KVORUM
aaveSource: Aave governance v3 · #358

Onboard rsETH to Aave V3 Linea Instance

executedAug 23, 2025, 12:04 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Onboard rsETH (Kelp DAO's liquid staking token) to Aave V3 on Linea network using the Direct-to-AIP path, following successful deployments on Ethereum, Arbitrum, and Base. rsETH will be enabled as collateral with a 70% LTV and 400 supply cap, but borrowing will be disabled.

Type
protocol addition

Key changes

  • Onboard wrsETH as collateral asset on Aave V3 Linea with supply cap of 400 tokens(high)
  • Configure rsETH with 70% LTV and 73% liquidation threshold for collateral use(high)
  • Disable borrowing for rsETH while enabling it as flashloanable collateral(medium)
  • Set emission admin for wrsETH and corresponding aToken at specified address(medium)
  • Implement price oracle using Chainlink wrsETH/rsETH exchange rate and ETH/USD feed with 9.83% max yearly ratio growth cap(medium)

Notable concerns

  • Borrowing is disabled for rsETH despite collateral enablement, limiting utility compared to other assets
  • Oracle uses capped ratio provider with 1.03 snapshot ratio from March 2025, which may not reflect current market conditions
  • Supply cap of 400 wrsETH is relatively low and may constrain adoption on Linea
ContractsAaveV3Linea
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

436 words

Simple Summary

This proposal seeks to onboard rsETH to the Aave V3 deployment on the Linea network.

As the onboarding of rsETH has already been approved and executed on the Ethereum, Arbitrum, and Base Aave V3 instances, this proposal follows the Direct-to-AIP path to extend rsETH support to the Linea instance without repeating the full ARFC process.

Motivation

rsETH is a liquid staking token issued by Kelp DAO, offering users access to rewards from ETH staking while maintaining liquidity and DeFi composability. Its integrations on Aave across other networks have proven successful in terms of risk profile and utility.

Given that:

  • rsETH has already passed governance and risk assessments for Ethereum, Arbitrum, and Base,

  • Linea is a supported Aave V3 deployment with growing activity and integration potential,

  • A precedent has been set for using the Direct-to-AIP path when onboarding previously approved assets to new instances,

This proposal aims to onboard rsETH to Linea V3 under the same configuration parameters used for other L2s, adjusted for market conditions where appropriate.

Specification

The table below illustrates the configured risk parameters for wrsETH

ParameterValue
Isolation Modefalse
BorrowableDISABLED
Collateral Enabledtrue
Supply Cap (wrsETH)400
Borrow Cap (wrsETH)0
Debt CeilingUSD 0
LTV70 %
LT73 %
Liquidation Bonus10 %
Liquidation Protocol Fee10 %
Reserve Factor45 %
Base Variable Borrow Rate0 %
Variable Slope 120 %
Variable Slope 2300 %
Uoptimal45 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0x444f25c5E73fED92B91F3ECB1bD27003C3CDdeE7

Oracle and CAPO parameters:

ParameterValue
OracleCapped wrsETH / rsETH(ETH) / USD
Ratio ProviderChainlink wrsETH / rsETH Exchange Rate
Underlying FeedChainlink ETH / USD
Oracle Latest Answer(Aug-12-2025) 4,626.85069182
Snapshot Ratio1.03
Snapshot TimestampMarch 9, 2025, 17:27:19 UTC
Max Yearly Ratio Growth %9.83%

Additionally 0xdef1FA4CEfe67365ba046a7C630D6B885298E210 has been set as the emission admin for wrsETH and the corresponding aToken.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

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04Actions

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05Tally

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