Proposal overview
Increase Stablecoin Optimal Borrow Rates
Simple Summary
This AIP propose to modify the parameters of stablecoins across all the Aave pools. Mainly by setting the slope1 to 5%, as well as changing the RF to 25% and Uopt to 90% of some of them.
Motivation
According to research by @monet-supply, the borrowing parameters of the stablecoins on Aave have diverged from the broader market leading to potentials inefficiencies and bad user experience.
Those proposed changes have been approved by both risk providers, with additional suggestion by @Gauntlet.
Stablecoin across all the V2 and V3 markets are concerned by those change. Namely USDC, USDT, LUSD, FRAX, sUSD, DAI, MAI, GUSD, USDP on ethereum (V2 and V3), polygon (V2 and V2), Arbitrum, Gnosis, Optimism, Avalanche (v2 and V3) and Metis. However the changes of RF and Uopt would be more limited, with the Uopt changes being limited to USDC, USDT, DAI and FRAX across all V3s and the RF ones to USDC, USDT and LUSD only for Ethereum V2.
Specification
The following stablecoins would see changes to their parameters: (Blank means no changes)
| Market | Asset | slope1 | Uopt | RF |
|---|---|---|---|---|
| Ethv2 | USDC | 5% | 25% | |
| Ethv2 | USDT | 5% | 25% | |
| Ethv2 | FRAX | 5% | ||
| Ethv2 | sUSD | 5% | ||
| Ethv2 | GUSD | 5% | ||
| Ethv2 | LUSD | 5% | 25% | |
| Ethv2 | USDP | 5% | ||
| --- | --- | --- | --- | --- |
| Ethv3 | USDC | 5% | 90% | |
| Ethv3 | USDT | 5% | 90% | |
| Ethv3 | FRAX | 5% | 90% | |
| Ethv3 | LUSD | 5% | ||
| --- | --- | --- | --- | --- |
| AvaxV2 | USDC | 5% | ||
| AvaxV2 | USDT | 5% | ||
| AvaxV2 | DAI | 5% | ||
| --- | --- | --- | --- | --- |
| AvaxV3 | USDC | 5% | 90% | |
| AvaxV3 | USDT | 5% | 90% | |
| AvaxV3 | DAI | 5% | 90% | |
| AvaxV3 | MAI | 5% | ||
| AvaxV3 | FRAX | 5% | 90% | |
| --- | --- | --- | --- | --- |
| PolV2 | USDC | 5% | ||
| PolV2 | USDT | 5% | ||
| PolV2 | DAI | 5% | ||
| --- | --- | --- | --- | --- |
| PolV3 | USDC | 5% | 90% | |
| PolV3 | USDT | 5% | 90% | |
| PolV3 | DAI | 5% | 90% | |
| PolV3 | MAI | 5% | ||
| --- | --- | --- | --- | --- |
| OpV3 | USDC | 5% | 90% | |
| OpV3 | USDT | 5% | 90% | |
| OpV3 | DAI | 5% | 90% | |
| OpV3 | sUSD | 5% | ||
| OpV3 | LUSD | 5% | ||
| OpV3 | MAI | 5% | ||
| --- | --- | --- | --- | --- |
| ArbV3 | USDC | 5% | 90% | |
| ArbV3 | USDC.e | 5% | ||
| ArbV3 | USDT | 5% | 90% | |
| ArbV3 | DAI | 5% | 90% | |
| ArbV3 | LUSD | 5% | ||
| ArbV3 | FRAX | 5% | 90% | |
| ArbV3 | MAI | 5% | ||
| --- | --- | --- | --- | --- |
| BaseV3 | USDC | 5% | 90% | |
| --- | --- | --- | --- | --- |
| MetisV3 | USDC | 5% | 90% | |
| MetisV3 | USDT | 5% | 90% | |
| --- | --- | --- | --- | --- |
References
- Implementation: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base
- Tests: AaveV2Ethereum, AaveV2Polygon, AaveV2Avalanche, AaveV3Ethereum, AaveV3Polygon, AaveV3Avalanche, AaveV3Optimism, AaveV3Arbitrum, AaveV3Metis, AaveV3Base
- Snapshot: Slope1, Uopt & RF
- Discussion
Copyright
Copyright and related rights waived via CC0.
Your voting info
Voting results
YAE
498,993
AAVE100.00%
NAY
0
AAVE0%
Top 10 addresses
Votes
YAE
116.0K
YAE
61,304
YAE
59,999
YAE
43,669
YAE
42,387
YAE
38,747
YAE
38,106
YAE
27,312
YAE
26,665
YAE
21,095
Executed on
Nov 25, 2023Required
498.99K
320.00K
Required
498.99K
80,000.00
16,000,000
Proposal details
Block
20 Nov 2023, 18:07 UTC +00:00
18614679
Block
21 Nov 2023, 18:19 UTC +00:00
18621879
Block
24 Nov 2023, 10:19 UTC +00:00
18641079
25 Nov 2023, 10:50 UTC +00:00
monet-supply + Gauntlet (impl: Alice Rozengarden (@Rozengarden - Aave-chan initiative))