[ARFC] Onboard cbBTC to Aave v3 on Base and Mainnet
Vote Result: YES
Rationale
This is the ARFC for this Snapshot TEMP CHECK that we voted in favour of according to our rationale here. We understand the concerns from the community around the lack of Proof of Reserves and would want this to be implemented ASAP, as per LlamaRisk’s recommendation. However, the other concerns have been allayed. We are especially confident because:
- Risk of centralization can be controlled with risk parameters; moreover, the centralization risk is the same as with cbETH and USDC, which are listed on Aave.
- Redemption via Coinbase mitigates lack of liquidity, which in any case is already increasing; it already has a market cap of $100M.
- Both risk providers are comfortable with onboarding the asset.
- The minting and burning mechanism uses the same set of smart contracts from cbETH, which has been listed on Aave.
Overall, we feel as if the benefits of listing cbBTC and offering users wrapped BTC diversification options and having cbBTC available from day one outweighs the concerns from the community. Therefore, we will vote YES in favour of this proposal.