This TEMP CHECK proposes the deployment of an Aave V3 Instance on Plasma.
Motivation
Plasma is a high-performance, scalable, and secure blockchain purpose-built for stablecoins. Built from the ground up, it delivers zero fees, lightning-fast transactions, and the robust security that stablecoins like USD₮ require.
The network offers a performant location to the deploy the Aave protocol, and the Plasma team are planning to support Aave’s launch on the network.
Specification
Risk Parameters will be provided by Risk Service Providers during the ARFC stage and ARFC will be updated accordingly.
POL and Incentives
Upon confirmation of the Aave deployment on Plasma, the Plasma Foundation will:
Supply 10M USDT
Ensure that in any future incentive campaign, Aave is the only lending protocol receiving incentive distributions.
Integrate and boost adoption of the GHO stablecoin within its ecosystem, targeting real-world and institutional use cases.
Collaborate with liquidity providers, institutional capital allocators, and partners to expand supply in Aave v3 for BTC and USDT.
Offer Aave DAO or ACI an opportunity to serve as an early validator, thereby securing the Plasma Bitcoin bridge and participating in consensus.
Have Aave DAO redistribute any airdrops or incentive distributions from the Plasma ecosystem to protocol users through liquidity mining.
Entrust ACI, on behalf of Aave DAO, to manage any liquidity mining campaign on a Plasma Aave V3 deployment.
This looks like it’s missing some key metrics data for me such as:
What is Plasmas current TVL and growth rate?
What’s Plasma’s current user base, and how will its stablecoin focus drive demand for Aave?
What’s Plasma’s growth roadmap, and how will it sustain TVL and align with Aave DAO’s interests?
What are the concrete steps and adoption targets for boosting GHO use in real-world and institutional contexts using Plasma?
What are the costs, rewards, and risks for Aave DAO as a validator securing the Plasma Bitcoin bridge? **I’m very wary of anything involving bridges given the inherent risk involved & would like to see Aave risk advisors analysis for this
Think I’d need to know more about those facets of Plasma before taking a view @rongplace
As @MrKris has said, there needs to be a lot more information provided here, including liquidity commitments. While the commitments made by the Plasma Foundation (e.g., Aave is the only lending protocol receiving incentive distributions, primacy of GHO, etc.) are commendable, we’d like more information before we vote in favour. However, we’re not opposed to the proposal itself so we will vote to abstain in the TEMP CHECK for now.