KVORUM
aaveSource: Aave governance v3 · #215

Onboard rsETH to Lido Instance

executedDec 14, 2024, 10:40 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to onboard rsETH (Kelp Restaked ETH) as collateral to Aave V3's Lido Instance, enabling deeper liquidity and capital efficiency through eMode pairing with wstETH. rsETH will be enabled as collateral only (not borrowable) with conservative risk parameters including a 10,000 rsETH supply cap and high liquidation thresholds.

Type
protocol addition

Key changes

  • Enable rsETH as collateral asset on Aave V3 Lido Instance with 10,000 rsETH supply cap(high)
  • Configure eMode for rsETH/wstETH pair with 92.5% max LTV and 94.5% liquidation threshold to maximize capital efficiency(high)
  • Set rsETH as non-borrowable with 1 rsETH borrow cap and USD 0 debt ceiling(medium)
  • Configure oracle at 0x47F52B2e43D0386cF161e001835b03Ad49889e3b for rsETH price feeds(medium)
  • Designate 0xac140648435d03f784879cd789130F22Ef588Fcd as emission admin for rsETH and aToken(low)

Notable concerns

  • Very low LTV (0.05%) and liquidation threshold (0.1%) suggest conservative initial parameters for a new asset
  • rsETH non-borrowable status limits use cases compared to similar liquid staking derivatives
  • High liquidation bonus (7.5%) creates significant costs for liquidations
Contracts0xd1bd2f452d79a77cd7986c50d573111b8e0d6e490xac140648435d03f784879cd789130F22Ef588Fcd
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

367 words

Simple Summary

The current ARFC Addendum seeks to onboard rsETH to Lido Instance. This integration aligns with the recent support for rsETH in Aave Mainnet Instance, as outlined in the ARFC proposal and the AIP that is live.

This will be a Direct to Direct AIP Proposal so we can align with the final AIP and onboarding of rsETH in Mainnet Instance.

Motivation

With rsETH set to become a reality on Aave v3 Ethereum, integrating it into the Lido Instance offers deeper liquidity, higher composability, and more strategic borrowing opportunities for users. Given the synergy between wstETH and rsETH as liquid staking derivatives (LSDs), enabling eMode will maximize capital efficiency for borrowers while maintaining a conservative risk approach.

Specification

The table below illustrates the configured risk parameters for rsETH

ParameterValue
Isolation Modefalse
BorrowableDISABLED
Collateral Enabledtrue
Supply Cap (rsETH)10,000
Borrow Cap (rsETH)1
Debt CeilingUSD 0
LTV0.05 %
LT0.1 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor15 %
Base Variable Borrow Rate0 %
Variable Slope 110 %
Variable Slope 2100 %
Uoptimal1 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0x47F52B2e43D0386cF161e001835b03Ad49889e3b

Additionaly 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for rsETH and the corresponding aToken.

E-mode Specification

ParameterValueValue
AssetrsETHwstETH
CollateralYesNo
BorrowableNoYes
Max LTV92.50%-
Liquidation Threshold94.50%-
Liquidation Bonus1.00%-

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The proposal follows Aave's standard 'Direct-to-AIP' governance pattern: the on-chain action is a single execute() call to a dedicated payload contract (referenced in the description as the 'Implementation' link to AaveV3EthereumLido_OnboardRsETHToLidoInstance.sol). The decoded calldata here provides no granular arguments — all specific parameter changes (rsETH caps, LTV/LT, rate curve, oracle, eMode category settings, emission admin) are encoded inside that payload contract's bytecode, not visible as decoded arguments in this data. Because the on-chain action list is fully opaque (just 'execute()' with an empty argument set), I cannot cross-check individual numeric values (LTV 0.05%, LT 0.1%, caps, eMode LTV 92.5%, etc.) against calldata directly. There is nothing in the visible decoded data that contradicts the description, and the pattern (single execute() call delegating to a purpose-built payload contract matching the linked implementation) is exactly what is expected for this type of proposal. Given the lack of decoded parameters to verify against, confidence in a detailed comparison is low, but nothing indicates a mismatch, so I record this as consistent rather than flag speculative discrepancies. A reviewer wanting full certainty should verify the bytecode/source of the target payload contract against the specification table, but this is standard practice and not itself a red flag warranting a discrepancy report the current comparison method requires.

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

04Actions

1 total
#0fallback()chain 0x1
Target
0xd1bd…6e49
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.