Summary
LlamaRisk supports the onboarding of USDC to the X Layer instance as a borrowable and collateral-enabled asset. Given the recent deployment on X Layer, liquidity is nascent and is expected to improve as supply flows to the chain. USDC is natively minted and bridged via CCTP, EOA/MPC owned access control privileges are consistent with Circle’s standard implementation.
We recommend onboarding USDC once sufficient liquidity has been bootstrapped to support the initial parameters. The team indicated they would be supporting liquidity bootstrapping to similar levels as USDT0 (~$11M).
USDC Risk Evaluation: Link
Aave V3 Specific Parameters
| Parameter | USDC |
|---|---|
| Borrowable | Yes |
| Collateral enabled | Yes |
| Supply Cap | 50,000,000 |
| Borrow Cap | 48,000,000 |
| LTV | 75% |
| LT | 78% |
| Liquidation Bonus | 7.50% |
| Liquidation Protocol Fee | 10% |
| Variable Base | 0% |
| Variable Slope1 | 4% |
| Variable Slope2 | 40% |
| Uoptimal | 90% |
| Reserve Factor | 10% |
| Flashloanable | Yes |
| E-Modes | 1,2,3,4 |
E-Mode #1: xBTC Stables
| Parameter | Value |
|---|---|
| Isolated | False |
| LTV | 78% |
| Liquidation Threshold | 81% |
| Liquidation Bonus | 6% |
| Asset | xBTC | USDT0 | USDC | USDG | GHO |
|---|---|---|---|---|---|
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
E-Mode #2: xETH Stables
| Parameter | Value |
|---|---|
| Isolated | False |
| LTV | 78% |
| Liquidation Threshold | 80% |
| Liquidation Bonus | 6% |
| Asset | xETH | USDT0 | USDC | USDG | GHO |
|---|---|---|---|---|---|
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
E-Mode #3: xSOL Stables
| Parameter | Value |
|---|---|
| Isolated | False |
| LTV | 65% |
| Liquidation Threshold | 70% |
| Liquidation Bonus | 7.50% |
| Asset | xSOL | USDT0 | USDC | USDG | GHO |
|---|---|---|---|---|---|
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
E-Mode #4: WOKB Stables
| Parameter | Value |
|---|---|
| Isolated | False |
| LTV | 50% |
| Liquidation Threshold | 55% |
| Liquidation Bonus | 10% |
| Asset | WOKB | USDT0 | USDC | USDG | GHO |
|---|---|---|---|---|---|
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
Price Feed Recommendation
We recommend using the USDC/USD Chainlink price feed with the CAPO stable adapter.
CAPO Configuration
The stable cap adapter is recommended to bound the upward price deviation at 4% ($1.04). This is in line with other instances.
Disclaimer
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.