[ARFC] Proposal for Deploying “Whitelabel” Aave V3 Market for RealT Tokens on GnosisChain

Governance
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[ARFC] Proposal for Deploying “Whitelabel” Aave V3 Market for RealT Tokens on GnosisChain

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Title: [ARFC] Proposal for Deploying “Whitelabel” Aave V3 Market for RealT Tokens on GnosisChain

Author: @marczeller - Aave Chan Initiative

Date: 2023-02-15

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Summary:

Realt is a Real Estate tokenization protocol that enables users to gain exposure to real estate properties that produce rent income directly paid on-chain. The RMM (RealT Market Maker) market based on Aave V2 has already reached ~10M$ in size since its launch.

This ARFC proposes deploying a “whitelabel” version of Aave V3 for RealT tokens on the Gnosis Chain network. By allowing friendly forks of Aave V3, Aave can increase its technology adoption and provide an alternative source of revenue and synergies for the DAO and third-party teams.

Motivation:

The quality of the Aave V3 codebase has made it a recognizable and trustworthy asset in the DeFi community as illustrated by spark protocol recent ARC.

Therefore, rather than “reinventing the wheel,” many projects are interested in deploying “friendly” forks of V3 that fit their own models.

Aave is currently “delegating” off-chain collaterals to third parties, such as the Centrifuge RWA market, but this might change mid-term with GHO and off-chain collateral facilitators.

At present, Aave is immature in this area, so allowing third parties to deploy these “friendly forks” or Aave whitelabel deployments can increase Aave technology adoption.

RealT proposes a 20% profit-sharing arrangement with the Aave DAO for this deployment. In this context, “profit” refers to the assets redirected to the RMM collector contract via the reserveFactor collection from users having borrow positions on this market. Quarterly, Realt will deliver 20% of the balance of this contract to the Aave Ethereum collector contract.

In the case of a future Aave V3 deployment on the Gnosis Chain, RealT will be able to implement a more automatic and decentralized way to deliver the revenue share to an Aave collector contract on the Gnosis Chain. This would allow for more seamless and efficient profit-sharing arrangements between RealT and Aave.

While the RealT market is not currently a significant business prospect for the Aave DAO, and it is not expected to be a significant revenue driver, the RMM market has an interesting value proposition for off-chain collateral-based liquidity protocols.

Specification:

No on-chain AIP or technical implementation is required for this ARFC. Therefore, the outcome of a snapshot vote will be considered canon.

Disclaimer:

The Aave-Chan Initiative is not linked nor paid by RealT to publish this ARFC.

At the time of writing, Marc Zeller, the founder of ACI, owns a small amount of RealT tokens in a wide range of properties that currently produce a weekly revenue of ~30 USDC.

Copyright:

Copyright and related rights waived via CC0.

17 Likes
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Supporting this proposal.
We can see that Aave is desired by other protocols. This should be seen as an honor to the whole Aave companies and everybody else contributing to it.
While the traditional Aave market is currently focusing only on crypto lending its good to have other experts wanting to fork Aave and offer profit sharing. This way the protocol can grow in various sectors the DAO is currently not active/aware of.

One question regarding RealT, how long will they share the profit? Spark protocol offered rewards for 1 (maybe 2?) year(s).
Should there be some kind of framework from the AaveDAO being established for those kind of partnerships? Because we still have to keep in mind who developed this protocol. But still i am grateful that profit sharing is being offered. There are enough examples where this did not happen. Looking at you Geist.

1 Like
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Hello @EzR3aL,

There’s no end date, so the answer is as long as V3 is used.
A more pragmatic answer is likely “until RealT request to deploy of Whitelabel Aave V4” :stuck_out_tongue_winking_eye:

On this, the ACI position is that every situation is unique, that being said, the ACI is support legitimate projects that want to leverage Aave codebase.

4 Likes
4

I will support this proposal.
Profit-sharing seems to be the fairest agreement.

I anticipate the potential deployment of other stablecoin than xDAI on this RMM during the coming months. These stablecoins may not have existant bridge between Gnosis and Ethereum.
So, I propose that all profil sharing fees will be deliver to Aave collector using DAI.

5

What is the currently Profit-sharing between AAVE and RealT (with Aave v2) ?

6

Hello and sorry for the delay in answer, I’m not aware of any profit-share in current V2 implementation.