Add tETH to Core Instance Ethereum
01Summary
Proposal to onboard tETH as collateral on Aave V3 Core instance on Ethereum, enabling tETH holders to borrow stablecoins (USDT, USDC) via a dedicated liquid eMode with 72% LTV. tETH will have a 10,000 unit supply cap, very conservative 0.05% LTV in general parameters, and will not be borrowable outside the stablecoin eMode.
- Type
- protocol addition
Key changes
- tETH enabled as collateral asset on Aave V3 Core instance with 10,000 unit supply cap(high)
- Dedicated tETH/stablecoins liquid eMode created with 72% max LTV for borrowing USDT and USDC(high)
- Conservative collateral parameters set: 0.05% LTV and 0.10% LT in general parameters to limit collateral value initially(high)
- tETH borrowing disabled in general parameters; only borrowable within the stablecoin eMode(medium)
- 7.5% liquidation bonus and 10% liquidation protocol fee configured(medium)
Notable concerns
- Very low LTV (0.05%) in general parameters may limit practical collateral utility outside the eMode
- Asset concentrations noted: tETH on Prime instance concentrated among four unique addresses with over 129M deposits
- Proposal contingent on Risk Service providers approval
Generated by Kvorum
02Description
Summary
This publication proposes onboarding tETH as collateral to the Aave V3 Core Instance.
Motivation
After successfully onboard tETH to the Prime instance this publication proposes enabling tETH collateral holders to borrow stablecoins via v3.2 Liquid eModes. tETH was listed on the Prime instance on the 28th June 2025 and since then has provided over 129M of User deposit, mostly from four unique addresses, and has been a significant wstETH liquidity consumer.
Discussions with the TreeHouse team indicate there is strong demand for stablecoins. With insufficient stablecoin liquidity on Prime to support growing tETH, this publication proposes onboarding tETH to Core allow users access to stablecoin liquidity.
Subject to Risk Service providers approval, this publication propose enabling tETH users to access stablecoin liquidity on Core instance.
Specification
The following outlines the initial tETH onboarding parameters.
tETH Ethereum Address: 0xd11c452fc99cf405034ee446803b6f6c1f6d5ed8
General Parameters
| Parameter | Value |
|---|---|
| Chain (instance) | Ethereum (Core) |
| Isolation Mode | false |
| Borrowable | DISABLED |
| Collateral Enabled | true |
| Supply Cap (tETH) | 10,000 |
| Borrow Cap (tETH) | 0 |
| Debt Ceiling | USD 0 |
| LTV | 0.05 % |
| LT | 0.10 % |
| Liquidation Bonus | 7.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 15 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 0 % |
| Variable Slope 2 | 0 % |
| Uoptimal | 45 % |
| Stable Borrowing | DISABLED |
| Stable Slope1 | 0 % |
| Stable Slope2 | 0 % |
| Base Stable Rate Offset | 0 % |
| Stable Rate Excess Offset | 0 % |
| Optimal Stable To Total Debt Ratio | 0 % |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0x85968026294b8f8Fb86d6bF3Cda079f9376aD05A |
tETH/stablecoins liquid eMode
| Parameter | Value |
|---|---|
| Collateral | tETH |
| Borrowable | USDT, USDC |
| Max LTV | 72.00% |
| Liquidation Threshold | 75.00% |
| Liquidation Penalty | 7.50% |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows Aave's standard governance pattern: a single on-chain action that delegatecalls execute() on a dedicated payload contract. The decoded calldata provides no visibility into the specific parameters (LTV, LT, caps, eMode settings, etc.) that this payload contract actually sets, since those are encoded in the contract's deployed bytecode rather than in the proposal's top-level calldata. As a result, I cannot directly verify the numeric parameters listed in the description (e.g., 0.05% LTV, 10,000 supply cap, 72% eMode LTV) against on-chain values from the JSON provided alone. The action target and function name (execute() on a governance payload contract) are consistent with the described intent of onboarding tETH to the Core instance and enabling a stablecoin liquid eMode, and there is nothing in the visible calldata that contradicts the description. However, because the actual parameter-setting logic is opaque at this level of decoding, confidence in a full line-by-line match is low. No discrepancies are flagged, as there is no evidence of mismatch, but a reviewer should ideally cross-reference the linked Solidity implementation file to confirm exact parameter values before relying solely on this analysis.
Generated by Kvorum
04Actions
- Target
- 0x6994…8f24
- 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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