Aave

Title: [ARFC] Aave V3 Deployment on BNB Chain

Author: @marczeller - Aave-Chan Initiative

Date: 2023-04-04

Summary:

This ARFC proposes the deployment of Aave V3 on the BNB Chain, expanding Aave’s presence and tapping into the growing DeFi ecosystem and user base of BNB Chain.

Abstract:

Upon approval by the Aave community, Aave V3 will be deployed on the BNB Chain with a selection of suitable assets for collateral, including BNB, WBTC, BETH, WETH, USDC, and USDT. This deployment aims to enhance the growth and collaboration between the Aave and BNB Chain communities, providing new opportunities for both ecosystems.

Motivation:

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

Specification:

The ARFC suggests deploying Aave V3 on the BNB Chain with the following assets for collateral: CAKE, BNB, BTCB, WETH, USDC, and USDT. The table below provides the suggested risk parameters for each asset.

Risk Parameter	CAKE	BNB	BTCB	WETH	USDC	USDT
Isolation Mode	YES	NO	NO	NO	NO	NO
Enable Borrow	NO	NO	YES	YES	YES	YES
Borrowable in Isolation	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	55.00%	70.00%	70.00%	80.00%	77.50%	75.00%
Liquidation Threshold	61.00%	75.00%	75.00%	82.50%	80.00%	80.00%
Liquidation Bonus	10.00%	10.00%	10.00%	10.00%	5.00%	5.00%
Reserve Factor	20.00%	20.00%	20.00%	15.00%	10.00%	10.00%
Liquidation Protocol Fee	10.00%	10.00%	10.00%	10.00%	10.00%	10.00%
Borrow Cap	1,800,000	42,000	115	3,300.00	20,000,000*	20,000,000*
Supply Cap	5,300,000	46,000	210	6,000.00	50,000,000*	50,000,000*
Debt Ceiling	$10,000,000	N/A	N/A	N/A	N/A	N/A
Stable Borrowing	NO	NO	NO	NO	NO	NO
uOptimal	45%	45%	45%	80%	90%	80%
Base	0%	0%	0%	1%	0%	0%
Slope1	7%	7%	7%	3.80%	4%	4%
Slope2	300%	300%	300%	80%	60%	75%

Deployment Checklist:

• Risk service providers feedback ✔
• BGD Labs Infrastructure/technical evaluation Report ✔
• Oracle recommendation ✔ (Chainlink)
• The graph support ✔
• Cross-chain messaging infrastructure for governance ✔

Disclaimer

The Aave-Chan Initiative (ACI) is not compensated in any form by Binance & BNB for creating this ARFC proposal. This ARFC has been prepared solely to facilitate community discussion. At the time of writing, the author owns ~70$ worth of assets on the BNB chain.

Next Steps

1. Integrate BGD Labs Infrastructure/technical evaluation report once available.
2. Refine the ARFC based on community feedback and risk service provider recommendations.
3. If consensus is reached and the proposal is refined, submit the ARFC for a snapshot vote for final approval.
4. If consensus is reached, submit a deployment AIP to activate Aave V3 BNB.

Copyright

Copyright and related rights waived via CC0.