hello @gandalfthebrown and thanks for this ARC proposal.
The proposal is a elegant and efficient implementation of portals, to our current understanding, it’s a Just in time (JIT) intra-block liquidity leveraging portals allowing both conservative Aave protocol risk exposure and because the credit line can be virtually re-mobilized frequently it can lead to high aggregated volume even with proposed strict credit line caps.
The Aave-Chan initiative have a few recommendations/remarks :
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The current proposal is a “pilot” program, we think there’s a clear usecase for L1 <> L2 JIT liquidity and would support a experiment between L1 & Arbitrum and/or Optimism first, then after a period that allow to collect data and experience expand to other networks.
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Considering the relatively small amount of credit line requested, I think the community would appreciate that a equivalent amount could be deposited in Aave Pools in the form of aTokens that could be potentially mobilized in case of shortfall, it is likely that the actors involved in the current proposal have the ability without too much friction to make it happen.
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We consider the fee model fair and efficient and while even with a large success it won’t represent the majority of DAO revenue, the current model is beneficial to all actors involved and for end-users.
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While the current position of the ACI is supportive, we would recommend a “Temp check” snapshot to gauge community support and have tech (@bgdlabs) & risk service provider provide valuable feedback for this proposal, in the case of not strong opposition from these actors, the ACI would be in a better position to form a educated opinion & happy to both support this proposal and to be considered an available ressource for the implementation of this proposal AIP.