Optimism - Create ETH eMode Category
01Summary
Proposal to create an ETH-correlated eMode category on Aave v3 Optimism with wstETH and wETH as initial assets, enabling higher capital efficiency for yield strategies with LTV at 90% and liquidation threshold at 93%.
- Type
- protocol addition
Key changes
- Creation of eMode category 1 (ETH Correlated) on Aave v3 Optimism(high)
- Addition of wstETH and wETH as assets in the new eMode(high)
- Loan to Value parameter set at 90.00%(high)
- Liquidation Threshold parameter set at 93.00%(high)
- Liquidation Bonus parameter set at 1.00%(medium)
Notable concerns
- High LTV (90%) and liquidation threshold (93%) indicate elevated liquidation risk in volatile market conditions
Generated by Kvorum
02Description
Summary
This AIP if implemented will create an ETH nominated eMode category on the Aave v3 Optimism deployment.
Motivation
Creation of an eMode on Aave v3 Optimism will enable users to enter yield maximising strategies with greater capital efficiency.
With the introduction of an ETH eMode, Aave Protocol is expected to experience greater borrowing demand for wETH, leading to enhanced revenue generation.
The introduction of the ETH eMode is expected to lead to structured yield maximising products/strategies being built on Aave Protocol.
wstETH and wETH will be included as initial assets within the ETH correlated eMode.
Specification
The following risk parameters have been approved by Chaos Labs.
Ticker: wstETH
Contract: optimism:0x1F32b1c2345538c0c6f582fCB022739c4A194Ebb
Ticker: wETH
Contract: optimism:0x4200000000000000000000000000000000000006
| Parameter | Value |
|---|---|
| Category | 1 (ETH Correlated) |
| Assets | wstETH, wETH |
| Loan to Value | 90.00% |
| Liquidation Threshold | 93.00% |
| Liquidation Bonus | 1.00% |
Implementation
A list of relevant links for this proposal:
The proposal Payload was reviewed by Bored Ghost Developing.
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata consists of a single generic 'execute(address)' call routed through the Aave governance short executor, passing the address of a payload contract (0x80cb7e9E...). This is the standard bridging pattern for Aave v3 cross-chain governance proposals: the top-level Ethereum-side action does not itself contain the granular parameter changes (eMode category creation, asset additions, LTV/LT/Liquidation Bonus values) — those are encoded inside the target payload contract's own execute logic, which is referenced in the proposal's 'Implementation' section (Payload.sol) and was reviewed by BGD Labs. Because the decoded action here is opaque (just an address pointer to the payload), I cannot directly verify the specific numeric risk parameters (90% LTV, 93% LT, 1% bonus) or the exact asset addresses against on-chain calldata — this is expected and typical for this proposal type, not a sign of tampering. There is no evidence in the decoded action of any target, recipient, or value inconsistent with the description, and no additional undisclosed actions are present. Given the lack of granular decoded detail, confidence in a full parameter-level comparison is low, but nothing in the visible calldata contradicts the description, so I mark this consistent rather than flagging a discrepancy based on inability to verify assumed-standard implementation details.
Generated by Kvorum
04Actions
- Target
- 0x5f5c…6711
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x80cb7e9E015C5331bF34e06de62443d070FD6654" }- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
08Similar proposals
- aavecanceledOptimism - Create ETH eMode Category100%
- aaveexecutedAdd rETH Aave v3 Optimism80%
- aaveexecutedonboard WSTETH to Aave Optimism V3 pool80%
- aaveexecutedActivate Emode for rETH Aave Ethereum V374%
- aaveexecutedAdd wstETH to Polygon Aave v374%
- aaveexecutedMulti eMode Update and Creation - rsETH, ezETH, wstETH and weETH73%
- aaveexecutedOnboard ezETH to Lido Instance72%
- aaveexecutedAdd ezETH to Aave v3 Core Instance71%
- aaveexecutedAdd WETH to the wrsETH wstETH E-Mode on Aave V3 Base Instance71%
- aaveexecutedEthereum v2 - wETH Interest Rate Curve Upgrade71%