Simple summary
Proposal for activating more Chainlink SVR feeds on Aave Ethereum, given the successful activation of the first batch after the Phase 1 proposal, as discussed in the previous governance post.
Motivation
In proposal 274, a first set of SVR feeds was enabled, targeting initially low-size BTC-correlated assets to plug into production the BTC/USD SVR feed, and more volatile assets like AAVE and LINK.
Over the recent weeks, the oracles have been monitored, and as expected, the system has been working flawlessly, with no relevant deviations from the previous non-SVR feeds, updates arriving perfectly in time, and liquidations being correctly processed.
Therefore, to progress to the goal of having all assets on Ethereum covered by SVR feeds, this Phase 2 activation proposes expansion in 2 additional directions: all other BTC-correlated assets on Aave v3 Ethereum Core, and all ETH-correlated assets on v3 Prime, this last before expanding to all ETH-correlated assets on v3 Core.
This proposal is done via Direct-to-AIP, as no fundamental aspect of Aave <> SVR changes, only implies a pre-approved expansion to new assets.
Specification
In terms of high-level specification, this new Phase follows the same architecture as what was described in the initial SVR Phase 1 post.
Regarding the assets proposed, the full list and rationale are the following.
Aave v3 Ethereum Core
- WBTC. Currently, WBTC uses a composed feed of WBTC/BTC (Chainlink) + BTC/USD (Chainlink) on Core. On this SVR activation phase, the underlying BTC/USD feed will be swapped to SVR, more precisely to exactly the same feed already used in production for lBTC and tBTC in Phase 1.
- cbBTC. Currently, using BTC/USD (Chainlink). Similar to WBTC, the BTC/USD non-SVR feed will be replaced by the BTC/USD SVR already used in production for lBTC and tBTC.
- eBTC. Currently using a CAPO feed, composing eBTC/BTC exchange rate from EtherFi + BTC/USD (Chainlink). Similarly to WBTC and cbBTC, the BTC/USD feed will be replaced with the SVR version already used in production for other assets.
The rationale of this sub-set of new assets is:
- Cover all BTC-correlated currently listed, given that the BTC/USD feed has been in production for already 1 month without any problem.
- Not include any ETH-correlated assets yet, until the ETH/USD is plugged first into a smaller pool like v3 Ethereum Prime.
Aave v3 Ethereum Prime
- WETH. Currently using the ETH/USD (Chainlink) feed, to be replaced by the ETH/USD SVR version.
- wstETH. Currently using a CAPO feed, composing wstETH/stETH exchange rate + ETH/USD (Chainlink). In this SVR activation phase, the ETH/USD underlying feed will be replaced by the ETH/USD SVR version.
- ezETH. Currently using a CAPO feed, composing ezETH/ETH exchange rate + ETH/USD (Chainlink). Similar to wstETH, in this SVR activation phase, the ETH/USD underlying feed will be replaced by the ETH/USD SVR version.
- rsETH. Currently using a CAPO feed, composing the rsETH/ETH exchange rate + ETH/USD (Chainlink). Similar to wstETH, in this SVR activation phase, the ETH/USD underlying feed will be replaced by the ETH/USD SVR version.
The rationale of this sub-set of new assets is:
- Before enabling ETH on all assets of both Core and Prime, we think it makes sense to enable it in a subset of them.
- Same time, it is always cleaner to enable all correlated assets using partially the same underlying feed, as synchronisation becomes fully perfect. Prime allows do that, without forcing the activation to be partial on Core.
Same as on Phase 1, the SVROracleSteward contract active for Core will receive support for the new assets, and a separate instance will be deployed for Prime, in order to have redundant protection and be able to swap to non-SVR if any very edge scenario arises.
Next steps
After some days in this forum and while we finish our internal security review procedures, we will proceed with the creation of an on-chain AIP of Aave <> Chainlink SVR Phase 2.