[ARFC] Onboard AgEUR to Aave Optimism V3

Governance
1

title: [ARFC] Onboard AgEUR to Aave Optimism V3

Author: @marczeller - Aave Chan Initiative

Dated: 2023-03-01

Summary

AgEUR is a decentralized, overcollateralized stablecoin minted by the Angle protocol. Users of the Angle Protocol can mint AgEUR by locking collateral in vaults.

For more information about AgEUR, please refer to AgEUR Polygon V3 ARC.

This ARFC presents the Aave governance with an opportunity to onboard AgEUR to Aave Optimism V3 as a non-collateral asset.

Abstract

This ARFC presents the Aave governance with an opportunity to onboard AgEUR to Aave Optimism V3 as a non-collateral asset.

Motivation

AgEUR is the leading EUR-pegged decentralized stablecoin.

While the current market for EUR-pegged stablecoins is still anecdotal, the ACI supports stablecoin diversity in both the USD-pegged flavors and outside of USD-pegged assets.

AgEUR is designed to be efficient and can be minted at fair value using another stablecoin, which helps ensure that the peg remains resilient over time.

The proposed risk parameters are merely suggestions to start the conversation. The ACI is inviting Risk Service Providers to provide feedback on them.

Specification

Ticker: AgEUR (AGEUR)

Contract Address: 0x9485aca5bbBE1667AD97c7fE7C4531a624C8b1ED

Risk Parameter Value
Isolation Mode NO
Enable Borrow YES
Enable Collateral NO
Loan To Value N/A
Liquidation Threshold N/A
Liquidation Bonus N/A
Reserve Factor 10%
Liquidation Protocol Fee 10%
Borrow Cap 1.5M
Supply Cap 3M
Debt Ceiling N/A
Base 0%
Slope1 4%
Uoptimal 90%
Slope2 64%

Disclaimer

The Aave-Chan Initiative (ACI) is not associated with or compensated by Angle to publish this AFRC.

As part of its delegate platform, the ACI promotes stablecoin diversity.

At the time of writing, Marc Zeller, the founder of ACI, does not possess any ANGLE, the native asset of the Angle protocol, and holds only a small amount of agEUR.

Copyright

Copyright and related rights waived via CC0,

3 Likes
2

Obviously in favor of this proposal.

(Disclaimer: I am a contributor to the Angle Protocol)

The protocol is natively minted there which means that agEUR on Optimism is not a form of “bridge” token.
The Angle Protocol has received a 250k OP grant by the Optimism foundation. This grant is currently being used to incentivize agEUR liquidity on the chain, and so TVL for Angle on Optimism should grow in the coming months.

The Angle Protocol also has the possibility to mint agEUR as part of its direct deposit modules on Aave. Should this integration succeed, we could write a proposal on the Angle Protocol governance to seed the agEUR market on Aave with an amount equal to a fraction of the agEUR in circulation on Optimism (like we would do on Arbitrum).
This would open the room for borrowers to borrow agEUR and hence short it, or get leverage on like ETHEUR rather than ETHUSD among others.

3

100% in Favor. Let’s do it. It is good for Angle, good for AAVE, good for non USD stable coins users!

1 Like
4

The ACI just escalated this proposal to Snapshot stage, vote starts tomorrow.

The Aave-chan Initiative usually recommends waiting for a risk service provider team to give their feedback before escalating proposals. However, in this case, there were no concerns raised by the community about the ARFC proposal, which involves adding non-collateral assets. Therefore, it was considered acceptable to proceed with the proposal without waiting for feedback from the risk service provider team.

That being said, at any point during the snapshot stage & potential AIP stage of the proposal, @ChaosLabs & Gauntlet feedback will be welcomed.

2 Likes
5

Due to agEUR depeg following their D3M module into Euler that has been exploited, the ACI won’t escalate this proposal to AIP stage

It should be noted that even if this proposal passed before the exploit, the 0 LTV nature of this onboarding would not have lead to Aave excess debt.