aavechan.eth

# Add 1INCH to Aave v2 market
--
title: Add 1INCH to Aave v2 market
status: Proposed
author: Governance House - [Llama](https://twitter.com/llama), [Matthew Graham](https://twitter.com/Matthew_Graham_), [defijesus.eth](https://twitter.com/eldefijesus)
shortDescription: Add 1INCH as collateral on the Aave V2 market
discussions: https://governance.aave.com/t/arc-add-1inch-as-collateral/8056
created: 2022-07-18
---


## Simple Summary

Llama proposes listing 1INCH, the governance token of the 1inch Network, on Aave v2 mainnet as collateral with borrowing enabled. The risk parameters detailed within have been provided by Gauntlet. 

## Abstract

1inch is a network of decentralized protocols designed to provide the fastest and most efficient operations in the DeFi space. The 1inch Network was launched in May 2019 with the release of its Aggregation Protocol v1. The 1inch Aggregation Protocol is both the oldest and most trusted DEX aggregator in the DeFi space.

Listing 1INCH on Aave v2 will enable lenders to receive yield and borrowers of 1INCH to partake in 1inch’s tokenomics to vote and be reimbursed their gas cost to perform swaps on 1inch’s Aggregation Platform.

## Motivation

Listing 1INCH on the Aave v2 market would allow Aave to benefit from the first mover advantage and recognise the efforts of the 1inch team for being supportive of Aave since before v1.  

Since the original proposal to list 1INCH the team has removed minting roles on the token, introduced a progressive vesting schedule and created use cases for aTokens. The 1INCH token is supported by a Chainlink oracle feed and has favourable on-chain liquidity conditions.

## Specification

This proposal initializes the 1INCH reserve, enables variable borrowing, sets a reserve factor and configures the reserve as collateral. As needed, it also connects a price source on the AaveOracle.

## Test Cases

All the components involved in this proposal (tokens' implementations, interest rate strategy, oracle feed, proposal payload) have been tested and reviewed, including simulations on mainnet of the whole proposal lifecycle.

Link to Test Cases: [End-to-end test suite](https://github.com/defijesus/bdg-labs-aave-v2-listings/blob/master/src/test/Validation1InchListing.sol), [aToken/stableDebtToken/variableDebtToken verification](https://github.com/defijesus/bdg-labs-aave-v2-listings/tree/master/diffs), [deployment script](https://github.com/defijesus/bdg-labs-aave-v2-listings/blob/master/scripts/1InchListingPayload.s.sol)

## Implementation

We recommend the following risk parameters.

### Risk Parameters:

LTV 40%

Liquidation Threshold 50%

Liquidation Bonus 8.5%

Reserve Factor 20%

### Variable Interest Rate Parameters:

UOptimal 45%

R_0 0%

R_s1 7%

R_s2 300%


The snapshot vote to add 1INCH on Aave v2 mainnet market can be found [here](https://snapshot.org/#/aave.eth/proposal/0x2ea76814a0dfcad7ea1a7b3c597f059a8d574f8143886b23043918998505f5a7).  


- [ProposalPayload](https://etherscan.io/address/0xd417d07c20e31f6e129fa68182054b641fbec8bd#code)
- [aINCH implementation](https://etherscan.io/address/0x130FBED7dBA2b370f0F93b0Caea2cfD9b811D66D#code)
- [Variable Debt 1INCH implementation](https://etherscan.io/address/0x4d3707566Ee8a0ed6DE424a262050C7587da8152#code)
- [Stable Debt 1INCH implementation](https://etherscan.io/address/0x9C2114Bf70774C36E9b8d6c790c9C14FF0d6799E#code)
- [Interest rate strategy](https://etherscan.io/address/0xb2eD1eCE1c13455Ce9299d35D3B00358529f3Dc8#code) 
- [1INCH/ETH price feed](https://etherscan.io/address/0x72AFAECF99C9d9C8215fF44C77B94B99C28741e8#code)

## Copyright

Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).


