Aave

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title: Price feeds operational update Pt2.5 - wstETH author: BGD Labs (@bgdlabs) discussions: https://governance.aave.com/t/bgd-operational-oracles-update/13213/9

Simple Summary

This proposal further updates price feeds of LSTs (in this case wstETH) to be priced based on the so-called exchange rate, and not on the secondary market (e.g. DEXes). The changes are the following:

• The feed for wstETH on Aave v3 Polygon will be custom adapter (CL synchronicity), using the wstETH / stETH exchange rate and ETH / USD feed

Motivation

We assume the price of the stETH to be in the ration 1 to 1 to the price of the ETH, but the current price feed for wstETH currently uses stETH / ETH feed inside, which is based on secondary market and can introduce additional unnecessary volatility of the asset. We are removing the usage of intermediate stETH / ETH feed.

Specification

Upon execution, the proposal will:

• use Config Engine to update wstETH price feed to 0xe34949A48cd2E6f5CD41753e449bd2d43993C9AC on Aave v3 Polygon

Security and additional considerations

Custom price adapters are already widely used in the system for price-correlated assets and were reviewed by the auditors.

• Comparing the answers between the new adapter and existing one showed that the difference did not exceed 1% during the last half of the year.

References

Tests: Polygon

Proposal payload implementation: Polygon

Price Adapters: wstETH Polygon

Copyright

Copyright and related rights waived via CC0.