Title: [TEMP CHECK] Aave v3 MVP deployment on Scroll mainnet
Author: @Scroll_zkEVM
Date: 2023-05-30
Simple Summary:
Proposal to deploy an Aave v3 MVP to Scroll mainnet with limited assets onboarding and conservative risk parameters in order to allow Aave to establish a strategic position in the Scroll ecosystem while limiting risk exposure.
Background:
This TempCheck proposes the deployment of a Minimal Viable Product (MVP) version of Aave V3 on Scroll mainnet. Scroll mainnet will go live beginning of August this year and intends to onboard Aave V3 as one of the first DeFi dApps in the eocsystem. Scroll is an EVM-equivalent zk-rollup with the primary goal to provide scalability to Ethereum in the most robust and secure way. We guarantee this by being open source from day 1, a strong in-house security team paired with rigorous audits, third party provers upon our mainnet genesis block and a gradual decentralization of our sequencer network.
Motivation:
Aave will be given a prominent role in the early Scroll ecosystem and will be able to establish a strategic presence early on. Aave will be in good company of 150+ projects going live shortly after mainnet launch and will be able to harness a vibrant new ecosystem that expands across the globe.
Specification:
The proposal will detail the deployment of Aave V3 on Scroll mainnet with three collaterals (WETH, USDC, wstETH) and one borrowable asset (USDC). We consulted Gauntlet and Chaos Labs for preliminary risk parameters and if this proposal is to pass, we will get further input on risk parameters for the listed assets at the ARFC phase.
| Risk Parameter |
WETH |
wstETH |
USDC |
| Isolation Mode |
NO |
NO |
NO |
| Enable Borrow |
YES |
NO |
YES |
| Enable Collateral |
YES |
YES |
YES |
| Emode Category |
eth-correlated |
eth-correlated |
N/A |
| Loan To Value |
80% |
80% |
82.5% |
| Liquidation Threshold |
82.5% |
82.5% |
85% |
| Liquidation Bonus |
5% |
5% |
5% |
| Reserve Factor |
15% |
15% |
15% |
| Liquidation Protocol Fee |
10% |
10% |
10% |
| Borrow Cap |
11000 |
N/A |
$40m |
| Supply Cap |
11000 ($20m) |
500 ($10m) |
40m ($40m) |
| Debt Ceiling |
N/A |
N/A |
N/A |
| uOptimal |
80% |
45% |
90% |
| Base |
0% |
0% |
0% |
| Slope1 |
4.8% |
4.8% |
4% |
| Slope2 |
80% |
80% |
60% |
To limit risk exposure to the DAO, we commit 500,000 USD in $AAVE staked to the Aave Safety Module to provide additional security guarantees.
Disclaimer
We consulted both @Gauntlet and @ChaosLabs for this MVP proposal. The information provided above about preliminary risk parameters is based on public sources and previous comparable parameter proposals. It cannot be guaranteed that it is or will stay accurate. Neither Gauntlet nor Chaos Labs have been compensated by Scroll.
This TempCheck has been prepared to gauge initial feedback from the community and promote further discussion. The presented risk parameters will be finalized in the ARFC phase pending a positive outcome of the Temperature Check Snapshot
Next Steps
-
Temperature Check: Gather community feedback and assess sentiment towards the proposal of deploying Aave V3 on Scroll mainnet.
-
ARFC: If the Temperature Check Snapshot indicates positive sentiment, proceed to the ARFC stage for further discussion, risk parameter evaluation network analysis and finalization of the proposal.
-
AIP: If the ARFC stage Snapshot is successful, submit the proposal as an AIP for voting and on-chain governance approval.
Copyright
Copyright and related rights waived via CC0.
19 Likes
We support this deployment as it can benefit both Aave & Scroll growth potential!
@Scroll_zkEVM could you share with the community the tx hash of this commitment for the sake of transparency?
2 Likes
fig
3
It’s been a pleasure working with the Scroll team to identify the best proposal to present to the DAO - creating value while promoting growth across a new chain and ecosystem.
The commitment towards the Safety Module is well noted:
Scroll has been intentionally working with delegates, risk providers, and contributors to refine the proposals and create a working relationship with Aave.
Where else does Scroll hope to deploy? Are there other concurrent proposals to deploy across DeFi protocols, promoting on-chain liquidity and use cases?
What makes a user choose Scroll vs. other alternatives being evaluated (including zkSync, zkEVM, etc.)?
4 Likes
The ACI supports this new frontier expansion as supporting L2 diversity is part of our delegate platform.
4 Likes
Thanks, appreciate the feedback!
Our team is currently collaborating with established DeFi protocols that we plan to release soon after the mainnet launch, in addition to Aave. These protocols consist of DEX platforms like Balancer, Kyber, and Sushi, bridging protocols like HOP, Layer Zero, Axelar and several others.
Wrt why Scroll, our focus has always been on providing the best possible experience for developers, and we have successfully delivered on this promise on our testnet, which we will continue to do on mainnet. We are proud to say that we are bytecode equivalent, which means that migrating any Dapp from any EVM chain is extremely easy and hassle-free. We have always been committed to building in the open, starting from our collaboration with EF’s PSE team, and we remain closely connected to the Ethereum community. Beyond our technical infrastructure, what truly sets Scroll apart is our community of users and developers who make up our ecosystem. Our team is deeply committed to research, both in ZK and other domains, which has led to a variety of cutting-edge projects, academics, and developers joining our platform. Additionally, the Scroll ecosystem is made up of builders and users from every continent, and we offer localized content and support for different languages and regions across the globe. This allows us to also engage communities where other L2s have less of a presence, such as East/SE Asia and the Middle East, making them critical drivers of liquidity and engagement as we move into the next cycle.
3 Likes
Hi @0xkeyrock.eth, we’ll make sure to share this as we’re progressing in the governance process. We’re currently collecting feedback and gauging the community’s sentiment towards this deployment. If we get the go from the community we will set it up. Request for transparency is noted!
2 Likes
Hello, I had to remove eight low-value shillers posts in this thread. Here’s the most recent one.
if you’re reading this, please refrain from spamming the governance forum, from experience, you’re hurting more than helping the proposal, as proposals that attract low-value posts like this are often reflective of the low intrinsic value of the project itself.
as part of the Scroll community, do you want the network to be seen as such by the Aave DAO community?
3 Likes
The Snapshot was just published and will go live for voting tomorrow:
Start date Jun 13, 2023, 4:00 PM
End date Jun 16, 2023, 4:00 PM
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