wstETH Reserve Borrow Rate Update - Main Instance
01Summary
This proposal reduces wstETH borrowing rates on Aave v3 Ethereum Main instance by lowering the Base parameter from 0.25% to 0.00% and the Slope1 parameter from 4.50% to 2.00%, aiming to encourage wstETH borrowing in anticipation of demand from a new rsETH/wETH eMode category.
- Type
- parameter change
Key changes
- Reduce wstETH Base parameter from 0.25% to 0.00% (decrease of 0.25%)(medium)
- Reduce wstETH Slope1 parameter from 4.50% to 2.00% (decrease of 2.50%)(high)
- Maintain current Uoptimal parameter given the size of the wstETH reserve(medium)
Notable concerns
- The proposal assumes demand will materialize from the anticipated rsETH collateral and wETH debt eMode category without confirmation of its deployment status or timeline
- Future borrow rate adjustments across Aave v3 instances on Ethereum will be assessed after monitoring market response, indicating uncertainty about additional changes
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
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
- aaveexecutedwstETH Reserve Borrow Rate Update - Main Instance99%
- aaveexecutedwstETH Borrow Rate Update88%
- aaveexecutedPrime Instance - wstETH Borrow Rate + rsETH Supply Cap Update85%
- aaveexecutedInterest Rate Update - WETH and wstETH Ethereum85%
- aaveexecutedwstETH Slope1 & Uoptimal Update84%
- aaveexecutedEthereum v2 - wETH Interest Rate Curve Upgrade82%
- aaveexecutedwstETH Reserve Update81%
- aaveexecutedReduce Reserve Factor on wstETH79%
- aaveexecutedAdd WETH to the wrsETH wstETH E-Mode on Aave V3 Base Instance76%
- aaveexecutedOnboard wstETH to Aave V3 on BNB Chain76%