Following discussions with the Mantle and ByBit teams, TokenLogic would like to propose revisiting the initial configuration of the Aave v3 deployment on Mantle and in doing so, provide some insights into the direction of the Aave v3.6 deployment.
To support an early January deployment timeline, the initial assets to be included at launch (Phase 1.0) have been limited to mostly a subset of assets already listed across Aave Protocol, with an exception of the Mantle network token (MNT) intended to be listed in Isolation Mode, subject to @BGDLabs and Risk Service Provider team feedback. Upon receiving approval from @BGDLabs and Risk Service Providers, two Mantle ecosystem-focused products, mETH and cmETH are to be onboarded (Phase 1.5). Later asset listings are to then focus on Real World Assets (permissionless) and Yield Bearing Stablecoins (YBS) to diversify the demand for stablecoins debt (Phase 2.0).
For all instances of Aave v3, v4 and future, the Aave DAO, via actively engaged Service Providers, is to curate the market, ensuring all assets and protocol parameter configuration are maintained to the highest standard. Asset onboarding and configuration of the Aave Protocol is to be performed in close communication between Service Providers and the Mantle team. With a focus on security and user safety, each asset listing is to be reviewed by Aave DAO service providers, most notably @BGDLabs (Security), @ChaosLabs (Risk) and @LlamaRisk (Risk). In line with standard DAO operating practices, the @ACI team via MASiv and Skywards will be responsible for distributing rewards and submitting AIPs for voting.
@TokenLogic and @ACI are collaborating with the Mantle team and other stakeholders to design the incentive campaign. Soon after launch, we are expecting several partners to join the Aave DAO and Mantle teams in distributing incentives to users, with the rewards visible on the aave.com frontend provided by Aave Labs. @TokenLogic and @ACI will work with Mantle and ByBit to help grow the adoption of Aave Protocol and GHO on the Mantle Network.
Revenue Expectations
On August 5th 2025, Mantle and ByBit announced a strengthening of the relationship. With a renewed focus on growing Mantle, it is anticipated that after Aave v3.6 is deployed, ByBit Earn will integrate the Aave Protocol allowing ByBit users to access the yield generated by Aave Protocol. The ByBit integration is expected to be progressively developed over time, that includes a range of products from passive deposit strategies to more actively curated yield-enhancing strategies. With two yield-bearing stables included at launch and Pendle PTs to be added at a later date, there will be strong demand for stablecoin debt and the ability to create tailored yield strategies to reflect various risk profiles.
The initial 6-month growth target for user deposits is USD 750M with a portion of the liquidity coming via ByBit’s Earn platform. The 8M units of MNT, valued at 8.8M USD at the time of writing, provide budget for supporting the growth of the market. The MNT budget, combined with 1.5M of GHO to be used for promoting the adoption of GHO on Mantle Network, is expected to deliver initial growth that later transitions into a self-sustaining market.
Separately, ByBit is expected to list GHO, subject to a favourable risk review. To support this initiative, the already approved CEX Earn Budget is to be used for promoting the adoption of GHO on ByBit. This represents the first major exchange listing for GHO and will further bolster chances of other Tier 1 exchange listings. After successfully listing and achieving the Spot Trading liquidity requirements, GHO is to be included on ByBit’s Universal Trading Accounts (UTA) as collateral. Users can then hold GHO as collateral and receive yield, which offsets the perp funding rates over time. ByBit, along with Market Makers, are expected to Mint GHO via a stataUSDT remoteGSM deployed on the Mantle Network. The yield from stataUSDT is then directed to Aave Treasury as revenue. Over time, the USDT deposit rate on Aave is expected to offset the associated costs of sustaining the GHO UTA use case.
RWA are a key focus for the Mantle ecosystem, a medium-term growth opportunity for the Aave DAO is the introduction of permissionless RWA to Aave v3.6, with the Mantle team working directly with the DAO for growing RWA adoption on Aave Protocol. Separately, all future Aave Protocol deployments, v3.6, v4 and other revisions, are to be exclusively curated by the Aave DAO via service providers directly engaged by the Aave DAO to do so.
