[TEMP CHECK] Onboard CDCETH to Aave V3 on Ethereum
Author: Jlok & ACI
Date: 2024-07-15
Summary
This proposal is to explore community interest in adding Crypto.com Staked ETH
(CDCETH) to Aave V3 on the Ethereum mainnet. CDCETH is an ERC-20 token issued on both Ethereum and the Cronos Chain that represents the underlying staked ETH on the Crypto.com platform.
Motivation
Crypto.com was founded in 2016 with the vision of making cryptocurrency in every
wallet. As of June 2024, Crypto.com has more than 100 million users worldwide and is the industry leader in regulatory compliance, security, and privacy.
Crypto.com launched its on-chain staking product on its Main App and Exchange
platform, with Ethereum as one of the most staked assets on the platform.
To enhance the liquidity and capital efficiency of staked ETH, Crypto.com introduced a Liquid
Staking Token (LST) - Crypto.com Staked ETH (CDCETH) in November 2023 and reached $100M+ TVL (Defillama page here).
Currently, CDCETH’s on-chain liquidity on Ethereum is concentrated in the CDCETH/ETH pair on Curve (here) and Uniswap (here), with plans to launch a pool on Balancer next and incentivize to grow liquidity across these venues.
Other liquidity venues can be found on the DeFi protocols on the Cronos chain and the order book on the Crypto.com Exchange platform, with support from multiple market makers.
The liquidity on the Cronos side can be bridged to Ethereum through the Crypto.com platform.
Integrating CDCETH as a collateral asset on Aave V3 serves a meaningful demand
from CDCETH users on the Crypto.com platform to utilize the LST as collateral to
borrow on Aave. The platform aims to drive wide adoption of CDCETH on Aave V3 as
collateral for borrowing by various promotional activities and integration with its product lines, such as social media posts when CDCETH is successfully onboarded,
Confidential banners/listings on the Crypto.com non-custodial wallet and banners within the Main
App platform to direct CDCETH holders to use Aave via the non-custodial wallet.
Onboarding CDCETH on Aave will create an entry point for a large number of CDCETH users
and Crypto.com users to make good use of the asset on Aave and also greatly improve
CDCETH’s utility as a LST, resulting in a positive feedback loop for CDCETH & Aave adoption
& increased revenues for both parties.
Proof of Liquidity (POL) and Deposit Commitments
Crypto.com is committed to providing initial supply-side liquidity of up to $5M CDCETH and liquidity mining programs of $100K in CDCETH over 3 months as a start.
Integration of CDCETH pool on Aave V3 with Crypto.com’s non-custodial wallet and Main App will be added to the pipeline once the pool is live, providing the gateway to over 100M global users on the platform.
Specification
Contract address: 0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e
Rate Provider contract for current exchange rate:
0xfe18aE03741a5b84e39C295Ac9C856eD7991C38e (12. exchangeRate)
Risk Parameters will be provided at ARFC stage by Risk Service Providers.
Audits & Relevant links
Audit: https://crypto.com/document/blocksec_securityaudit2024
Issuer: Crypto.com
Whitepaper: CDCETH
DeFillama: https://defillama.com/protocol/crypto.com-staked-eth
Coingecko: https://www.coingecko.com/en/coins/crypto-com-staked-eth
Crypto.com Staking page: Crypto Staking — Crypto.com | Earn up to 16.64% per year by staking with us
Crypto.com Liquid Staking Q&A page: Liquid Staking | Crypto.com Help Center
Community:
Twitter/X: x.com
Telegram: Crypto.com
News on Telegram: Crypto.com
Discord: Crypto.com
Disclaimer
The ACI is not directly affiliated with Crypto.com and did not receive compensation for the creation of this proposal. The co-author is a team member of Crypto.com.
Next Steps
- If consensus is reached on this [TEMP CHECK], escalate this proposal to the
Snapshot stage. - If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage
- If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright
Copyright and related rights waived under CC0