title: [ARFC] Deploy Aave v3 on X Layer
Author: @Tokenlogic
Created: 2025-09-25
Summary
This ARFC proposes the deployment of an Aave v3 Instance on X Layer.
Motivation
X Layer is expected to act as both a payment-focused network and a DeFi hub, creating new avenues for user onboarding, real-world adoption, and capital efficiency. Deploying on Aave v3 on X Layer continues the strategy of taking Aave to users. X Layer has the potential to significantly grow Aave’s reach, strengthen user acquisition through OKX’s user base, and capture fresh liquidity.
X Layer’s vision is to serve as a general-purpose platform for payments and DeFi, connecting users and businesses with on-chain opportunities. The core focus will be on building infrastructure that enhances both financial accessibility and scalable DeFi applications. Aave Protocol will be a key pillar of the X Layer ecosystem.
Specification
The below values are for indicative purposes only, that will updated upon receiving feedback from both LlamaRisk and Chaos Labs.
Aave Protocol
General Configuration
| Parameters | Value | Value | Value | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|---|---|---|
| Asset | USDT0 | USDC | USDG | USDe | GHO | xBTC | OKB | sUSDe | syrupUSDC |
| Isolation mode | No | No | No | No | No | No | No | No | No |
| Borrowable | Yes | Yes | Yes | Yes | Yes | No | No | No | No |
| Collateral enabled | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Supply Cap | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA |
| Borrow Cap | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA | TBA |
| Debt Ceiling | - | - | - | - | - | - | - | - | - |
| LTV | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | 73.0% | 55.0% | 0.05% | 0.05% |
| LT | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 78.0% | 60.0% | 0.10% | 0.10% |
| Liquidation Bonus | 5.5% | 5.5% | 5.5% | 5.5% | 5.5% | 7.5% | 7.5% | 8.5% | 8.5% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
| Variable Base | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% | - | - | - | - |
| Variable Slope1 | 4.0% | 5.0% | 5.0% | 4.0% | 4.0% | - | - | - | - |
| Variable Slope2 | 20.0% | 20.0% | 50.0% | 20.0% | 20.0% | - | - | - | - |
| Uoptimal | 92.0% | 92.0% | 90.0% | 90.0% | 90.0% | - | - | - | - |
| Reserve Factor | 10% | 10% | 25% | 10% | 10% | - | - | - | - |
| Stable Borrowing | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled | Disabled |
| Flashloanable | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No | No | No | No | No | No | No |
| Borrowed in Isolation | No | No | No | No | No | No | No | No | No |
| Liquid eMode | 1,2,3,4 | 2,3,4 | 2,3,4 | 1,2,3,4 | 2,3,4 | 4 | NA | 2 | 3 |
eMode Category #1
| Parameter | Value | Value |
|---|---|---|
| Asset | USDe | USDT0 |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 90.00% | - |
| Liquidation Threshold | 93.00% | - |
| Liquidation Bonus | 2.00% | - |
eMode Category #2
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | sUSDe | USDe | USDT | USDC | USDG | GHO |
| Collateral | Yes | Yes | No | No | No | No |
| Borrowable | No | Yes | 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 | Value |
|---|---|---|---|---|---|---|
| Asset | syrupUSDC | USDT | USDC | USDG | USDE | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 90.00% | - | - | - | - | - |
| Liquidation Threshold | 92.00% | - | - | - | - | - |
| Liquidation Bonus | 4.00% | - | - | - | - | - |
eMode Category #4
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | xBTC | USDe | USDT | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 80.00% | - | - | - | - | - |
| Liquidation Threshold | 83.00% | - | - | - | - | - |
| Liquidation Bonus | 6.00% | - | - | - | - | - |
CAPO Parameters sUSDe
| Token | Snapshot Delay | maxYearlyGrowthRatio |
|---|---|---|
| sUSDe | 14 days | 15.19% |
| Token | Snapshot Delay | ratioReferenceTime | maxYearlyGrowthRatio |
|---|---|---|---|
| syrupUSDC | 7 days | monthly | 19.94% |
Upon confirmation of the Aave deployment on X Layer, the X Layer team will:
- X Layer will provide a rewards budget, currently being finalised.
- OKX wallet and exchange user base will be encouraged to use X Layer
- Early discussions with partners indicate additional rewards are being provided to support the adoption of various products.
- X Layer will support the integration and assist with boosting the adoption of Aave’s GHO stablecoin within its ecosystem, targeting real-world and institutional use cases.
- Collaborate with liquidity providers, institutional capital allocators, and partners to expand supply in Aave v3 for xBTC and stablecoins.
- Entrust TokenLogic and ACI, on behalf of Aave DAO, to manage the design and distribution of liquidity mining campaign to Aave users respectively.
Disclosure
TokenLogic does not receive any payment for this proposal.
Next Steps
- Publish an ARFC to continue gathering community and Service Providers feedback.
- Escalate proposal to ARFC Snapshot.
- 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 via CC0.