Add 1INCH to Aave V3 Ethereum
01Summary
Proposal to onboard 1INCH token to Aave V3 on Ethereum as part of the V2 to V3 migration plan. 1INCH will be listed with isolation mode enabled, a supply cap of 22M tokens, borrow cap of 720K tokens, and a $4.5M debt ceiling. Borrowing will be enabled with a 57% LTV and 67% liquidation threshold.
- Type
- protocol addition
Key changes
- 1INCH token added to Aave V3 Ethereum with isolation mode enabled(high)
- Supply cap set to 22,000,000 1INCH tokens based on V2 data and supply cap methodology(high)
- Borrow cap set to 720,000 1INCH tokens (approximately 1% of average daily trading volume)(high)
- Debt ceiling established at $4,500,000 USD(high)
- LTV set to 57% and liquidation threshold set to 67% with 7.5% liquidation bonus(high)
- Interest rate parameters configured with 9% Variable Slope1 and 300% Variable Slope2(medium)
- Stable borrowing disabled for 1INCH(medium)
- Reserve factor set to 20% and flashloan functionality enabled(medium)
Notable concerns
- 1INCH is listed in isolation mode, restricting its use as collateral with other assets
- Borrow cap of 720K tokens is conservative at 1% of average daily trading volume due to low market cap and trading volume
- Stable borrowing is disabled, limiting borrowing options for users
Generated by Kvorum
02Description
Simple Summary
This proposal presents Aave with the opportunity to onboard 1INCH 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 1INCH on Aave V3 on Ethereum. 1INCH 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: 1INCH
Contract Address: 0x111111111117dC0aa78b770fA6A738034120C302
| Risk Parameter | Value |
|---|---|
| Isolation Mode | Yes |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (1INCH) | 22,000,000 |
| Borrow Cap (1INCH) | 720,000 |
| Debt Ceiling | $4,500,000 |
| Loan To Value | 57.00% |
| Liquidation Threshold | 67.00% |
| Liquidation Bonus | 7.50% |
| 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 consists of a single generic execute() call to what appears to be an Aave governance payload contract, following the standard pattern where all specific listing logic (asset caps, LTV, liquidation parameters, interest rate curve, isolation mode settings) is encoded inside the payload contract's bytecode rather than exposed as discrete decoded arguments in this action list. Because the decoder did not surface the internal parameter-setting calls (e.g., calls to PoolConfigurator, setSupplyCap, setBorrowCap, etc.), there is no way to directly compare each numeric claim in the description (supply cap 22M, borrow cap 720k, LTV 57%, etc.) against calldata values. This is consistent with how Aave V3 listing proposals are typically structured on-chain (a single executor call referencing an audited, publicly linked payload contract, which is provided in the description via GitHub links). Given the opacity of the single decoded action, confidence in a granular comparison is low, but there is no evidence of a mismatch, hidden transfer, unauthorized role grant, or redirection of funds. The proposal's description is detailed and specific, and the on-chain action is consistent with the expected pattern for this type of listing proposal, so no discrepancy is flagged despite the inability to verify every parameter line-by-line against the calldata itself.
Generated by Kvorum
04Actions
- Target
- 0x134c…9cea
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 232.4K | 0.00% | — | 3y ago |
| 130x13bd…8548 | For | 81.8K | 0.00% | — | 3y ago |
| B80xb83b…cf5c | For | 81.4K | 0.00% | — | 3y ago |
| 160x1664…36d9 | For | 16.9K | 0.00% | — | 3y ago |
| 5B0x5b3b…7c98 | For | 7.3K | 0.00% | — | 3y ago |
| 180x1855…98ba | For | 3K | 0.00% | — | 3y ago |
| A00xa06c…61f7 | For | 678.8 | 0.00% | — | 3y ago |
| EA0xea17…6676 | For | 238.4 | 0.00% | — | 3y ago |
| B10xb16c…f4cd | For | 1 | 0.00% | — | 3y ago |
| BF0xbfec…52f2 | For | 0.2 | 0.00% | — | 3y ago |
| 330x33e8…6284 | For | 0.1 | 0.00% | — | 3y ago |
07Forum
- [ARFC] Add 1INCH to Aave V3 Ethereum ↗discourse · high confidence
- [TEMP-CHECK] Ethereum V2 to V3 Migration ↗discourse · high confidence
Arguments for
- 1INCH listing supports the community's V2 to V3 migration plan by onboarding an asset currently present on V2 with established usage patterns.— ChaosLabs, 0xkeyrock.eth
Arguments against
None surfaced.
Notable participants
- ChaosLabsProposer who initiated the 1INCH listing as part of the V2 to V3 migration strategy and managed the governance process through execution.
- 0xkeyrock.ethCommunity member who expressed support for the proposal.