feat: USDS BR update

diffs/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_before_AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_after.md

@@ -0,0 +1,50 @@
+## Reserve changes
+
+### Reserve altered
+
+#### sUSDe ([0x9D39A5DE30e57443BfF2A8307A4256c8797A3497](https://etherscan.io/address/0x9D39A5DE30e57443BfF2A8307A4256c8797A3497))
+
+| description | value before | value after |
+| --- | --- | --- |
+| isFrozen | false | true |
+| ltv | 0.05 % [5] | 0 % [0] |
+
+
+#### USDS ([0xdC035D45d973E3EC169d2276DDab16f1e407384F](https://etherscan.io/address/0xdC035D45d973E3EC169d2276DDab16f1e407384F))
+
+| description | value before | value after |
+| --- | --- | --- |
+| maxVariableBorrowRate | 82 % | 84 % |
+| variableRateSlope1 | 6.25 % | 8.25 % |
+| interestRate | ![before](https://dash.onaave.com/api/static?variableRateSlope1=62500000000000000000000000&variableRateSlope2=750000000000000000000000000&optimalUsageRatio=920000000000000000000000000&baseVariableBorrowRate=7500000000000000000000000&maxVariableBorrowRate=820000000000000000000000000) | ![after](https://dash.onaave.com/api/static?variableRateSlope1=82500000000000000000000000&variableRateSlope2=750000000000000000000000000&optimalUsageRatio=920000000000000000000000000&baseVariableBorrowRate=7500000000000000000000000&maxVariableBorrowRate=840000000000000000000000000) |
+
+## Raw diff
+
+```json
+{
+  "reserves": {
+    "0x9D39A5DE30e57443BfF2A8307A4256c8797A3497": {
+      "isFrozen": {
+        "from": false,
+        "to": true
+      },
+      "ltv": {
+        "from": 5,
+        "to": 0
+      }
+    }
+  },
+  "strategies": {
+    "0xdC035D45d973E3EC169d2276DDab16f1e407384F": {
+      "maxVariableBorrowRate": {
+        "from": "820000000000000000000000000",
+        "to": "840000000000000000000000000"
+      },
+      "variableRateSlope1": {
+        "from": "62500000000000000000000000",
+        "to": "82500000000000000000000000"
+      }
+    }
+  }
+}
+```

diffs/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_before_AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_after.md

@@ -0,0 +1,30 @@
+## Reserve changes
+
+### Reserves altered
+
+#### USDS ([0xdC035D45d973E3EC169d2276DDab16f1e407384F](https://etherscan.io/address/0xdC035D45d973E3EC169d2276DDab16f1e407384F))
+
+| description | value before | value after |
+| --- | --- | --- |
+| maxVariableBorrowRate | 82 % | 84 % |
+| baseVariableBorrowRate | 6.25 % | 8.25 % |
+| interestRate | ![before](https://dash.onaave.com/api/static?variableRateSlope1=7500000000000000000000000&variableRateSlope2=750000000000000000000000000&optimalUsageRatio=920000000000000000000000000&baseVariableBorrowRate=62500000000000000000000000&maxVariableBorrowRate=820000000000000000000000000) | ![after](https://dash.onaave.com/api/static?variableRateSlope1=7500000000000000000000000&variableRateSlope2=750000000000000000000000000&optimalUsageRatio=920000000000000000000000000&baseVariableBorrowRate=82500000000000000000000000&maxVariableBorrowRate=840000000000000000000000000) |
+
+## Raw diff
+
+```json
+{
+  "strategies": {
+    "0xdC035D45d973E3EC169d2276DDab16f1e407384F": {
+      "baseVariableBorrowRate": {
+        "from": "62500000000000000000000000",
+        "to": "82500000000000000000000000"
+      },
+      "maxVariableBorrowRate": {
+        "from": "820000000000000000000000000",
+        "to": "840000000000000000000000000"
+      }
+    }
+  }
+}
+```

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol

@@ -0,0 +1,44 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV3EthereumLido, AaveV3EthereumLidoAssets} from 'aave-address-book/AaveV3EthereumLido.sol';
+import {AaveV3PayloadEthereumLido} from 'aave-helpers/src/v3-config-engine/AaveV3PayloadEthereumLido.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 USDS borrow rate update on Core and Prime Instances
+ * @author Aave Chan Initiative
+ * - Snapshot: Direct-to-AIP
+ * - Discussion: https://governance.aave.com/t/arfc-usds-borrow-rate-update-on-core-and-prime-instances/19901
+ */
+contract AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122 is
+  AaveV3PayloadEthereumLido
+{
+  function _postExecute() internal override {
+    AaveV3EthereumLido.POOL_CONFIGURATOR.setReserveFreeze(
+      AaveV3EthereumLidoAssets.sUSDe_UNDERLYING,
+      true
+    );
+  }
+
+  function rateStrategiesUpdates()
+    public
+    pure
+    override
+    returns (IAaveV3ConfigEngine.RateStrategyUpdate[] memory)
+  {
+    IAaveV3ConfigEngine.RateStrategyUpdate[]
+      memory rateStrategies = new IAaveV3ConfigEngine.RateStrategyUpdate[](1);
+    rateStrategies[0] = IAaveV3ConfigEngine.RateStrategyUpdate({
+      asset: AaveV3EthereumLidoAssets.USDS_UNDERLYING,
+      params: IAaveV3ConfigEngine.InterestRateInputData({
+        optimalUsageRatio: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: EngineFlags.KEEP_CURRENT,
+        variableRateSlope1: 8_25,
+        variableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+
+    return rateStrategies;
+  }
+}

