Aave

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title: “Aave v3 Gnosis Activation” author: “BGD Labs @bgdlabs” discussions: “https://governance.aave.com/t/arfc-aave-v3-deployment-on-gnosischain/14695”

Simple Summary

This proposal allows the Aave governance to activate the Aave V3 Gnosis pool (3.0.2) by completing all the initial setup and listing WETH, wstETH, GNO, USDC, wXDAI, EURe and sDAI as suggested by the service providers (ACI, Gauntlet and Chaos Labs) on the governance forum. All the Aave Gnosis V3 addresses can be found in the aave-address-book.

Motivation

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

• Positive signaling and approval regarding the expansion on the governance forum, temp check snapshot, and final snapshot.
• Positive technical evaluation done by BGD Labs of the Gnosis chain network, as described in the forum in detail.
• Positive risk analysis and assets/parameters recommendation by the service providers ACI, Gauntlet and Chaos Labs as commented on the forum.
• Additionally listing sDAI as approved separately on the forum and snapshot.

Specification

The proposal will do the following:

• Set risk steward and freezing 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.
• List the following assets on Aave V3 Gnosis: wETH, wstETH, GNO, USDC, wXDAI, sDAI, EURe.

The table below illustrates the initial suggested risk parameters for each asset, as passed via the snapshot.

	wETH	wstETH	GNO	USDC	wxDAI	EURe	sDAI
Loan To Value	75%	75%	31%	77%	77%	0%	77%
Liquidation Threshold	78%	78%	36%	80%	80%	0%	80%
Liquidation Protocol Fee	10%	10%	10%	20%	20%	10%	20%
Liquidation Bonus	6%	6%	10%	5%	5%	0%	5%
Reserve Factor	15%	15%	15%	10%	10%	15%	10%
Enable Borrow	Yes	Yes	No	Yes	Yes	Yes	No
Enable Collateral	Yes	Yes	Yes	Yes	Yes	No	Yes
Supply Cap	4000 wETH	4000 wstETH	30000 GNO	1M USDC	1.5M xDAI	0.5M EURe	1.5M sDAI
Borrow Cap	3500 wETH	400 wstETH	0 GNO	1M USDC	1.5M xDAI	0.5M EURe	0 sDAI
E-mode category	ETH Correlated	ETH Correlated	None	None	None	None	None
Isolation Mode	No	No	Yes	No	No	No	No
Flashloanable	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Siloed Borrowing	No	No	No	No	No	No	No
Debt Ceiling	0	0	$1M	0	0	0	0
Stable Borrow	No	No	No	No	No	No	No
uOptimal	80%	45%	45%	90%	90%	90%	90%
Base Variable Borrow Rate	0%	0%	0%	0%	0%	0%	0%
Variable Rate Slope1	3.3%	7%	7%	5%	5%	4%	4%
Variable Rate Slope 2	80%	300%	300%	75%	75%	75%	75%
Stable Rate Slope 1	4%	7%	7%	5%	5%	4%	4%
Stable Rate Slope 2	80%	300%	300%	75%	75%	75%	75%
Base Stable Rate Offset	2%	2%	2%	1%	1%	1%	1%
Stable Rate Excess Offset	8%	8%	8%	8%	8%	8%	8%
Optimal Stable To Total Debt Ratio	20%	20%	20%	20%	20%	20%	20%

E-Mode:

Category Id	Category Label	Assets included	LT	LTV	Liquidation Bonus
1	ETH Correlated	WETH, wstETH	93%	90%	1%

sDAI adapter: 0x1D0f881Ce1a646E2f27Dec3c57Fa056cB838BCC2

wstETH adapter: 0xcb0670258e5961cca85d8f71d29c1167ef20de99

Risk Steward: 0x33AE1f41546a2e05368Bf789b3d868813c0Ae658

Freezing Steward: 0x3Ceaf9b6CAb92dFe6302D0CC3F1BA880C28d35e5

Security

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.

In addition, we have also checked the code diffs of the deployed base contracts with the deployed contracts on Ethereum and other networks.

As a matter of caution, the POOL_ADMIN role will be given for the first weeks to the Aave Guardian multisig.

References

• Implementation: AaveV3Gnosis
• Tests: AaveV3Gnosis
• Snapshot
• Discussion

Copyright

Copyright and related rights waived via CC0.