KVORUM
aaveSource: Aave governance v3 · #424

Add WETH to the wrsETH wstETH E-Mode on Aave V3 Base Instance

executedDec 24, 2025, 02:22 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Add WETH as a borrowable asset to the wrsETH/wstETH E-Mode category on Aave V3 Base, enabling wrsETH-WETH looping strategies and improving capital efficiency for yield-maximizing positions.

Type
parameter change

Key changes

  • Add WETH as borrowable asset in wrsETH/wstETH E-Mode on Aave V3 Base(high)
  • Set wrsETH collateral with Max LTV of 92.5%, Liquidation Threshold of 94.5%, and Liquidation Bonus of 1.0%(high)
  • Enable wrsETH-WETH looping strategies through E-Mode borrowing(medium)

Notable concerns

  • Proposal relies on assumption of strong sidelined demand and rsETH inflows to Base to absorb excess WETH supply
  • Risk stewards updated cap changes from original forum post
ContractsAave V3 BasewrsETH E-Mode Category
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

244 words

Simple Summary

This proposal seeks to extend utility for wrsETH on the Aave V3 Base market by adding WETH borrowing to the existing wrsETH/wstETH E-Mode category.

Motivation

rsETH—issued by Kelp DAO—is already integrated across various Aave deployments and has exhibited a stable risk and liquidity profile. On Base, wrsETH suppliers currently rely primarily on stablecoin borrowing and the existing wstETH E-Mode, which limits the efficiency of yield-maximizing leveraged positions.

By adding WETH as a borrowable asset in the wrsETH/wstETH E-Mode, Aave unlocks traditional wrsETH–WETH looping strategies.

Given strong sidelined demand and Kelp’s growing LRT ecosystem, we expect significant additional rsETH inflows to Base, enabling the market to absorb excess WETH supply while restoring balanced utilization levels.

Specification

The wrsETH/wstETH emode on the Base instance will receive the following parameters

ParameterValueValueValue
AssetwrsETHwstETHWETH
CollateralYesNoNo
BorrowableNoYesYes
Max LTV92.5%--
Liquidation Threshold94.5%--
Liquidation Bonus1.0%--

The caps changes mentioned in the original forum post was updated by the risk stewards.

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

A calldata-vs-description analysis is not generated yet. Review the decoded actions →

04Actions

0 total

This proposal carries no on-chain actions.

05Tally

Summed from votes

Voters77
VP participating838.4K
Outcome (current)For
Current support100%

06Voters

77 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.