feat: move Frax out of isolation mode on mainnet (#518)

* feat: move Frax out of isolation mode on mainnet * Update src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet.md Co-authored-by: Harsh Pandey <[email protected]> * Update src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet.md Co-authored-by: Harsh Pandey <[email protected]> * 🐛 update PR regarding last chaos review * fix: set debtceiling to 0 * fix: implement fix suggested by @brotherlymite --------- Co-authored-by: Harsh Pandey <[email protected]> Co-authored-by: MartinGbz <[email protected]>
bgd-labs · Nov 18, 2024 · b81d0fb · b81d0fb · github-actions · Nov 18, 2024
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diff --git a/...ore_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105_after.md b/...ore_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105_after.md
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+## Reserve changes
+
+### Reserves altered
+
+#### FRAX ([0x853d955aCEf822Db058eb8505911ED77F175b99e](https://etherscan.io/address/0x853d955aCEf822Db058eb8505911ED77F175b99e))
+
+| description | value before | value after |
+| --- | --- | --- |
+| debtCeiling | 10,000,000 $ [1000000000] | 0 $ [0] |
+
+
+## Emodes changed
+
+### EMode: ETH correlated(id: 1)
+
+| description | value before | value after |
+| --- | --- | --- |
+| eMode.label (unchanged) | ETH correlated | ETH correlated |
+| eMode.ltv (unchanged) | 93 % | 93 % |
+| eMode.liquidationThreshold (unchanged) | 95 % | 95 % |
+| eMode.liquidationBonus (unchanged) | 1 % | 1 % |
+| eMode.borrowableBitmap (unchanged) | WETH, wstETH, cbETH, rETH, weETH, osETH, ETHx | WETH, wstETH, cbETH, rETH, weETH, osETH, ETHx |
+| eMode.collateralBitmap (unchanged) | WETH, wstETH, cbETH, rETH, weETH, osETH, ETHx | WETH, wstETH, cbETH, rETH, weETH, osETH, ETHx |
+
+
+## Raw diff
+
+```json
+{
+  "reserves": {
+    "0x853d955aCEf822Db058eb8505911ED77F175b99e": {
+      "debtCeiling": {
+        "from": 1000000000,
+        "to": 0
+      }
+    }
+  }
+}
+```
diff --git a/...odeOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.sol b/...odeOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.sol
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+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV3EthereumAssets} from 'aave-address-book/AaveV3Ethereum.sol';
+import {AaveV3PayloadEthereum} from 'aave-helpers/src/v3-config-engine/AaveV3PayloadEthereum.sol';
+import {EngineFlags} from 'aave-v3-origin/contracts/extensions/v3-config-engine/EngineFlags.sol';
+import {IAaveV3ConfigEngine} from 'aave-v3-origin/contracts/extensions/v3-config-engine/IAaveV3ConfigEngine.sol';
+/**
+ * @title Remove Frax from Isolation Mode on Aave v3 Mainnet
+ * @author Aave Chan Initiative
+ * - Snapshot: https://snapshot.org/#/aave.eth/proposal/0x9bc3f3d8e38d70f55887f2f2498e1b39f59467489158923488aceab73cd4f144
+ * - Discussion: https://governance.aave.com/t/arfc-remove-frax-from-isolation-mode-on-aave-v3-mainnet/19337
+ */
+contract AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105 is
+  AaveV3PayloadEthereum
+{
+  function collateralsUpdates()
+    public
+    pure
+    override
+    returns (IAaveV3ConfigEngine.CollateralUpdate[] memory)
+  {
+    IAaveV3ConfigEngine.CollateralUpdate[]
+      memory collateralUpdate = new IAaveV3ConfigEngine.CollateralUpdate[](1);
+
+    collateralUpdate[0] = IAaveV3ConfigEngine.CollateralUpdate({
+      asset: AaveV3EthereumAssets.FRAX_UNDERLYING,
+      ltv: EngineFlags.KEEP_CURRENT,
+      liqThreshold: EngineFlags.KEEP_CURRENT,
+      liqBonus: EngineFlags.KEEP_CURRENT,
+      debtCeiling: 0,
