New Asset Listing

The Aave v2 protocol can support many different assets in many different markets. Each market operates as a segregated risk pool, with the addition of each new asset influencing the overall risk of that particular market.

Internally, each asset is known as a reserve. For each new reserve (or asset) to be added to an existing market, the proposal and subsequent discussion should cover:

  • The increased insolvency risk of the market it is listed in.

  • The potential to expose the market it is listed in to a single point of failure.

  • The risks associated with collateral currencies.

  • The benefits of protocol/market diversification.

An example of a successful community asset listing is for Curve (CRV). It should be used as a reference guide for the correct procedure to follow.

1) Proposing the asset via ARC process

As with all governance upgrades, the ARC process needs to be followed with the links and specifications detailed in Template ARC Asset Onboarding.

1.1) Risk Analysis

In addition to the ARC process, the Aave Genesis Risk Team will assess the underlying risks and suggest initial parameters for integration. This involves calibrating Aave's risk parameters and interest rate model based on the methodology currently used by the Risk Team.

In parallel, a smart contract review will cover the code and how it fit Aave's architecture.

2) Preliminary AIP steps

When the ARC has received rough community consensus, then the AIP can be created using the Asset Onboarding AIP template. The initial risk parameters for the asset must also be included in the AIP.

To submit a proposal on-chain, the proposer must have enough proposition power to make the proposal. They can gather this proposition power themselves, or have it delegated to them from community members.

3) Chainlink price feed

Every asset must have a Chainlink price feed.

If a price feed is not currently available, then you will need to contact Chainlink directly or the Aave Genesis team to discuss next steps.

4) Prepare the payloads

Your governance proposal must include the necessary payloads (e.g. aToken, debtTokens and InterestStrategy contracts). These contracts can be easily created by following the instructions in the developer governance docs.

5) Submission of proposal

The proposal can now be submitted on-chain, including all of the information from the above steps.