Aave

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title: [ARFC] sDAI Onboarding on Aave V3 Gnosis Pool author: @marczeller - Aave-chan Initiative date: 09-10-2023

Summary

This ARFC proposes the onboarding of sDAI into the Aave V3 Gnosischain Pool. With the imminent deployment of Aave V3 on Gnosischain and the recent deployment of sDAI, we believe this integration will further enhance the utility and liquidity of the Aave ecosystem on Gnosischain.

Motivation

• Aave V3 Gnosischain Deployment: The deployment of Aave V3 on Gnosischain is on the horizon. As outlined in the Gnosischain deployment ARFC, sDAI was identified as a prime collateral candidate for Aave. However, at the time of the proposal’s creation, sDAI had not been deployed.

• Rapid Growth of sDAI: Since its deployment, sDAI has shown significant traction, attracting $46M in just a few days. This demonstrates the community’s trust and the potential of sDAI as a collateral asset in the Aave ecosystem.

• Technical & Timeframe Considerations: We propose the onboarding of sDAI into the Aave V3 Gnosischain deployment, either as part of the initial deployment or through a subsequent onboarding AIP, depending on what’s most optimal from both a technical and timeframe perspective.

Specification

• Asset: sDAI
• Contract Address: 0xaf204776c7245bF4147c2612BF6e5972Ee483701

A Price sync adapter oracle considering both wxDAI value and sDAI exchange rate will be implemented as a Price feed for this asset.

Risk Parameters

sDAI is intended to serve as a collateral asset. Given that there’s minimal value in borrowing it, we propose its onboarding solely as a collateral asset, without borrowing capabilities.

Parameter	Value
Isolation Mode	NO
Borrowable in Isolation	NO
Stable Borrow	NO
Enable Borrow	NO
Enable Collateral	YES
Loan To Value	77%
Liquidation Threshold	80%
Liquidation Bonus	5%
Reserve Factor	10%
Liquidation Protocol Fee	20%
Supply Cap	1.5M sDAI
Borrow Cap	N/A
Debt Ceiling	N/A
uOptimal	N/A
Base	N/A
Slope1	N/A
Slope2	N/A

Next Steps

1. If the Snapshot outcome is YAE approved, escalate to the AIP stage.

Disclaimer

The Aave-chan Initiative is not presenting this ARFC on behalf of any third party and is not compensated by any entity for creating this ARFC.

Copyright

Copyright and related rights waived via CC0.