Add ezETH to Aave v3 Core Instance
01Summary
Proposal to onboard ezETH as collateral on Aave V3 Core Instance on Ethereum with a 50,000 ezETH supply cap, enabling users to access USDC and USDT borrowing through stablecoin eMode and supporting arbitrage opportunities across Aave instances.
- Type
- protocol addition
Key changes
- Add ezETH as collateral to Aave V3 Core Instance on Ethereum with 50,000 supply cap(high)
- Create ezETH/wstETH eMode with 93% max LTV and 95% liquidation threshold for ETH-staking strategy optimization(high)
- Create ezETH/stablecoin eMode with 75% max LTV and 78% liquidation threshold enabling USDC and USDT borrowing(high)
- Set ezETH as non-borrowable in regular mode with 0.05% LTV and 0.10% LT to restrict usage outside eMode(medium)
- Enable flashloans for ezETH while disabling stable borrowing and siloed borrowing(medium)
Notable concerns
- Very low LTV (0.05%) and LT (0.10%) in standard mode may severely limit ezETH utility outside eMode categories
- ezETH is non-borrowable in regular mode, restricting its use as a source of capital
- Proposal depends on successful arbitrage activity between instances to achieve stated benefits
Generated by Kvorum
02Description
Summary
This publication proposes onboarding ezETH as collateral to the Aave V3 Core Instance.
Motivation
With the recent onboarding of weETH to the Prime instance, the wstETH Borrow Rate has increased to above 0.50% at times and adversely affected the yield strategies utilizing wstETH debt. Whilst rsETH users can migrate to Core, ezETH users are not yet able to migrate positions and optimize for the lowest cost of capital.
Upon listing ezETH on Core and reducing the wstETH borrow rate, users are expected to arbitrage the wstETH borrow rate across the markets, enabling weETH to continue growing on Prime. Given the yield-maximizing nature of the strategies, a degree of size needs to be able to move freely between the markets, which adding ezETH to Core enables.
The Renzo team has expressed specifically that investors are requesting access to USDC and USDT on the Core instance, and only on Ethereum. To support this request, an ezETH stablecoin eMode has been proposed below.
This proposal will be under Direct to AIP, as ezETH is already listed on other Aave instances.
Specification
ezETH Ethereum Address: 0xbf5495efe5db9ce00f80364c8b423567e58d2110
General Parameters
| Parameter | Value |
|---|---|
| Chain (instance) | Ethereum (Core) |
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap (ezETH) | 50,000 |
| Borrow Cap (ezETH) | 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 | - |
| Variable Slope 1 | - |
| Variable Slope 2 | - |
| 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 |
| eMode Category | ezETH/wstETH |
| eMode Category | ezETH/stablecoins |
ezETH/wstETH liquid eMode
| Parameter | ezETH | wstETH |
|---|---|---|
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 93.00% | - |
| Liquidation Threshold | 95.00% | - |
| Liquidation Penalty | 1.00% | - |
ezETH/stablecoin liquid eMode
| Parameter | ezETH | USDC | USDT |
|---|---|---|---|
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 75.00% | - | - |
| Liquidation Threshold | 78.00% | - | - |
| Liquidation Penalty | 7.50% | - | - |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal follows the standard Aave governance pattern where the on-chain vote calls execute() on a single payload contract that was pre-deployed and audited (linked in the 'Implementation' reference). The decoded calldata provided here contains only this generic execute() call with no further decoded arguments, meaning the specific risk parameters (LTV, LT, supply/borrow caps, eMode configurations, etc.) described in the proposal cannot be independently verified against the raw calldata in this dataset. There is nothing in the decoded action that contradicts the description, but there is also insufficient granularity to confirm each numeric parameter matches exactly. Given Aave's well-established pattern of payload contracts implementing exactly what is described (and this being flagged as Direct-to-AIP with existing test files referenced), I did not find any actual value mismatches, target mismatches, or omissions I could point to with confidence — but the opacity of the single execute() call means confidence in a full parameter-level match is low. I therefore rate this consistent with low confidence rather than flagging speculative discrepancies that cannot be substantiated from the calldata provided.
Generated by Kvorum
04Actions
- Target
- 0x0220…039c
- 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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