[ARFC] Onboard wstETH to Aave V3 on BNB Chain

Author: ACI

Date: 2024/08/02

Summary

This ARFC proposes the onboard of wstETH (wrapped staked ETH) to Aave V3 on BNB Chain to improve Aave’s reach across alternative chains and provide increased choice for Aave users on BNB Chain.

This proposal is presented under the Direct-to-AIP framework.

Motivation

wstETH is one of the most popular collateral and borrow tokens on Aave, with over $4 billion in deposits and $100m in borrows across Aave deployments. The onboarding of wstETH to the Aave V3 on BNB Chain will give Aave users more options for generating staking yield on their collateral and increase dominance of Aave on BNB Chain.

Specification

wstETH on BNB: 0x2Bbbdf97295F73175b12CC087cF446765931e1C3

Parameter	Value
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap	1,900
Borrow Cap	190
Debt Ceiling	-
LTV	72%
LT	75%
Liquidation Bonus	7.5%
Liquidation Protocol Fee	10.00%
Variable Base	0.00%
Variable Slope1	7.00%
Variable Slope2	300.00%
Uoptimal	45.00%
Reserve Factor	15.00%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowable in Isolation	No
E-Mode Category	ETH-correlated

CAPO We recommend aligning to existing markets of wstETH on other chains.

MINIMUM_SNAPSHOT_DELAY	ratioReferenceTime	maxYearlyRatioGrowthPercent
7 days	monthly	9.68%

Useful Links

wstETH technical documentation: wstETH Lido Docs

Disclaimer

This proposal is powered by Skywards. ACI is not directly affiliated with Lido and did not receive compensation for creating this proposal.

ACI and ACI team members may hold wstETH, stETH, and LDO.

Next Steps

Discussion period on the governance forum with addition of risk parameters. Publish an AIP vote for final confirmation and enforcement of the proposal.

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