weETH Onbaording
01Summary
Proposal to add weETH (Ether.fi's Liquid Restaking Token) to Aave V3 Ethereum as collateral with specified risk parameters including 8,000 weETH supply cap, 72.5% LTV, and isolation mode enabled. This follows successful temperature checks and aims to enhance asset diversity and ecosystem liquidity.
- Type
- protocol addition
Key changes
- Add weETH as a new collateral asset to Aave V3 Ethereum with isolation mode enabled(high)
- Set supply cap at 8,000 weETH and borrow cap at 800 weETH to manage risk(high)
- Configure LTV at 72.5% and liquidation threshold at 75% with 7.5% liquidation bonus(high)
- Enable weETH borrowing with variable borrow rates (0% base, 7% slope1, 300% slope2) but disable stable borrowing(medium)
- Set 15% reserve factor and enable flashloan functionality(medium)
Notable concerns
- weETH is a new liquid restaking token with associated smart contract risks
- Isolation mode restricts weETH's use in composition with other collaterals
- High variable slope 2 rate (300%) could lead to expensive borrowing under stressed conditions
- Dependency on Ether.fi protocol health and EigenLayer restaking mechanism
Generated by Kvorum
02Description
Simple Summary
The current ARFC seeks to add Ether.fi Liquid Restaking Token weETH to Aave V3 Ethereum, after the successful TEMP CHECK and TEMP CHECK Snapshot .
The intention behind this initiative is to enhance the diversity of assets on Aave and bolster liquidity within the ecosystem.
Motivation
eETH is an LRT that allows users to stake their ETH, accrue staking rewards, and receive additional rewards through native restaking on EigenLayer. As of February 3rd, approximately 290,310 ETH ($670M) in TVL has been deposited into the ether.fi 1 protocol, and XX has been natively restaked in EigenLayer.
Ether.fi stands as the pioneering decentralized and non-custodial delegated staking protocol featuring an LRT (eETH). A notable feature of ether.fi is the control it provides stakers over their keys. The team behind the protocol is guided by the following principles:
- Decentralization is the foremost objective. Ether.fi is unwavering in its commitment to maintain the protocol’s non-custodial and decentralized nature, ensuring that stakers always have control over their ETH.
- Ether.fi operates as a legitimate business with a sustainable revenue model, with the team dedicated to its long-term success. There is no place for deceptive or unsustainable financial practices.
- Ether.fi is committed to always acting in the best interest of the Ethereum community. In the event of any missteps, the team at ether.fi will take responsibility and swiftly rectify the situation.
Risks:
ether.fi ’s LRT eETH is 100% redeemable. Users who deposit ETH into the protocol can withdraw their stake at any time. The holdings are publicly auditable on-chain and the protocol retains healthy reserves to offset any losses.
Proof of Liquidity and Deposit Commitments
Anyone who deposits weETH into Aave will accumulate ether.fi and EigenLayer points to be used for future incentives.
Users are given eETH on a 1:1 basis with a minimum deposit of 0.001 ETH.
ether.fi is also the first LSP to natively restake on EigenLayer — a move that helps improve network efficiency and provides stakers with additional rewards for their network contributions. ether.fi has also launched a series of partnerships with DeFi protocols to incentivize users and drive liquidity (weETH) to various platforms.
Specification
The table below illustrates the configured risk parameters for weETH
| Parameter | Value |
|---|---|
| Isolation Mode | true |
| Borrowable | ENABLED |
| Collateral Enabled | true |
| Supply Cap (weETH) | 8,000 |
| Borrow Cap (weETH) | 800 |
| Debt Ceiling | USD 0 |
| LTV | 72.5 % |
| LT | 75 % |
| Liquidation Bonus | 7.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 15 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 7 % |
| Variable Slope 2 | 300 % |
| Uoptimal | 45 % |
| Stable Borrowing | DISABLED |
| Stable Slope1 | 0 % |
| Stable Slope2 | 0 % |
| Base Stable Rate Offset | 0 % |
| Stable Rate Excess Offset | 0 % |
| Optimal Stable To Total Debt Ratio | 0 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0xf112aF6F0A332B815fbEf3Ff932c057E570b62d3 |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
This proposal carries no on-chain actions.
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
08Similar proposals
- aaveexecutedweETH Onbaording98%
- aaveexecutedweETH Aave V3 Base Onboarding89%
- aaveexecutedweETH Arbitrum onboarding89%
- aaveexecutedOnboarding weETH to Aave V3 on Scroll88%
- aaveexecutedAave v3 EtherFi Ethereum Activation81%
- aaveexecutedOnboarding wETH to Aave V3 Celo Instance79%
- aaveexecutedUpdating weETH Risk Parameters78%
- aaveexecutedOnboard ezETH to Arbitrum and Base Instances78%
- aaveexecutedOnboard ezETH to Lido Instance78%
- aaveexecutedOnboard wstETH to Aave V3 on BNB Chain77%