Technical maintenance proposals

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Reserves’ configuration maintenance


Simple Summary

This proposal aims to fix inconsistent/suboptimal configurations of different reserves across various pools.


Motivation

eModes

When Aave v3.2 went live, the existing eModes were just migrated to liquid eModes. What this means is that if an asset was flagged as e.g. eMode 1 on v3.2 it was enabled as borrowable and as collateral on eMode 1. This was done to not disrupt existing positions and also to isolate the upgrade from any configuration changes.

As some time has passed now, it is a good idea to disable unintended eMode configurations, namely, we propose to:

  • Deprecate stablecoin eModes by disabling all borrowable assets
  • Deprecated LSTs from being borrowable in the “correlated” eModes category

This will not have any effects on existing positions, but will prevent increased borrows of the disabled assets within the eMode.


Borrowable

Some assets that were originally listed as borrowable have later been “disabled” by setting their borrowCap to 1 via risk stewards.
While this workaround suits the needs, the “correct” thing to do is to disable borrowing, and later on, decide case by case if re-enabling them. Therefore, this proposal disables borrowing for:

  • FRAX, SNX, LBTC, and rsETH on Mainnet
  • sUSD on Optimism
  • MaticX on Polygon
  • FRAX on Arbitrum
  • FRAX on Avalanche

v2 Rates

In AIP 261, the rates for v2 assets were aligned to standardize interest rates.
This resulted in some unintended increase in interest rate on renFil, which has close to zero secondary market liquidity and thus makes it almost impossible for borrowers to repay their debt.
Therefore, we recommend reverting to the previous ZeroInterestRateStrategy to cut growth.


Specification

The proposal uses the Aave config engine to implement the described changes.

Description Borrowable before Borrowable after
Arbitrum: Stablecoins DAI, USDC, USD₮0, EURS, USDC
Arbitrum: ETH correlated WETH, wstETH, weETH WETH
Avalanche: Stablecoins DAI.e, USDC, USDt, FRAX, MAI
Avalanche: AVAX correlated WAVAX, sAVAX WAVAX
Base: ETH correlated WETH, cbETH, wstETH, weETH WETH
Ethereum: ETH correlated WETH, wstETH, cbETH, rETH, weETH, osETH, ETHx WETH
Gnosis: ETH correlated WETH, wstETH WETH
Optimism:Stablecoins DAI, USDC, USDT, sUSD, USDC
Optimism: ETH correlated WETH, wstETH, rETH WETH
Polygon: Matic correlated WPOL, stMATIC, MaticX WPOL
Polygon: ETH correlated WETH, wstETH WETH
Scroll: ETH correlated WETH, wstETH, weETH WETH
ZkSync: ETH correlated WETH, wstETH WETH

In addition, it calls to revert the interest rate on Aave V2 Ethereum:

AaveV2Ethereum.POOL_CONFIGURATOR.setReserveInterestRateStrategyAddress(
      AaveV2EthereumAssets.renFIL_UNDERLYING,
      0x311C866D55456e465e314A3E9830276B438A73f0
);
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