Gauntlet recs for Aave v3 BASE
BASE is currently in Goerli testnet. Testnet liqudity, users, and TVL may not necessarily transfer over to mainnet, which means any params we recommend right now are based on assumed TVL and liquidity and MUST be revisted once mainnet is launched and liquidity flows in.
| Risk Parameter | WETH | wstETH | USDC | cbETH |
|---|---|---|---|---|
| Isolation Mode | NO | NO | NO | NO |
| Enable Borrow | YES | YES | YES | YES |
| Enable Collateral | YES | YES | YES | YES |
| Emode Category | eth-correlated | eth-correlated | N/A | eth-correlated |
| Loan To Value | 80% | 80% | 82.5% | 75% |
| Liquidation Threshold | 82.5% | 82.5% | 85% | 77.5% |
| Liquidation Bonus | 5% | 5% | 5% | 7% |
| Reserve Factor | 15% | 15% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% | 10% |
| Debt Ceiling | N/A | N/A | N/A | N/A |
| uOptimal | 80% | 45% | 90% | 45% |
| Base | 0% | 0% | 0% | 0% |
| Slope1 | 4.8% | 4.8% | 4% | 7% |
| Slope2 | 80% | 80% | 60% | 300% |
Emode
Under the current framework for LST oracle pricing, we recommend Ethereum-correlated emode be enabled for WETH, wstETH, and cbETH upon launch, with LT 93%, LT 90%, LB 2%. This emode can support more aggressive parameters should the synchronized price adapter and other killswitch functionality be implemented.
Supply/Borrow Caps
We give supply/borrow cap recommendations based on assumed BASE TVL upon Aave deployment. It’s hard to predict the proportion of asset market cap proportions to total BASE TVL, so the numbers below are just an approximation. That being said, unlike mainnet Ethereum, we imagine cbETH to have higher circulating supply than wstETH on BASE, due to the Coinbase relationship. Again, these numbers are dependent on BASE TVL upon launch and may change.
$100mm TVL
| Risk Parameter | WETH | wstETH | USDC | cbETH |
|---|---|---|---|---|
| Supply Cap | 11000 (~$20m) | 5000 (~$10m) | 40m ($40m) | 7500 (~$15m) |
| Borrow cap | 11000 | 200 | 40m | 300 |
For larger TVL, multiply cap numbers by TVL / $100m.