👻Aave:Add STASIS EURO (EURS) on Aave v3

Summary by @rathermercurial#2096

⚡ Snapshot Proposed By: Stasis Core Team

Summary written by Discord user rathermercurial#2096

📃Proposal Summary

This vote represents the community's sentiment on the addition of $EURS to Aave V3.

⚠️Risks and Security Considerations

Stasis describes the $EURS contract as "almost fully upgradeable" without providing spefific details as to the contract's upgradability:

...this includes anything from oracles, the contract that collects stability fees, the contract that liquidates positions, the one that auctions collateral etc. --Stasis Core Team

As a fiat-backed stablecoin, $EURS inherents risks from EURO currency reserves. The EUR peg is maintained using Stasis' sell-back module which gurantees 1:1 redemption of $EURS at zero slippage (via their centralized primary market only). There is currently no Chanlink price feed or proof-of-reserves available, though Stasis claims these are works in progress.

📊Initial Parameters

Stasis has proposed three parameter models for the agEUR market on Polygon: Isolation Mode, v3 Efficiency Mode Stablecoins and a hypothetical "v3 Efficiency Mode EUR Stablecoins", each with varying parameters:

• Base LTV (as Collateral): 50% - 98%

• Liquidation Threshold: 70% - 99%

• Liquidation Bonus: 5%

• Reserve Factor: 10%

Borrowing Enabled? ✅ Can Be Used as Collateral? ✅

🔎About Stasis

Stasis Foundation is a European technology company in the legacy finance sector which produces consumer payment insruments (such as $EURS) and provides cryptocurrency and regultory consulting to governments and institutions. Stasis is headquarterred in the Isle of Man.

The latest available audit is dated October 2022. A recent internally-produced "transparency report" can found here, indicating that STASIS Foundation holds less than $25,000,000 in liquid reserves. The remainder of their holdings appear to consist of ~$85M in heavily leveraged bonds.

🟡About $EURS

$EURS is a fiat-backed, Euro-denominated stablecoin issued by the STSS Company, a wholely-owned subsidiary of Stasis Foundation based in Malta. It uses a conventional stablecoin model similar to Tether (USDT) which is backed primarily by corporate paper and subject to minimal regulation or reporting requirements. This model has proven somewhat effective over time, but is known to fall under heavy regulatory scrutiny. Similar stablecoins (such as USDT) have been banned in certain jurisdictions such as the state of New York.

🔗Important Links

Stasis Official Website Stasis Github Stasis Audits by Certik EURS Token Contract on Etherscan EURS Asset Details on CoinGecko

Recommendation

I recommend that the Rabbithole metagovernance pod abstain from voting on this proposal. The reason for this recommendation is that the Snapshot proposal voting window was set for 33 hours. This does not give the metagovernance pod adequate time to complete our internal process and then cast a vote.