Aave

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Title: [TEMP CHECK] Aave V3 deployment on BNB Chain.

Author: @marczeller - Aave-Chan Initiative

Date: 2023-03-22

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Simple Summary

This Temperature Check seeks community input on the possibility of deploying Aave V3 on the BNB Chain to expand Aave’s presence and tap into BNB Chain’s growing DeFi ecosystem and user base.

Background

BNB Chain is a thriving blockchain with a strong DeFi ecosystem and a large user base. With a TVL of approximately $5 billion, BNB Chain is the third-largest chain by TVL. The chain has a diverse array of DeFi offerings, including prominent projects like PancakeSwap, Venus, and several others. Deploying Aave V3 on BNB Chain could provide opportunities for growth and collaboration between the Aave and BNB Chain communities.

Motivation

Deploying Aave V3 on BNB Chain has the potential to benefit both Aave and BNB Chain ecosystems. Aave would gain access to BNB Chain’s user base, DeFi ecosystem, and the potential for additional revenue. BNB Chain would benefit from having a flagship DeFi project like Aave on its platform, further diversifying DeFi options available to its users.

Specification

This TEMP CHECK presents the Aave governance with the opportunity to deploy Aave V3 on the BNB Chain with a selection of suitable assets for collateral, including BNB, WBTC, BETH, WETH, USDC, and USDT. Suggested risk parameters for each asset are provided in the table below. The ACI invites risk service providers teams to provide feedback on them.

Risk Parameter	BNB	WBTC	BETH	WETH	USDC	USDT
Isolation Mode	NO	NO	NO	NO	NO	NO
Enable Borrow	NO	NO	NO	NO	YES	YES
Enable Collateral	YES	YES	YES	YES	YES	YES
Emode Category	N/A	N/A	N/A	N/A	N/A	N/A
Loan To Value	65%	70%	60%	80%	82.5%	70%
Liquidation Threshold	70%	75%	70%	82.5%	85%	75%
Liquidation Bonus	10%	10%	5%	5%	5%	8.5%
Reserve Factor	10%	10%	15%	15%	10%	10%
Liquidation Protocol Fee	10%	10%	10%	10%	10%	10%
Borrow Cap	N/A	N/A	N/A	80.000	20,000,000	20.000.000
Supply Cap	5,000,000	5,000	20,000	100,000	50,000,000	50,000,000
Debt Ceiling	N/A	N/A	N/A	N/A	N/A	N/A
uOptimal	75%	45%	45%	80%	80%	80%
Base	0%	0%	0%	0%	0%	0%
Slope1	6.1%	7%	7%	4.8%	4%	4%
Slope2	100%	300%	300%	80%	80%	80%

Disclaimer

The Aave-Chan Initiative (ACI) is not compensated in any form by Binance & BNB for creating this Temperature Check proposal. This TEMP CHECK has been prepared solely to facilitate community discussion. At the time of writing, the author owns ~75$ worth of assets on the BNB chain.

Next Steps

Temperature Check: Gather community feedback and assess sentiment towards the proposal of deploying Aave V3 on BNB Chain.

ARFC: If the Temperature Check Snapshot indicates positive sentiment, proceed to the ARFC stage for further discussion, risk parameter evaluation network analysis and finalization of the proposal.

AIP: If the ARFC stage Snapshot is successful, submit the proposal as an AIP for voting and on-chain governance approval.