# \[ARFC\] Aave V3 Deployment on Base
**URL:** https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708
**Category:** Governance
**Created:** [June 15, 2023, 4:37pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708 "2023-06-15T16:37:54Z")
**Posts on this page:** 12
**Page:** 1
### Author:  [@fig](https://governance.aave.com/u/fig)
#### Post date: [June 15, 2023, 4:37pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/1 "2023-06-15T16:37:54Z")
Title: [ARFC] Aave V3 Deployment on Base
Author: @fig - Flipside Crypto
Date: 06-15-2023
* * *
## **Summary:**
This ARFC proposes the deployment of Aave V3 on the Base upon Mainnet launch, expanding Aave’s presence and tapping into the future growth, budding DeFi ecosystem, and unique users home to Base.
## **Abstract:**
When / if approved by the Aave community, Aave V3 will be deployed on Base Mainnet with a selection of assets for collateral, including wETH, wstETH, cbETH, and USDC.
This deployment aims to expand Aave to a new ecosystem, capturing the growth and infrastructure allowed by Coinbase’s products and distribution – providing new opportunities for both ecosystems.
## **Motivation:**
By enabling Base on Aave, it creates valuable (and differentiated) revenue opportunities for Aave, capturing the growth and interest of users who live on the Coinbase platform.
This allows Aave to leverage Coinbase integrations, fiat onramps, and access to 110mm+ users and $80B+ assets in the Coinbase ecosystem.
For Base, deploying Aave V3’s codebase expands the on-chain experience by fostering a diversity of DeFi platforms and introducing trusted, flagship lending protocols.
## **Specification:**
The ARFC suggests deploying Aave V3 on Base with the following assets for collateral: wETH, wstETH, cbETH, and USDC.
The table below illustrates the initial suggested risk parameters for each asset, a combination of reccomendations provided by @Gauntlet and @ChaosLabs.
| Risk Parameter | WETH | wstETH | USDC | cbETH |
| --- | --- | --- | --- | --- |
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80% | 80% | 82.5% | 75% |
| Liquidation Threshold | 82.5% | 82.5% | 85% | 77.5% |
| Liquidation Bonus | 5% | 7.5% | 5% | 7.5% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Supply Cap | 200 | 100 | 1,000,000 | 100 |
| Borrow Cap | 160 | 20 | 800,000 | 20 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.8% | 4.5% | 3.5% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled |
| Flahloanable | YES | YES | YES | YES |
| Siloed Borrowing | NO | NO | NO | NO |
| Borrowed in Isolation | NO | NO | YES | NO |
## **Deployment Checklist:**
- Feedback from at least one Risk Service Provider: ✔ ([Gauntlet](https://governance.aave.com/t/temp-check-aave-v3-deployment-on-base/13177/9)) & ([Chaos Labs](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/6))
- Infrastructure/technical evaluation report by BGD Labs ✔ ([BGD Report](https://governance.aave.com/t/bgd-aave-base-infrastructure-technical-evaluation/14133))
- Oracle recommendation ✔([Chainlink Docs](https://docs.chain.link/data-feeds/price-feeds/addresses?network=base) & [Announcement](https://www.coindesk.com/tech/2023/03/03/chainlink-price-feeds-go-live-on-base-coinbases-layer-2-testnet/))
- The graph support ✔
- Cross-chain messaging infrastructure for governance ✔
## Disclaimer:
The information provided above about Base is from public sources and Flipside Crypto cannot guarantee that it is or will stay accurate.
For full disclosure, Coinbase partnered with Flipside Crypto upon the announcement of the network to make Base on-chain data available for free, for analysts.
Coinbase has not compensated Flipside to create this proposal and we are doing this because we believe that the deployment would be in the best interest of the Aave.
This ARFC has solely been prepared for technical evaluation and further community feedback.
