title: [ARFC] Add BAL Ethereum v3
Author: @Llamaxyz - DeFi_Consultants & @solarcurve (Balancer DAO)
Dated: 2023-01-31
Summary
This proposal presents Aave the opportunity to onboard BAL to the Ethereum v3 Liquidity Pool.
Abstract
BAL is a strategic asset to Aave and any BAL earned from the pool could be used by Aave to bootstrap the adoption of GHO and/or the new aToken being developed by @AaveLabs.
The risk parameters provided within are the same as those provided by Gauntlet within the initial forum post discussing which assets to onboard to v3 Ethereum.
By presenting each asset to be onboarded to v3 Ethereum individually, the community can focus on a specific asset, with individual Snapshots determining how to proceed. Finally, approved assets listings can be grouped for the on-chain AIP vote.
Motivation
Listing BAL as a priority for Aave v3 reflects the strategic relationship between the two communities. Balancer and Aave completed a 200,000 BAL for AAVE token swap and Aave later purchased an additional 100,000 BAL via a swap contract. With the launch of GHO getting closer and the new aToken from @AaveLabs currently in queue for audit, the potential use cases for veBAL are numerous.
Due to the potential use cases for veBAL in supporting bootstrap the growth of Aave, the BAL token is considered a strategic asset. Therefore, we believe listing BAL on Aave v3 Ethereum is a priority.
Balancer DAO is a large provider of liquidity on Ethereum v2 and also Polygon v3. A proposal by @llamaxyz for Balancer to deposit additional BAL into Polygon v3, up to the current SupplyCap, was recently approved by Balancer DAO.
For listing BAL, this proposal uses risk parameters suggested by Gauntlet on the original [ARC] Aave v3 Ethereum Deployment: Assets and Configurations post. The interest rate curve parameters have been sourced from @Llamaxyz’s [ARFC] BAL Interest Rate Curve Upgrade post, which has passed through Snapshot.
Specification
Ticker: BAL
Contract Address: 0xba100000625a3754423978a60c9317c58a424e3D
| Risk Parameter | Value |
|---|---|
| Isolation Mode | YES |
| Enable Borrow | YES |
| Enable Collateral | YES |
| Loan To Value | 57% |
| Liquidation Threshold | 62% |
| Liquidation Bonus | 8.3% |
| Reserve Factor | 20% |
| Liquidation Protocol Fee | 10% |
| Borrow Cap | 185k |
| Supply Cap | 700k |
| Debt Ceiling | 2.9m |
| Variable Base | 3% |
| Variable Slope1 | 14% |
| Variable Slope2 | 150% |
| Uoptimal | 80% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 20% |
| Stable Slope2 | 150% |
| Base Stable Rate Offset | 3 |
| Stable Rate Excess Offset | 5 |
| Optimal Stable To Total Debt Ratio | 20 |
Note: Stable borrowing is disabled, however parameters are provided in case enabled at a later date without amending other parameters specific to stable borrowing. The last 6 rows in the table above are to be confirm Gauntlet.
Copyright
Copyright and related rights waived via CC0.
