[ARFC] Disable Borrow of agEUR on Aave V3 Polygon

Governance
1

Summary

This ARFC proposes to disable borrows of agEUR on the Aave V3 Polygon market.

Motivation

Following the recent exploit on Euler, Angle Protocol has announced having $17.6M of USDC deposited into the protocol, leading them to pause the protocol and to uncertainty around the collateralization of agEUR.

agEUR is not listed as collateral on Aave V3 Polygon and is only borrowable, with utilization currently at nearly 100%. Still, we think it is reasonable to disable further asset borrowing as an immediate and temporary measure until the backing is restored 1:1.

We continue to follow the situation closely as it develops and will update recommendations and actions accordingly.

Specification

Ticker: agEUR

Contract Address: 0xE0B52e49357Fd4DAf2c15e02058DCE6BC0057db4

Copyright

Copyright and related rights waived via CC0

5 Likes
2

Gauntlet supports pausing borrowing of agEUR.

1 Like
3

We are in support of this.

Given there are currently 2 snapshots to list AgEUR to V3 Arbitrum/Optimism, I think it makes sense to hold off on the on-chain votes (which we will not support) until there is further clarity surrounding AgEUR’s collateralization and the unpausing of their protocol.

Disclaimer: Wintermute is an investor in Angle

4

We have voted NAY on the current Snapshots on-boarding agEUR to reflect this recommendation.

5

What would happen in the case where the 200m are definitely lost by Euler along with the 17m of Angle ?

6

We have published AIP-179 for community members to vote on, starting in 24h.

Thank you in advance for your participation in the vote.