Aave

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title: “STG onboarding on AaveV3 Ethereum Market” author: “Alice Rozengarden (@Rozengarden - Aave-chan initiative)” discussions: “https://governance.aave.com/t/arfc-stg-onboarding-on-aavev3-ethereum-market/14973”

Simple Summary

This ARFC is proposing to add the STG token from Stargate to the AaveV3 Ethereum market in isolation mode.

Motivation

Stargate is a composable, omnichain bridge built on top of the LayerZero protocol. Its goal is to bring enhanced utility to users and Dapps by allowing the transfer of assets across chains from unified liquidity with immediate and guaranteed finality.

Having reached $15 Billion in cumulative volume and ranked first in bridged volume over the last month, Stargate is becoming the most used bridge. Its token, the STG is using a linear ve-locking to offer governance power and fee redistribution to it’s users. With a circulating supply of 200M over the 1000M expected it brings the capitalization to $90M.

Integrating the STG token into the Ethereum Aave v3 will enhance asset diversification, offering borrowers and lenders expanded avenues to leverage the protocol. This integration will empower users to deposit STG as collateral and borrow STG, paving the way for new revenue streams for Aave.

This onboarding is considered in isolation mode with conservative LTV and debt ceiling parameters to limit protocol exposure.

Specification

We propose the followings parameters in accordfance with the risk providers

Parameter	Value
Isolation Mode	Yes
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap (STG)	10,000,000
Borrow Cap (STG)	5,500,000
Debt Ceiling	3M$
LTV	35.00%
LT	40.00%
Liquidation Bonus	10.00%
Liquidation Protocol Fee	10.00%
Variable Base	0.00%
Variable Slope1	7.00%
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

• Ticker: STG
• Contract Address: 0xaf5191b0de278c7286d6c7cc6ab6bb8a73ba2cd6
• Chainlink Oracle STG/USD: 0x7A9f34a0Aa917D438e9b6E630067062B7F8f6f3d

References

• Implementation: Ethereum
• Tests: Ethereum
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.