Aave

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title: [ARFC] Add native USDC to the Arbitrum V3 pool author: @marczeller - Aave Chan Initiative created: 2023-06-06

Abstract

This ARFC proposes to add the native version of USDC on Arbitrum to the Aave V3 pool on Arbitrum. The native USDC token will eventually become the “canon” version of the USDC stablecoin on the Arbitrum L2. The current USDC onboarded on Aave V3 Arbitrum pool should now be considered “USDC.e” as it’s a bridged asset with an underlying USDC on Ethereum.

Motivation

Circle is set to launch a native version of USDC on Arbitrum, which is anticipated to become the primary version of the USDC stablecoin on the Arbitrum L2. This will supersede the current “USDC.e” token, which is a bridged asset with an underlying USDC on Ethereum.

From our experience with the Avalanche Pool, we’ve learned that a prudent approach to integrating such a native token involves initially onboarding it with parameters similar to its bridged counterpart, but with more conservative caps. As the native USDC builds secondary liquidity and matures, we can gradually decrease the attractiveness of USDC.e and increase the caps for the native USDC.

This ARFC is focused solely on the onboarding of the native USDC and does not propose any action for USDC.e. As a result, if this proposal is accepted by the governance, both USDC.e and the native USDC will be onboarded simultaneously on the Arbitrum V3 pool. This strategy aims to ensure a smooth transition and maintain the stability of the Aave V3 pool on Arbitrum.

Specification

Token Information

• Token Symbol: USDC
• Token Address: 0xaf88d065e77c8cC2239327C5EDb3A432268e5831

Parameters

Parameter	USDC.e	USDC (native)
LTV	81%	81%
LT	86%	86%
LB	5%	5%
Supply Cap	150M	41M
Borrow Cap	100M	41M
RF	10%	10%
emode	YES	YES
emode LTV	93%	93%
emode LT	95%	95%
emode LB	1%	1%
Base rate	0%	0%
slope1	3.5%	3.5%
Slope2	60%	60%
optimalUtilization	90%	90%
stable borrowing	YES	NO

Disclaimer

This proposal is powered by Skyward. ACI has not been paid by Circle or any third party to propose this ARFC.

Copyright

Copyright and related rights waived via CC0