KVORUM
aaveSource: Aave governance v3 · #76

weETH Arbitrum onboarding

executedApr 19, 2024, 06:39 PM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

Add weETH (Ether.fi's wrapped Liquid Restaking Token) to Aave V3 on Arbitrum with defined risk parameters including 72.5% LTV, 1,000 weETH supply cap, and 100 weETH borrow cap in isolation mode.

Type
protocol addition

Key changes

  • Onboard weETH token to Aave V3 Arbitrum with isolation mode enabled(high)
  • Set supply cap at 1,000 weETH and borrow cap at 100 weETH(high)
  • Configure LTV at 72.5% and liquidation threshold at 75%(high)
  • Enable borrowing and collateral functionality with 0% debt ceiling(medium)
  • Enable flash loans for weETH(low)

Notable concerns

  • weETH is a relatively new LRT with exposure to EigenLayer restaking risks
  • Isolation mode restricts collateral usage which may limit utility
  • High liquidation threshold (75%) suggests cautious risk parameters
ContractsAave V3 ArbitrumweETH token
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

309 words

Simple Summary

This AIP seeks to add Ether.fi Liquid Restaking Token weETH to Aave V3 Arbitrum.

Motivation

eETH is an LRT that allows users to stake their ETH, accrue staking rewards, and receive additional rewards through native restaking on EigenLayer.

Ether.fi has also launched eETH on Arbitrum, allowing users on the L2 to get exposure to the LRT yield and points. As weETH has already been approved for onboarding to Aave v3 Ethereum by the DAO, this proposal aims to extend the onboarding of weETH to Aave v3 Arbitrum.

Specification

The table below illustrates the configured risk parameters for weETH

ParameterValue
Isolation Modetrue
BorrowableENABLED
Collateral Enabledtrue
Supply Cap (weETH)1,000
Borrow Cap (weETH)100
Debt CeilingUSD 0
LTV72.5 %
LT75 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor15 %
Base Variable Borrow Rate0 %
Variable Slope 17 %
Variable Slope 2300 %
Uoptimal45 %
Stable BorrowingDISABLED
Stable Slope17 %
Stable Slope2300 %
Base Stable Rate Offset2 %
Stable Rate Excess Offset20 %
Optimal Stable To Total Debt Ratio20 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0x517276B5972C4Db7E88B9F76Ee500E888a2D73C3

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorum

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04Actions

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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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