[TEMP CHECK] Add EURC to Avalanche Aave V3

[0xkeyrock.eth]

Title: [TEMP CHECK] Add EURC to Avalanche Aave V3

Author: @0xkeyrock.eth

Date: 2023-11-22

Summary:

This TEMP CHECK proposes to add EURC on Avalanche V3. EURC is Circle’s EUR backed stablecoin.

Motivation:

Circle is an established stablecoin issuer mainly known for USDC. EURC is their EUR based stablecoin and we believe it will be a great addition as it enables stablecoin diversity. EURC has also shown significant adoption and usage on Avalanche network with over $2M of liquidity on TraderJoe pool.
By onboarding EURC, we believe that the DeFi synergies created for users depositing or borrowing EURC on Aave will be a net positive for Aave and the Avalanche ecosystem.

Specification:

Project: https://www.circle.com/en/
Documentation: https://www.circle.com/en/eurc
Avalanche Contract: 0xC891EB4cbdEFf6e073e859e987815Ed1505c2ACD
Chainlink oracle: EACAggregatorProxy | Address 0x3368310bC4AeE5D96486A73bae8E6b49FcDE62D3 | SnowTrace

Risk Parameters

Risk parameters can be defined by @ChaosLabs and @Gauntlet at the ARFC stage after TEMP CHECK reaches consensus.

Disclaimer:

Keyrock is not presenting this Temp Check on behalf of any third party and is not compensated for creating this Temp Check. Keyrock holds EURC inventory as part of our liquidity provisioning operations.

Next Steps:

1. Gather community feedback on this TEMP CHECK.
2. If consensus is reached, escalate this proposal to TEMP CHECK snapshot stage.
3. If TEMP CHECK snapshot outcome is YAE, escalate to ARFC stage.
4. If consensus on ARFC stage is reached and risk service providers provide feedback on risk parameters, escalate to ARFC snapshot stage.
5. If ARFC snapshot stage outcome is YAE, escalate to AIP stage using the Skyward program from the ACI (@MarcZeller).

Copyright

Copyright and related rights waived via CC0.

[EzR3aL]

Supportive

@0xkeyrock.eth are you also considering onboarding EURC to Ethereum mainnet?
Im still in the camp that main liquidity will be on mainnet. CCIP may change this flow but currently it is like that.

Thanks

[0xkeyrock.eth]

Right now, there are no Chainlink price feeds for EURC-USD on Ethereum Mainnet and for assets to be listed that is a requirement.

Once this is created, yes of course!

[MarcZeller]

Hello and thanks for creating this proposal.

While we guarantee Skyward services support, as a delegate the ACI will cast a NAY vote:

1. Zero sign of traction for EURC on mainnet & worse on AVAX
2. Very thin liquidity makes it business-wie unattractive for Aave in terms of risk reward
3. Zero Liquidity commitment from Circle
4. there’s enough precedence of Circle not communicating with dapps in the past, are we sure this asset won’t become a “EURC.e” and they will create a new asset overnight with zero coordination and go to market plan? Assets are not so easy to offboard on Aave and the ACI is not supportive of replicating the USDC.e Madness.

in short: little to no business expected return for potential risk & likely headache in a few months = not worth the trouble.