Onboard rsETH to Lido Instance
01Summary
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
Generated by Kvorum
02Description
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
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | DISABLED |
| Collateral Enabled | true |
| Supply Cap (rsETH) | 10,000 |
| Borrow Cap (rsETH) | 1 |
| Debt Ceiling | USD 0 |
| LTV | 0.05 % |
| LT | 0.1 % |
| Liquidation Bonus | 7.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 15 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 10 % |
| Variable Slope 2 | 100 % |
| Uoptimal | 1 % |
| 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.
E-mode Specification
| Parameter | Value | Value |
|---|---|---|
| Asset | rsETH | wstETH |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 92.50% | - |
| Liquidation Threshold | 94.50% | - |
| Liquidation Bonus | 1.00% | - |
References
- Implementation: AaveV3EthereumLido
- Tests: AaveV3EthereumLido
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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
04Actions
- Target
- 0xd1bd…6e49
- 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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