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.t.sol

@@ -0,0 +1,34 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.0;
+
+import {AaveV3EthereumLido} from 'aave-address-book/AaveV3EthereumLido.sol';
+
+import 'forge-std/Test.sol';
+import {ProtocolV3TestBase, ReserveConfig} from 'aave-helpers/src/ProtocolV3TestBase.sol';
+import {AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122} from './AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol';
+
+/**
+ * @dev Test for AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122
+ * command: FOUNDRY_PROFILE=mainnet forge test --match-path=src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.t.sol -vv
+ */
+contract AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_Test is
+  ProtocolV3TestBase
+{
+  AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122 internal proposal;
+
+  function setUp() public {
+    vm.createSelectFork(vm.rpcUrl('mainnet'), 21243125);
+    proposal = new AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122();
+  }
+
+  /**
+   * @dev executes the generic test suite including e2e and config snapshots
+   */
+  function test_defaultProposalExecution() public {
+    defaultTest(
+      'AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122',
+      AaveV3EthereumLido.POOL,
+      address(proposal)
+    );
+  }
+}

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol

@@ -0,0 +1,37 @@
+// 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 USDS borrow rate update on Core and Prime Instances
+ * @author Aave Chan Initiative
+ * - Snapshot: Direct-to-AIP
+ * - Discussion: https://governance.aave.com/t/arfc-usds-borrow-rate-update-on-core-and-prime-instances/19901
+ */
+contract AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122 is
+  AaveV3PayloadEthereum
+{
+  function rateStrategiesUpdates()
+    public
+    pure
+    override
+    returns (IAaveV3ConfigEngine.RateStrategyUpdate[] memory)
+  {
+    IAaveV3ConfigEngine.RateStrategyUpdate[]
+      memory rateStrategies = new IAaveV3ConfigEngine.RateStrategyUpdate[](1);
+    rateStrategies[0] = IAaveV3ConfigEngine.RateStrategyUpdate({
+      asset: AaveV3EthereumAssets.USDS_UNDERLYING,
+      params: IAaveV3ConfigEngine.InterestRateInputData({
+        optimalUsageRatio: EngineFlags.KEEP_CURRENT,
+        baseVariableBorrowRate: 8_25,
+        variableRateSlope1: EngineFlags.KEEP_CURRENT,
+        variableRateSlope2: EngineFlags.KEEP_CURRENT
+      })
+    });
+
+    return rateStrategies;
+  }
+}

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.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_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122} from './AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol';
+
+/**
+ * @dev Test for AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122
+ * command: FOUNDRY_PROFILE=mainnet forge test --match-path=src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.t.sol -vv
+ */
+contract AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122_Test is
+  ProtocolV3TestBase
+{
+  AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122 internal proposal;
+
+  function setUp() public {
+    vm.createSelectFork(vm.rpcUrl('mainnet'), 21243091);
+    proposal = new AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122();
+  }
+
+  /**
+   * @dev executes the generic test suite including e2e and config snapshots
+   */
+  function test_defaultProposalExecution() public {
+    defaultTest(
+      'AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122',
+      AaveV3Ethereum.POOL,
+      address(proposal)
+    );
+  }
+}

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/USDSBorrowRateUpdateOnCoreAndPrimeInstances.md

