KVORUM
aaveSource: Aave governance v3 · #230

Onboard ezETH to Arbitrum and Base Instances

executedJan 14, 2025, 04:04 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to add ezETH (Renzo Protocol's Liquid Restaking Token) as collateral on AAVE V3 on Arbitrum and Base networks. ezETH will be enabled as collateral with conservative risk parameters (0.05% LTV, 0.10% LT) and minimal borrowing capability (1 unit borrow cap). Supply caps are set at 1,750 ezETH on Arbitrum and 1,200 ezETH on Base. Two E-mode categories are configured: one pairing ezETH with wstETH (93% LTV) and another pairing ezETH with stablecoins (72% LTV).

Type
protocol addition

Key changes

  • ezETH enabled as collateral asset on AAVE V3 Arbitrum with supply cap of 1,750 ezETH(high)
  • ezETH enabled as collateral asset on AAVE V3 Base with supply cap of 1,200 ezETH(high)
  • E-mode category created for ezETH/wstETH pair with 93% max LTV and 95% liquidation threshold(medium)
  • E-mode category created for ezETH/stablecoin pair with 72% max LTV and 75% liquidation threshold(medium)
  • Borrowing disabled for ezETH with borrow cap set to 1 (minimal)(medium)
  • CAPO (Collateral Adjusted Price Oracle) parameters configured with 10.89% max yearly ratio growth(low)
  • Flashloan enabled for ezETH on both networks(low)

Notable concerns

  • Very low LTV (0.05%) and liquidation threshold (0.10%) indicate conservative risk posture for a new asset
  • Borrowing heavily restricted with borrow cap of only 1 unit
  • Supply caps are relatively modest (1,750 on Arbitrum, 1,200 on Base), potentially limiting liquidity
  • Emission admin set to specific address (0xac140648435d03f784879cd789130F22Ef588Fcd) granting centralized control over reward emissions
ContractsAAVE V3 ArbitrumAAVE V3 BaseezETH token contract
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

503 words

Simple Summary

This is an AIP for adding borrow/lend support for Renzo Protocol and its Liquid Restaking Token (LRT) ezETH on AAVE V3 Base and Arbitrum.

Motivation

As productive assets, staking tokens are high quality collateral to borrow against. ezETH is one of the largest liquid restaking tokens. With strong demand for ezETH on mainnet this proposal seeks to provide the opportunity for Aave users to make use of ezETH on leading Layer 2 networks: Base and Arbitrum.

The onboarding of ezETH on these L2s will create increased ezETH demand and increased revenues for both Aave and Renzo Protocol, whilst also bolstering the liquidity and peg stability of ezETH.

Specification

The table below illustrates the configured risk parameters for ezETH on Arbitrum and Base instances

ParameterValue
Isolation Modefalse
BorrowableDISABLED
Collateral Enabledtrue
Supply Cap (ezETH) Arbitrum1,750
Supply Cap (ezETH) Base1,200
Borrow Cap (ezETH)1
Debt CeilingUSD 0
LTV0.05 %
LT0.10 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor15 %
Base Variable Borrow Rate0 %
Variable Slope 17 %
Variable Slope 2300 %
Uoptimal45 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle (Arbitrum)0x8Ed37B72300683c0482A595bfa80fFb793874b15
Oracle (Base)0x438e24f5FCDC1A66ecb25D19B5543e0Cb91A44D4

The following CAPO and E-Mode parameters are applied to both instances

CAPO

maxYearlyRatioGrowthPercentratioReferenceTimeMINIMUM_SNAPSHOT_DELAY
10.89%monthly14 days

E-mode: ezETH / wstETH

ParameterValueValue
AssetezETHwstETH
CollateralYesNo
BorrowableNoYes
Max LTV93%93%
Liquidation Threshold95%95%
Liquidation Penalty1.00%1.00%

E-mode: ezETH / stablecoin

ParameterValueValueValue (only on Arbitrum)
AssetezETHUSDCUSDT
CollateralYesNoNo
BorrowableNoYesYes
Max LTV72%72%72%
Liquidation Threshold75%75%75%
Liquidation Penalty7.50%7.50%7.50%

Additionaly 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for ezETH and the corresponding aToken on both instances.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

0 total

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05Tally

Summed from votes

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Outcome (current)—
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06Voters

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07Forum

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