Title: [ARFC] Onboard osETH to Aave V3 on Ethereum Author: ACI (Aave Chan Initiative) Date: 2024-03-11
Summary
This is a ARFC proposal for adding borrow/lend support for StakeWise’s new over-collateralized staked ETH token, osETH, on AAVE V3 Ethereum.
Motivation
Liquid staking tokens (LSTs) have proven to be popular collateral assets on Aave, with Lido’s stETH the largest Reserve across all Aave deployments and rETH quickly reaching its supply caps. As productive assets, LSTs are high quality collateral to borrow against. Given their high correlation to ETH, LSTs are commonly used as collateral to borrow ETH and engage in yield leveraged staking, with several communities having built products that automate such strategies on top of Aave. The introduction of eMode only made such strategies more popular.
osETH in particular is overcollateralized by design, providing in-built slashing protection and consequently an increased level of protection for the Aave protocol…
As StakeWise V3 provides solo stakers to ability to mint osETH against their own nodes, on-boarding osETH will benefit Aave, StakeWise, and the Ethereum ecosystem as a whole, and be an important step in the pursuit to diversify Ethereum staking and encourage staking from home.
The onboarding of osETH will consequently create increased osETH demand and increased revenues for both Aave and StakeWise protocols, whilst also bolstering the liquidity and peg stability of osETH.
Chain to be deployed/listed
Ethereum mainnet
Specification:
osETH contract address:
0xf1C9acDc66974dFB6dEcB12aA385b9cD01190E38
| Risk Parameter | Value |
|---|---|
| Emode | No |
| Isolation Mode | No |
| Borrowable in Isolation | No |
| Stable Borrow | No |
| Enable Borrow | Yes |
| Enable Collateral | Yes |
| Loan To Value (LTV) | 71% |
| Liquidation Threshold | 76% |
| Liquidation Bonus | 10% |
| Reserve Factor | 15% |
| Liquidation Protocol Fee | 10% |
| Supply Cap | 15000 osETH |
| Borrow Cap | 1000 osETH |
| Debt Ceiling | N/A |
| uOptimal | 45% |
| Base | 0% |
| Slope1 | 7% |
| Slope2 | 300% |
Useful Links
Disclaimer
The Aave-chan Initiative is not presenting this ARFC on behalf of any third party and is not compensated by Stakewise for creating this proposal.
Next Steps
- Collect community & service providers feedback before escalating proposal to ARFC snapshot stage
- If consensus is reached on this ARFC escalate this proposal to the Snapshot stage.
- If the Snapshot outcome is YAE, this proposal will be escalated to AIP stage
- If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal
Copyright
Copyright and related rights waived under CC0.
Off-Chain Vote
YAE
488.66K AAVE100%
NAY
1.59 AAVE0%
Abstain
141.82 AAVE0%
Timeline
Mar 18, 2024Proposal created
Mar 19, 2024Proposal vote started
Mar 22, 2024Proposal vote ended
Feb 03, 2026Proposal updated