KVORUM
aaveSource: Aave governance v3 · #329

Onboard tETH to Aave v3 Prime Instance

executedJun 27, 2025, 09:50 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to onboard tETH (a liquid restaking token) as collateral on Aave V3 Prime Instance on Ethereum. tETH can be supplied with a 20,000 unit supply cap and used as collateral (disabled for borrowing except via specialized E-Mode), enabling users to borrow against their restaking positions while maintaining yield generation.

Type
protocol addition

Key changes

  • tETH onboarded as collateral asset with 20,000 supply cap and 0.05% LTV in standard mode(high)
  • E-Mode enabled for tETH/wstETH pair with 92% max LTV and 94% liquidation threshold, allowing higher leverage borrowing(high)
  • Borrowing disabled for tETH in standard mode but enabled in E-Mode via wstETH(high)
  • Reserve factor set to 50%, with variable borrow rate slope of 10% and 300% at higher utilization(medium)
  • Flashloans enabled for tETH(medium)
  • Oracle configured using Capped tETH/wstETH/USD price feed with 4.5% yearly growth rate cap and 14-day snapshot delay(medium)
  • Emission admin role assigned to 0xac140648435d03f784879cd789130F22Ef588Fcd for tETH and aToken incentive distribution(low)

Notable concerns

  • Very low LTV of 0.05% in standard mode severely limits collateral efficiency outside of E-Mode
  • Borrow cap of 1 tETH indicates extreme caution or potential future expansion
  • E-Mode dependency concentrates risk around wstETH correlation
  • New asset with limited historical track record in lending protocols
  • Liquidation bonus of 7.5% in standard mode combined with low LTV may result in rapid liquidations under volatility
ContractsAave V3 Prime Instance on EthereumtETH token contractwstETH (via E-Mode pairing)
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

439 words

Simple Summary

This proposal aims to onboard tETH to Aave V3 Prime Instance.

Motivation

Assets like tETH are designed to unify fragmented interest rate markets and optimize yield generation. Users contribute ETH and receive tETH, redeemable for their initial ETH plus additional yield. This yield comes from a dynamic strategy that balances staking rewards and interest rate arbitrage on lending protocols. For tETH, this ensures baseline yields equivalent to native ETH staking while capturing additional returns from rate inefficiencies. These assets are composable across DeFi, enabling broader usability.

By onboarding tETH to Aave V3 Prime Instance, we can:

  • Enhance capital efficiency: Users can borrow against tETH, unlocking liquidity while continuing to earn restaking rewards.
  • Increase protocol revenue: More borrowing activity leads to higher interest income for Aave.
  • Expand Aave’s influence in restaking finance: Positioning Aave as a central lending hub for LRTs.

Specification

The table below illustrates the configured risk parameters for tETH

ParameterValue
Isolation Modefalse
BorrowableDISABLED
Collateral Enabledtrue
Supply Cap (tETH)20,000
Borrow Cap (tETH)1
Debt CeilingUSD 0
LTV0.05 %
LT0.1 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor50 %
Base Variable Borrow Rate0 %
Variable Slope 110 %
Variable Slope 2300 %
Uoptimal45 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED

Pricefeed details

ParameterValue
OracleCapped tETH/wstETH/USD
Ratio providertETH
Underlying OracleCapped wstETH/USD
Oracle Latest Answer(2025-05-21) USD 3085.41598338
maxYearlyGrowthRatePercent4.50%
Snapshot Delay14 days

tETH/wstETH E-Mode

ParameterValueValue
AssettETHwstETH
CollateralYesNo
BorrowableNoYes
Max LTV92.00%-
Liquidation Threshold94.00%-
Liquidation Bonus2.00%-

Additionally 0xac140648435d03f784879cd789130F22Ef588Fcd has been set as the emission admin for tETH and the corresponding aToken.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

The decoded on-chain action is a single generic execute() call to an executor/payload contract with no arguments decoded — this is the standard pattern for Aave V3 cross-chain/Lido governance proposals, where the actual listing parameters (caps, LTV, LT, oracle, e-mode, emission admin) are hard-coded in the payload contract's bytecode (referenced in the proposal as AaveV3EthereumLido_OnboardTETHToAaveV3PrimeInstance.sol) rather than passed as calldata. Because the decoded action contains no granular parameters, I cannot directly verify each numeric risk parameter, oracle address, or emission admin address against the calldata itself. There is nothing in the decoded action that contradicts the description, and the single execute() call is consistent with intending to perform the described onboarding steps, but the verification is inherently limited to trusting the referenced payload contract matches the description. No mismatches, omissions, or extra claims can be identified from the calldata alone, so I am not flagging any discrepancies, but confidence is low given the lack of decoded parameter-level data to cross-check against the detailed specification table.asasoning: extra field... 'value_wei zero' consistent.

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
0x61d0…8b3e
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters23
VP participating566.3K
Outcome (current)For
Current support100%

06Voters

23 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.