Configure Isolation Mode Borrowable Assets on V3 Ethereum
01Summary
Proposal to enable USDC, USDT, DAI, and LUSD as borrowable assets in Isolation Mode on Aave V3 Ethereum by calling setBorrowableInIsolation() on the PoolConfigurator contract, following the rationale that stablecoins' low volatility makes them suitable for this purpose to reduce liquidations and bad debt.
- Type
- parameter change
Key changes
- Enable USDC as borrowable in Isolation Mode on V3 Ethereum(medium)
- Enable USDT as borrowable in Isolation Mode on V3 Ethereum(medium)
- Enable DAI as borrowable in Isolation Mode on V3 Ethereum(medium)
- Enable LUSD as borrowable in Isolation Mode on V3 Ethereum(medium)
Generated by Kvorum
02Description
Simple Summary
At the time of the launch of V3 Ethereum, no assets were configured as borrowable in Isolation Mode. In this proposal, Chaos Labs recommends enabling all stablecoins listed on V3 Ethereum as borrowable in isolation mode 3.
Motivation
The motivation to list the stablecoins as borrowable assets in Isolation Mode is similar to previous deployments and is derived mainly from the low volatility of those assets. Given that Isolation Mode assets are susceptible to high volatility, we find it paramount to maintain the other side of the position stable in order to reduce liquidations and resulting bad debt. The respective governance forum discussion is linked below:
Implementation
We recommend listing USDC, USDT, DAI, and LUSD as assets allowed for borrowing in Isolation Mode on Ethereum V3.
This proposal aims to implement a single AIP, which will simply call setBorrowableInIsolation() on the list of assets (USDC, DAI, USDT, LUSD) on the PoolConfigurator contract.
References
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance pattern: a single on-chain action that calls execute() on a payload contract, which internally performs the granular logic described in the prose (here, four calls to setBorrowableInIsolation for USDC, USDT, DAI, and LUSD on the PoolConfigurator). The decoded calldata only exposes this outer execute() call and does not unpack the payload's internal function calls, so there is no way to directly verify the specific assets or function calls against the description from the data provided. Nothing in the decoded action contradicts the description - the target is a payload contract consistent with Aave's proposal deployment pattern, and no unexpected value transfers, role grants, or additional targets are present. Given the lack of visibility into the payload's internal calls, confidence is low, but there is no evidence of a discrepancy, so the overall assessment is consistent based on available information.
Generated by Kvorum
04Actions
- Target
- 0xc2d7…e9d4
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 226.5K | 0.00% | — | 4y ago |
| 070x0703…961b | For | 108.1K | 0.00% | — | 4y ago |
| 620x62a4…816a | For | 82K | 0.00% | — | 4y ago |
| B80xb83b…cf5c | For | 80.6K | 0.00% | — | 4y ago |
| B90xb933…8dd1 | For | 41.9K | 0.00% | — | 4y ago |
| EA0xea17…6676 | For | 10.7K | 0.00% | — | 4y ago |
| 050x0527…8469 | For | 603 | 0.00% | — | 4y ago |
| 640x6415…8878 | For | 83 | 0.00% | — | 4y ago |
| 940x942f…92b8 | For | 6.9 | 0.00% | — | 4y ago |
| AA0xaa63…352b | For | 3.4 | 0.00% | — | 4y ago |
| 1E0x1e4a…cb28 | Against | 2.6 | 0.00% | — | 4y ago |
| CC0xcc5b…fd28 | For | 2 | 0.00% | — | 4y ago |
| D90xd972…31fa | For | 1.5 | 0.00% | — | 4y ago |
| 350x3510…4c50 | For | 1.2 | 0.00% | — | 4y ago |
| 860x8655…6267 | For | 1 | 0.00% | — | 4y ago |
| 2A0x2a71…fcf0 | For | 0.6 | 0.00% | — | 4y ago |
| E40xe459…e666 | For | 0.5 | 0.00% | — | 4y ago |
| 0F0x0fac…bdbc | For | 0.4 | 0.00% | — | 4y ago |
| 510x5149…a55b | For | 0.4 | 0.00% | — | 4y ago |
| 810x81a7…0575 | For | 0.4 | 0.00% | — | 4y ago |
| 210x2112…11ff | For | 0.3 | 0.00% | — | 4y ago |
| CF0xcf73…eaf5 | For | 0.3 | 0.00% | — | 4y ago |
| 1E0x1e84…9b36 | For | 0.2 | 0.00% | — | 4y ago |
| 220x222e…f9c1 | For | 0.2 | 0.00% | — | 4y ago |
| 250x2506…29ce | For | 0.2 | 0.00% | — | 4y ago |
| A90xa9a2…b98e | For | 0.1 | 0.00% | — | 4y ago |
| A00xa03d…f143 | For | 0.1 | 0.00% | — | 4y ago |
| 340x3496…126b | For | 0.1 | 0.00% | — | 4y ago |
| 500x50d2…5318 | For | 0.1 | 0.00% | — | 4y ago |
| ED0xed3e…4fda | For | 0.1 | 0.00% | — | 4y ago |
| 980x98dc…6be9 | For | 0 | 0.00% | — | 4y ago |
07Forum
- [ARFC] - Configure Isolation Mode Borrowable Assets - V3 Ethereum ↗discourse · high confidence
Arguments for
- Stablecoins have low volatility and provide stability to isolation mode positions, reducing liquidation risk and bad debt.— ChaosLabs
Arguments against
None surfaced.
Notable participants
- ChaosLabsProposal author who presented the rationale for enabling stablecoins as borrowable assets in isolation mode with volatility analysis and implementation details.
Generated by Kvorum
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