For sake of consistency, the ACI has collected the information in this thread into a format that matches the New Chain Deployment Template. Since the ARFC for this deployment has already passed snapshot, we will proceed to the AIP stage using the following proposal.
Title: [ARFC] Aave V3 Deployment on zkEVM L2
Author: Aave-Chan Initiative
Date: 2024-01-03
Summary:
Proposal for the deployment of Aave V3 on zkEVM L2, with key assets onboarding to establish a strategic Aave presence early in this new network while staying conservative in terms of risk.
Abstract:
This ARFC proposes the deployment of Aave V3 on the zkEVM L2 network, an EVM-equivalent zk-rollup developed by the Polygon team.
Motivation:
The deployment of Aave V3 on zkEVM L2 aims to establish a strategic presence on this new network early on, promoting L2 diversity and expanding Aave’s reach in the DeFi space.
Proof of Liquidity and Deposit Commitments:
Recognizing the importance of stablecoins to the DeFi ecosystem generally and Aave ecosystem in particular, Aave’s expansion onto Polygon zkEVM will be supported by immediate liquidity of $1M of stables provided by Polygon Foundation and partners.
Specification:
The proposal outlines the deployment of Aave V3 on zkEVM L2. Risk parameters are provided for community discussion and feedback from risk service providers.
After feedback from risk managers, we propose the following initial parameters.
| Risk Parameter | WETH | USDC | MATIC | WSTETH |
|---|---|---|---|---|
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Borrowable in Isolation | NO | YES | NO | NO |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | ETH | N/A | N/A | ETH |
| Loan To Value | 80% | 77% | 68% | 71% |
| Liquidation Threshold | 82.5% | 80% | 73% | 76% |
| Liquidation Bonus | 5% | 5.00% | 10.00% | 6% |
| Reserve Factor | 15% | 10% | 20% | 15% |
| Liquidation Protocol Fee | 10.00% | 10.00% | 10.00% | 10% |
| Borrow Cap | 280 | 1.26m | 375k | 25 |
| Supply Cap | 350 | 1.4m | 500k | 250 |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 90% | 75% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 3.3% | 4% | 6.1% | 7% |
| Slope2 | 80% | 60% | 100% | 300% |
Deployment Checklist:
- Risk service provider’s feedback
- Infrastructure/technical evaluation report
- Oracle recommendation
- The graph support
- Cross-chain messaging infrastructure for governance
Useful Links:
Infraestructure/technical evaluation report
ARFC New Chain Deployment Framework
Disclaimer:
The Aave-Chan Initiative (ACI) is not associated with or compensated by Polygon for publishing this ARFC.
As part of its delegate platform, the ACI promotes L2 diversity.
Marc Zeller is a former DeFi strategy advisor for the Polygon Foundation but resigned from this role at the time of the ACI service provider proposal publication.
This ARFC is created to facilitate the Aave community’s discussion and decision-making regarding the deployment of Aave V3 on zkEVM L2.
Next Steps:
- This ARFC is to formalize final parameters ahead of AIP, since a snapshot for this deployment has already passed.
- Collect any final feedback from community and publish AIP
Copyright:
Copyright and related rights waived via CC0.