Aave

[ARFC] Deploy Aave v3 on Sonic

Author: ACI

Date: 2025-01-07

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Risk Parameters have been provided by Service Providers and this section has been updated 2025-01-30

Simple Summary:

This ARFC seeks the community’s input on the deployment of Aave V3 on Sonic Mainnet.

Background:

Sonic is a new Layer 1 EVM blockchain offering 10,000 TPS and fee monetization for app builders. It is the newest blockchain from the creators of Fantom which reached a peak TVL of circa $14.5 billion in 2021.

Motivation

Aave has deployed on multiple promising new L1 and L2 EVM networks and is often one of the largest protocols on these networks. Given the impressive history of the team building Sonic, and the innovations it promises, it represents a strong candidate for deployment of Aave V3. In addition, the fee monetization for apps has potential to be an additional income source for Aave.

Proof of Liquidity (POL) and Deposit Commitments:

The Sonic Foundation will provide the following, upon its deployment is confirmed:

• 15M USD Funding from Sonic
• 800k USD stablecoins from Aave
• Up to 50M $S tokens Supply
• 20M of USDC Supply

Specification:

Risk Parameters have been provided by Service Providers and this section has been updated 2025-01-30

Parameter
Asset	WETH	wS	USDC.e
Isolation Mode	No	No	No
Enable Borrow	Yes	Yes	Yes
Enable Collateral	Yes	Yes	Yes
Loan To Value	80%	35%	75%
Liquidation Threshold	83%	40%	78%
Liquidation Bonus	6%	10%	5%
Reserve Factor	15%	20%	10%
Liquidation Protocol Fee	10%	10%	10%
Supply Cap	400	3,000,000	2,000,000
Borrow Cap	370	1,500,000	1,900,000
Debt Ceiling	-	-	-
UOptimal	90%	45%	90%
Base	0%	0%	0%
Slope1	2.7%	7%	12.5%
Slope2	80%	300%	40%
Stable Borrowing	No	No	No
Flashloanable	Yes	Yes	Yes
Siloed Borrowing	No	No	No
Borrowable in Isolation	No	No	Yes
E-Mode Category	N/A	N/A	N/A

Disclaimer:

This proposal is powered by Skywards. The ACI is not directly affiliated with Fantom or Sonic and did not receive any compensation for creating this proposal.

Useful Links

[TEMP CHECK] Deploy Aave v3 on Sonic

TEMP CHECK Snapshot

Next Steps

1. Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
2. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright:

Copyright and related rights waived under CC0.