KVORUM
aaveSource: Aave governance v3 · #212

wstETH Reserve Update

executedDec 8, 2024, 08:00 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to increase capital efficiency of wstETH Reserve on Aave v3 Prime and Core instances by adjusting interest rate parameters (Uoptimal and Slope1) to support user retention amid expiring rewards and capitalize on rsETH demand.

Type
parameter change

Key changes

  • Prime Instance wstETH Uoptimal increased from 80% to 90% to enhance capital efficiency(high)
  • Prime Instance wstETH Slope1 decreased from 2.25% to 1.75% to lower borrowing costs at optimal utilization(high)
  • Core Instance wstETH Uoptimal increased from 45% to 80% to make larger portion of liquidity available(high)
  • Core Instance wstETH Slope1 decreased from 2.00% to 1.75% to lower borrowing costs at optimal utilization(high)
  • Base and Slope2 parameters remain unchanged on both instances(low)

Notable concerns

  • Reliance on upcoming $100M USDS deployment to retain users as Renzo Season 3 rewards near expiration
  • Increased utilization targets may affect liquidity availability under stress conditions
  • Changes apply to both Prime and Core instances with different initial parameters requiring careful monitoring
ContractsAaveV3Ethereum wstETH ReserveAaveV3EthereumLido wstETH Reserve
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

331 words

Simple Summary

The publication using the Direct-to-AIP process, proposes increasing the capital efficiency of the wstETH Reserve on both Prime and Core instances of Aave v3. This is a Direct to AIP proposal.

Motivation

Prime Instance

The addition of ezETH has resulted in over $620M in direct deposits and approximately $520M in wstETH debt. With yield from EIGEN decreasing and Renzo’s Season 3 rewards nearing expiration, this publication proposes amending the wstETH Reserve parameters to enhance capital efficiency and support user retention.

We have engaged with several builders and investors with significant capital deployed on the Prime instance. Currently, leveraged ezETH/wstETH users are primarily sustained by Renzo’s Season 3 rewards, which are set to expire soon. While an additional $100M of USDS is expected in the coming days, this alone will not be sufficient to retain existing users.

Core Instance

Based on strong demand for wstETH following the rsETH onboarding, this proposal, when implemented, will make a larger portion of wstETH liquidity available.

Discussions with the Kelp team and various investors indicate significant demand wstETH deb by rsETH holders. To accelerate Aave’s growth, the Uoptimal on the wstETH Reserve is be adjusted higher to make available a greater portion of the wstETH liquidity.

Specification

Prime Instance

wstETH Reserve

ParameterCurrent ValueProposed Value
Uoptimal80.00%90.00%
Base0.00%0.00%
Slope12.25%1.75%
Slope285.00%85.00%

Core Instance

wstETH Reserve

ParameterCurrent ValueProposed Value
Uoptimal45.00%80.00%
Base0.00%0.00%
Slope12.00%1.75%
Slope285.00%85.00%

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorummedium confidenceclaude-sonnet-5
Consistent

This is a standard Aave 'Direct-to-AIP' governance proposal pattern: the on-chain actions are two calls to execute() on separate payload contracts, one per Aave instance (Core and Prime/Lido), which is consistent with the two reference implementation links provided in the description (AaveV3Ethereum and AaveV3EthereumLido). The decoded calldata does not expose the internal parameter changes (Uoptimal, Slope1, Slope2, Base) because these are encoded inside the payload contracts' own logic rather than passed as arguments to execute(). This is typical for Aave's governance execution pattern and not itself a red flag. Since the actual rate-parameter values (80%→90% Uoptimal, etc.) cannot be independently verified from the decoded calldata alone, I cannot confirm at high confidence that the specific numbers match, but there is no evidence of contradiction — the number and general purpose of the two actions (one per instance, both wstETH reserve updates) aligns with the description. No extra, missing, or mismatched targets are apparent given the information available. Confidence is medium rather than high due to the opacity of the payload internals in the decoded data.'

Generated by Kvorum
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

2 total
#0fallback()chain 0x1
Target
0x6da1…9f0c
Value
0 wei
Function
fallback()
Arguments
{}
Calldata
#1fallback()chain 0x1
Target
0x697c…b612
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.