## **Next Steps:**
1. Integrate BGD Labs Infrastructure/technical evaluation report once available.
2. Refine the ARFC based on community feedback and updated risk service provider recommendations.
3. Submit the ARFC for a Snapshot vote for final approval.
4. If consensus is reached, submit a deployment AIP to activate Aave V3 Base (upon Mainnet launch)
## **Copyright:**
Copyright and related rights waived via CC0.
---
### Author:  [@0xkeyrock.eth](https://governance.aave.com/u/0xkeyrock.eth)
#### Post date: [June 16, 2023, 10:06am UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/2 "2023-06-16T10:06:07Z")
We support this deployment. Base will be another important layer for Aave’s presence that will enable the growth of DeFi activity.
---
### Author:  [@Tristan](https://governance.aave.com/u/Tristan)
#### Post date: [June 16, 2023, 11:51pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/3 "2023-06-16T23:51:46Z")
It would be a great opportunity for AAVE to be deployed on Base, which will surely be a huge spot for US activity.
---
### Author:  [@system](https://governance.aave.com/u/system)
#### Post date: [July 16, 2023, 11:52pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/4 "2023-07-16T23:52:43Z")
This topic was automatically closed 30 days after the last reply. New replies are no longer allowed.
---
### Author:  [@MarcZeller](https://governance.aave.com/u/MarcZeller)
#### Post date: [July 25, 2023, 10:26pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/5 "2023-07-25T22:26:24Z")
---
### Author:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [July 27, 2023, 8:56am UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/6 "2023-07-27T08:56:56Z")
## **Overview**
Chaos Labs supports listing WETH, wstETH, USDC and cbETH as the initial assets on the proposed deployment on Base.
Following the guidelines of our approach to start with the battle-tested parameters of V3, we begin with a baseline of LT, LTV, Liquidation Penalty, and IR Curve similar to the values set today for those assets on Ethereum V3.
In addition, we recommend configuring an Ethereum-correlated (cbETH, wstETH & ETH) e-mode category with the following parameters:
| Category | Assets included | LT | LTV | Liquidation Bonus |
| --- | --- | --- | --- | --- |
| Ethereum Correlated | WETH, wstETH, cbETH | 90% | 93% | 1% |
## Full Recommendations
| Risk Parameter | WETH | wstETH | USDC | cbETH |
| --- | --- | --- | --- | --- |
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80.5% | 78.5% | 80% | 67% |
| Liquidation Threshold | 83% | 81% | 82% | 74% |
| Liquidation Bonus | 5% | 7.5% | 5% | 7.5% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Supply Cap | 200 | 100 | 1,000,000 | 100 |
| Borrow Cap | 160 | 20 | 800,000 | 20 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.8% | 4.5% | 3.5% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled |
| Flahloanable | YES | YES | YES | YES |
| Siloed Borrowing | NO | NO | NO | NO |
| Borrowed in Isolation | NO | NO | YES | NO |
---
### Author:  [@fig](https://governance.aave.com/u/fig)
#### Post date: [July 27, 2023, 2:50pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/7 "2023-07-27T14:50:28Z")
Thanks to @ChaosLabs for the Risk Review provided [above.](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/6) We will be on standby for conservative supply and borrow caps for a MVP launch of this V3 market.
Additional thanks @bgdlabs for their technical evaluation of Base which can be found [here.](https://governance.aave.com/t/bgd-aave-base-infrastructure-technical-evaluation/14133)
After receiving these key documents and updating the proposal, the deployment checklist is now complete and we are soon ready to migrate this ARFC to the Snapshot stage for voting.
Please expect the vote to go live tomorrow — participate if you can!
---
### Author:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [July 27, 2023, 4:55pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/8 "2023-07-27T16:55:37Z")
We have updated our recommendations to include conservative supply and borrow caps for the launch. These caps will be modified following the launch on Base, considering liquidity and market conditions.
