[ARFC] Onboard ETHx in Aave V3 Arbitrum Market and set ACI as Emissions Manager for rewards
Author: ACI (Aave Chan Initiative)
Date: 2024-07-04
Summary
This ARFC proposes the addition of the liquid staking token ETHx from Stader to Aave V3 Arbitrum and making ACI the emissions manager.
Motivation
ETHx represents Stader’s staked ETH, providing users with liquid staking benefits. Supporting ETHx on Aave V3 continues our advocacy for LST diversity on Layer 2 networks. Stader is in the process of conducting liquidity mining campaigns on both Aave v3 Ethereum and has plans to incentivize liquidity on Arbitrum using their LTIPP ARB grant.
Specification
Contract Address: ETHx Arbitrum - 0xED65C5085a18Fa160Af0313E60dcc7905E944Dc7
Following Chaos Labs analysis, they recommend listing ETHx with the following parameter settings:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (ETHx) | 400 |
| Borrow Cap (ETHx) | 40 |
| Debt Ceiling | - |
| LTV | 75.00% |
| LT | 78.00% |
| Liquidation Bonus | 7.00% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.0% |
| Variable Slope1 | 7.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 15.00% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
| E-Mode Category | ETH-correlated |
CAPO Recommendation:
| maxYearlyRatioGrowthPercent | ratioReferenceTime | MINIMUM_SNAPSHOT_DELAY |
|---|---|---|
| 9.24% | monthly | 7 days |
The proposal will also set ACI as Emissions Manager to partner with Stader in managing ARB distribution rewards, similar to the current program for SD incentives on mainnet.
The Aave Chan Initiative (ACI) multisig address eth :0xac140648435d03f784879cd789130F22Ef588Fcd
will be set as Emissions manager.
The call to the setEmissionAdmin() method in the emission_manager contract will be as follows:
EMISSION_MANAGER.setEmissionAdmin(ETHx,0xac140648435d03f784879cd789130F22Ef588Fcd);
This method will set the Aave Chan Initiative (ACI) wallet as the emission admin for the ETHx token on Aave V3 Arbitrum Market.
Disclaimer
The ACI is not presenting this ARFC on behalf of any third party and is not compensated for creating this ARFC.
Next Steps
- If consensus is reached on this [ARFC], it can be directly escalated to AIP following the asset onboarding framework.
Copyright
Copyright and related rights waived via CC0.