Summary
This proposal presents Aave with the opportunity to onboard 1INCH to the Etheruem Aave V3 Market.
Motivation
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.
Specification
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
- If consensus is reached and the proposal is refined, submit the ARFC for a snapshot vote for final approval.
- If consensus is reached, submit an Aave Improvement Proposal (AIP) to onboard 1INCH on the Ethereum Aave V3 pool.
Copyright
Copyright and related rights waived via CC0.