Proposal:
Launch AAVE V2 strategies for DAI, USDC, USDT and ETH with the following parameters:
- Accepted Collateral
- DAI, USDC, USDT, ETH
- aDAI, aUSDC, aUSDT, aETH
- Max LTV = 50%
- Deposit Caps
- DAI = $5m
- USD = $5m
- USDT = $5m
- ETH = 3k ETH
- Repayment and Liquidation Caps
- DAI = $10 million per 60 minutes
- USDC = $10 million per 60 minutes
- USDT = $10 million per 60 minutes
- ETH = infinite
- Maximum Loss
- DAI = 5 bps (0.05%)
- USDC = 5 bps (0.05%)
- USDT = 5 bps (0.05%)
- ETH = 5 bps (0.05%)
- Cap Raises
- All vaults are pre-authorized to have their caps doubled if the vault deposit reaches 90% of the value of the respective cap
Additionally, decrease the deposit caps on the Alchemix Yearn vaults as follows:
- Reduce yvDAI $20m -> 10m*
- Reduce yvUSDC $20m -> $5m
- Reduce yvUSDT $20m -> $5m
- Reduce Yearn yvWETH 12k -> 9k.*
*note DAI and WETH can be increased again when v1->v2 migration takes place.
Context
Aave vault strategies are ready to be launched on Alchemix. Aave currently offers higher APRs than the presently integrated Yearn Vaults. This proposal aims to introduce AAVE vaults for all underlying assets that Alchemix currently accepts. The global deposit cap for each asset is kept the same or reduced by taking unused cap space from the Yearn-strategy vaults. Keeping the global deposit cap the same is simply another way to control risks that the repayment and liquidation caps also address.
For further explanation of what each parameter means, see AIP-41 (https://forum.alchemix.fi/public/d/298-aip-41-alchemix-v2-aleth-unguarded-launch-configuration) and the developer docs (https://alchemix-finance.gitbook.io/v2/)
EDIT: Note that AAVE strategies were audited by Runtime Verification, hence the large initial deposit caps.
Voting Options
Vote For authorizes launching Aave strategies on Alchemix with the proposed parameters.
Vote Against does not authorize launching Aave strategies on Alchemix with the proposed parameters.
