This proposal presents Aave the opportunity to onboard BAL to the Ethereum v3 Liquidity Pool.
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 @AaveCompanies.
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.
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 @AaveCompanies 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.
Contract Address: 0xba100000625a3754423978a60c9317c58a424e3D
|Loan To Value||57%|
|Liquidation Protocol Fee||10%|
|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.
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