isolation Mode | YES |
| Enable Borrow | YES |
| Enable Collateral | YES |
| Loan To Value | 55.00% |
| Liquidation Threshold | 61.00% |
| Liquidation Bonus | 8.30% |
| Reserve Factor | 20.00% |
| Liquidation Protocol Fee | 10.00% |
| Borrow Cap | 7.70M |
| Supply Cap | 62.50M |
| Debt Ceiling | 20.90M |
| Variable Base | 3.00% |
| Variable Slope1 | 14.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 70.00% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 8.00% |
| Stable Slope2 | 300.00% |
| Base Stable Rate Offset | 3.00% |
| Stable Rate Excess Offset | 5.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
Implementation
Test cases can be found here
Payload Implementation can be found here
Proposal Payload deployed address can be found here
Interest Rate Strategy deployed address can be found here
Security Considerations
The proposal Payload was reviewed by Bored Ghost Developing.
Governance Considerations
Aave governance forum discussion, Snapshot vote and Risk Service Provider feedback.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata consists of a single top-level call: execute() on the payload contract at the exact address the description cites as the deployed Proposal Payload. This matches the standard Aave governance execution pattern, where the granular logic (listing CRV, setting LTV, liquidation threshold, caps, interest rate curve, etc.) is embedded inside the payload contract's own code rather than passed as calldata arguments to the governance executor. Because the decoded action list does not expose the internal parameter-setting calls, I cannot independently verify the specific numeric risk parameters (LTV 55%, LT 61%, caps, interest rate curve, etc.) against on-chain calldata — they are not visible in this decoded representation. The target address does match what the description claims, so there is no evidence of a target mismatch or malicious redirection. Given the lack of granular calldata to cross-check the many specific numbers in the specification table, confidence in a full parameter-by-parameter comparison is low, but nothing in the visible action contradicts the description, and the single action's target aligns with the stated payload address. Therefore I assess this as consistent with low confidence, since the proposal follows the expected pattern for Aave v3 listing proposals and no contradiction is observable at this level of decoding. Discrepancies list is empty because there is no evidence — only absence of visibility — into the granular actions; flagging omission here would be a false alarm given this is the routine/expected calldata shape for this proposal type.
Generated by Kvorum
04Actions
- Target
- 0x5594…22f5
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 222.5K | 0.00% | — | 4y ago |
| 070x0703…961b | For | 107.3K | 0.00% | — | 4y ago |
| 130x13bd…8548 | For | 80.6K | 0.00% | — | 4y ago |
| B80xb83b…cf5c | For | 80.2K | 0.00% | — | 4y ago |
| B90xb933…8dd1 | For | 41.7K | 0.00% | — | 4y ago |
| EA0xea17…6676 | For | 10.6K | 0.00% | — | 4y ago |
| 5F0x5fa0…cfa8 | For | 499.9 | 0.00% | — | 4y ago |
| 580x58ac…a73d | For | 388.2 | 0.00% | — | 4y ago |
| 210x2155…59aa | For | 8.3 | 0.00% | — | 4y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 4y ago |
| BE0xbeb9…f1d7 | For | 1.9 | 0.00% | — | 4y ago |
| 280x288b…b106 | For | 1.5 | 0.00% | — | 4y ago |
| 860x8655…6267 | For | 1 | 0.00% | — | 4y ago |
| 230x2368…e99d | For | 1 | 0.00% | — | 4y ago |
| 7E0x7eaf…3555 | For | 0.9 | 0.00% | — | 4y ago |
| BF0xbf4c…5a7c | For | 0.8 | 0.00% | — | 4y ago |
| 880x8824…5443 | For | 0.5 | 0.00% | — | 4y ago |
| 100x10ae…a227 | For | 0.5 | 0.00% | — | 4y ago |
| 750x7513…9d55 | For | 0.5 | 0.00% | — | 4y ago |
| 770x772e…fd0d | For | 0.4 | 0.00% | — | 4y ago |
| 7A0x7a01…2c4b | For | 0.3 | 0.00% | — | 4y ago |
| 290x2946…5469 | For | 0.3 | 0.00% | — | 4y ago |
| 9B0x9b2a…9bf6 | For | 0.2 | 0.00% | — | 4y ago |
| FF0xffc2…d86f | For | 0.2 | 0.00% | — | 4y ago |
| F20xf2f4…fc57 | For | 0.2 | 0.00% | — | 4y ago |
| CF0xcfdd…cbc5 | For | 0.2 | 0.00% | — | 4y ago |
| 380x3886…c84b | For | 0.2 | 0.00% | — | 4y ago |
| F80xf87c…a0e6 | For | 0.2 | 0.00% | — | 4y ago |
| 8C0x8ccf…c275 | For | 0.1 | 0.00% | — | 4y ago |
| 890x8952…7450 | Against | 0.1 | 0.00% | — | 4y ago |
| 980x98ab…ba24 | For | 0.1 | 0.00% | — | 4y ago |
| 770x77bb…ff85 | For | 0.1 | 0.00% | — | 4y ago |
| E00xe032…c743 | For | 0.1 | 0.00% | — | 4y ago |
| 540x54c6…33b2 | For | 0.1 | 0.00% | — | 4y ago |
| 9A0x9a37…ea65 | For | 0.1 | 0.00% | — | 4y ago |
| DB0xdb1a…38e2 | For | 0 | 0.00% | — | 4y ago |
| 050x059e…2744 | For | 0 | 0.00% | — | 4y ago |
| 260x26ba…6758 | For | 0 | 0.00% | — | 4y ago |
| E40xe48a…597c | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] Add CRV to Ethereum v3 ↗discourse · high confidence
Arguments for
- CRV is a strategic asset for Aave that could be used to bootstrap veCRV, aid GHO adoption, and potentially incentivize the Safety Module.— Llamaxyz
- Listing CRV on v3 complements the community's recent repayment of excess CRV debt on v2 and restores revenue lost from disabling CRV borrowing on v2.— Llamaxyz
- There is strong ongoing borrowing demand for CRV due to veTokenomics and the Convex/Curve ecosystem, so enabling borrowing on v3 with a suitable cap would generate revenue and let users migrate from v2.— Llamaxyz
- The community should not worry about past Aave V3 risk parameter issues and should support this listing.— Rudy
- The Aave Companies Initiative (ACI) is supportive of the proposal, pending final risk parameter recommendations from the risk teams.— MarcZeller
Arguments against
None surfaced.
Unresolved concerns
- MarcZeller criticized the use of overly precise, non-round numbers (e.g., liquidation bonus of 10.83%, debt ceiling of 20,929k) in the proposed risk parameters, requesting rounder figures for cleaner, less error-prone code, without a clear resolution in the thread.— MarcZeller
- Several parameters (stable borrowing slopes, offsets, and optimal stable-to-total debt ratio) were left marked as 'to be confirmed by Gauntlet' in the original specification, and it's unclear if these were ever explicitly finalized in the thread.— Llamaxyz
Notable participants
- LlamaxyzProposal author who drafted the ARFC, responded to feedback, and shepherded the proposal through Snapshot and toward AIP.
- PauljleiGauntlet representative who provided updated risk parameter recommendations (borrow/supply caps and liquidation bonus).
- MarcZellerACI representative who expressed general support while critiquing the precision of numerical parameters and awaiting risk team input.
- RudyCommunity member who voiced clear support for the proposal.
- dydymoonListed co-author of the proposal alongside Llamaxyz.
Generated by Kvorum
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