Aave

Following on from Proposal: Add Support for BOND (BarnBridge) and the Nay conclusion to AIP-23

AIP-23 which aimed to add BarnBridge’s BOND token for deposit/lending as well as collateral failed to pass. This proposal is similar to AIP-23 but removes the BOND as collateral aspect. Rationale The primary concern leading to the failure of AIP-23 is low on-chain liquidity of the BOND token. As such this proposal removes the ability to utilize BOND as collateral while still allowing deposits and lending. As on-chain liquidity improves an additional proposal can be made to allow BOND as collateral. The BarnBridge community has provided significant TVL to Aave. Continued collaboration would be mutually beneficial.

It appears Arthur_0x supports this approach. (https://twitter.com/Arthur_0x/status/1422939495838621700?s=20)

Specification

Proposed Revised Parameters: Open to community suggestions but my proposed parameters are as follows: • strategy: rateStrategyVolatileOne, • baseLTVAsCollateral: ‘0’, • liquidationThreshold: ‘0’, • liquidationBonus: ‘0’, • borrowingEnabled: true, • stableBorrowRateEnabled: true, • reserveDecimals: ‘18’, • aTokenImpl: eContractid.AToken, • reserveFactor: ‘3500’

Previous Parameters: • strategy: rateStrategyVolatileOne, • baseLTVAsCollateral: ‘2500’, • liquidationThreshold: ‘3500’, • liquidationBonus: ‘11500’, • borrowingEnabled: true, • stableBorrowRateEnabled: true, • reserveDecimals: ‘18’, • aTokenImpl: eContractid.AToken, • reserveFactor: ‘3500’

Source: https://github.com/aave/protocol-v2/pull/155/commits/37c32ca2a0b03ddb21516b7975534a91b4516269 Next Steps If there is consensus, I am also happy to assist with progressing the on-chain items, leveraging the work conducted from the pull requests accordingly.

1. https://github.com/aave/protocol-v2/pull/155
2. https://github.com/aave/aip/pull/87
3. https://github.com/aave/aave-asset-listing/pull/7