Specification
Aave Protocol
The below presents an overview of the initial listing parameters to be refined by both @ChaosLabs and @LlamaRisk, with @BGDLabs to review MNT from a security perspective as part of the new asset onboarding process.
General Configuration
| Parameters | Value | Value | Value | Value | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|---|---|---|---|
| Asset | USDT0 | USDC | USDe | GHO | fBTC | MNT | sUSDe | syrupUSDT | wETH | wrsETH |
| Isolation mode | No | No | No | No | No | Yes | No | No | No | No |
| Borrowable | No | No | No | Yes | No | No | No | No | Yes | No |
| Collateral Enabled | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Supply Cap | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA |
| Borrow Cap | TBA | TBA | TBA | TBA | 0 | 0 | 0 | 0 | TBA | 0 |
| Debt Ceiling | - | - | - | - | - | 10M | - | - | - | - |
| LTV | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 55.0% | 0.00% | 0.00% | 80.0% | 0.00% |
| LT | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 60.0% | 0.10% | 0.10% | 83.0% | 0.10% |
| Liquidation Bonus | 5.5% | 5.5% | 8.5% | 5.5% | 7.5% | 7.5% | 8.5% | 8.5% | 8.5% | 7.5% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
| Variable Base | 0.0% | 0.0% | 0.0% | 0.0% | - | - | - | - | 0.0% | - |
| Variable Slope1 | 5.5% | 5.5% | 5.5% | 5.5% | - | - | - | - | 2.50% | - |
| Variable Slope2 | 20.0% | 20.0% | 20.0% | 20.0% | - | - | - | - | 8.00% | - |
| Uoptimal | 90.0% | 90.0% | 80.0% | 90.0% | - | - | - | - | 90.0% | - |
| Reserve Factor | 10% | 10% | 25% | 10% | - | - | - | - | 15% | - |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled |
| Flashloanable | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No | No | No | No | No | No | No | No |
| Borrowed in Isolation | Yes | Yes | Yes | No | No | No | No | No | No | No |
| Liquid eMode | 1 to 5 | 1 to 5 | 1 to 5 | 1 to 5 | 4 | No | 2 | 3 | 6 | 5,6 |
Note: wrsETH is only to be included at launch subject to terms between Mantle and Kelp being finalized. Other LRTs are encouraged to follow a similar path. If alignment between Mantle and Kelp is not attained prior to launch, wrsETH’s inclusion will be deferred until such time as Kelp and Mantle teams have reached an agreement.
Alternatively to listing MNT in isolation mode, it can be listed in eMode similar to other assets to create an isolated market and use the MNT Supply Cap to limit protocol exposure instead of the combination of Supply Cap and Global Debt Cap.
eMode Category #1
| Parameter | Value | Value | Value |
|---|---|---|---|
| Asset | USDe | USDT0 | GHO |
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 90.00% | - | - |
| Liquidation Threshold | 93.00% | - | - |
| Liquidation Bonus | 2.00% | - | - |
eMode Category #2
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | sUSDe | USDe | USDT | USDC | GHO |
| Collateral | Yes | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
| Max LTV | 90.00% | 90.00% | - | - | - |
| Liquidation Threshold | 92.00% | 92.00% | - | - | - |
| Liquidation Bonus | 4.00% | 4.00% | - | - | - |
eMode Category #3
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | syrupUSDT | GHO | USDT | USDC | USDe |
| Collateral | Yes | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
| Max LTV | 90.00% | 90.00% | - | - | - |
| Liquidation Threshold | 92.00% | 92.00% | - | - | - |
| Liquidation Bonus | 4.00% | 4.00% | - | - | - |
eMode Category #4
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | fBTC | USDe | USDT | USDC | GHO |
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
| Max LTV | 77.00% | - | - | - | - |
| Liquidation Threshold | 80.00% | - | - | - | - |
| Liquidation Bonus | 6.00% | - | - | - | - |
eMode Category #5
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | wrsETH | USDe | USDT | USDC | GHO |
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
| Max LTV | 72.00% | - | - | - | - |
| Liquidation Threshold | 75.00% | - | - | - | - |
| Liquidation Bonus | 7.50% | - | - | - | - |
eMode Category #6
| Parameter | Value | Value |
|---|---|---|
| Asset | wrsETH | wETH |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 93.00% | - |
| Liquidation Threshold | 95.00% | - |
| Liquidation Bonus | 1.00% | - |
CAPO Parameters
| Token | Snapshot Delay | ratioReferenceTime | maxYearlyGrowthRatio |
|---|---|---|---|
| sUSDe | 14 days | monthly | 15.19% |
| Token | Snapshot Delay | ratioReferenceTime | maxYearlyGrowthRatio |
|---|---|---|---|
| syrupUSDT | 7 days | monthly | 8.45% |
| Token | Snapshot Delay | ratioReferenceTime | maxYearlyGrowthRatio |
|---|---|---|---|
| wrsETH | 7 days | monthly | 9.83% |
GHO Stablecoin
Facilitator & Bridging
Mint an additional new 20M GHO to fund the remoteGSM on Mantle.
