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executedEnds a year ago · Onchain

Aave v3 Linea Activation

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 Linea pool (3.2) by completing all the initial setup and listing USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH as suggested by the risk service providers engaged with the DAO on the governance forum.

All the Aave Linea V3 addresses can be found in the aave-address-book.

Motivation

All the governance procedures for the expansion of Aave v3 to Linea have been finished, said:

Positive signaling and approval regarding the expansion on the governance forum, and snapshot.
Positive technical evaluation done by BGD Labs of the Linea network, as described in the forum in detail.
Positive risk analysis and assets/parameters recommendation by the risk service providers.

Specification

The proposal will do the following:

List the following assets on Aave V3 Linea: USDC, USDT, WETH, WBTC, wstETH, ezETH, weETH
Set the risk steward as the risk admin by executing ACL_MANAGER.addRiskAdmin().
Set the guardian address as the pool admin by executing ACL_MANAGER.addPoolAdmin(). This is following the standard procedure of keeping pool admin on the Aave Guardian during the bootstrap period, for security.
Set ACI multi-sig as liquidity mining admin for all aTokens and underlying tokens by calling EMISSION_MANAGER.setEmissionAdmin() method.

The table below illustrates the configured risk parameters for the assets to be listed:

Parameter	WETH	WBTC	USDC	USDT	wstETH	ezETH	weETH
Isolation Mode	false	false	false	false	false	false	false
Borrowable	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED	DISABLED	DISABLED
Collateral Enabled	true	true	true	true	true	true	true
Supply Cap	1,200	25	12,000,000	7,800,000	800	1,200	1,200
Borrow Cap	1,100	12	11,000,000	7,150,000	400	1	1
Debt Ceiling	USD 0	USD 0	USD 0	USD 0	USD 0	USD 0	USD 0
LTV	80 %	73 %	75 %	75 %	75 %	72 %	72.5 %
LT	83 %	78 %	78 %	78 %	79 %	75 %	75 %
Liquidation Bonus	6 %	7 %	5 %	5 %	7 %	7.5 %	7.5 %
Liquidation Protocol Fee	10 %	10 %	10 %	10 %	10 %	10 %	10 %
Reserve Factor	15 %	20 %	10 %	10 %	5 %	45 %	45 %
Base Variable Borrow Rate	0 %	0 %	0 %	0 %	0 %	0 %	0 %
Variable Slope 1	2.7 %	7 %	5.5 %	5.5 %	7 %	7 %	7 %
Variable Slope 2	80 %	300 %	60 %	60 %	300 %	300 %	300 %
Uoptimal	90 %	45 %	90 %	90 %	45 %	45 %	45 %
Flashloanable	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED	ENABLED
Siloed Borrowing	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED	DISABLED
Borrowable in Isolation	DISABLED	DISABLED	ENABLED	ENABLED	DISABLED	DISABLED	DISABLED
Oracle	ETH/USD	BTC/USD	Capped USDC/USD	Capped USDT/USD	Capped wstETH/ETH/USD	Capped ezETH/ETH/USD	Capped weETH/ETH/USD

E-Modes

The followings E-modes will be created:

wstETH correlated E-Mode

Parameter	Value	Value
Asset	wstETH	WETH
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	93.5%	-
Liquidation Threshold	95.5%	-
Liquidation Penalty	1.00%	-

weETH correlated E-Mode

Parameter	Value	Value
Asset	weETH	WETH
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	90%	-
Liquidation Threshold	93%	-
Liquidation Penalty	1.00%	-

ezETH correlated E-Mode

Parameter	Value	Value
Asset	ezETH	WETH
Collateral	Yes	No
Borrowable	No	Yes
Max LTV	90%	-
Liquidation Threshold	93%	-
Liquidation Penalty	1.00%	-

Security procedures

The proposal execution is simulated within the tests and the resulting pool configuration is tested for correctness.
The deployed pool and other permissions have been programmatically verified, which can be found on the aave-permissions-book
In addition, we have also checked the code diffs of the deployed linea contracts with the production instance, which can be found here.