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

Forum Post

Test

Proposal payload implementation

Copyright

Copyright and related rights waived via CC0.