Add ENS to Aave V3 Ethereum
01Summary
Proposal to list ENS token on Aave V3 Ethereum market with a supply cap of 1,000,000 ENS and borrow cap of 40,000 ENS, as part of the V2 to V3 migration initiative. ENS will be enabled as collateral in isolation mode with conservative risk parameters.
- Type
- protocol addition
Key changes
- ENS token listing on Aave V3 Ethereum with isolation mode enabled(high)
- Supply cap set to 1,000,000 ENS based on V2 data and supply cap methodology(high)
- Borrow cap set to 40,000 ENS (representing no more than 1% of average daily trading volume)(high)
- Debt ceiling set to $3,900,000 with LTV of 39% and liquidation threshold of 49%(high)
- Interest rate parameters configured with Variable Slope1 at 9% and Variable Slope2 at 300%(medium)
- Liquidation bonus set to 8% with 10% liquidation protocol fee(medium)
- Stable borrowing disabled while variable borrowing enabled(medium)
- Flashloan functionality enabled for ENS(low)
Notable concerns
- Conservative borrow cap of 1% average daily trading volume reflects prudent approach due to low market cap and trading volume of migration plan assets
- Isolation mode enabled indicating ENS is treated as higher-risk asset that cannot be used as collateral with other assets
Generated by Kvorum
02Description
Simple Summary
This proposal presents Aave with the opportunity to onboard ENS to the Etheruem Aave V3 Market.
Motivation
As part of the community efforts on the V2 to V3 migration, Chaos Labs proposed a multi-phased plan to promote V3 adoption. As per this plan, Chaos Labs proposes to list ENS on Aave V3 on Ethereum. ENS is currently listed on V2 Ethereum with borrow disabled.
As the proposed assets in the migration plan are traded with relatively low market cap and trading volume, we have taken a prudent approach in setting borrow caps to account for no more than 1% of the average daily trading volume. The supply cap was derived using our supply cap methodology with the V2 data (simulation results can be seen in the image below). Additionally, we have adjusted the IR Slope1 to reflect the changes in interest rates over the past months and adjusted the liquidation bonus levels to the current liquidity levels in DEXs.
Specification
Ticker: ENS
Contract Address: 0xC18360217D8F7Ab5e7c516566761Ea12Ce7F9D72
| Risk Parameter | Value |
|---|---|
| Isolation Mode | Yes |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (ENS) | 1,000,000 |
| Borrow Cap (ENS) | 40,000 |
| Debt Ceiling | $3,900,000 |
| Loan To Value | 39.00% |
| Liquidation Threshold | 49.00% |
| Liquidation Bonus | 8.00% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.00% |
| Variable Slope1 | 9.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 20.00% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 13.00% |
| Stable Slope2 | 300.00% |
| Base Stable Rate Offset | 3.00% |
| Stable Rate Excess Offset | 5.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
| Flahloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
References
Proposal payload implementation
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata contains a single action: an execute() call with no arguments to a payload contract address. This is the standard Aave Governance V2/V3 proposal pattern, where the actual listing logic (setting the supply/borrow caps, LTV, liquidation parameters, interest rate curve, isolation mode, etc.) is implemented inside the payload contract's code rather than being visible as discrete calldata parameters in the governance transaction itself. The proposal description links directly to this payload contract's source and test file, which is consistent with how Aave listing proposals are typically structured and audited. Because the calldata does not expose the individual parameter values (caps, LTV, liquidation bonus, etc.), a line-by-line numeric verification against the specification table is not possible from the decoded action alone. However, the single execute() call target matches the expected pattern for a listing payload, and there is no evidence of the calldata targeting an unrelated contract, transferring funds, or granting unexpected roles. Given the inherent limits of decoding a delegate-style execute() call, I could not fully verify every numeric parameter, so confidence is medium rather than high. No mismatches, omissions, or misleading phrasing were identified between the description and the single decoded action itself.
Generated by Kvorum
04Actions
- Target
- 0x4449…3d43
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 232.4K | 54.84% | — | 3y ago |
| 130x13bd…8548 | For | 81.8K | 19.30% | — | 3y ago |
| B80xb83b…cf5c | For | 81.4K | 19.21% | — | 3y ago |
| 160x1664…36d9 | For | 16.9K | 3.99% | — | 3y ago |
| 5B0x5b3b…7c98 | For | 7.3K | 1.72% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.71% | — | 3y ago |
| A00xa06c…61f7 | For | 678.8 | 0.16% | — | 3y ago |
| EA0xea17…6676 | For | 238.4 | 0.06% | — | 3y ago |
| A00xa0ef…2d56 | For | 8.3 | 0.00% | — | 3y ago |
| 810x8104…baee | For | 1 | 0.00% | — | 3y ago |
| BF0xbfec…52f2 | For | 0.2 | 0.00% | — | 3y ago |
07Forum
- [ARFC] Add ENS to Aave V3 Ethereum ↗discourse · high confidence
- [TEMP-CHECK] Ethereum V2 to V3 Migration ↗discourse · high confidence
Arguments for
- ENS is part of a planned multi-phased V2 to V3 migration strategy and adding it supports community-driven migration efforts.— ChaosLabs
- The proposal uses a prudent approach with borrow caps set conservatively at no more than 1% of average daily trading volume to account for the asset's low market cap and trading volume.— ChaosLabs, 0xkeyrock.eth
- Parameters including supply cap, interest rate slope, and liquidation bonus were carefully derived using established methodology and adjusted to reflect current market conditions.— ChaosLabs
Arguments against
None surfaced.
Notable participants
- ChaosLabsProposal originator who presented the ENS listing with detailed risk parameters and methodology.
- 0xkeyrock.ethCommunity participant who expressed support for the proposal and the conservative approach to borrow caps.