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, an ARC process is recommended, the Template ARC Asset Onboarding regroups all the relevant information.

1.1) Risk Analysis

In addition to the ARC process, a risk analysis is needed to understand underlying risks and assess risk parameters for integration, which the community will review and on which the community can comment. Its is also possible to link external risk analysis of the project and token.
One of the risk analysis could be the Aave Risk Score detailed https://docs.aave.com/risk/asset-risk/introduction
In parallel, a smart contract review is needed to understand the code and how it fit Aave's architecture.

1.2) Parameter Suggestion

Following the Risk Analysis it is important to share with the Aave Community what risk parameters and interest rate curves are considered.

1.3) Community Sentiment

You can use the Aave Multichain Snapshot to gather community sentiment and feedback, it only requires 50 $AAVE to make a proposal and offers gasless voting. This can help gather both interest as well as risk parameters preference: should the asset be just a borrow currency? which of the parametrisation does the community support?

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.
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 Companies 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. For more information on the creation of proposals, see the developer docs here.