[AAVE] [ARFC] Onboarding wstETH to Aave V3 on Base Network
Title: [ARFC] Onboarding wstETH to Aave V3 on Base Network
Author: @marczeller - Aave Chan Initiative
Date: 2023-11-12
Summary
This ARFC proposes the addition of wstETH (wrapped staked ETH) From Lido to the Aave V3 Base Network to enrich the diversity of the ecosystem's liquid staking solutions.
Motivation
The onboarding of wstETH will give Aave users more options for earning staking rewards on their collateral, reinforcing Aave's position as a diverse and inclusive DeFi protocol.
Specification
- Contract Address: wstETH - 0xc1CBa3fCea344f92D9239c08C0568f6F2F0ee452
The proposed risk parameters for wstETH are similar to wsETH implementation in other "youngs" Aave L2 markets:
Aggressive parameters:
| Risk Parameter | Value |
|---|---|
| emode | Eth-Correlated |
| 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 | 6% |
| Reserve Factor | 15% |
| Liquidation Protocol Fee | 10% |
| Supply Cap | 4000 wstETH |
| Borrow Cap | 400 wstETH |
| Debt Ceiling | N/A |
| uOptimal | 45% |
| Base | 0% |
| Slope1 | 7% |
| Slope2 | 300% |
Conservative parameters
| Risk Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable in Isolation | No |
| Stable Borrow | No |
| Enable Borrow | Yes |
| Enable Collateral | Yes |
| Loan To Value (LTV) | 67% |
| Liquidation Threshold | 74% |
| Liquidation Bonus | 6% |
| Reserve Factor | 15% |
| Liquidation Protocol Fee | 10% |
| Supply Cap | 100 wstETH |
| Borrow Cap | 10 wstETH |
| Debt Ceiling | N/A |
| uOptimal | 45% |
| Base | 0% |
| Slope1 | 7% |
| Slope2 | 300% |
Next Steps
- Success in the snapshot leads to the development of an AIP.
Disclaimer
This proposal is powered by Skywards.
This proposal is independently crafted by the Aave Chan Initiative, with no direct financial incentive from Lido or related entities.
Copyright
Copyright and related rights waived under CC0.
Off-Chain Vote
YAE (Aggresive)
6 HVAXVC46.2%
YAE (Conservative)
5 HVAXVC38.5%
NAY
0 HVAXVC0%
ABSTAIN
2 HVAXVC15.4%
Timeline
Nov 20, 2023Proposal created
Nov 21, 2023Proposal vote started
Nov 23, 2023Proposal vote ended
Apr 09, 2026Proposal updated