Onboard rsETH to Arbitrum
01Summary
Onboard rsETH (Kelp DAO Restaked ETH) to Aave V3 on Arbitrum as a collateral asset with conservative parameters (0.05% LTV, 0.1% LT) and 900 rsETH supply cap. Establish rsETH/wstETH E-Mode with 92.5% LTV to enable efficient leverage trading between the two ETH liquid staking derivatives. Borrowing is disabled for rsETH.
- Type
- protocol addition
Key changes
- Onboard rsETH token to Aave V3 Arbitrum as collateral-only asset with 900 rsETH supply cap(high)
- Set rsETH risk parameters with very conservative LTV (0.05%) and LT (0.1%), 7.5% liquidation bonus(high)
- Create rsETH/wstETH E-Mode on Arbitrum with 92.5% LTV and 94.5% LT for efficient collateral use between ETH LSDs(high)
- Enable flashloans for rsETH; disable borrowing, isolation mode, and siloed borrowing for rsETH(medium)
- Set 0xac140648435d03f784879cd789130F22Ef588Fcd as emission admin for rsETH and corresponding aToken(medium)
Notable concerns
- Very conservative LTV (0.05%) and LT (0.1%) parameters may limit rsETH utility as collateral compared to ezETH
- rsETH borrowing completely disabled (borrow cap of 1) limiting capital efficiency
- Protocol depends on oracle at 0xb4B0cbcA864c2Eb0C0342608D92490C034aC1089 for accurate pricing
Generated by Kvorum
02Description
Simple Summary
This is an ARFC to onboard rsETH to the Aave V3 Arbitrum.
Motivation
rsETH has seen continued growth across networks, and is currently the only of the onboarded LRT not available on Arbitrum. We expect further growth of this asset with onboarding to this networks. Arbitrum has one of the largest wstETH reserves of any Aave instance. We suggest to onboard rsETH with similar parameters to ezETH and corresponding E-Modes for rsETH / wstETH and rsETH / stablecoins.
Specification
The table below illustrates the configured risk parameters for rsETH
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | DISABLED |
| Collateral Enabled | true |
| Supply Cap (rsETH) | 900 |
| Borrow Cap (rsETH) | 1 |
| Debt Ceiling | USD 0 |
| LTV | 0.05 % |
| LT | 0.1 % |
| Liquidation Bonus | 7.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 10 % |
| Variable Slope 2 | 300 % |
| Uoptimal | 45 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0xb4B0cbcA864c2Eb0C0342608D92490C034aC1089 |
Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for rsETH and the corresponding aToken.
rsETH/wstETH E-Mode on Arbitrum & Base
| Parameter | Value | Value |
|---|---|---|
| Asset | rsETH | wstETH |
| Collateral | Yes | No |
| Borrowable | No | Yes |
| LTV | 92.50% | - |
| LT | 94.50% | - |
| Liquidation Penalty | 1.00% | - |
References
- Implementation: AaveV3Arbitrum
- Tests: AaveV3Arbitrum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
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04Actions
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