[ARFC] Deploy a Dedicated Aave V4 Whitelabel Instance fully managed by EtherFi on OP Mainnet to Power Ether.fi Cash

Author: Ether.Fi

Date: 2026-07-14

ARFC discussion: governance.aave.com thread

Temp Check discussion: governance.aave.com thread

Temp Check Snapshot (passed): Snapshot vote

Summary

Following the successful TEMP CHECK Snapshot, this ARFC formalizes the deployment of a dedicated, EtherFi-operated Aave V4 hub on OP Mainnet to serve as the credit backend for EtherFi Cash, the Visa card product used by tens of thousands of cardholders. The instance replaces the bespoke borrow/lend market ("Debt Manager") that powers Cash today.

The instance is isolated and borrow-whitelisted: borrowing is restricted exclusively to EtherFi Cash users. EtherFi operates it end to end — configuration, risk parameters, liquidity, and growth — while Aave provides the V4 deployment and operating license (2-year initial term) and earns a share of the revenue the instance generates. Because the instance is ring-fenced and EtherFi-run, Aave carries the upside without taking on the market's day-to-day risk.

Key Terms

• Revenue share: 80-20 EtherFi / Aave on the totality of instance protocol revenue (Liquidity Fee, liquidation fees, SVR and other fee streams), settled automatically on-chain. Projected $1.0-1.2M/year to the Aave DAO at end-2026 target scale ($500M instance assets).
• GHO integration: GHO listed as supply and borrow reserve once deployed on OP Mainnet; Aave deploys a GHO GSM on Optimism; GHO may become a spend asset in Cash at the DAO's discretion.
• Assets at launch: up to $175M brought by EtherFi.
• Launch capitalization: $20M supplied by the Optimism Foundation Treasury; $1.2M joint incentive package; $5M strategic GHO position via the GSM (6 months).
• Exclusivity: EtherFi Cash will exclusively use Aave V4 as its DeFi lending protocol.
• Operating model: EtherFi as operator; Nonce Capital as independent risk admin (listings, oracles, risk parameters, IRMs, caps, pause states); Aave Labs provides deployment, license, and GSM; Aave DAO ratifies and receives the revenue share.

Full specification — architecture (single Liquidity Hub + Cash Spoke on OP Mainnet), the 20-asset launch collateral set, reference risk parameters, oracles, liquidations, and the phased Debt Manager migration (~$25M active borrows) — is detailed in the ARFC post.

Next Steps

If the outcome of this ARFC Snapshot is YAE, publish an AIP vote for final confirmation and enforcement of the proposal, targeting a July 2026 deployment to meet the Cash product handoff from the current Debt Manager.

Disclaimer

This proposal is submitted by EtherFi as the operator of EtherFi Cash and the proposer of the instance. All terms and parameters are subject to this governance process and service-provider review. EtherFi is not compensated by any third party for submitting this proposal.

Copyright

Copyright and related rights waived via CC0.