---
### Author:  [@Gauntlet](https://governance.aave.com/u/Gauntlet)
#### Post date: [July 31, 2023, 4:46pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/9 "2023-07-31T16:46:38Z")
# Gauntlet recs for Aave v3 BASE 2023-07-28
Gauntlet provided [initial recommendations](https://governance.aave.com/t/temp-check-aave-v3-deployment-on-base/13177/9) for the BASE deployment Temp Check. We refresh our parameters below, given the early stages of BASE mainnet.
| Risk Parameter | WETH | wstETH | USDC | cbETH |
| --- | --- | --- | --- | --- |
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80% | 79% | 77% | 75% |
| Liquidation Threshold | 83% | 82% | 80% | 78% |
| Liquidation Bonus | 5% | 5% | 5% | 7% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 1% | 0.3% | 0% | 0% |
| Slope1 | 3.8% | 4.5% | 4% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
**Emode**
Under the current framework for LST oracle pricing, we recommend Ethereum-correlated emode be enabled for WETH, wstETH, and cbETH upon launch, with LT 93%, LT 90%, LB 2%.
**Supply/Borrow Caps**
We give supply/borrow cap recommendations based on assumed BASE TVL upon Aave deployment. It’s hard to predict asset liquidity as well as the proportion of asset market cap proportions to total BASE TVL, so the numbers below are just an approximation. That being said, unlike mainnet Ethereum, we imagine cbETH to have higher liquidity than wstETH on BASE, due to the Coinbase relationship. **Again, these numbers are dependent on BASE TVL and liquidity upon launch and may change.**
$100mm TVL
| Risk Parameter | WETH | wstETH | USDC | cbETH |
| --- | --- | --- | --- | --- |
| Supply Cap | 10000 (~$20m) | 5000 (~$10m) | 30m ($30m) | 7500 (~$15m) |
| Borrow cap | 10000 | 200 | 30m | 300 |
For larger TVL, multiply cap numbers by TVL / $100m.
---
### Author:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [August 2, 2023, 3:44pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/10 "2023-08-02T15:44:50Z")
Chaos and @Gauntlet recommend the following parameters for launch, opting for the more conservative values in instances where our suggestions differ:
| Risk Parameter | WETH | wstETH | USDC | cbETH |
| --- | --- | --- | --- | --- |
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80% | 78.5% | 77% | 67% |
| Liquidation Threshold | 83% | 81% | 80% | 74% |
| Liquidation Bonus | 5% | 7.5% | 5% | 7.5% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Supply Cap | 200 | 100 | 1,000,000 | 100 |
| Borrow Cap | 160 | 20 | 800,000 | 20 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.8% | 4.5% | 4% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled |
| Flahloanable | YES | YES | YES | YES |
| Siloed Borrowing | NO | NO | NO | NO |
| Borrowed in Isolation | NO | NO | YES | NO |
**E-Mode:**
| Category | Assets included | LT | LTV | Liquidation Bonus |
| --- | --- | --- | --- | --- |
| Ethereum Correlated | WETH, wstETH, cbETH | 90% | 93% | 2% |
---
### Author:  [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)
#### Post date: [August 15, 2023, 9:08am UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/11 "2023-08-15T09:08:20Z")
Following the successful launch of BASE and the observed growth in liquidity, Gauntlet and Chaos Labs have aligned on updated supply and borrow caps for the Aave deployment:
| | WETH | USDbC | cbETH |
| --- | --- | --- | --- |
| Supply Cap | 5,000 | 8,000,000 | 1,000 |
| Borrow Cap | 4,000 | 6,500,000 | 100 |
In addition, wstETH will not be included in the launch as it is currently not listed on BASE.
---
### Author:  [@bgdlabs](https://governance.aave.com/u/bgdlabs)
#### Post date: [August 15, 2023, 7:28pm UTC](https://governance.aave.com/t/arfc-aave-v3-deployment-on-base/13708/12 "2023-08-15T19:28:17Z")
We have submitted the governance proposal for the community to activate Aave v3 Base, with voting starting in approximately 24 hours.
All details of the activation can be found in the proposal description and the [technical repository](https://github.com/bgd-labs/aave-v3-basenet-proposal).
Participate 👻
[https://app.aave.com/governance/proposal/?proposalId=299](https://app.aave.com/governance/proposal/?proposalId=299)