Multi eMode Update and Creation - rsETH, ezETH, wstETH and weETH
01Summary
Updates eMode categories on Arbitrum for rsETH and ezETH to include wETH as borrowable asset alongside wstETH, creates new wstETH/wETH eMode on Arbitrum, and creates weETH/wstETH eMode on Core. All changes maintain consistent LTV/liquidation parameters aligned with ETH liquid staking token risk profiles to support upcoming DRIPs campaign.
- Type
- parameter change
Key changes
- rsETH eMode on Arbitrum updated to support borrowing wstETH and wETH with 93% LTV and 95% liquidation threshold(high)
- ezETH eMode on Arbitrum updated to support borrowing wstETH and wETH with 93% LTV and 95% liquidation threshold(high)
- New wstETH/wETH eMode created on Arbitrum with 94% LTV and 96% liquidation threshold(high)
- New weETH/wstETH eMode created on Core with 93% LTV and 95% liquidation threshold(high)
Notable concerns
- High LTV ratios (93-94%) and liquidation thresholds (95-96%) across all eMode categories create elevated liquidation risk during market volatility
- All eMode categories involve correlated ETH-denominated assets which could amplify systemic risk during ETH price movements
Generated by Kvorum
02Description
Summary
This publication proposes updating the ezETH and rsETH eMode categories on Arbitrum, a new wstETH/wETH category on Arbitrum and the creation of weETH <> wstETH eMode on Core.
Motivation
In preparation for the upcoming DRIPs campaign on Arbitrum, this publication proposes enabling Kelp and Renzo Liquid Restaking Tokens (LRTs) access to ETH via existing v3.2 eModes.
Upon implementing this proposal, the weETH e-Mode on Core and rsETH and ezETH e-Modes on Arbitrum will each have the same LTV and LT for borrowing wstETH and ETH.
Given the behavior of market participants and expected growth of borrowing demand for WETH market, we recommend including WETH into the E-Modes for rsETH and ezETH. Additionally, in order to align the risk profiles of LRTs and wstETH we recommend creating the wstETH/WETH E-Mode on Arbitrum and weETH/wstETH E-Mode on Core.
Specification
Update rsETH/WETH eMode on Arbitrum
| Parameter | Value |
|---|---|
| Collateral | rsETH |
| Borrowable | wstETH, wETH |
| Max LTV | 93.00% |
| Liquidation Threshold | 95.00% |
| Liquidation Penalty | 1.00% |
Update ezETH/WETH eMode on Arbitrum
| Parameter | Value |
|---|---|
| Collateral | ezETH |
| Borrowable | wstETH, wETH |
| Max LTV | 93.00% |
| Liquidation Threshold | 95.00% |
| Liquidation Penalty | 1.00% |
Create wstETH/WETH eMode on Arbitrum
| Parameter | Value |
|---|---|
| Collateral | wstETH |
| Borrowable | WETH |
| Max LTV | 94.00% |
| Liquidation Threshold | 96.00% |
| Liquidation Penalty | 1.00% |
Create weETH/wstETH eMode on Core
| Parameter | Value |
|---|---|
| Collateral | weETH |
| Borrowable | wstETH, wETH |
| Max LTV | 93.00% |
| Liquidation Threshold | 95.00% |
| Liquidation Penalty | 1.00% |
References
- Implementation: AaveV3ArbitrumAaveV3Ethereum
- Tests: AaveV3ArbitrumAaveV3Ethereum
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal description details four specific eMode configuration changes across Arbitrum and the Ethereum ('Core') market, each with explicit LTV/LT/penalty values. The decoded calldata, however, contains only a single generic action: an execute()/fallback() call to a payload contract on Ethereum mainnet with no decoded arguments. This is consistent with the standard Aave v3 governance pattern, where the on-chain proposal action is a trivial trigger to a pre-audited payload contract (referenced in the proposal's 'Implementation' links) that internally encodes all the parameter changes, including cross-chain execution on Arbitrum via the CrossChainController. Because the calldata does not expose the internal logic of the payload contract, I cannot directly verify that the LTV, LT, and penalty values match the prose, nor confirm the exact Arbitrum-side actions independently. There is no evidence of a mismatch, redirection of funds, or unrelated action - the single action is the expected boilerplate trigger for this proposal type. Given the opacity of the payload's internal calls, confidence is low, but nothing in the visible calldata contradicts the description, so I mark this as consistent rather than flagging an unverifiable discrepancy speculatively.
Generated by Kvorum
04Actions
- Target
- 0x02a0…45b0
- 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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