MIP - List sDAI and USDT as Collateral on the AaveV3-ETH Optimizer

[MorphoAssociation]

Summary

The Morpho Association proposes to list sDAI and USDT as collateral only on the AaveV3-ETH Optimizer as it would unlock new usecases for sDAI and USDT holders.

Abstract

The Morpho Labs’ team has carefully reviewed the implementation contracts and run productions tests on a fork and seatbelt tests to make sure those assets are safe to be listed. As the Optimizer is in ETH emode, the same configuration as for rETH or cbETH recently listed should be applied.

Specification

The proposal can be translated into the following steps to be batched on the MorphoAdmin for sDAI:

1. createMarket(sDAI, reserveFactor = 0, p2pIndexCursor = 0)
2. setAssetIsCollateralOnPool(sDAI, true)
3. setAssetIsCollateral(sDAI, true)
4. setIsSupplyPaused(sDAI, true)
5. setIsWithdrawPaused(sDAI, true)
6. setIsBorrowPaused(sDAI, true)
7. setIsRepayPaused(sDAI, true)
8. setIsLiquidateBorrowPaused(sDAI, true)
9. setIsP2PDisabled(sDAI, true)

And for USDT:

1. createMarket(USDT, reserveFactor = 0, p2pIndexCursor = 0)
2. setAssetIsCollateralOnPool(USDT, true)
3. setAssetIsCollateral(USDT, true)
4. setIsSupplyPaused(USDT, true)
5. setIsWithdrawPaused(USDT, true)
6. setIsBorrowPaused(USDT, true)
7. setIsRepayPaused(USDT, true)
8. setIsLiquidateBorrowPaused(USDT, true)
9. setIsP2PDisabled(USDT, true)

References

• [ARFC] sDAI Aave V3 Onboarding - #7 by ghostlyenergy - Governance - Aave
• [ARC] Aave V3 Ethereum Deployment: Assets and Configurations - #22 by Pauljlei - General - Aave
• https://github.com/morpho-org/morpho-aave-v3/blob/main/test/prod/TestProdLifecycle.sol