Aave

Title: [ARFC] Onboarding wstETH to Aave V3 on Base Network

Author: @marczeller - Aave Chan Initiative

Date: 2023-11-12

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Summary

This ARFC proposes the addition of wstETH (wrapped staked ETH) From Lido to the Aave V3 Base Network to enrich the diversity of the ecosystem’s liquid staking solutions.

Motivation

The onboarding of wstETH will give Aave users more options for earning staking rewards on their collateral, reinforcing Aave’s position as a diverse and inclusive DeFi protocol.

Specification

• Contract Address: wstETH - 0xc1CBa3fCea344f92D9239c08C0568f6F2F0ee452

The proposed risk parameters for wstETH are similar to wsETH implementation in other “youngs” Aave L2 markets:

Aggressive parameters:

Risk Parameter	Value
emode	Eth-Correlated
Isolation Mode	No
Borrowable in Isolation	No
Stable Borrow	No
Enable Borrow	Yes
Enable Collateral	Yes
Loan To Value (LTV)	71%
Liquidation Threshold	76%
Liquidation Bonus	6%
Reserve Factor	15%
Liquidation Protocol Fee	10%
Supply Cap	4000 wstETH
Borrow Cap	400 wstETH
Debt Ceiling	N/A
uOptimal	45%
Base	0%
Slope1	7%
Slope2	300%

Conservative parameters

Risk Parameter	Value
Isolation Mode	No
Borrowable in Isolation	No
Stable Borrow	No
Enable Borrow	Yes
Enable Collateral	Yes
Loan To Value (LTV)	67%
Liquidation Threshold	74%
Liquidation Bonus	6%
Reserve Factor	15%
Liquidation Protocol Fee	10%
Supply Cap	100 wstETH
Borrow Cap	10 wstETH
Debt Ceiling	N/A
uOptimal	45%
Base	0%
Slope1	7%
Slope2	300%

Next Steps

1. Success in the snapshot leads to the development of an AIP.

Disclaimer

This proposal is powered by Skywards.

This proposal is independently crafted by the Aave Chan Initiative, with no direct financial incentive from Lido or related entities.

Copyright

Copyright and related rights waived under CC0.