Summary
This ARFC proposes to onboard USDe as a supported asset on the Aave V3 X Layer Instance.
Motivation
USDe is Ethena’s synthetic dollar, designed to maintain a value referenced to the US dollar through a combination of protocol held backing assets and offsetting derivatives positions.
USDe has developed significant adoption across DeFi and is currently supported across several Aave markets as both a supplied and borrowed asset.
USDe is deployed on X Layer using Ethena’s LayerZero OFT infrastructure, enabling USDe to move across supported networks through Ethena’s canonical cross-chain deployment.
Onboarding USDe to Aave V3 X Layer would:
- Expand the range of stablecoin assets available to Aave users on X Layer.
- Provide an additional asset for lending and borrowing alongside USDT0, USDG, USDC and GHO.
- Enable USDe to be used as collateral within the general Aave V3 X Layer market.
- Increase the available stablecoin borrowing liquidity for the existing xBTC, xETH, xSOL, and WOKB E-Mode categories.
- Expand the range of cross-margin and stablecoin strategies available to users on X Layer.
Enabling USDe as collateral in the general market allows users to access USDe backed borrowing strategies without requiring a dedicated E-Mode configuration.
Specification
USDe Contract Address
| Asset | Address |
|---|---|
| USDe | 0x5d3a1Ff2b6BAb83b63cd9AD0787074081a52ef34 |
The address above represents Ethena’s USDe deployment on X Layer.
Proposed Market Configuration
We propose initially configuring USDe with the following parameters, subject to final recommendations from Aave Risk Service Providers.
| Parameter | Value |
|---|---|
| Asset | USDe |
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap | 100,000,000 |
| Borrow Cap | 50,000,000 |
| Debt Ceiling | - |
| LTV | 70.00% |
| LT | 73.00% |
| Liquidation Bonus | 8.50% |
| Liquidation Protocol Fee | 10% |
| Variable Base | 6.30% |
| Variable Slope 1 | 0.25% |
| Variable Slope 2 | 40.00% |
| Uoptimal | 90.00% |
| Reserve Factor | 25% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
| eModes | 1, 2, 3, 4, 9 |
The proposed collateral parameters allow USDe to be used directly within the general market while applying a conservative buffer between the Loan-to-Value and Liquidation Threshold.
Final onboarding parameters remain subject to review and recommendations from Aave’s Risk Service Providers.
E-Mode Configuration
We propose adding USDe as a borrowable asset to the four existing stablecoin borrowing E-Mode categories on X Layer.
eMode #1
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | xBTC | USDT0 | USDe | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 78.00% | - | - | - | - | - |
| Liquidation Threshold | 81.00% | - | - | - | - | - |
| Liquidation Bonus | 6.00% | - | - | - | - | - |
eMode #2
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | xETH | USDT0 | USDe | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 78.00% | - | - | - | - | - |
| Liquidation Threshold | 80.00% | - | - | - | - | - |
| Liquidation Bonus | 6.00% | - | - | - | - | - |
eMode #3
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | xSOL | USDT0 | USDe | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 65.00% | - | - | - | - | - |
| Liquidation Threshold | 70.00% | - | - | - | - | - |
| Liquidation Bonus | 7.50% | - | - | - | - | - |
eMode #4
| Parameter | Value | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|---|
| Asset | wOKB | USDT0 | USDe | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes | Yes |
| Max LTV | 50.00% | - | - | - | - | - |
| Liquidation Threshold | 55.00% | - | - | - | - | - |
| Liquidation Bonus | 10.00% | - | - | - | - | - |
eMode #9
| Parameter | Value | Value | Value | Value | Value |
|---|---|---|---|---|---|
| Asset | USDe | USDT0 | USDG | USDC | GHO |
| Collateral | Yes | No | No | No | No |
| Borrowable | No | Yes | Yes | Yes | Yes |
| Max LTV | 90.00% | - | - | - | - |
| Liquidation Threshold | 93.00% | - | - | - | - |
| Liquidation Bonus | 2.00% | - | - | - | - |
These are the four existing X Layer E-Mode configurations. USDT0, USDG, USDC and GHO are currently configured as borrowable stablecoins within each category. This proposal would extend the same functionality to USDe.
Oracle
A Chainlink USDT/USD Price Feed is available on X Layer Mainnet.
Consistent with the oracle architecture used for USDe across Aave markets, we propose pricing USDe using the Chainlink USDT/USD reference feed together with a Stable Price Cap Adapter.
| ParameterValue | |
|---|---|
| Reference Feed | USDT / USD |
| Network | X Layer Mainnet |
| Chainlink Product | USDT/USD-RefPrice-DF-XLayer-001 |
| Pricing | USDT/USD + Stable Price Cap Adapter |
| Upper Price Deviation | 4% |
The Stable Price Cap Adapter would cap upward price deviation at 4%, consistent with the configuration used for USDe and other stablecoin assets across Aave markets.
The final oracle contract, adapter deployment, and configuration remain subject to confirmation by the relevant Aave Risk and Technical Service Providers.
Disclaimer
TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100086 and the KPI as outlined in this publication. The scope of this engagement is available via this forum proposal.
TokenLogic supports and maintains an independent delegate voting platform within the Aave community.
TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission.
Next Steps
- Gather feedback from the community.
- Using the Direct-to-AIP process, incorporate feedback from the Risk Service Provider.
- Escalate this proposal to the AIP Voting stage.
Copyright
Copyright and related rights waived via CC0.