[ARC] Implement a UNI-V2 Liquidity Pool Token Market: Initial Discussion

Governance
1

Hey folks!

I’m currently in the process of submitting an official AIP to garner support for the implementation of a UNI-V2 money market in the Aave protocol. As it stands, the only two markets present in the protocol are the Aave and UNI-V1 markets. The UNI-V1 market is highly outdated, totaling under 300,000 $USD in total value locked at the time of this writing.

Reasoning
Implementing a UNI-V2 liquidity token market would allow the deposit of UNI-V2 tokens into the protocol for use as collateral. This would benefit the DeFi market and stimulate the overall ecosystem, potentially unlocking upwards of a billion dollars worth of new collateral.

As previously discussed, there is no additional risk to existing Aave markets included in this AIP. There is also no negative gas cost repercussion either. The implementation of this AIP may come after the (very exciting!) launch of Aave V2. My goal is only to garner community sentiment and get the ball rolling.

Risk Profiles
Though I’m not an expert (yet), we do have risk profiles created for the following pairs on UNI-V1:

  • DAI/ETH
  • LEND/ETH
  • LINK/ETH
  • USDC/ETH
  • MKR/ETH
  • SETH/ETH

Correct me if I’m wrong, but the risk profiles have not substantially changed for these specific pairs. Further development, study and discussion in potential pairs to implement as well as associated risks is necessary.

Due to the migration, the implementation of LEND or AAVE UNI-V2 tokens as collateral may end up being against the community’s interest in promoting active governance. I would recommend implementing the DAI/ETH, LINK/ETH and USDC/ETH pairs to begin with. Further pairs such as WBTC/ETH and USDT/ETH should also be considered.

Are You In Favor of the Implementation of a UNI-V2 Market?

  • In Favor
  • Against
  • Other (Comment)

0 voters

Thanks for your time everyone. Here’s to a bright decentralized future!

See the proposal on GitHub!

6 Likes
2

100% in favour of this we should adding the pairs we had previously these types of innovative products are what will make AAVE flourish .

We should quickly add other pairs that we have listed as collateral individually stuff like

WBTC-ETH which has $511.53m worth of value locked up would be a great addition

ETH-USDT which has $459,345,655 worth of value locked up would be a great addition

3 Likes
3

I’m totally in favor of this UNI-V2 market, it’s been a long wait and now that UNIV1 is less accessible, most of LP are on V2 because they get more fees.
This would be a great addition for the aave markets.
For the pairs, i also think it’s great to start with basic ones, and in the future, we can consider adding pairs with less liqudity but with a lower LTV after reviewing risks section of course.

2 Likes
4

What a great idea! Would use

2 Likes