#  stMATIC SupplyCap Increase Polygon v3"
---
title: stMATIC SupplyCap Increase Polygon v3"
status: Proposed
author: "Llama"
shortDescription: Llama proposes increasing the stMATIC Supply Cap on …"
discussions: https://governance.aave.com/t/arfc-increase-stmatic-supply-cap/12038
created: 03-03-2023
—

# Summary
    
    Llama proposes increasing the stMATIC Supply Cap on Polygon to facilitate an expansion of the stMATIC/wMATIC loop strategy. 
    
    # Abstract
    
    The utilisation of the stMATIC reserve has reached 100% and this proposal seeks to increase the SupplyCap to 15M units up from 7.5M units.  
    
    Increasing the SupplyCap will enable users to deposit stMATIC and enter the recursive stMATIC/wMATIC yield strategy.  
    
    Lido DAO currently has the ability to distribute LDO rewards on the Polygon v3 deployment. Due to the stMATIC SupplyCap being reached there is little to no incentive for Lido DAO to distribute LDO rewards. This proposal seeks to encourage Lido DAO to distribute LDO rewards, as early as March on the Aave v3 Polygon liquidity pools.
    
    # Motivation
    
    Over the previous months, Llama has been working with various communities to craft favourable conditions on Aave v3 Polygon to facilitate the creation of several yield aggregation products. The below proposals details are applicable to stMATIC:
    
    * [Proposal: Add Support for stMATIC (Lido)](https://governance.aave.com/t/proposal-add-support-for-stmatic-lido/7677)
    * [ARFC Aave v3 Polygon wMATIC Interest Rate Update](https://governance.aave.com/t/arfc-aave-v3-polygon-wmatic-interest-rate-update/10290)
    * [ARFC LDO Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-ldo-emission-admin-for-polygon-v3-liquidity-pool/10575)
    * [ARFC stMATIC & MaticX Emission_Admin for Polygon v3 Liquidity Pool](https://governance.aave.com/t/arfc-stmatic-maticx-emission-admin-for-polygon-v3-liquidity-pool/10632)
    
    This proposal is a continuation of the above work.
    
    Analysis performed by [Gauntlet](https://governance.aave.com/t/gauntlet-methodologies-borrow-and-supply-cap/11487) generated a conservative and aggressive SupplyCap ceiling of 16.17M and 24.26M units respectively.  
    
    Chaos Lab's supports increasing the SupplyCap to 15M units. This follows the general rule of thumb that SupplyCap should not be more than doubled in any single proposal.
    
    As Chaos Lab's recommendation is less than the maximum conservative SupplyCap presented by Gauntlet's methodology, Llama proposes increasing the SupplyCap to 15M SupplyCap.
    
    With reference to the new [ARFC Aave V3 Caps update Framework](https://governance.aave.com/t/arfc-aave-v3-caps-update-framework/11937/1) it is possible to ship several upgrades to gradually increasing Aave's exposure to stMATIC over time.
    
    # Specification
    
    The following risk parameters being proposed have been reviewed by Gauntlet and Chaos Labs.
    
    Ticker: stMATIC
    
    Contract: [`polygon: 0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4`](https://polygonscan.com/address/0x3a58a54c066fdc0f2d55fc9c89f0415c92ebf3c4)
    
    |Parameter|Current Value|Proposed Value|
    | --- | --- | --- |
    |SupplyCap|7.5M units|15M units|
    
    # Implementation
    
    A list of relevant links like for this proposal:
    
    * [Governance Forum Discussion](https://governance.aave.com/t/arfc-increase-stmatic-supply-cap/12038)
    * [Test Cases](https://github.com/bgd-labs/aave-proposals/blob/master/src/test/polygon/AaveV3PolSTMATICCapUpdatePayloadTest.t.sol)
    * [Payload Implementation](https://github.com/bgd-labs/aave-proposals/blob/master/src/contracts/polygon/AaveV3PolSTMATICCapUpdatePayload.sol)
    * [Deployed Contracts](https://polygonscan.com/address/0xaa7ef2f9b31fa26e802ca9b3e33990ada4143fb9#code)
    
    Chaos Labs and Gauntlet both contributed to the development of the ARFC forum post. 
    
    The proposal Payload was reviewed by [Bored Ghost Developing](https://bgdlabs.com/).
    
    # Copyright
    
    Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).
    
