[ARFC] Deploy Aave V4 on Base

Summary This ARFC seeks community feedback on deploying Aave V4 on Base. Base is an Ethereum Layer 2 incubated by Coinbase, offering low transaction costs, deep native USDC liquidity, and direct distribution to one of the largest retail user bases in crypto. Aave has operated on Base since 2023, and Base was among the first multi-chain deployments where Aave surpassed $1 billion in deposits. Deploying Aave V4 on Base would bring the Hub and Spoke architecture to one of Aave’s largest and most active deployments, unifying network liquidity in a single Liquidity Hub while enabling specialized markets designed to serve the network’s millions of users. Motivation Base has become one of the most active networks in crypto. Consumer applications, payments products, and trading venues continue to launch on the network, Coinbase distribution places millions of verified users one step from onchain finance, and stablecoin activity on Base keeps growing. Activity of this kind generates steady demand for credit, and it rewards lending infrastructure that can serve many distinct use cases from a shared pool of liquidity. Deploying Aave V4 on Base will Upgrade one of Aave’s largest existing deployments to the current protocol architecture Continue to extend Aave’s reach into the Coinbase ecosystem, where onchain consumer applications continue to onboard new users Allow Aave to double down on an ecosystem where it’s already found success historically Beyond current activity, we are extremely optimistic about the long-term trajectory of tokenized assets within the Base and Coinbase ecosystem. Coinbase has the distribution, the infrastructure, and the institutional relationships to bring a broad range of assets onchain over the coming years, whether crypto native or non-crypto native, including real-world assets and tokenized equities. Assets of this kind are particularly suited to the V4 architecture, where specialized markets can serve distinct collateral types and risk profiles. Deploying V4 on Base now positions Aave as the credit layer for that asset base as it develops. Specification The deployment will establish a Liquidity Hub on Base with an initial market scope and supported assets. The Hub configuration, oracle configuration, risk framework, deployment contracts, and the migration approach for existing Aave V3 positions on Base will be finalized during this ARFC’s discussion period, with parameter recommendations from relevant Aave DAO service providers, and published with the AIP. Next Steps Gather community feedback and service provider recommendations on this ARFC during a five day forum discussion period. Aave Labs and LlamaRisk will complete their assessments and append the proposed initial assets and the Hub and Spoke configuration to this proposal. Escalate the proposal to an ARFC Snapshot for a three day off-chain vote. Following a successful Snapshot, submit an AIP for an onchain vote to deploy Aave V4 on Base. Useful Links Base website Base developer documentation Aave V4 overview Disclosures Aave Labs is the author of this proposal and has received no compensation from third parties for its creation. Copyright Copyright and related rights waived via CC0. 1 post - 1 participant Read full topic