[TEMP CHECK] Add bCSPX to Aave V3 Gnosis Instance

[TEMP CHECK] Add bCSPX to Aave V3 Gnosis Instance

Author: @Alexos

Date: 2025-02-03


Simple Summary

This proposal seeks to list bCSPX (Backed CSPX Core S&P 500) on Aave V3 Gnosis - Instance, marking Aave’s first RWA token integration on Gnosis Chain. bCSPX represents 1:1 tokenized exposure to the S&P 500 index through a regulated ETF structure.

Motivation

  • Gnosis Chain Growth: Gnosis Chain currently holds $290M TVL (+18% QoQ) with $5M+ daily DEX volumes (DeFiLlama)
  • RWA Leadership: Position Aave as first-mover in RWA lending on Gnosis, following successful integrations like Reental RWA on Polygon and friendly forks like RealT on Gnosis.
  • Market Expansion: Enable exposure to traditional equities through DeFi primitives - a $15.6T addressable market (Galaxy Research)

Benefits for Aave
1. First RWA on Gnosis: Establish early dominance in RWA lending
2. New Market Access: Enable crypto-native exposure to S&P 500 returns (13.8% 10Y CAGR) via regulated token (CoinGecko)
3. TVL Growth Leverage: Tap into $2.5M existing bCSPX/sDAI liquidity pool with GNO incentives (Balancer)
4. Chain Synergy: Align with Gnosis’ 32% TVL growth in 2024 through strategic RWA integrations (DeFiLlama)

Key Statistics

Metric Value Source
Gnosis TVL $290M DeFiLlama
bCSPX Liquidity $3.0M Balancer
S&P 500 AUM $7.8T ICI
RWA Lending Growth 214% YoY Galaxy

Specification
• Gnosis Contract Address: 0x1e2c4fb7ede391d116e6b41cd0608260e8801d59
Risk Parameters:

Risk Parameters will be updated at ARFC once Risk Service Providers provide their analysis at ARFC stage.

Useful Links

bCSPX Documentation
Gnosis Chain Growth Metrics
RWA Market Analysis

Disclaimer

The current proposal has been edited by ACI, under Skywards. ACI has not received payment from original author and has not been compensated for future actions regarding this proposal.

Next Step

  1. Publish a TEMP CHECK, and escalate proposal to TEMP CHECK Snapshot.
  2. If Snapshot is positive, escalate to standard ARFC, collect community & service provider feedback before escalating proposal to Snapshot.
  3. Publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived under CC0.

6 Likes

Hello, please follow the proposal framework standard or simply contact us before posting, and we will post on your behalf.

Regarding the proposal, the Aave DAO has refrained from onboarding securities in the past due to a clearly hostile regulatory environment. We have to admit that the world has changed, so perhaps it’s worth exploring and experimenting with this vertical.

The only use case for bCSPX is to be used as collateral, combining an off-chain exposure with an on-chain one. To be honest, I would close my off-chain ETF position and migrate to this if it were available, as the ability to use it as collateral to borrow EURe is attractive to me.

Yet, it’s a new type of collateral with emerging liquidity, and the business potential for the Aave DAO in this onboarding is not significant. Preferably, I would like to see this segregated with a GHO facilitator to increase protocol rewards relative to the risks of the onboarding.

7 Likes

Thanks for the feedback. For future reference may I get some pointers to get what was missing ? I did my best, based on [TEMP CHECK] Add EURC to BASE Aave V3.
Seems the standard for ARFC is quite high, making it quite hard for the average user to post, which is also why I mentionned Skyward.
My use case in mind is similar to yours. Maybe worth contacting the Gnosis DAO, to put in place an incentives program (similar to Balancer) which could in part remunerate the AAVE DAO as well ?

3 Likes

Hey @Alexos - David from Backed here. We fully support your proposal, and if you’d like any further info for this proposal and how we can help, please do get in touch via PM. Creating a proposal for an Aave integration was on our roadmap, but it’s even better to see this demand move so quickly from the community.

The landscape is changing rapidly, and we believe that it will be incredibly powerful to have bCSPX as a collateral asset on Aave.

As you and @MarcZeller mentioned, there is a clear use case for this, and we see many users interested in moving their off-chain exposure on-chain for use within DeFi.

3 Likes

Thanks @David-Backed , let’s see how the community reacts. Could you maybe give an overview of the adoption you have seen from your end so far ? I think it would be valuable.