[ARFC] Add MAI to Arbitrum Aave V3 Market

Gauntlet Parameter Recommendations

The following table contains Gauntlet’s recommended initial parameters for MAI on Optimism. We include Chaos’s recs so that the community can easily compare them, and highlight differences in bold.

Risk Parameter Gauntlet Rec Chaos Rec
Isolation Mode YES YES
Enable Borrow YES YES
Enable Collateral YES YES
Loan To Value 75% 75%
Liquidation Threshold 80% 80%
Liquidation Bonus 5% 7.5%
Reserve Factor 20% 20%
Liquidation Protocol Fee 10% 10%
Borrow Cap 2,400,000 1,000,000
Supply Cap 4,800,000 1,200,000
Debt Ceiling $1,200,000 $2,000,000
Base 0% 0%
Slope1 4% 4%
Uoptimal 80% 80%
Slope2 75% 75%

MAI is an overcollateralized stablecoin backed by collateral in user-managed vaults, similar to DAI.

MAI has previously been listed on Aave V3 Avalanche and Aave V3 Polygon. For the initial MAI listing on Arbitrum, we follow many of the same parameters that it has on other chains.

We recommend the following parameters for MAI on Aave V3 Arbitrum:

Isolation Mode - Yes
Borrowable - Yes
Collateral Enabled - Yes
eMode - No

Supply and Borrow Caps

Supply Cap (in tokens) - 7,500,000 / Borrow Cap (in tokens) - 2,500,000

These caps are determined using Gauntlet’s supply and borrow cap methodology.

Debt Ceiling $1,200,000

Gauntlet recommends starting the debt ceiling at 10% of the token’s on-chain circulating supply. The circulating supply is $12M, so gauntlet recommends a debt ceiling of $1.2M.

LTV - 75% / LT - 80%

Gauntlet recommends the same LTV and LT on Arbitrum as on Polygon and Avalanche, given the similar profiles of these markets.

Liquidation Bonus - 5%

Gauntlet recommends the same Liquidation Bonus on Arbitrum as on Polygon and Avalanche, given the similar profiles of these markets.

Liquidation Protocol Fee - 10%

Gauntlet recommends an LPF of 10%, matching the LPF for MAI on Polygon and Avalanche.

Reserve Factor - 20%

Gauntlet recommends a reserve factor of 20% for MAI on Arbitrum, matching the RF on Polygon and Avalanche.

IR Curves

We recommend the same IR curves used for MAI on Polygon and Avalanche:

Parameter Recommendation
Base Variable Borrow Rate 0%
Variable Rate Slope 1 4%
Optimal Usage Ratio 80%
Variable Rate Slope 2 75%