Aave

– Title: [ARFC] Add ARB to Arbitrum Aave v3 Author: @fig - Flipside Crypto Created : 2023-05-26

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Abstract

This proposal is the next step to add ARB to Aave v3 on Arbitrum.

Summary

Following the successful TEMP CHECK to add Aave v3 on Arbitrum, this proposal progresses the asset listing to the next stage in the Governance cycle, incorporating parameters provided by Risk Managers.

Motivation

Adding support for ARB in Arbitrum v3 pools adds greater TVL and user experience to the increasingly popular Aave v3 Arbitrum market - and additional revenue opportunities for Aave.

By enabling borrowing, it allows users and institutions to take a unique position on this Governance token as the network matures and builds a decentralized community.

Furthermore, it more closely aligns the Aave community with Arbitrum and, by extension, Ethereum.

Additionally, it allows for creative uses of ARB received by the DAO to seed initial liquidity.

Specifications

ARB may be listed with the following risk parameters:

Parameter	Value
Isolation Mode	Yes
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap (ARB)	20M
Borrow Cap (ARB)	16.5M
Debt Ceiling	$14M
LTV	50.00%
LT	60.00%
Liquidation Bonus	10.00%
Liquidation Protocol Fee	10.00%
Reserve Factor	20.00%
Variable Base	0.00%
Variable Slope1	7.00%
Variable Slope2	300.00%
Uoptimal	45%
Stable Borrowing	Disabled

Thank you to both @ChaosLabs and @Gauntlet for delivering speedy recommendations.

Disclaimer

The information provided above about ARB is from public sources and Flipside Crypto cannot guarantee that it is or will stay accurate.

The Arbitrum Foundation or Offchain Labs has not compensated Flipside to create this proposal and we are doing this because we believe that the deployment would be in the best interest of the Aave.

This ARFC has been prepared solely to promote further discussion, evaluate presented risk parameters, and finalize the proposal before heading to the AIP stage.

Copyright

Copyright and related rights waived via CC0.