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[AAVE] Onboard wrsETH to Aave v3 Plasma Instance

Voting ended 2 months agoSucceeded

Simple Summary

This publication proposes adding wstETH and wrsETH as collateral to the Aave v3 instance on the Plasma network using the Direct-to-AIP process.

Motivation

wrsETH

rsETH is a liquid staking token issued by Kelp DAO, offering users access to rewards from ETH staking while maintaining liquidity and DeFi composability.

Following the strong adoption of wrsETH on Linea, where it is the largest LRT, this publication proposes onboarding wrsETH to Plasma. wrsETH has established a reliable track record across Aave markets, with users deposits of ~$1B on Core, ~$370M on Linea and smaller balances on other networks.

Given that:

rsETH has already passed governance and risk assessments for Ethereum, Arbitrum, and Base;
Plasma is a supported Aave V3 deployment with growing activity and integration potential; and,
A precedent has been set for using the Direct-to-AIP path when onboarding previously approved assets to new instances.

By bringing wrsETH to Plasma, users will benefit from an additional network where they can utilize the asset under consistent risk parameters.

wstETH

wstETH (wrapped stETH) is issued by Lido Finance and represents a non-rebasing version of stETH. By eliminating rebasing mechanics, wstETH is straightforward to use across lending markets, DEXes, and structured DeFi applications.

Its longstanding presence in Aave makes it a fundamental collateral asset for borrowers and a reliable source of liquidity. Introducing wstETH to Plasma serves several objectives:

Broadening the collateral set for users on Plasma;
Strengthening network adoption by adding a blue-chip staking derivative;
Aligning Plasma with other Aave V3 deployments where wstETH is already active under well-defined parameters; and,
Offering access to cheap stablecoin debt to Lido users.

Specification

The table below illustrates the configured risk parameters

| -: | -: | | Isolation Mode | false | false | | Borrowable | ENABLED | DISABLED | | Collateral Enabled | true | true | | Supply Cap (wstETH) | 20,000 | 20,000 | | Borrow Cap (wstETH) | 5,000 | 1 | | Debt Ceiling | USD 0 | USD 0 | | LTV | 78.5 % | 0.05 % | | LT | 81 % | 0.1 % | | Liquidation Bonus | 6 % | 7 % | | Liquidation Protocol Fee | 10 % | 10 % | | Reserve Factor | 35 % | 45 % | | Base Variable Borrow Rate | 0 % | 0 % | | Variable Slope 1 | 0.55 % | 10 % | | Variable Slope 2 | 40 % | 300 % | | Uoptimal | 90 % | 45 % | | Flashloanable | ENABLED | ENABLED | | Siloed Borrowing | DISABLED | DISABLED | | Borrowable in Isolation | DISABLED | DISABLED |

Pricefeed details

wrsETH/WETH Emode

| | | Collateral | Yes | No | No | | Borrowable | No | Yes | Yes | | Max LTV | 93% | - | - | | Liquidation Threshold | 95% | - | - | | Liquidation Bonus | 1.0% | - | - |

wstETH/WETH E-Mode

| | Collateral | Yes | No | | Borrowable | Yes | Yes | | Max LTV | 94% | - | | Liquidation Threshold | 96% | - | | Liquidation Bonus | 1.0% | - |

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for wstETH, wrsETh and the corresponding aTokens.

References

Implementation: AaveV3Plasma
Tests: AaveV3Plasma
Snapshot: Direct-to-AIP
Discussion

Copyright

https://app.aave.com/governance/v3/proposal/?proposalId=393

Off-Chain Vote

YAE363 HVAXVC99.7%

NAY1 HVAXVC0.3%

Quorum: 36400%

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Discussion

[AAVE] Onboard wrsETH to Aave v3 Plasma Instance

Timeline

Oct 15, 2025Proposal created
Oct 16, 2025Proposal vote started
Oct 18, 2025Proposal vote ended
Dec 12, 2025Proposal updated

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