Proposal updated to include Risk service provider feedback
title: [ARFC] Add native USDC to the Arbitrum V3 pool
author: @marczeller - Aave Chan Initiative
created: 2023-06-06
Abstract
This ARFC proposes to add the native version of USDC on Arbitrum to the Aave V3 pool on Arbitrum. The native USDC token will eventually become the “canon” version of the USDC stablecoin on the Arbitrum L2. The current USDC onboarded on Aave V3 Arbitrum pool should now be considered “USDC.e” as it’s a bridged asset with an underlying USDC on Ethereum.
Motivation
Circle is set to launch a native version of USDC on Arbitrum, which is anticipated to become the primary version of the USDC stablecoin on the Arbitrum L2. This will supersede the current “USDC.e” token, which is a bridged asset with an underlying USDC on Ethereum.
From our experience with the Avalanche Pool, we’ve learned that a prudent approach to integrating such a native token involves initially onboarding it with parameters similar to its bridged counterpart, but with more conservative caps. As the native USDC builds secondary liquidity and matures, we can gradually decrease the attractiveness of USDC.e and increase the caps for the native USDC.
This ARFC is focused solely on the onboarding of the native USDC and does not propose any action for USDC.e. As a result, if this proposal is accepted by the governance, both USDC.e and the native USDC will be onboarded simultaneously on the Arbitrum V3 pool. This strategy aims to ensure a smooth transition and maintain the stability of the Aave V3 pool on Arbitrum.
Specification
Token Information
- Token Symbol: USDC
- Token Address: 0xaf88d065e77c8cC2239327C5EDb3A432268e5831
Parameters
| Parameter | USDC.e | USDC (native) |
|---|---|---|
| LTV | 81% | 81% |
| LT | 86% | 86% |
| LB | 5% | 5% |
| Supply Cap | 150M | 41M |
| Borrow Cap | 100M | 41M |
| RF | 10% | 10% |
| emode | YES | YES |
| emode LTV | 93% | 93% |
| emode LT | 95% | 95% |
| emode LB | 1% | 1% |
| Base rate | 0% | 0% |
| slope1 | 3.5% | 3.5% |
| Slope2 | 60% | 60% |
| optimalUtilization | 90% | 90% |
| stable borrowing | YES | NO |
Disclaimer
This proposal is powered by Skyward. ACI has not been paid by Circle or any third party to propose this ARFC.
Copyright
Copyright and related rights waived via CC0