# \[ARFC\] CRVUSD Onboarding on Aave V3 Ethereum Pool **URL:** \ **Category:** Governance\ **Created:** [October 19, 2023, 10:04pm UTC](https://governance.aave.com/t/arfc-crvusd-onboarding-on-aave-v3-ethereum-pool/15161 "2023-10-19T22:04:54Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![MarcZeller](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/marczeller/32/7124_2.png) [@MarcZeller](https://governance.aave.com/u/MarcZeller)\ **Post date:** [October 19, 2023, 10:04pm UTC](https://governance.aave.com/t/arfc-crvusd-onboarding-on-aave-v3-ethereum-pool/15161/1 "2023-10-19T22:04:54Z")
> Proposal updated to reflect risk service providers feedback * * * ## Title: [ARFC] CRVUSD Onboarding on Aave V3 Ethereum Pool Author: @marczeller - Aave-chan Initiative Date: 19-10-2023 ## Summary This ARFC proposes the onboarding of the CRVUSD stablecoin, minted by the Curve Protocol, into the Aave V3 Ethereum pool. ## Motivation CrvUSD is a USD-peg stablecoin minted by the Curve Protocol. While it’s relatively young, it has grown to a circulating supply of over $130M with strong peg resilience. Onboarding this asset into Aave will: - Reinforce synergies between Aave and Curve. - Offer Aave users an additional decentralized stablecoin option matching the ACI diversity support ethos. - Strengthen the relationship between the CRVUSD & the GHO stablecoins. As the primary usecase for stablecoins is to be deposited by users looking for a passive yield and used as a borrowable asset and not as much as a collateral asset, the ACI proposes a CRVUSD onboarding outside isolation mode but without collateral properties. Following CrvUSD maturity, the Aave governance can propose a collateral activation for crvUSD at a later stage. ## Specification Ticker: CRVusd Contract address: [0xf939E0A03FB07F59A73314E73794Be0E57ac1b4E](https://etherscan.io/token/0xf939E0A03FB07F59A73314E73794Be0E57ac1b4E) Price Feed: [0xEEf0C605546958c1f899b6fB336C20671f9cD49F](https://etherscan.io/address/0xEEf0C605546958c1f899b6fB336C20671f9cD49F) We propose the following parameters for a crvUSD onboarding: | Parameter | Value | | --- | --- | | Isolation Mode | No | | Borrowable | Yes | | Collateral Enabled | No | | Supply Cap (CRVUSD) | 60M | | Borrow Cap (CRVUSD) | 50M | | Debt Ceiling | N/A | | LTV | N/A | | LT | N/A | | Liquidation Bonus | N/A | | Liquidation Protocol Fee | 10.00% | | Variable Base | 0.00% | | Variable Slope1 | 5.00% | | Variable Slope2 | 80.00% | | Uoptimal | 80.00% | | Reserve Factor | 10.00% | | Stable Borrowing | Disabled | | Stable Slope1 | 13.00% | | Stable Slope2 | 300.00% | | Base Stable Rate Offset | 3.00% | | Stable Rate Excess Offset | 8.00% | | Optimal Stable To Total Debt Ratio | 20.00% | | Flahloanable | Yes | | Siloed Borrowing | No | | Borrowed in Isolation | No | ## Next Steps 1. If consensus on ARFC stage is reached and risk service providers provided feedback on risk parameters, escalate to ARFC snapshot stage. 2. If ARFC snapshot stage outcome is YAE, escalate to AIP stage. ## Disclaimer The Aave-chan Initiative is not presenting this ARFC on behalf of any third party and is not compensated by Curve for creating this proposal. ## Copyright Copyright and related rights waived via CC0. ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [October 23, 2023, 1:02pm UTC](https://governance.aave.com/t/arfc-crvusd-onboarding-on-aave-v3-ethereum-pool/15161/2 "2023-10-23T13:02:55Z")