+      liqProtocolFee: EngineFlags.KEEP_CURRENT
+    });
+
+    return collateralUpdate;
+  }
+}
diff --git a/...eOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.t.sol b/...eOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.t.sol
@@ -0,0 +1,34 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV3Ethereum} from 'aave-address-book/AaveV3Ethereum.sol';
+
+import 'forge-std/Test.sol';
+import {ProtocolV3TestBase, ReserveConfig} from 'aave-helpers/src/ProtocolV3TestBase.sol';
+import {AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105} from './AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.sol';
+
+/**
+ * @dev Test for AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105
+ * command: FOUNDRY_PROFILE=mainnet forge test --match-path=src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.t.sol -vv
+ */
+contract AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105_Test is
+  ProtocolV3TestBase
+{
+  AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105 internal proposal;
+
+  function setUp() public {
+    vm.createSelectFork(vm.rpcUrl('mainnet'), 21123714);
+    proposal = new AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105();
+  }
+
+  /**
+   * @dev executes the generic test suite including e2e and config snapshots
+   */
+  function test_defaultProposalExecution() public {
+    defaultTest(
+      'AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105',
+      AaveV3Ethereum.POOL,
+      address(proposal)
+    );
+  }
+}
diff --git a/...xFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet.md b/...xFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet.md
@@ -0,0 +1,36 @@
+---
+title: "Remove Frax from Isolation Mode on Aave v3 Mainnet"
+author: "Aave Chan Initiative"
+discussions: "https://governance.aave.com/t/arfc-remove-frax-from-isolation-mode-on-aave-v3-mainnet/19337"
+snapshot: "https://snapshot.org/#/aave.eth/proposal/0x9bc3f3d8e38d70f55887f2f2498e1b39f59467489158923488aceab73cd4f144"
+---
+
+## Simple Summary
+
+This is an AIP to remove FRAX from isolation mode. This is a reboot with minor changes of a [previous ARFC](https://governance.aave.com/t/arfc-remove-frax-from-isolation-mode-and-onboard-sfrax-to-aave-v3-mainnet/18506) which passed Snapshot but has not yet been implemented.
+
+## Motivation
+
+FRAX and Aave DAO have found more synergies over the last months. The FRAX team has responded with major updates to security on sfrxETH in response to BGD Labs feedback. FRAX has also initated governance proposals to add GHO to Frax Lend. There are ongoing conversations to have a FRAX AMO included into Aave v3. sFRAX was [previously accepted](https://governance.aave.com/t/arfc-add-sfrax-on-ethereum-v3/16303) for onboarding in a previous [ARFC vote](https://snapshot.org/#/aave.eth/proposal/0xdba99e9c8da24424447d7c7b70eff93ad5b6055714b5f34cf9859c923fb3a38a) before the introduction of CAPO feeds.
+
+This proposal suggests removing FRAX from isolation mode to facilitate further AMO deployments.
+
+## Specification
+
+- FRAX will be removed from Isolation Mode on Aave v3 instances.
+
+| **Parameter**  | FRAX |
+| -------------- | ---- |
+| Isolation Mode | No   |
+| Debt Ceiling   | 0    |
+
+## References
+
+- Implementation: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.sol)
+- Tests: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.t.sol)
+- [Snapshot](https://snapshot.org/#/aave.eth/proposal/0x9bc3f3d8e38d70f55887f2f2498e1b39f59467489158923488aceab73cd4f144)
+- [Discussion](https://governance.aave.com/t/arfc-remove-frax-from-isolation-mode-on-aave-v3-mainnet/19337)
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).
