[TEMP CHECK] Onboard SCR to Aave V3 Scroll Instance
Author: ACI
Date: 2024-10-23
Simple Summary:
The current TEMP CHECK aims to onboard SCR, the native token of Scroll, on the Aave V3 Scroll Instance. This onboarding will allow Aave users to supply and borrow SCR, thereby enhancing the utility and liquidity of the Scroll token within the DeFi ecosystem and more specifically, within the Aave ecosystem.
Motivation/Background:
Scroll is an Ethereum Layer 2 chain which already has an Aave instance deployment and SCR is the governance token for the Scroll L2. By onboarding SCR to Aave V3, we aim to create new opportunities for Aave users to engage with this emerging staking ecosystem, while expanding SCR’s liquidity.
Benefits of listing this token:
Provide opportunities for Aave users to borrow against their SCR to unlock liquidity, or alternatively to borrow SCR against other collateral allowing them to participate in Scroll governance.
Market Impact:
We see no significant market impact from onboarding SCR except for providing new opportunities to Aave users which may cause users to switch from borrowing other tokens against their collateral. Overall we see onboarding SCR as net good for Aave users as it expands opportunities for them to engage in a new L2 ecosystem.
Chain to be deployed/listed:
Scroll.
Proof of Liquidity (POL) and Deposit Commitments:
POL and Deposit Commitments will be discussed at the ARFC stage. SCR will be included in future incentives programs.
It is notable that this proposal has received YAE votes from delegates like @ACI and @EzR3aL, who previously voted ABSTAIN on the EIGEN asset onboarding snapshot. Given the similarities between EIGEN and SCR—especially when it comes to volatility and history (SCR had its TGE just recently on 2024-10-22)—it seems only reasonable to ask for an explanation of this inconsistency.
One could easily look up the stats on market cap, FDV, and DEX liquidity and see that EIGEN compares favorably to SCR across these metrics. This raises a crucial question: are delegates applying a consistent, objective standard when evaluating these listings, or are there other considerations that the broader community is unaware of? Limited demand for an asset to be used as collateral is not a compelling argument given that Aave listings drive demand (we see this with deployments to new chains that often do not otherwise have sizeable TVL).
I raise this not because I have a preference for EIGEN or SCR on Aave, but because of the precedent this sets for governance. If we are being objective, either both assets should be listed or neither. As @stani highlighted in his justification for abstaining, the goal for Aave long-term should be permissionless asset listings. However, what we are witnessing now suggests a selective process that favors certain actors over others in ways that are not clearly disclosed to the community.
If there are non-transparent considerations influencing voting behavior, these should be disclosed to the public to uphold the integrity of governance. The community deserves full transparency from those representing its interests.
Are we striving for objectivity and fairness in asset onboarding, or are certain actors receiving preferential treatment based on undisclosed incentives? If Aave stakeholders knowingly choose this path, that is their prerogative. But in that case, transparency is essential so the DAO can make informed decisions.
Just take a look at my comment in the snapshot vote. There is a public comment, anybody can read it.
And I’m neither holding SCR or EIGEN.
It’s just like you said, it makes sense to have more token listed but only in isolated mode imo.
SCR is simply a good addition to the Scroll market. It simply makes sense to add the token. Same like having Arbitrum, or Optimism or Avax.
SCR is the native asset of the Scroll network, the Aave DAO received a 500k SCR token airdrop and Scroll ecosystem & team has shown strong alignment with Aave.
The Eigen ecosystem ignored the Aave protocol & DAO until they wanted to get onboarded in Aave, they shown only weak commitment for synergies.
If I had to re-vote today, I would vote exactly the same.
We vote for what’s best for the Aave Users & the Aave DAO.
