[ARFC] Onboard eBTC on Aave v3 Base Instance with CbBTC Liquid E-Mode
Author: ACI (Aave Chan Initiative)
Date: 2025-04-29
Summary
This proposal aims to onboard eBTC to the Aave v3 Base instance and establish a liquid E-Mode configuration with CbBTC. The objective is to enhance capital efficiency for users leveraging eBTC/CbBTC pairs, facilitating more effective borrowing strategies and optimizing liquidity utilization on the Base network.
Proposal will be a Direct to AIP after successful implementation of [ARFC] Enable eBTC/WBTC liquid E-Mode on Aave v3 Core Instance
Motivation
By implementing this proposal, we aim to optimize the use of eBTC/CbBTC within the Aave ecosystem on Base, attracting more liquidity and enhancing user experience.
- High Utilization: BTC-correlated pairs have demonstrated significant usage as collateral for borrowing stablecoins on other platforms.
- Capital Efficiency: Enabling liquid E-Mode for eBTC/CbBTC will allow borrowers to substantially improve their capital efficiency when using these assets 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 the Base instance.
Specification
Network: Base
eBTC Market Configuration:
Risk Parameters will be provided by Risk Service Providers and ARFC will be updated accordingly.
Next Steps
- Community Feedback: Gather feedback from the community and Risk Service Providers on this ARFC.
- Publish an AIP vote for final confirmation and enforcement of the proposal.
Disclaimer
This proposal is directly powered by ACI (Aave Chan Initiative). ACI has not received compensation for the creation of this proposal.
Copyright
Copyright and related rights waived via CC0.