Title: [TEMP CHECK] CRVUSD Onboarding on Aave V3 Ethereum Pool
Author: @marczeller - Aave-chan Initiative
Date: 09-10-2023
Summary
This TEMP CHECK proposes the onboarding of the CRVUSD stablecoin, minted by the Curve Protocol, into the Aave V3 Ethereum pool.
Motivation
CrvUSD is a USD-peg stablecoin minted by the Curve Protocol. While it’s relatively young, it has grown to a circulating supply of over $130M with strong peg resilience. Onboarding this asset into Aave will:
- Reinforce synergies between Aave and Curve.
- Offer Aave users an additional decentralized stablecoin option matching the ACI diversity support ethos.
- Strengthen the relationship between the CRVUSD & the GHO stablecoins.
As the primary usecase for stablecoins is to be deposited by users looking for a passive yield and used as a borrowable asset and not as much as a collateral asset, the ACI proposes a CRVUSD onboarding outside isolation mode but without collateral properties.
Following CrvUSD maturity, the Aave governance can propose a collateral activation for crvUSD at a later stage.
Specification
Ticker: CRVusd
Contract address: 0xf939E0A03FB07F59A73314E73794Be0E57ac1b4E
Price Feed: 0xEEf0C605546958c1f899b6fB336C20671f9cD49F
We propose the following parameters for a crvUSD onboarding:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Borrowable in isolation | Yes |
| Stable Borrowing | No |
| Collateral Enabled | No |
| Supply Cap (CRVUSD) | 60,000,000 |
| Borrow Cap (CRVUSD) | 50,000,000 |
| Debt Ceiling | N/A |
| LTV | N/A |
| LT | N/A |
| LB | N/A |
| LPF | 10% |
| Base rate | 0% |
| Slope 1 | 5% |
| Slope 2 | 80% |
| Optimal ratio | 80% |
Next Steps
- Gather community feedback on this TEMP CHECK.
- If consensus is reached, escalate this proposal to TEMP CHECK snapshot stage.
- If TEMP CHECK snapshot outcome is YAE, escalate to ARFC stage.
- If consensus on ARFC stage is reached and risk service providers provided feedback on risk parameters, escalate to ARFC snapshot stage.
- If ARFC snapshot stage outcome is YAE, escalate to AIP stage.
Disclaimer
The Aave-chan Initiative is not presenting this TEMP CHECK on behalf of any third party and is not compensated by Curve for creating this proposal.
Copyright
Copyright and related rights waived via CC0.