## Overview Chaos Labs supports listing CRVUSD with collateral disabled as part of an overarching strategy to increase the offering of AAVE protocol with diversified stablecoins. ## Liquidity and Market Cap The CRVUSD token was introduced by Curve a few months ago, and since its launch, its TVL has increased to approximately $180 million. ![Untitled (15)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/d/daee7f7c6574142ded2a41ba8424e720d008e587.png) Source: [DefiLlama](https://defillama.com/protocol/crvusd) When analyzing market cap and trading volumes of assets for listing, we look at the available historical data. The average market cap of CRVUSD is ~$106M, and the average daily trading volume is ~$52M (CeFi & DeFi). ![Untitled (16)](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/bbf65e72c734e7c4b4427fadaaf495108b5c5917.png) We recommend listing CRVUSD with collateral disabled to allow a more controlled launch for the asset. We leave collateral enablement to a future date, pending future community vote and CRVUSD maturity. In addition, we recommend listing CRVUSD with Borrowed in Isolation disabled. Enabling Borrowed in Isolation introduces risk to the isolated assets due to the correlation between the volatility of the isolated asset and that of the borrowed asset. ## Recommendations Following the above, we recommend listing CRVUSD with the following parameter settings: | Parameter | Value | | --- | --- | | Isolation Mode | No | | Borrowable | Yes | | Collateral Enabled | No | | Supply Cap (CRVUSD) | 60M | | Borrow Cap (CRVUSD) | 50M | | Debt Ceiling | N/A | | LTV | N/A | | LT | N/A | | Liquidation Bonus | N/A | | Liquidation Protocol Fee | 10.00% | | Variable Base | 0.00% | | Variable Slope1 | 5.00% | | Variable Slope2 | 80.00% | | Uoptimal | 80.00% | | Reserve Factor | 10.00% | | Stable Borrowing | Disabled | | Stable Slope1 | 13.00% | | Stable Slope2 | 300.00% | | Base Stable Rate Offset | 3.00% | | Stable Rate Excess Offset | 8.00% | | Optimal Stable To Total Debt Ratio | 20.00% | | Flahloanable | Yes | | Siloed Borrowing | No | | Borrowed in Isolation | No | ---
**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/gauntlet/32/4064_2.png) [@Gauntlet](https://governance.aave.com/u/Gauntlet)\ **Post date:** [October 25, 2023, 6:16pm UTC](https://governance.aave.com/t/arfc-crvusd-onboarding-on-aave-v3-ethereum-pool/15161/3 "2023-10-25T18:16:31Z")
Should the community wish to list CRVUSD, Gauntlet recommends the following parameters. We give further color below. ## Parameters | Parameter | Recommendation | | --- | --- | | Isolation Mode | N/A | | Borrowable | YES | | Borrowable in Isolation | YES | | Collateral Enabled | NO | | Stable Borrowing | NO | | Supply Cap | 48m | | Borrow Cap | 40m | | Debt Ceiling | N/A | | LTV | N/A | | LT | N/A | | Liquidation Bonus | N/A | | Liquidation Protocol Fee | 10% | | Reserve Factor | 10% | | Base Variable Borrow Rate | 0 | | Variable Slope 1 | 0.06 | | Variable Slope 2 | 0.8 | | Uoptimal | 0.8 | ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/0/0abb8881bc3ce96fee4373f3cd83b097520aec96.png) ### Initial Supply and Borrow Caps CRVUSD circulating supply is ~$120m. Given CRVUSD is a new asset listing, we recommend adoping our conservative approach for setting supply and borrow caps for CRVUSD, which gives room to expand caps should cap usage be elevated. We recommend supply cap of 48m and borrow cap of 40m. ### Variable Borrow Rate We recommend setting slope 1 to 6% instead of 5%, given the weighted average CRVUSD borrow rate across Curve is ~6.5% and Silo is \>7%. ### Borrowable in Isolation Gauntlet does not see excess risk with enabling CRVUSD being borrowable in isolation. CRVUSD If the community wishes to take a more conservative stance, it may wish to only limit CRVUSD borrowing to non-isolated collateral. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [November 24, 2023, 6:17pm UTC](https://governance.aave.com/t/arfc-crvusd-onboarding-on-aave-v3-ethereum-pool/15161/4 "2023-11-24T18:17:14Z")
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