Aave

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Title: [ARFC] CRVUSD Onboarding on Aave V3 Ethereum Pool Author: @marczeller - Aave-chan Initiative Date: 19-10-2023

Summary

This ARFC proposes the onboarding of the CRVUSD stablecoin, minted by the Curve Protocol, into the Aave V3 Ethereum pool.

Motivation

CrvUSD is a USD-peg stablecoin minted by the Curve Protocol. While it’s relatively young, it has grown to a circulating supply of over $130M with strong peg resilience. Onboarding this asset into Aave will:

• Reinforce synergies between Aave and Curve.
• Offer Aave users an additional decentralized stablecoin option matching the ACI diversity support ethos.
• Strengthen the relationship between the CRVUSD & the GHO stablecoins.

As the primary usecase for stablecoins is to be deposited by users looking for a passive yield and used as a borrowable asset and not as much as a collateral asset, the ACI proposes a CRVUSD onboarding outside isolation mode but without collateral properties.

Following CrvUSD maturity, the Aave governance can propose a collateral activation for crvUSD at a later stage.

Specification

Ticker: CRVusd
Contract address: 0xf939E0A03FB07F59A73314E73794Be0E57ac1b4E
Price Feed: 0xEEf0C605546958c1f899b6fB336C20671f9cD49F

We propose the following parameters for a crvUSD onboarding:

Parameter	Value
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	No
Supply Cap (CRVUSD)	60M
Borrow Cap (CRVUSD)	50M
Debt Ceiling	N/A
LTV	N/A
LT	N/A
Liquidation Bonus	N/A
Liquidation Protocol Fee	10.00%
Variable Base	0.00%
Variable Slope1	5.00%
Variable Slope2	80.00%
Uoptimal	80.00%
Reserve Factor	10.00%
Stable Borrowing	Disabled
Stable Slope1	13.00%
Stable Slope2	300.00%
Base Stable Rate Offset	3.00%
Stable Rate Excess Offset	8.00%
Optimal Stable To Total Debt Ratio	20.00%
Flahloanable	Yes
Siloed Borrowing	No
Borrowed in Isolation	No

Next Steps

1. If ARFC snapshot stage outcome is YAE, escalate to AIP stage.

Disclaimer

The Aave-chan Initiative is not presenting this ARFC on behalf of any third party and is not compensated by Curve for creating this proposal.

Copyright

Copyright and related rights waived via CC0.