v3-55-aave-v3-multichain-stablecoin-harmonization.md

Proposal 55. Stablecoin Harmonization.

Voting link

https://vote.onaave.com/proposal/?proposalId=55

Governance forum discussion

https://governance.aave.com/t/arfc-stablecoin-harmonization-and-asset-parameters-optimization/16802

Payloads

• Ethereum - proposal payload

• Polygon - proposal payloads

• Avalanche - proposal payloads

• Optimism - proposal payloads

• Arbitrum - proposal payloads

• Metis - proposal payloads

• Gnosis - proposal payloads

Certora analysis

Proposal types

🔧 📊 configuration update

Context

This proposal aims to slowly off-board as collateral on Aave V3 certain tokens and stablecoins that didn't gain expected traction due to risk considerations. This is part of a strategy to focus collateral in the market on USDC and USDT. The off-boarding is done by slow increase of the reserve factor for these assets, slow lowering of the liquidation thresholds, and freezing some assets. The idea is to also create a correlation where possible between market configurations across different chains.

Proposal creation

Transaction: https://etherscan.io/tx/0x3ad148e874cb9ca26b9e60d028c3a76798f02754158337dee9f7ad853a072ca8

- proposalId: 55
- creator: 0x57ab7ee15ce5ecacb1ab84ee42d5a9d0d8112922
- accessLevel: 1
- ipfsHash: 0x58817985af9b5d3209b397088902ea3471b5afc3ebf5846b6dac029e75ac9fa0

createProposal() parameters

{
  "payloads": [ 
    { 
      "chain": "1", 
      "accessLevel": "1", 
      "payloadsController": "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", 
      "payloadId": "84" 
    }, 
    { 
      "chain": "137", 
      "accessLevel": "1", 
      "payloadsController": "0x401B5D0294E23637c18fcc38b1Bca814CDa2637C", 
      "payloadId": "44" 
    }, 
    { 
      "chain": "43114", 
      "accessLevel": "1", 
      "payloadsController": "0x1140CB7CAfAcC745771C2Ea31e7B5C653c5d0B80", 
      "payloadId": "17" 
    }, 
    { 
      "chain": "10", 
      "accessLevel": "1", 
      "payloadsController": "0x0E1a3Af1f9cC76A62eD31eDedca291E63632e7c4", 
      "payloadId": "19" 
    }, 
    { 
      "chain": "42161", 
      "accessLevel": "1", 
      "payloadsController": "0x89644CA1bB8064760312AE4F03ea41b05dA3637C", 
      "payloadId": "17" 
    }, 
    { 
      "chain": "1088", 
      "accessLevel": "1", 
      "payloadsController": "0x2233F8A66A728FBa6E1dC95570B25360D07D5524", 
      "payloadId": "9" 
    }, 
    { 
      "chain": "100", 
      "accessLevel": "1", 
      "payloadsController": "0x9A1F491B86D09fC1484b5fab10041B189B60756b", 
      "payloadId": "6" 
    }, 
  ], 
  "votingPortal": "0x9b24C168d6A76b5459B1d47071a54962a4df36c3", 
  "ipfsHash": "0x58817985af9b5d3209b397088902ea3471b5afc3ebf5846b6dac029e75ac9fa0" 
}

Aave Seatbelt report

Proposal report

https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/proposals/55.md

Payload reports

• Ethereum V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/1/0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5/84.md

• Polygon V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/137/0x401B5D0294E23637c18fcc38b1Bca814CDa2637C/44.md

• Avalanche V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/43114/0x1140CB7CAfAcC745771C2Ea31e7B5C653c5d0B80/17.md

• Optimism V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/10/0x0E1a3Af1f9cC76A62eD31eDedca291E63632e7c4/19.md

• Arbitrum V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/42161/0x89644CA1bB8064760312AE4F03ea41b05dA3637C/17.md

• Metis V3 - No Report

• Gnosis V3 - https://github.com/bgd-labs/seatbelt-gov-v3/blob/main/reports/payloads/100/0x9A1F491B86D09fC1484b5fab10041B189B60756b/6.md

Technical analysis

We verified that the payloads effectively freeze the following assets on the following chains:

• Ethereum V3:

  • STG
  • KNC
  • FXS

• Polygon V3:

  • agEUR

• Arbitrum V3:

  • EURS

We verified that the payloads effectively modifying zeroing the LTV of the following assets on the following chains:

• Ethereum V3:

  • LUSD
  • FRAX
  • STG
  • KNC
  • FXS

• Avalanche V3:

  • WBTCe
  • FRAX

• Arbitrum V3:

  • EURS
  • FRAX

We verified that the payloads effectively decrease the liquidation threshold the following assets by 3% on the following chains:

• Ethereum V3:

  • LUSD: 80% -> 77%
  • BAL: 62% -> 59%
  • UNI: 77% -> 74%
  • FRAX: 75% -> 72%
  • STG: 40% -> 37%
  • KNC: 40% -> 37%
  • FXS: 45% -> 42%

• Polygon V3:

  • BAL: 45% -> 42%

• Avalanche V3:

  • WBTCe: 70% -> 67%
  • FRAX: 80% -> 77%

• Arbitrum V3:

  • EURS: 70% -> 67%
  • FRAX: 75% -> 72%

Finally we verified that the payloads effectively increases the reserve factor the following assets according to the mentioned specification on the following chains:

• Ethereum V3:

  • DAI: 10% -> 25%
  • LUSD: 10% -> 20%
  • FRAX: 10% -> 20%

• Polygon V3:

  • DAI: 10% -> 25%
  • EURS: 10% -> 20%

• Avalanche V3:

  • DAIe: 10% -> 25%
  • FRAX: 10% -> 20%

• Optimism V3:

  • DAI: 10% -> 25%
  • LUSD: 10% -> 20%
  • sUSD: 10% -> 20%

• Arbitrum V3:

  • DAI: 10% -> 25%
  • EURS: 10% -> 20%
  • LUSD: 10% -> 20%
  • FRAX: 10% -> 20%

• Metis V3:

  • mDAI: 10% -> 25%

• Gnosis V3:

  • WXDAI: 10% -> 25%
  • EURe: 15% -> 20%

The proposal is consistent with the description on the governance forum.

Certora validations

✅ The code on the proposal payload corresponds to the proposal specification.

✅ The proposal includes a proper tests suite, checking all necessary post-conditions.

✅ BGD reviewed the payload before the proposal was submitted.

✅ Certora reviewed the procedure followed to submit the proposal.