KVORUM
aaveSource: Aave governance v3 · #414

Onboard rsETH to Aave V3 Avalanche Instance

executedNov 25, 2025, 11:43 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Proposal to onboard rsETH (Kelp DAO's liquid staking token) to Aave V3 on Avalanche network with a 5,000 supply cap, following successful integration on Ethereum, Arbitrum, and Base using Direct-to-AIP path to bypass full ARFC process.

Type
protocol addition

Key changes

  • Onboard wrsETH as collateral on Aave V3 Avalanche with supply cap of 5,000 wrsETH(high)
  • Configure risk parameters including 0.05% LTV, 0.1% LT, 7% liquidation bonus, and 45% reserve factor(high)
  • Enable wrsETH/WETH E-mode with 93% max LTV and 95% liquidation threshold for efficient leverage on ETH pairs(high)
  • Set up oracle with capped wrsETH/ETH/USD price feed and 9.83% max yearly growth cap(high)
  • Disable borrowing for wrsETH (borrow cap of 1) while enabling as collateral(medium)
  • Enable flashloan functionality for wrsETH(medium)

Notable concerns

  • Very restrictive LTV of 0.05% and LT of 0.1% suggests conservative risk approach for new asset
  • Borrowing disabled (cap of 1) limits utility as supply-side asset
  • 5,000 supply cap may limit liquidity if demand exceeds availability
ContractsAaveV3Avalanche
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 seeks to onboard rsETH to the Aave V3 deployment on the Avalanche 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 Avalanche 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, Linea, and Base this proposal aims to onboard rsETH to Avalanche 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)5,000
Borrow Cap (wrsETH)1
Debt CeilingUSD 0
LTV0.05 %
LT0.1 %
Liquidation Bonus7 %
Liquidation Protocol Fee10 %
Reserve Factor45 %
Base Variable Borrow Rate0 %
Variable Slope 110 %
Variable Slope 2300 %
Uoptimal45 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED

Oracle

ParameterValue
Oracle addressCapped wrsETH / ETH / USD
Ratio providerWRSETH-ETH Exchange Rate
UnderlyingETH / USD
Max Yearly Growth9.83%
Minimum Snapshot delay14 days
last answer(2025-11-17) USD 3231.04489472

E-mode

wrsETH/WETH E-Mode

ParameterwrsETHWETH
CollateralYesNo
BorrowableNoYes
Max LTV93%-
Liquidation Threshold95%-
Liquidation Bonus1.0%-

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

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

0 total

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05Tally

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Outcome (current)—
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06Voters

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07Forum

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