Aave

Title: [ARFC] Aave V3 Deployment on Base

Author: @fig - Flipside Crypto

Date: 07-27-2023

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Summary:

This ARFC proposes the deployment of Aave V3 on the Base upon Mainnet launch, expanding Aave’s presence and tapping into the future growth, budding DeFi ecosystem, and unique users home to Base.

Abstract:

When / if approved by the Aave community, Aave V3 will be deployed on Base Mainnet with a selection of assets for collateral, including wETH, wstETH, cbETH, and USDC.

This deployment aims to expand Aave to a new ecosystem, capturing the growth and infrastructure allowed by Coinbase’s products and distribution – providing new opportunities for both ecosystems.

Motivation:

By enabling Base on Aave, it creates valuable (and differentiated) revenue opportunities for Aave, capturing the growth and interest of users who live on the Coinbase platform.

This allows Aave to leverage Coinbase integrations, fiat onramps, and access to 110mm+ users and $80B+ assets in the Coinbase ecosystem.

For Base, deploying Aave V3’s codebase expands the on-chain experience by fostering a diversity of DeFi platforms and introducing trusted, flagship lending protocols.

Specification:

The ARFC suggests deploying Aave V3 on Base with the following assets for collateral: wETH, wstETH, cbETH, and USDC.

The table below illustrates the initial suggested risk parameters for each asset, a combination of reccomendations provided by @Gauntlet and @ChaosLabs.

Risk Parameter	WETH	wstETH	USDC	cbETH
Isolation Mode	NO	NO	NO	NO
Enable Borrow	YES	YES	YES	YES
Enable Collateral	YES	YES	YES	YES
Emode Category	eth-correlated	eth-correlated	N/A	eth-correlated
Loan To Value	80%	80%	82.5%	75%
Liquidation Threshold	82.5%	82.5%	85%	77.5%
Liquidation Bonus	5%	7.5%	5%	7.5%
Reserve Factor	15%	15%	10%	15%
Liquidation Protocol Fee	10%	10%	10%	10%
Supply Cap	200	100	1,000,000	100
Borrow Cap	160	20	800,000	20
Debt Ceiling	N/A	N/A	N/A	N/A
uOptimal	80%	45%	90%	45%
Base	0%	0%	0%	0%
Slope1	3.8%	4.5%	3.5%	7%
Slope2	80%	80%	60%	300%
Stable Borrowing	Disabled	Disabled	Disabled	Disabled
Flahloanable	YES	YES	YES	YES
Siloed Borrowing	NO	NO	NO	NO
Borrowed in Isolation	NO	NO	YES	NO

Deployment Checklist:

• Feedback from at least one Risk Service Provider: Yes (Gauntlet & Chaos Labs)
• Infrastructure/technical evaluation report by BGD Labs: Yes (BGD Report)
• Oracle recommendation: Yes (Chainlink Docs & Announcement)
• The graph support: Yes
• Cross-chain messaging infrastructure for governance: Yes

Disclaimer:

The information provided above about Base is from public sources and Flipside Crypto cannot guarantee that it is or will stay accurate.

For full disclosure, Coinbase partnered with Flipside Crypto upon the announcement of the network to make Base on-chain data available for free, for analysts.

Coinbase has not compensated Flipside to create this proposal and we are doing this because we believe that the deployment would be in the best interest of the Aave.

This ARFC has solely been prepared for technical evaluation and further community feedback.

Next Steps:

1. Integrate BGD Labs Infrastructure/technical evaluation report once available.
2. Refine the ARFC based on community feedback and updated risk service provider recommendations.
3. Submit the ARFC for a Snapshot vote for final approval.
4. If consensus is reached, submit a deployment AIP to activate Aave V3 Base (upon Mainnet launch)

Copyright:

Copyright and related rights waived via CC0.