Summary
This publication presents the community an opportunity to expand AAVE governance token integration on the AAVE platform by adding AAVE collateral option to Base.
AAVE token has wide integrations into all other major AAVE instances including ETH Mainnet, Arbitrum, Optimism, Polygon, and Avalanche. Adding AAVE to the Base instance is the next logical step in AAVE token integration within the AAVE lending platform.
Motivation
- AAVE token is a versatile governance token which is already accepted collateral on all major AAVE instances.
-The Base Market is growing in TVL, the addition of collateral options already found on other AAVE instances will increase Base Market growth.
-There is deep liquidity on Base chain for the AAVE token already. Price impact of just 0.77% for $1m ETH/AAVE trades using jumper.exchange on Base.
-Aerodrome (Base DEX) has $10m TVL in WETH/AAVE concentrated liquidity.
Base has seen expansion in its TVL now surpassing Arbitrum by ~15%. Base chain is a small but significant part of total Defi TVL (all chains) of 3%.
Source: https://defillama.com/chains
Specification
Ticker: AAVE
AAVE L2 (Base) contract address: [0x63706e401c06ac8513145b7687A14804d17f814b]
(https://basescan.org/address/0x63706e401c06ac8513145b7687a14804d17f814b)
Initially proposed risk parameters will be the same as AAVE on Arbitrum
Nevertheless, a potential ARFC will be updated based on Risk Service Providers parameters and feedback.
Useful Links
Disclaimer
Edit: The original author does not hold AAVE token and has not been compensated for the writing of this proposal.
Next Steps
- Publish an ARFC, collect community & service provider feedback before moving forward with governance.
- if feedback is positive, escalate to ARFC snapshot vote stage
- if ARFC snapshot outcome is YAE, Publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright
Copyright and related rights waived under CC0.