wstETH Reserve Borrow Rate Update - Main Instance
01Summary
This proposal reduces the wstETH borrowing costs on Aave v3 Ethereum by lowering the Base parameter from 0.25% to 0.00% and the Slope1 parameter from 4.50% to 2.00%, aimed at encouraging wstETH borrowing in anticipation of demand from a new rsETH collateral and wETH debt eMode category.
- Type
- parameter change
Key changes
- Reduce wstETH Base parameter from 0.25% to 0.00%(medium)
- Reduce wstETH Slope1 parameter from 4.50% to 2.00%(high)
Notable concerns
- No increase to Uoptimal parameter despite expected increase in wstETH demand
- Future borrow rate adjustments across Aave v3 Ethereum instances will be assessed after monitoring market response
Generated by Kvorum
02Description
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.
03Mismatch analysis
The proposal follows the standard Aave v3 governance pattern: a single on-chain action that calls execute() on a dedicated payload contract, which internally performs the parameter changes described in the proposal (via delegatecall from the executor). The decoded calldata does not expose the internal logic of the payload contract (e.g., the actual setReserveInterestRateStrategy or similar calls setting Base and Slope1 for wstETH), so it is not possible to directly verify from the provided decoded action alone that the Base and Slope1 values match 0.00% and 2.00% as claimed. However, the target address corresponds to a specific, uniquely-deployed payload contract referenced by the proposal's linked implementation source, which is the expected and auditable pattern for this proposal type — there is no evidence of a mismatched target, an extra hidden action, or an omitted action that would raise concern. Given the reduced visibility into the payload's internals, confidence in this comparison is low, but no contradictory evidence was found between the description and the decoded action, so the assessment is consistent with low confidence rather than flagging an unverified discrepancy or guessing at a mismatch.'
Generated by Kvorum
04Actions
- Target
- 0xbf01…8b32
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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