Add Market AERO on Base

Protocol Development
1

The Compound Growth Program proposes the addition of AERO as a base asset on Base Chain.

Motivation

AERO is the most popular native asset on Base, we believe as Base grows in TVL, AERO will also witness more traction. To catch up early on the opportunity, we would like to add Aero token market on Base.

Aero is the native token of the Defi project Aerodrome finance on Base.

The tokens we suggest as collaterals either have high TVL on Base or large pools that are pool with AERO token on Aerodrome.

Market Description

Base Asset: AERO

Suggested Collaterals:

  • USDC
  • WETH
  • DOLA
  • EURC
  • cbETH
  • wstETH

Collaterals to watch:

  • BRETT
  • MAI
  • KLIMA
  • weETH
  • rETH
  • ezETH
  • rsETH

Details

Asset Issuing Company Token details
USDC Circle Basescan
EURC Circle Basescan
WETH Basescan
DOLA https://www.inverse.finance/ Basescan
cbETH Coinbase Basescan
wstETH Lido Basescan
Future token
BRETT https://www.basedbrett.com/ Basescan
MAI https://www.mai.finance/ Basescan
Klima https://www.klimadao.finance/ Basescan
weETH Ether.Fi Basescan
ezETH Renzo Basescan
rsETH Kelp Basescan
rETH Rocketpool Basescan

Next Steps

We invite the community to consider this application for listing the AERO market and welcome suggestions in this direction. After getting suggestions and risk recommendations from Community members, we will kickstart the coding process for the market.

4 Likes
2

Rad. Looking forward to start building it!

2 Likes
3

Aerodrome contributor here - would welcome the addition of an AERO market. As @sharp highlighted, as Base continues to grow in TVL you would expect more interest around the AERO token particularly given its share of TVL and volume in the ecosystem.

2 Likes
4

What’s the use-case for an AERO market? Is there sufficient demand for borrowing AERO?

5

OpenZeppelin reviewed Compound proposal #345, which initializes an AERO Comet market on Base with USDC, WETH, wstETH and cbBTC as collateral assets.

We have identified the following low-severity issues:

  • The use of a ScalingPriceFeed for the base asset AERO, as well as the collateral assets USDC, WETH, and cbBTC, is unnecessary. The underlying price feeds are already in 8 decimal places, and using the ScalingPriceFeed would result in increased gas costs.

  • The price feed for the wstETH collateral combines a wstETH to stETH price feed with a ETH to USD price feed to price wstETH in USD assuming a 1:1 exchange rate between stETH and ETH. While the use of exchange rates for LSTs has been discussed and approved in a snapshot vote, the proposal, forum post, snapshot vote, and parameter recommendations discussion do not disclose the assumption or justify its risks explictly. The proposed price feed configuration is inconsistent with other Comet markets using wstETH as collateral, such as the Mainnet USDC Comet, which use an underlying stETH to ETH price feed.

  • The market will be empty upon initialization as it is not seeded. While this does not pose an immediate security risk, the market should be funded at initialization.