Summary

Flipside Crypto presents a proposal to onboard cbETH to Aave’s Ethereum V3 pool. cbETH (Coinbase Wrapped Staked ETH) is an ERC-20 compliant token on Ethereum that represents underlying staked ETH on the Coinbase platform.

Motivation

cbETH adds greater functionality to the recently deployed V3 pool, using robust risk controls. cbETH allows Aave to attract new users and deposits, pre-Shanghai upgrade. We are excited to add new, quality assets - bringing valuable liquidity to the latest Aave pool.

Risk Parameters

The complete technical and risk parameters:

Parameter	Value
Loan-to-value	67%
Liquidation threshold	74%
Liquidation bonus	7.5%
Price feed	0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731 adapter of cbETH/ETH Chainlink
A/S/V tokens (aToken/Variable/Stable)	Standard implementation
Interest rate strategy	0x24701A6368Ff6D2874d6b8cDadd461552B8A5283
Borrowing enabled	Yes
Stable borrowing Enabled	No
Reserve Factor	15%
Liquidation Protocol Fee	10%
Debt Ceiling	N/A
Borrowable in Isolation	No
Supply Cap	10,000
Borrow Cap	1,200
eMode (efficiency mode)	No
Unbacked Mint Cap	0
Siloed Borrowing	N/A

Specification

The proposal payload uses the GenericListingEngine to perform a new asset listing with the following parameters:

IGenericV3ListingEngine.Listing({
      asset: 0xBe9895146f7AF43049ca1c1AE358B0541Ea49704,
      assetSymbol: 'cbETH',
      priceFeed: 0x5f4d15d761528c57a5C30c43c1DAb26Fc5452731,
      rateStrategy: 0x24701A6368Ff6D2874d6b8cDadd461552B8A5283,
      enabledToBorrow: true,
      stableRateModeEnabled: false,
      borrowableInIsolation: false,
      withSiloedBorrowing: false,
      flashloanable: true,
      ltv: 67_00,
      liqThreshold: 74_00,
      liqBonus: 7_50,
      reserveFactor: 15_00,
      supplyCap: 10_000,
      borrowCap: 1_200,
      debtCeiling: 0,
      liqProtocolFee: 10_00,
      eModeCategory: 0
});

References

• GenericV3ListingEngine
• Forum discussion
• Snapshot vote

Deployed Contracts

• CLSynchronicityPriceAdapterPegToBase: cbETH/USD feed

• AaveV3EthcbETHPayload: ProposalPayload

Security Considerations

The CLSynchronicityPriceAdapterPegToBase: cbETH/USD feed was deployed by Bored Ghost Developing as an adapter of the Chainlink cbETH/ETH price feed.

Proposal’s Technical Implementation

All the components involved in this proposal (token’s implementations, interest rate strategy, oracle feed, proposal payload) have been reviewed by Bored Ghost Developing.

Copyright

Copyright and related rights waived via CC0.