[ARFC] Onboard and enable sUSDe liquid E- mode on main Instance Mainnet and Lido Instance
Author: ACI ( Aave Chan Initiative)
Date: 2024-11-06
ARFC updated 2024-11-08 with latest Risk Parameters provided by Risk Service Providers.
Summary
This proposal aims to enable sUSDe liquid E-Mode on Aave v3 Mainnet for the Main and Lido instances. By implementing this change, we seek to enhance capital efficiency for borrowers using sUSDe as collateral, particularly for borrowing other stablecoins. This is a Direct to AIP proposal.
Motivation
The motivation behind this proposal stems from several key factors:
- High Utilization: sUSDe has demonstrated significant usage as collateral for borrowing stablecoins on the platform.
- Capital Efficiency: Enabling liquid E-Mode for sUSDe will allow borrowers to substantially improve their capital efficiency when using this asset as collateral.
- Controlled Growth: Liquid E-Mode provides a mechanism for more precise control over the growth and borrow demand in relation to the overall stablecoin liquidity within Aave v3 on Mainnet.
- Enhanced Borrowing Capacity: This change will enable users to borrow larger amounts of other stablecoins against their sUSDe collateral, potentially increasing platform utilization and revenue.
By implementing this proposal, we aim to optimize the use of sUSDe within the Aave ecosystem, attracting more liquidity for stablecoins.
Specification
This proposal will add sUSDe liquid E-Mode against USDC, sUSDS, and GHO.
Nevertheless it may be subject to change based on Risk Service Providers feedback. If that’s the case the ARFC will be updated accordingly.
ARFC updated 2024-11-08 with feedback provided by Risk Service Providers.
sUSDe Market Configuration (Lido Instance)
Parameter | Value |
---|---|
Isolation Mode | false |
Borrowable | DISABLED |
Collateral Enabled | true |
Supply Cap (sUSDe) | 20,000,000 |
Borrow Cap (sUSDe) | 1000 |
Debt Ceiling | USD 0 |
LTV | 0.05 % |
LT | 0.1 % |
Liquidation Bonus | 7.5 % |
Liquidation Protocol Fee | 10 % |
Reserve Factor | 10 % |
Base Variable Borrow Rate | 0.05 % |
Variable Slope 1 | 0.1 % |
Variable Slope 2 | 3 % |
Uoptimal | 1 % |
Flashloanable | ENABLED |
Siloed Borrowing | DISABLED |
Borrowable in Isolation | DISABLED |
sUSDe Liquid E-mode Configuration
Parameter | Value | Value | Value |
---|---|---|---|
Asset | sUSDe | USDS | USDC |
Collateral | Yes | No | No |
Borrowable | No | Yes | Yes |
Max LTV | 90% | - | - |
Liquidation Threshold | 92% | - | - |
Liquidation Bonus | 3.0% | - | - |
Useful links
Disclaimer
This proposal is directly powered by ACI (Aave Chan Initiative). ACI did not received compensation for creation of this proposal.
Next Steps
- If consensus is reached on this ARFC, publish an AIP vote for final confirmation and enforcement of the proposal
Copyright
Copyright and related rights waived via CC0.