[ARFC] Add SNX to Ethereum v3

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Llamaxyz proposed adding SNX to the Ethereum v3 Liquidity Pool on Aave, aiming to migrate users from v2 to v3 and generate SNX revenue, with support from ACI and 3SE. After analyses and recommendations from ChaosLabs and Gauntlet, a Snapshot incorporating the suggested SNX parameters was created, marking a significant step towards the addition of SNX to the Aave pool.

The discussion revolved around the proposal by Llamaxyz to add SNX to the Ethereum v3 Liquidity Pool on Aave, with the aim of migrating users from v2 to v3 and generating SNX nominated revenue. The proposal, supported by ACI and 3SE, was to be reviewed by Gauntlet before progressing to a Snapshot vote1. MarcZeller from ACI expressed support for the proposal, provided GHO is not part of isolation mode2.

ChaosLabs and Gauntlet provided their analyses and recommendations for the parameters of the SNX listing on the Aave V3 platform. The main differences between the analyses were the supply cap, borrow cap, debt ceiling, and LB recommendations. ChaosLabs recommended a more conservative approach for setting caps at launch, with the final recommendation being a middle ground between the proposals5.

Gauntlet suggested changes to the initial Aave V3 ETH recs for SNX, including a liquidation bonus of 8.5%, borrow cap of 3,600k, and debt ceiling of 6,600k. They supported the LTV and liquidation threshold increase but recommended a decrease in the liquidation bonus from the proposed parameters5. ChaosLabs supported listing SNX in Isolation Mode as part of a strategy to increase the offering of AAVE protocol with more volatile assets. They recommended an initial debt ceiling of $2.5M, considering the medium-high probability for an extreme price drop of SNX5.

The discussion concluded with Llamaxyz announcing that Llama has created a Snapshot incorporating the SNX parameters as suggested by Chaos Labs and Gauntlet6. This marks a significant step towards the addition of SNX to the Ethereum v3 Liquidity Pool on Aave, pending the outcome of the Snapshot vote.

Posted 9 months ago

Last reply 9 months ago

Summary updated 2 months ago

Last updated 03/12 08:00