- OwnableFacilitator Mint Cap: 100M GHO (No change from Plasma proposal)
- Additional Mint: 20M GHO (additional to Plasma Mint)
GhoReserve
Deploy GhoReserve on Mantle to hold bridged GHO initially.
Configure stataUSDT GSM as an entity with a draw capacity of 20M GHO.
Deploy a GhoDirectMinter facilitator on Ethereum to enable GHO issuance for Mantle.
- Mint Cap: 20M GHO
As required, future Minting of GHO on Ethereum, to be supplied into the remoteGSM on Mantle, will be performed via direct submission of AIPs.
CCIP Bridge Configuration:
- Bucket Capacity: 20M GHO
- Inbound Capacity: 1.5M GHO
- Outbound Capacity: 1.5M GHO
- Refill Rate: 300 GHO/sec
Currently, the CCIP Bridge to Mantle Network is v1.5 and requires upgrading to v1.6 before GHO lanes are to be established. TokenLogic will work closely with Chainlink to sync upgrade timelines and extend the new GHO lanes to/from Mantle.
GSM Parameters (stataUSDT)
| Parameter | Value |
|---|---|
| GHO Bucket Cap | 10M GHO |
| stataUSDT Exposure Cap | 8.5M |
| Freeze Lower Bound | $0.990 |
| Freeze Upper Bound | $1.010 |
| Unfreeze Lower Bound | $0.995 |
| Unfreeze Upper Bound | $1.005 |
| Mint GHO Fee | 0% |
| Burn GHO Fee | 0.15% |
USDT deposits into stataUSDT trigger GHO transfers using Ethereum-held inventory via GSM.
GHO Steward Configuration
GhoAaveSteward
updateGhoBorrowCap: ±100%updateGhoBorrowRate: ±5% on optimal usage ratio, base variable rates, slopesupdateGhoSupplyCap: Up to +100%
GhoGsmSteward
updateGsmExposureCap: ±100%updateGsmBuySellFees: ±0.5% per side (FixedFeeStrategy)
Both stewards remain callable only by the GHO steward protocol.
Budget
The Aave and Mantle teams will each provide incentive budgets to support the growth of Aave Protocol for the initial 6-month period post-launch, subject to achieving growth expectations and prevailing market conditions.
- Mantle: 8M units of MNT value at around 8.8M USD, assuming MNT is trading at $1.10ea.
- Aave DAO: To provide incentive rewards via the pre-approve Extended Ahab Budget facility and additionally, 1.5M GHO via the Aave Liquidity Committee to promote GHO’s adoption on Mantle.
For GHO, Ethereum:
Asset: aEthLidoGHO 0x18eFE565A5373f430e2F809b97De30335B3ad96A
Amount: 1.5M
Spender: Aave Liquidity Committee (ALC) 0xA1c93D2687f7014Aaf588c764E3Ce80aF016229b
Method: approve() aEthLidoGHO on the Aave Collector contract to the ALC address.
Disclosure
TokenLogic does not receive any payment for this proposal. TokenLogic has no business dealings with either ByBit or Mantle beyond what is performed on behalf of the Aave DAO, all proceeds are directed to the DAO.