Aave

[ARFC] Onboarding weETH to Aave V3 on Scroll

Author: ACI

Date: 2024-07-19

Proposal updated with Risk Params provided by Risk Service Providers. 2024-07-23

Summary:

This ARFC seeks to add Ether.fi Liquid Restaking Token weETH to Aave V3 on Scroll.

After the successful onboarding of weETH to Aave v3 Ethereum, Arbitrum, and Base, alongside recent Supply and Borrow Cap increases for weETH due to significant demand, this proposal will further increase the ability for Aave to service weETH demand from users.

This proposal will go direct-to-AIP following the asset onboarding framework.

Motivation:

weETH 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 weETH on Arbitrum and Base allowing L2 users to get exposure to LRT yield and points. As weETH has already been approved for onboarding to Aave V3 on Ethereum, Arbitrum, and Base by the DAO, this proposal extends the onboarding of weETH to Aave v3 on Scroll.

Proof of Liquidity and Deposit Commitments:

weETH deposits into Aave on Scroll will accumulate ether.fi and EigenLayer points and Scroll Marks.

Specification:

weETH on Scroll: 0x01f0a31698c4d065659b9bdc21b3610292a1c506

weETH/ETH Chainlink Feed: 0x57bd9E614f542fB3d6FeF2B744f3B813f0cc1258

Risk Parameters will be provided by Risk Service Providers and the ARFC will be updated following their feedback.

Parameter	Value
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap (weETH)	2,000
Borrow Cap (weETH)	400
Debt Ceiling	-
LTV	72.50%
LT	75.00%
Liquidation Bonus	7.50%
Liquidation Protocol Fee	10.00%
Variable Base	0.0%
Variable Slope1	7.00%
Variable Slope2	300.00%
Uoptimal	45.00%
Reserve Factor	15.00%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowed in Isolation	No
E-Mode Category	ETH-correlated

Useful Links

Ether.fi

weETH Base onboarding

weETH Arbitrum onboarding

weETH Onboarding

Disclaimer

This proposal is powered by Skywards. ACI is not directly affiliated with Ether.fi and did not receive compensation for creating this proposal.

The ACI and several ACI team members are both weETH and ETHFI holders.

Next Steps

1. Discussion period on the governance forum with addition of risk parameters.
2. Publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived via CC0.