Onboard rsETH to Aave V3 Ethereum
01Summary
Aave DAO is voting to add Kelp DAO's rsETH (Liquid Restaking Token) to Aave V3 on Ethereum as collateral and borrowable asset with configured risk parameters. rsETH depositors will earn additional Kelp miles and EigenLayer points.
- Type
- protocol addition
Key changes
- rsETH added to Aave V3 Ethereum as collateral (enabled) and borrowable asset (enabled) with 72% LTV and 75% liquidation threshold(high)
- Supply cap set to 19,000 rsETH and borrow cap set to 1,900 rsETH with 7.5% liquidation bonus(high)
- New rsETH LST main e-mode created with 92.5% max LTV and 94.5% liquidation threshold for rsETH as collateral(high)
- wstETH borrow cap increased from 48,000 to 60,000 and ETHx borrow cap increased from 320 to 5,000 in e-mode(medium)
- 0xac140648435d03f784879cd789130F22Ef588Fcd set as emission admin for rsETH and corresponding aToken(medium)
- Flashloan enabled for rsETH; siloed borrowing and borrowable in isolation disabled(low)
Notable concerns
- rsETH holders will accumulate incentives outside of Aave through Kelp miles and EigenLayer points, creating additional incentive structures to manage
- Relatively high liquidation bonus of 7.5% and low liquidation protocol fee of 10% compared to some other LSTs
Generated by Kvorum
02Description
Simple Summary
Kelp DAO is seeking community support for adding its Liquid Restaking Token, rsETH, to Aave V3 on Ethereum. In addition, rsETH depositors into Aave will accumulate additional Kelp miles and EigenLayer points.
Motivation
KelpDAO (https://www.kelpdao.xyz/restake/) is one of the largest liquid restaking protocol built on top of the Eigen Layer. Restakers on Kelp get access to multiple benefits like restaking rewards, staking rewards and DeFi yields.
Specification
The table below illustrates the configured risk parameters for rsETH
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | true |
| Supply Cap (rsETH) | 19,000 |
| Borrow Cap (rsETH) | 1,900 |
| Debt Ceiling | USD 0 |
| LTV | 72 % |
| 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 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0x47F52B2e43D0386cF161e001835b03Ad49889e3b |
Additionaly 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for rsETH and the corresponding aToken.
A new rsETH LST main e-mode has also been added:
| Parameter | Value | Value | Value |
|---|---|---|---|
| Asset | rsETH | wstETH | ETHx |
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 92.5% | - | - |
| Liquidation Threshold | 94.5% | - | - |
| Liquidation Penalty | 1.00% | - | - |
The caps of the e-mode related assets have also been updated:
| Current Borrow Cap | Recommended Borrow Cap | |
|---|---|---|
| wstETH | 48,000 | 60,000 |
| ETHx | 320 | 5,000 |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded on-chain data consists of a single generic execute() call to what appears to be an Aave governance payload contract (matching the naming/pattern of the linked 'AaveV3Ethereum_OnboardRsETHToAaveV3Ethereum' implementation contract referenced in the description's References section). This is the standard structure for Aave V3 cross-chain/L1 governance proposals: the Aave governance system executes a payload contract whose internal logic (listing rsETH, setting risk parameters, creating e-mode categories, updating caps, setting emission admin) is not exposed in the decoded calldata arguments — it lives in the contract's bytecode. Because no parameter values, addresses, or specific function calls are decoded beyond the bare execute() call, I cannot directly verify the specific numeric claims (LTV, LT, caps, e-mode composition, emission admin address) against on-chain calldata. There is nothing in the decoded action that contradicts the description, and the single action target is consistent with the linked implementation reference. However, since the calldata provides no verifiable detail to cross-check the extensive parameter table, confidence in this assessment is low. I am not flagging any discrepancies since none can be identified from the available data, but a reviewer should independently verify the payload contract's bytecode/source (as linked) matches the described parameters before voting.
Generated by Kvorum
04Actions
- Target
- 0x3cca…04e4
- 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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