[ARFC] Add ENS to Aave V3 Ethereum


This proposal presents Aave with the opportunity to onboard ENS 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 ENS on Aave V3 on Ethereum. ENS 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: ENS

Contract Address: 0xC18360217D8F7Ab5e7c516566761Ea12Ce7F9D72

Parameter ENS
Isolation Mode Yes
Borrowable Yes
Collateral Enabled Yes
Supply Cap 1M
Borrow Cap 40,000
Debt Ceiling $3.9M
LTV 39.00%
LT 49.00%
Liquidation Bonus 8.00%
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 ENS on the Ethereum Aave V3 pool.


Copyright and related rights waived via CC0.


We support this and the careful approach regarding borrow caps for low market cap tokens.

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

Thank you in advance for your participation in the vote.

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