[ARFC] Aave V3 Deployment on BNB Chain

The ACI is presenting a consensus solution, taking into account the feedback from all parties involved in the discussion thus far.

Although BETH is treated similarly to other LSTs (and we already strongly stated our opinion on them), we acknowledge the concerns raised and will propose its integration at a later stage through a separate AIP. This approach aligns with the feedback received.

In addition, we recognize that incorporating CAKE as a “day one” asset may not be ideal. However, the suggestion to introduce it as an isolated asset serves as a suitable compromise. Therefore, the ACI supports its inclusion under these conditions in the current ARFC.

Consensus Solution

Onboarded Assets: BNB, BTCB, WETH, USDC, USDT, and CAKE.

BETH Onboarding Deferred until after the Shanghai upgrade and when improved on-chain liquidity is achieved, as recommended by Chaos Labs and Gauntlet.

Risk Parameters (LTV, LT, LB, Reserve Factors, etc.) & Interest Rate Curves as suggested by Gauntlet are adopted.

Ongoing Risk Parameter Monitoring: Continuously assess and update risk parameters as necessary, considering market conditions and input from all involved parties.

Updated Recap table:

Isolation Mode YES NO NO NO NO NO
Borrowable in Isolation NO NO NO NO YES YES
Enable Collateral YES YES YES YES YES YES
Emode Category N/A N/A N/A N/A N/A N/A
Loan To Value 55.00% 70.00% 70.00% 80.00% 74.00% 75.00%
Liquidation Threshold 61.00% 75.00% 75.00% 82.50% 76.00% 80.00%
Liquidation Bonus 10.00% 10.00% 10.00% 10.00% 5.00% 5.00%
Reserve Factor 20.00% 20.00% 20.00% 15.00% 10.00% 10.00%
Liquidation Protocol Fee 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Borrow Cap 1,800,000 42,000 191 12,000.00 20,000,000* 20,000,000*
Supply Cap 5,300,000 46,000 372 12,000.00 50,000,000* 50,000,000*
Debt Ceiling $10,000,000 N/A N/A N/A N/A N/A
Stable Borrowing NO NO NO NO NO NO
uOptimal 45% 45% 45% 80% 90% 80%
Base 0% 0% 0% 1% 0% 0%
Slope1 7% 7% 7% 3.80% 4% 4%
Slope2 300% 300% 300% 80% 60% 75%

If risk teams @ChaosLabs & @wfu (Gauntlet) agree on this consensus proposition, this ARFC will consider risk recommendation mature and no further discussion on this topic will be needed in the context of this ARFC.