Summary

This publication presents the community with the opportunity to add LDO to the Ethereum V3 Liquidity Pool.

Abstract

LDO would be the first Ethereum liquid staking protocol governance token to be listed on Aave. Aave would benefit from being the first major lending market to list LDO. Users will be able to express various trading views on LDO’s price outlook in the lead up to Shanghai.

This publication uses the parameters provided by Gauntlet and Chaos Labs.

Motivation

Lido is a suite of software protocols that facilitates liquid staking across multiple blockchains. The Lido DAO is a decentralised autonomous organisation. The LDO token is used to vote on the use of the DAO treasury associated with the protocols, research and development, and incentive programs.

The Lido DAO is an Aragon organization. The LDO token was created using an Aragon Minime contract. Since Aragon provides a full end-to-end framework to build DAOs, Lido DAO uses its standard tools.

LDO is a Top 50 token by market cap, currently ranked 31st by Coingecko. Lido Protocol is the largest minter of liquid staked ETH tokens with 5,880,987 ETH staked.

Making LDO available on Aave v3 would make Aave v3 the first major lending market to do so and would benefit from the first mover advantage.

Specification

The parameters shown below are the combined recommendation of Gauntlet and Chaos Labs.

Ticker: LDO

Contract Address: 0x5a98fcbea516cf06857215779fd812ca3bef1b32

Oracle: LDO/ETH/USD: 0xb01e6C9af83879B8e06a092f0DD94309c0D497E4

Oracle Components:

LDO/ETH: 0x4e844125952D32AcdF339BE976c98E22F6F318dB

ETH/USD: 0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419

Parameter	Value
Isolation Mode	Yes
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap (LDO)	6,000,000
Borrow Cap (LDO)	3,000,000
Debt Ceiling	$7,500,000
LTV	40.00%
LT	50.00%
Liquidation Bonus	9.00%
Liquidation Protocol Fee	10.00%
Variable Base	0.00%
Variable Slope1	7.00%
Variable Slope2	300.00%
Stable Slope1	13.00%
Stable Slope2	300%
Uoptimal	45.00%
Reserve Factor	20.00%
Stable Borrowing	Disabled

Implementation

Test cases can be found here

Payload implementation can be found here

Deployed Payload can be found here

Copyright

Copyright and related rights waived via CC0.