[ARFC] Aave V3 Deployment on zkEVM L2

Polygon zkEVM Updated Parameter Recommendations (1/17/24)

Gauntlet and ChaosLabs recommend delaying all asset listings until there’s increased liquidity in LSTs and the new bridged USDC in Polygon zkEVM.

We still provide recommendations for WETH, USDC, and WMATIC should the community choose to list these assets. Due to minimal wstETH liquidity, we do not recommend listing wstETH. Consequently, the eMode category for WETH is now set to N/A. The borrow caps and IR curves for WETH and WMATIC are set anticipating the eventual listing and eMode activation of LSTs for these tokens. This approach aims to maintain IR curve consistency across markets. However, without the relevant LSTs listed, these assets will likely have minimal borrowing demand.

For these reasons and the minimal liquidity in the new USDC, we suggest delaying asset listings until there’s increased liquidity in LSTs and new USDC.

Isolation Mode NO NO NO
Enable Borrow YES YES YES
Borrowable in Isolation NO YES NO
Enable Collateral YES YES YES
Emode Category N/A N/A N/A
Loan To Value 75% 77% 68%
Liquidation Threshold 78% 80% 73%
Liquidation Bonus 5% 5% 7.50%
Reserve Factor 15% 10% 20%
Liquidation Protocol Fee 10% 10% 10%
Borrow Cap 280 500k 525k
Supply Cap 350 525k 700k
Debt Ceiling N/A N/A N/A
uOptimal 80% 90% 75%
Base 0% 0% 0%
Slope1 3.30% 6% 5%
Slope2 80% 80% 100%


We recommend the ETH eMode pools start with the same parameters as Ethereum mainnet, Polygon PoS, Optimism, and Gnosis: 93% LT, 90% LTV, and 1% LB.