[ARFC] New Chain Deployment Framework

Governance
1

Title: [ARFC] New Chain Deployment Framework

Author: @0xTogbe - Aave Chan Initiative

Date: 2023-11-28

Summary

This proposal seeks the community’s approval for a framework to deploy the Aave Protocol on a new blockchain.

This framework outlines the standardized process for any blockchain seeking to deploy on Aave Protocol. The goal is to establish a transparent and community-driven approach for evaluating and deploying new Aave v3 instances.

Motivation

New chain deployments are a key part of the growth path for Aave v3, but the current end-to-end process is not always clear and subject to extended timelines. In addition, there is no specific process for prioritizing deployments on chains that will offer standing deposits like protocol-owned-liqudity, liquidity mining incentives, or other benefits for Aave protocol and our users. For example, Aave v3’s recent deployment on Gnosis Chain has benefited from deposits from Gnosis Chain’s DAO liquidity base.

We have established the precedent with past proposals that have improved timeliness and governance overhead, while allowing Aave to benefit from collaboration with partners from new blockchain development teams. The new deployment framework aims to balance security and speed by providing a more efficient governance process for moving forward with new instances of the Aave protocol. This ARFC is meant to define a clearer and accessible standard in the same spirit as the DAO’s historic process.

By establishing clear guidelines, the proposal aims to create an inclusive and efficient environment for new chain deployments, while maximizing the weight of Aave’s brand name and clear benefits from an Aave v3 deployment for new chain ecosystems.

Specification

The current governance process for new deployments is as follows:

  • Post a TEMP CHECK governance thread for 5 days
  • Snapshot vote for 3 days (24 hours after gov thread)
  • Post an ARFC governance thread for 5 Days
  • Snapshot vote for 3 days (24 hours after gov thread)
  • Post an AIP vote for 5 days (Minimum 320k vote required)

We propose to keep the same steps, but introduce a more clear timeline and requirements for moving between proposal stages.

Updated timeline and requirements:

  • Post a TEMP CHECK governance thread for 5 days
  • Snapshot vote for 3 days (24 hours after gov thread)
    • Documentation submission:
      • 7 days after the Snapshot vote
      • If deadline is not met, there will be a frozen period of 30 days. After that period documentation could be analyzed again
    • Technical review duration
      • 21 days since documentation submitted
      • If technical review fails due to security concerns, process will be frozen until it’s been resolved.
  • Post an ARFC governance thread for 5 Days, after technical review has been successfully completed
  • Snapshot vote for 3 days (24 hours after gov thread)
  • Post an AIP vote for 5 days (Minimum 320k vote required)

New proposed deployment proposal workflow:

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FRAMEWORK FOR TEMP CHECK

Title: [TEMP CHECK] Deploy Aave v3 on [XXX]

Author:

Date: in YYYY-MM-DD format

  1. Simple Summary: A short description of the action desired (list & deploy a new Aave deployment on Aave). Provide a comprehensive overview of the new deployment], including its technical features, security measures, and any unique benefits it brings to the Aave ecosystem.

  2. Motivation/Background: Explain the motivation behind the intention to list the new Aave deployment solution and a background. Please take into account that the proposal need to include:

    1. Benefits of deploying in a new chain: Provide a brief overview of where the new Aave instance would be deployed and the significance of choosing this blockchain for its deployment, focusing on factors as scalability, security and interoperability.

    2. Why it makes sense for all parties involved to pursue this new deployment. Bear in mind that it needs to be as much clear as possible for governance to understand the benefits and tradeoffs.

      Market Impact: This includes an analysis of the potential impact of the deployment of an Aave market on the chain. This should take into consideration the effects on liquidity, user adoption, and overall market growth. The new chain’s potential to attract new users, its impact on the chain’s liquidity, and its contribution towards the growth of Aave should be analyzed.

  3. Proof of Liquidity (POL) and Deposit Commitments: This is a new requirement for TEMP CHECK phase to identify if a particular new Aave deployment will be included in POL initiatives or has significant deposit commitments. This information will be considered in the decision-making process to prioritize deployments. To be more specific, some criteria to be used in decision making will be:

    • If the chain’s treasury or foundation has committed to providing an initial liquidity pool for Aave or not
    • If there are collaborations with external parties to bootstrap liquidity, to contribute to a more robust and diverse liquidity environment
    • If there has been established plans to implement liquidity mining programs tailor made for Aave
    • If the deployment supports staking and yield farming opportunities related to Aave
    • If it has been contemplated a Grant to Aave DAO to incentivize that deployment in comparison to other similar proposals

  4. Useful Links: Any additional information that can help Aave DAO to decide. When sharing useful links please include links to previous governance votes about that asset and parameters, that will help reader/user understand the reasoning behind it and make a clear decision when voting.

