nizhunt / aave-credit-delegation

Aave Credit Delegation

This project allows you to validate that a given collateral/loan pair can be used for credit delegation, provides instructions for performing the delegation via direct contract interaction, and provides some tools for simulating the delegation via forking.

System overview

1. Owner deposits collateral in Aave via its LendingPool
2. Owner uses the data provider contract to retrieve the associated DebtToken for the borrower's desired asset to borrow
3. Owner interacts with the DebtToken contract to approve the borrower to take out a given amount of credit on the asset
4. Borrower borrows in Aave via its LendingPool increasing the Owner's totalDebtETH
5. Eventually, Borrower repays loan, decreasing the Owner's totalDebtETH
6. Eventually, Owner withdraws collateral from Aave

Resources

Mainnet addresses:

• LendingPool: 0x7d2768dE32b0b80b7a3454c06BdAc94A69DDc7A9
• DataProvider: 0x057835Ad21a177dbdd3090bB1CAE03EaCF78Fc6d
• dsDAI: 0x778A13D3eeb110A4f7bb6529F99c000119a08E92
• DAI: 0x6B175474E89094C44Da98b954EedeAC495271d0F

Etherscan links

• LendingPool: https://etherscan.io/address/0x7d2768dE32b0b80b7a3454c06BdAc94A69DDc7A9#readProxyContract
• DataProvider: https://etherscan.io/address/0x057835Ad21a177dbdd3090bB1CAE03EaCF78Fc6d#readContract
• dsDAI: https://etherscan.io/address/0x778A13D3eeb110A4f7bb6529F99c000119a08E92#readProxyContract
• DAI: https://etherscan.io/address/0x6B175474E89094C44Da98b954EedeAC495271d0F

Aave documentation:

https://docs.aave.com/developers/v/2.0/the-core-protocol/lendingpool

STEP BY STEP INSTRUCTIONS: Credit delegation on Mainnet via Etherscan

1. Verify the validity of the credit delegation parameters
   • Automated: as described in "Validating a credit delegation pair" using unit tests
   • Manually: In app.aave.com, make sure that the deposit asset is available for use as collateral, and that the borrow asset is available for stable/variable borrow, and has sufficient liquidity
2. Use app.aave.com to deposit the desired collateral as lender
3. Use Etherescan for DataProvider.getReserveTokensAddresses(asset: <address of the token to delegate>) to identify the associated debt token
4. From the previous point, use stableDebtTokenAddress or variableDebtTokenAddress depending on your desired interest rate model, then click on the address to be able to interact with the contract via Etherscan
5. Use DebtToken.approveDelegation(delegatee: <credit delegation beneficiary>, amount: <amount of credit to approve>). If the associated DebtToken doesn't have verified sources, or doesn't have its proxy properly set up in Etherscan, build a UI with oneclickdapp using interfaces from artifacts/contracts/interfaces
6. Use DebtToken.borrowAllowance(fromUser: <lender>, toUser: <borrower>) to verify that borrow has been approved for delegated credit
7. Use app.aave.com to borrow as borrower

Validating a credit delegation pair using unit tests on mainnet

Clone and install the repo

$ git clone clone [e-mail]:ajsantander/aave-credit-delegation.git
$ cd aave-credit-delegation
$ npm install

Copy .env.sample to .env and specify your Infura private key, or Ethereum mainnet provider url. This will be used for forking mainnet and running simulations/checks against the fork.

To validate a pair, edit test/CreditDelegation.test.js to enter the desired collateral/loan pair, amounts, and interest model type, and then run the tests.

This will start a local fork of mainnet and simulate the credit delegation process with the specified parameters.

Edit testPairs in test/CreditDelegation.test.js with your desired parameters

Run npm test

If any test is skipped or fails, credit delegation may not be available for your desired parameters.