Title: [TEMP CHECK] onboard osETH to Aave v3 on Ethereum pool
Author: @0xTogbe - Aave-chan Initiative
Date: 2023-11-22
Summary
This is a TEMP CHECK to gauge community sentiment 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
Useful Links
Audits - Sigma Prime and Halborn
Disclaimer
The Aave-chan Initiative is not presenting this TEMP CHECK on behalf of any third party and is not compensated by Stakewise for creating this proposal.
Next Steps
- If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot 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
Timeline
Nov 27, 2023Proposal created
Nov 28, 2023Proposal vote started
Dec 01, 2023Proposal vote ended
Jan 31, 2026Proposal updated