diff --git a/...romIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.s.sol b/...romIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.s.sol
@@ -0,0 +1,60 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {GovV3Helpers, IPayloadsControllerCore, PayloadsControllerUtils} from 'aave-helpers/src/GovV3Helpers.sol';
+import {GovernanceV3Ethereum} from 'aave-address-book/GovernanceV3Ethereum.sol';
+import {EthereumScript} from 'solidity-utils/contracts/utils/ScriptUtils.sol';
+import {AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105} from './AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.sol';
+
+/**
+ * @dev Deploy Ethereum
+ * deploy-command: make deploy-ledger contract=src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.s.sol:DeployEthereum chain=mainnet
+ * verify-command: FOUNDRY_PROFILE=mainnet npx catapulta-verify -b broadcast/RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.s.sol/1/run-latest.json
+ */
+contract DeployEthereum is EthereumScript {
+  function run() external broadcast {
+    // deploy payloads
+    address payload0 = GovV3Helpers.deployDeterministic(
+      type(AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105).creationCode
+    );
+
+    // compose action
+    IPayloadsControllerCore.ExecutionAction[]
+      memory actions = new IPayloadsControllerCore.ExecutionAction[](1);
+    actions[0] = GovV3Helpers.buildAction(payload0);
+
+    // register action at payloadsController
+    GovV3Helpers.createPayload(actions);
+  }
+}
+
+/**
+ * @dev Create Proposal
+ * command: make deploy-ledger contract=src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105.s.sol:CreateProposal chain=mainnet
+ */
+contract CreateProposal is EthereumScript {
+  function run() external {
+    // create payloads
+    PayloadsControllerUtils.Payload[] memory payloads = new PayloadsControllerUtils.Payload[](1);
+
+    // compose actions for validation
+    IPayloadsControllerCore.ExecutionAction[]
+      memory actionsEthereum = new IPayloadsControllerCore.ExecutionAction[](1);
+    actionsEthereum[0] = GovV3Helpers.buildAction(
+      type(AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet_20241105).creationCode
+    );
+    payloads[0] = GovV3Helpers.buildMainnetPayload(vm, actionsEthereum);
+
+    // create proposal
+    vm.startBroadcast();
+    GovV3Helpers.createProposal(
+      vm,
+      payloads,
+      GovernanceV3Ethereum.VOTING_PORTAL_ETH_POL,
+      GovV3Helpers.ipfsHashFile(
+        vm,
+        'src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/RemoveFraxFromIsolationModeOnAaveV3Mainnet.md'
+      )
+    );
+  }
+}
diff --git a/src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/config.ts b/src/20241105_AaveV3Ethereum_RemoveFraxFromIsolationModeOnAaveV3Mainnet/config.ts
@@ -0,0 +1,42 @@
+import {ConfigFile} from '../../generator/types';
+export const config: ConfigFile = {
+  rootOptions: {
+    author: 'Aave Chan Initiative',
+    pools: ['AaveV3Ethereum'],
+    title: 'Remove Frax from Isolation Mode on Aave v3 Mainnet',
+    shortName: 'RemoveFraxFromIsolationModeOnAaveV3Mainnet',
+    date: '20241105',
+    discussion:
+      'https://governance.aave.com/t/arfc-remove-frax-from-isolation-mode-on-aave-v3-mainnet/19337',
+    snapshot:
+      'https://snapshot.org/#/aave.eth/proposal/0x9bc3f3d8e38d70f55887f2f2498e1b39f59467489158923488aceab73cd4f144',
+    votingNetwork: 'POLYGON',
+  },
+  poolOptions: {
+    AaveV3Ethereum: {
+      configs: {
+        COLLATERALS_UPDATE: [
+          {
+            asset: 'FRAX',
+            ltv: '0',
+            liqThreshold: 'KEEP_CURRENT',
+            liqBonus: 'KEEP_CURRENT',
+            debtCeiling: '0',
+            liqProtocolFee: 'KEEP_CURRENT',
+          },
+        ],
+        BORROWS_UPDATE: [
+          {
+            enabledToBorrow: 'KEEP_CURRENT',
+            flashloanable: 'KEEP_CURRENT',
+            borrowableInIsolation: 'KEEP_CURRENT',
+            withSiloedBorrowing: 'KEEP_CURRENT',
+            reserveFactor: 'KEEP_CURRENT',
+            asset: 'FRAX',
+          },
+        ],
+      },
+      cache: {blockNumber: 21123714},
+    },
+  },
+};