[ARFC] Add 1INCH to Aave V3 Ethereum


This proposal presents Aave with the opportunity to onboard 1INCH to the Etheruem Aave V3 Market.


As part of the community efforts on the V2 to V3 migration, Chaos Labs proposed a multi-phased plan to promote V3 adoption. As per this plan, Chaos Labs proposes to list 1INCH on Aave V3 on Ethereum. 1INCH is currently listed on V2 Ethereum with borrow disabled.

As the proposed assets in the migration plan are traded with relatively low market cap and trading volume, we have taken a prudent approach in setting borrow caps to account for no more than 1% of the average daily trading volume. The supply cap was derived using our supply cap methodology with the V2 data (simulation results can be seen in the image below). Additionally, we have adjusted the IR Slope1 to reflect the changes in interest rates over the past months and adjusted the liquidation bonus levels to the current liquidity levels in DEXs.

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Ticker: 1INCH

Contract Address: 0x111111111117dC0aa78b770fA6A738034120C302

Parameter 1INCH
Isolation Mode Yes
Borrowable Yes
Collateral Enabled Yes
Supply Cap 22M
Borrow Cap 720,000
Debt Ceiling $4.5M
LTV 57.00%
LT 67.00%
Liquidation Bonus 7.50%
Liquidation Protocol Fee 10.00%
Variable Base 0%
Variable Slope1 9.00%
Variable Slope2 300.00%
Uoptimal 45.00%
Reserve Factor 20.00%
Stable Borrowing Disabled
Stable Slope1 13.00%
Stable Slope2 300.00%
Base Stable Rate Offset 3.00%
Stable Rate Excess Offset 5.00%
Optimal Stable To Total Debt Ratio 20.00%
Flahloanable Yes
Siloed Borrowing No
Borrowed in Isolation No

Next Steps

  1. If consensus is reached and the proposal is refined, submit the ARFC for a snapshot vote for final approval.
  2. If consensus is reached, submit an Aave Improvement Proposal (AIP) to onboard 1INCH on the Ethereum Aave V3 pool.


Copyright and related rights waived via CC0.

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In support of this as well.

We have published a Snapshot for the community to vote on.

Start Date: Wednesday, May 17, 2023, 10:30 AM
End Date: Saturday, May 20, 2023, 10:30 AM

Following the successful AIP, the proposal was executed, and 1INCH is now available on V3 Ethereum.

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