[ARFC] Onboarding wETH to Aave V3 Celo Instance

[ARFC]:Onboarding wETH to Aave V3 Celo Instance

Author: ACI

Date: 2025-04-09

Risk Parameters have been provided by Risk Service Providers and ARFC has been updated accordingly. 2025-04-16

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Summary

This ARFC proposes the onboarding of Wrapped Ether (wETH) as a supported asset on the Aave V3 Celo Instance. The integration aims to expand the protocol's utility and provide users with additional opportunities for lending and borrowing.

Motivation

The addition of wETH to Aave V3 on Celo would:

• Increase TVL and protocol revenue
• Provide users with a major DeFi asset for lending/borrowing
• Enable cross-chain strategies involving ETH
• Enhance the protocol's competitive position in the Celo ecosystem

Specification

Risk Parameters have been provided by Risk Service Providers and ARFC has been updated accordingly. 2025-04-16

| Parameter | Value | | --- | --- | | Asset | WETH | | Isolation Mode | No | | Borrowable | Yes | | Collateral Enabled | Yes | | Supply Cap | 500 | | Borrow Cap | 450 | | Debt Ceiling | - | | LTV | 78.00% | | LT | 80.00% | | Liquidation Penalty | 7.50% | | Liquidation Protocol Fee | 10.00% | | Variable Base | 0.0% | | Variable Slope1 | 2.7% | | Variable Slope2 | 80.00% | | Uoptimal | 90% | | Reserve Factor | 15% | | Stable Borrowing | Disable | | Flashloanable | Enabled | | Siloed Borrowing | Disabled | | Borrowable in Isolation | Enabled | | E-Mode Category | N/A |

Celo-native bridged wETH Contract Address: 0xd221812de1bd094f35587ee8e174b07b6167d9af

Disclosure

The ACI did not receive compensation for creation this proposal.

Next Steps

1. Publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
2. 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 via CC0.