[AAVE] wstETH Reserve Borrow Rate Update - Main Instance
Simple Summary
This publication proposes reducing wstETH Slope1 parameter on the Main instance of Aave v3 on Ethereum.
Motivation
With the goal of encouraging user to borrow wstETH on the Main instance of Aave v3, the wstETH borrow rate will be lowered.
The anticipated rsETH collateral and wETH debt eMode category is expected to create demand for wstETH debt. Given the size of the wstETH reserve the Uoptimal is not being increased by this proposal.
After monitoring how the market responds, future borrow rate adjustments across the Aave v3 instances on Ethereum will be assessed and any change presented for discussion.
Specification
The Main instance the wstETH Slope1 and base parameter is to be revised as follows:
| Asset | Parameter | Current | Proposed | Change | | : -: | : -: | : --: | : : | : -: | | wstETH | Base | 0.25% | 0.00% | -0.25% | | wstETH | Slope1 | 4.50% | 2.00% | -2.50% |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
10 HVAXVC100%
NAY
0 HVAXVC0%
Timeline
Nov 12, 2024Proposal created
Nov 13, 2024Proposal vote started
Nov 15, 2024Proposal vote ended
Mar 26, 2026Proposal updated