[ARFC] Deploy a Crypto.com Aave v3 Instance

Title: [ARFC] Deploy a Crypto.com Aave v3 Instance

Author: ACI

Date: 2024-10-01


Summary

This proposal is for the creation of a specific Aave v3 instance in partnership with Crypto.com which will be used for their DeFi Staking product using WETH and cdcETH.

Motivation

Crypto.com is one of the world’s largest exchanges, currently listed as number 6 on DeFi Llama in terms of total assets. In addition to 100M+ global users since May 2024, they have a staked ETH product called cdcETH with over $80m TVL.

The original TEMP CHECK proposal to onboard cdcETH to the main Aave v3 instance, ended in an abstain result, indicating a desire of the DAO to further explore opportunities at a later time.

After discussions with the CDC team, ACI believes there are good synergies in creating a specific instance of Aave v3 that will allow them to integrate their DeFi Staking product and create a dedicated location for looping of cdcETH via emode to kickstart the instance liquidity, before including stablecoins to offer more yield options to CDC DeFi Staking users.

We encourage, delegates, tokenholders, and service providers to give feedback on this proposal.

Specification

The Crypto.Com Aave v3 instance will target the following:

  • We target $60M+ for the CDC instance as a start with $50M+ on the WETH side.
  • Drive liquidity to the new instance with a combination of their CeDeFi DeFi Staking product, Wallet integration, 3rd party specialized platforms and CDC-owned liquidity.
  • The Crypto.com team has committed to $1 million worth of incentives for the first 6 months of launch to bootstrap initial liquidity. The ACI is in favor of matching this incentive amount via the Ahab program to increase the adoption velocity of this potential instance.

Contract address: 0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e

Risk Parameters will be provided at ARFC stage by Risk Service Providers, and ARFC will be updated accordingly.

Useful Links

Temp Check discussion: [TEMP CHECK] Deploy a Crypto.com Aave v3 Instance

Temp Check Snapshot: Snapshot

Audit: https://crypto.com/document/blocksec_securityaudit2024

Issuer: Crypto.com

DeFi Llama: https://defillama.com/protocol/crypto.com-staked-eth 2

Coingecko: https://www.coingecko.com/en/coins/crypto-com-staked-eth 1

Crypto.com Staking page: Crypto Staking — Crypto.com | Earn up to 16.64% per year by staking with us

Crypto.com Liquid Staking Q&A page: Liquid Staking | Crypto.com Help Center

Disclaimer

The Aave Chan Initiative is not directly affiliated with Crypto.com and did not receive compensation for creating this proposal.

Next Steps

  1. Publication of a standard ARFC, collect community & service providers feedback before escalating the proposal to the ARFC snapshot stage.
  2. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright:

Copyright and related rights waived under CC0

1 Like

In favour of this proposal.