  5. Disclaimer: Statement of Author potential conflict of interests and relationship with asset protocol and if they received compensation for publishing this proposal

  6. Next Steps

    1. If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
    2. If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
    3. Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage
    4. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal

  7. Copyright: Copyright and related rights waived under CC0.

FRAMEWORK FOR ARFC

Title: [ARFC] Deploy Aave v3 on [XXX]

Author:

Date: in YYYY-MM-DD format

  1. Simple Summary: A short description of the action desired. Provide a comprehensive overview of the new deployment, including its technical features, security measures, and any unique benefits it brings to the Aave ecosystem.

  2. Motivation/Background: Explain the motivation behind the intention to list the new Aave deployment solution and a background. Please take into account that the proposal need to include:

    1. Benefits of deploying in a new chain: Provide a brief overview of where the new Aave instance would be deployed and the significance of choosing this blockchain for its deployment, focusing on factors as scalability, security and interoperability. ****Bear in mind that it needs to be as much clear as possible for governance to understand the benefits and tradeoffs.

      Market Impact: This includes an analysis of the potential impact of the deployment of an Aave market on the chain. This should take into consideration the effects on liquidity, user adoption, and overall market growth. The new chain’s potential to attract new users, its impact on the chain’s liquidity, and its contribution towards the growth of Aave should be analyzed.

    2. Integration Review: Outline the technical details of the proposed integration. This includes specifics on how Aave’s lending and borrowing functionalities will interact with new Aave Deployment. For that, please share the result of both documentation submission and technical review, from TEMP CHECK, so community can understand the level of work, security and commitment. Avoid providing sensitive information.

    3. Proof of Liquidity (POL) and Deposit Commitments: This is a new requirement for ARFC phase, that has been as well implemented in TEMP CHECK stage, to identify if a particular new Aave deployment will be included in POL initiatives or has significant deposit commitments. This information will be considered in the decision-making process to prioritize deployments.

      To be more specific, some criteria to be used in decision making will be:

      • If the chain’s treasury or foundation has committed to providing an initial liquidity pool for Aave or not, and details
      • If there are collaborations with external parties to bootstrap liquidity, to contribute to a more robust and diverse liquidity environment
      • If there has been established plans to implement liquidity mining programs tailor made for Aave
      • If the deployment supports staking and yield farming opportunities related to Aave
      • If it has been contemplated a Grant to Aave DAO to incentivize that deployment in comparison to other similar proposals

  3. Specification: Include the initial assets that should be available as collateral and their risk parameters in a table. These should have received input from at least one risk manager service provider.

  4. Deployment Checklist: New deployments must have all of the following completed prior to posting an ARFC.

    1. Risk service providers feedback
    2. BGD Labs Infrastructure/technical evaluation
    3. Oracle recommendation
    4. The graph support
    5. Cross-chain messaging infrastructure for governance

  5. Useful Links: Any additional information that can help Aave DAO to decide. When sharing useful links please include links to previous governance votes about that asset and parameters, that will help reader/user understand the reasoning behind it and make a clear decision when voting.

  6. Disclaimer:

    Statement of Author potential conflict of interests and relationship with asset protocol and if they received compensation for publishing this proposal

  7. Next Steps

    1. Refine the ARFC based on community feedback and risk service provider recommendations.
    2. If consensus is reached and the proposal is refined, submit the ARFC for a snapshot vote for final approval.
    3. If consensus is reached, submit a deployment AIP to activate Aave V3 on the new chain.

  8. Copyright: Copyright and related rights waived under CC0.

Next Steps

  1. Community Engagement: Engage with the Aave community to gather feedback on the proposed framework for new Aave v3 deployments.
  2. ARFC Snapshot: If community sentiment is favorable, initiate an ARFC snapshot to gauge official support for the framework.
  3. Implementation: Since this is a governance framework ARFC, if it passes snapshot, it will be implemented as the framework standard for new chain deployments going forward.

Disclaimer

The Aave-Chan Initiative (ACI) is not compensated in any form for creating this ARFC proposal. This ARFC has been prepared solely to facilitate community discussion.

Copyright

Copyright and related rights waived under CC0.

13 Likes
2

This is a welcome development and we are glad to support this, we believe that as it relates to deployments the Aave DAO can demand more from teams looking to get Aave Deployed on their chain, the Aave DAO is in a place to demand accountability from these teams, we are glad the ACI has started this conversation,

5 Likes
3

This ARFC has been escalated to the ARFC snapshot stage and vote will start tomorrow.

1 Like
4

This ARFC has passed ARFC snapshot vote and will be implemented as the framework standard for new chain deployments going forward.

1 Like
5

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