[ARFC] Onboard Native USDC to Aave V3 Optimism Market

[MarcZeller]

title: [ARFC] Onboard Native USDC to Aave V3 Optimism Market
author: @marczeller - Aave Chan Initiative
created: 2023-11-10

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Simple Summary

This ARFC proposes integrating native USDC into the Aave V3 pool on Optimism, positioning it as the primary stablecoin version over the bridged USDC.e.

Motivation

With the evolution of L2 networks, adopting native USDC versions becomes vital for efficiency. This proposal seeks a balanced transition from USDC.e to native USDC on Optimism, drawing from similar successful integrations on other networks.

Specification

Token Information

• Token Symbol: USDC
• Token Address: 0x0b2C639c533813f4Aa9D7837CAf62653d097Ff85

Parameters

• Supply Cap:
  • USDC: 150M
  • USDC.e: 25M
• Borrow Cap:
  • USDC: 100M
  • USDC.e: 20M
• Reserve Factor (RF):
  • USDC.e: Increase to 20% to incentivize native USDC usage.

All other risk parameters for native USDC will mirror those of USDC.e.

Next Steps

1. Community feedback and gather consensus
2. Proceed to ARFC snapshot stage.
3. If successful, escalate to AIP stage.

Disclaimer

This proposal is powered by Skyward, The Aave Chan Initiative (ACI) is not compensated in any form by Circle, Optimism, or any affiliated entities for creating this ARFC proposal.

Copyright

Copyright and related rights waived via CC0.

[ChaosLabs]

We support this proposal to list native USDC on Optimism.
We support initial supply and borrow caps of 25M and 20M, respectively, given the current on-chain liquidity for USDC.

[Gauntlet]

Given that USDC total supply on Optimism is 42m as of 2023-11-14, Gauntlet recommends setting USDC supply and borrow caps to 27m and 22m respectively. Should total supply increase near snapshot and AIP, we will be happy to refresh our recommendations.

Lowering supply/borrow caps for USDC.e does not add excess risk, should the community wish to integrate native USDC as the primary stablecoin over USDC.e.