Add 1INCH to Aave v2 market
01Summary
Llama proposes listing 1INCH token on Aave v2 mainnet as collateral with borrowing enabled, with risk parameters set by Gauntlet including 40% LTV, 50% liquidation threshold, and 20% reserve factor.
- Type
- protocol addition
Key changes
- Initialize 1INCH reserve on Aave v2 with aToken, variable debt token, and stable debt token implementations(high)
- Enable variable borrowing for 1INCH with interest rate parameters: UOptimal 45%, R_0 0%, R_s1 7%, R_s2 300%(high)
- Configure 1INCH as collateral with LTV 40%, Liquidation Threshold 50%, Liquidation Bonus 8.5%(high)
- Set reserve factor at 20% for 1INCH(medium)
- Connect Chainlink price feed for 1INCH/ETH on AaveOracle(high)
Notable concerns
- No concerns explicitly mentioned in proposal; all components tested and reviewed including mainnet simulations
Generated by Kvorum
02Description
Simple Summary
Llama proposes listing 1INCH, the governance token of the 1inch Network, on Aave v2 mainnet as collateral with borrowing enabled. The risk parameters detailed within have been provided by Gauntlet.
Abstract
1inch is a network of decentralized protocols designed to provide the fastest and most efficient operations in the DeFi space. The 1inch Network was launched in May 2019 with the release of its Aggregation Protocol v1. The 1inch Aggregation Protocol is both the oldest and most trusted DEX aggregator in the DeFi space.
Listing 1INCH on Aave v2 will enable lenders to receive yield and borrowers of 1INCH to partake in 1inch’s tokenomics to vote and be reimbursed their gas cost to perform swaps on 1inch’s Aggregation Platform.
Motivation
Listing 1INCH on the Aave v2 market would allow Aave to benefit from the first mover advantage and recognise the efforts of the 1inch team for being supportive of Aave since before v1.
Since the original proposal to list 1INCH the team has removed minting roles on the token, introduced a progressive vesting schedule and created use cases for aTokens. The 1INCH token is supported by a Chainlink oracle feed and has favourable on-chain liquidity conditions.
Specification
This proposal initializes the 1INCH reserve, enables variable borrowing, sets a reserve factor and configures the reserve as collateral. As needed, it also connects a price source on the AaveOracle.
Test Cases
All the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.
Link to Test Cases: End-to-end test suite, aToken/stableDebtToken/variableDebtToken verification, deployment script
Implementation
We recommend the following risk parameters.
Risk Parameters:
LTV 40%
Liquidation Threshold 50%
Liquidation Bonus 8.5%
Reserve Factor 20%
Variable Interest Rate Parameters:
UOptimal 45%
R_0 0%
R_s1 7%
R_s2 300%
The snapshot vote to add 1INCH on Aave v2 mainnet market can be found here.
- ProposalPayload
- aINCH implementation
- Variable Debt 1INCH implementation
- Stable Debt 1INCH implementation
- Interest rate strategy
- 1INCH/ETH price feed
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave v2 listing pattern: governance calls execute() on a single-purpose ProposalPayload contract whose address (0xd417d07c...ec8bd) matches exactly the address cited in the description's 'ProposalPayload' link. This confirms the target is correct and no funds or unexpected recipients are involved. However, the decoded calldata contains only one opaque action — a bare execute() call with no arguments — so the specific numeric risk parameters claimed in the description (LTV 40%, Liquidation Threshold 50%, Liquidation Bonus 8.5%, Reserve Factor 20%, interest rate curve parameters) cannot be independently verified from the calldata alone; they are presumably hardcoded inside the payload contract's bytecode, which is common and expected for this proposal type. Because the on-chain data does not expose enough granularity to confirm or contradict these specific values, confidence in a full parameter-level comparison is low. Nothing in the available calldata contradicts the description, there is no target mismatch, no unexpected extra recipient, and no evidence of hidden behavior — the single action is exactly the kind of routine 'execute payload' call expected for an Aave asset listing. Given the address match and lack of any visible contradiction, the assessment is consistent, but confidence is marked low because the payload's internal logic (the actual parameter-setting calls) is not decoded here for line-by-line verification.
Generated by Kvorum
04Actions
- Target
- 0xd417…c8bd
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.