@@ -0,0 +1,69 @@
+---
+title: "USDS borrow rate update on Core and Prime Instances"
+author: "Aave Chan Initiative"
+discussions: "https://governance.aave.com/t/arfc-usds-borrow-rate-update-on-core-and-prime-instances/19901"
+snapshot: "Direct-to-AIP"
+---
+
+## Simple Summary
+
+This proposal recommends increasing the USDS Core Instance Base Rate (currently at 6.25%) and Slope1 (currently at 6.25%) on Prime Market.
+
+Raising USDS borrowing rates ensures the SSR remains competitive, attracting demand while discouraging excessive borrowing at unsustainable levels.
+
+We also propose pausing sUSDe operations in the Prime instance to focus on scaling USDS liquidity in the Core Market, where there is significant demand.
+
+This is a Direct to AIP Proposal.
+
+## Motivation
+
+Recent observations in the market have highlighted issues stemming from **sUSDe** in the Prime instance:
+
+1. **sUSDe’s Impact on USDS Borrow Rate**:The presence of sUSDe is driving up the USDS Borrow Rate, creating pressure in the Prime Instance. The high rates pose a risk of cascading rebalances, particularly:
+
+- wstETH collateral migrates to Spark for USDS liquidity.
+- ezETH loopers exit due to spiking wstETH borrow rates.
+- Resulting in a significant outflow of AUM from the market.
+
+2. **Mismatch Between Liquidity and Risk**:
+
+- The liquidity needs of sUSDe are not being met effectively, leading to imbalance.
+- The market is unable to accommodate the current sUSDe scale without affecting overall stability.
+
+While at same time there is substantial **Untapped Demand in the Core Instance**:
+
+- The substantial demand in the Core Instance presents an opportunity to scale USDS aggressively while mitigating risk.
+
+## Specification
+
+### 1. **Increase USDS Base Rate 2% on Core Instance and 2% Slope1 on Prime Instance**
+
+- Adjusting the borrow rate is a necessary step to manage the borrowing cost dynamics and balance the market risk posed by sUSDe.
+- This adjustment should be implemented across both the Prime and Core Instances.
+
+### 2. **Pause sUSDe on Prime Instance**
+
+- Temporarily halt sUSDe operations in the Prime stance to stabilize the market and focus on optimizing the Core Instance.
+- This pause will allow time to reassess the sizing of sUSDe based on available liquidity and market condition.
+
+| **Parameter**  | **Current** | **Proposed** | **Change** |
+| -------------- | ----------- | ------------ | ---------- |
+| _Prime Market_ |             |              |            |
+| Base           | 0.75%       | 0.75%        | No change  |
+| Slope1         | 6.25%       | 8.25%        | +2%        |
+| Slope2         | 75%         | 75%          | No change  |
+| _Core Market_  |             |              |            |
+| Base           | 6.25%       | 8.25%        | +2%        |
+| Slope1         | 0.75%       | 0.75%        | No change  |
+| Slope2         | 75%         | 75%          | No change  |
+
+## References
+
+- Implementation: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol), [AaveV3EthereumLido](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol)
+- Tests: [AaveV3Ethereum](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.t.sol), [AaveV3EthereumLido](https://github.com/bgd-labs/aave-proposals-v3/blob/main/src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.t.sol)
+- Snapshot: Direct-to-AIP
+- [Discussion](https://governance.aave.com/t/arfc-usds-borrow-rate-update-on-core-and-prime-instances/19901)
+
+## Copyright
+
+Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).

src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.s.sol

@@ -0,0 +1,68 @@
+// 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_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122} from './AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol';
+import {AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122} from './AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.sol';
+
+/**
+ * @dev Deploy Ethereum
+ * deploy-command: make deploy-ledger contract=src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.s.sol:DeployEthereum chain=mainnet
+ * verify-command: FOUNDRY_PROFILE=mainnet npx catapulta-verify -b broadcast/USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.s.sol/1/run-latest.json
+ */
+contract DeployEthereum is EthereumScript {
+  function run() external broadcast {
+    // deploy payloads
+    address payload0 = GovV3Helpers.deployDeterministic(
+      type(AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122).creationCode
+    );
+    address payload1 = GovV3Helpers.deployDeterministic(
+      type(AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122).creationCode
+    );
+
+    // compose action
+    IPayloadsControllerCore.ExecutionAction[]
+      memory actions = new IPayloadsControllerCore.ExecutionAction[](2);
+    actions[0] = GovV3Helpers.buildAction(payload0);
+    actions[1] = GovV3Helpers.buildAction(payload1);
+
+    // register action at payloadsController
+    GovV3Helpers.createPayload(actions);
+  }
+}
+
+/**
+ * @dev Create Proposal
+ * command: make deploy-ledger contract=src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122.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[](2);
+    actionsEthereum[0] = GovV3Helpers.buildAction(
+      type(AaveV3Ethereum_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122).creationCode
+    );
+    actionsEthereum[1] = GovV3Helpers.buildAction(
+      type(AaveV3EthereumLido_USDSBorrowRateUpdateOnCoreAndPrimeInstances_20241122).creationCode
+    );
+    payloads[0] = GovV3Helpers.buildMainnetPayload(vm, actionsEthereum);
+
+    // create proposal
+    vm.startBroadcast();
+    GovV3Helpers.createProposal(
+      vm,
+      payloads,
+      GovernanceV3Ethereum.VOTING_PORTAL_ETH_POL,
+      GovV3Helpers.ipfsHashFile(
+        vm,
+        'src/20241122_Multi_USDSBorrowRateUpdateOnCoreAndPrimeInstances/USDSBorrowRateUpdateOnCoreAndPrimeInstances.md'
+      )
+    );
+  }
+}