Aave

[ARFC] Onboard rstETH to Aave V3 Prime Instance

Author: ACI (Aave Chan Initiative)

Date: 2025-01-07

ARFC updated with Risk Parameters provided by Chaos 2025-03-03

---

Summary

This is an ARFC to gauge community sentiment for onboarding P2P’s rstETH on AAVE V3 Ethereum.

To align best with goals of all relevant stakeholders, this proposal suggests onboarding rstETH to the Aave v3 Prime instance.

Motivation

Adding rstETH to the Aave v3 Prime instance brings additional synergies for all stakeholders.

rstETH will add additional demand for wstETH borrowing, making the wstETH looping more favorable for the main users. Incentives from P2P can bring additional wstETH liquidity to the Prime instance, bolstering the existing liquidity mining campaigns.

Chain to be deployed/listed

Aave v3 Prime instance on Ethereum

Proof of Liquidity and Deposit Commitments

Additional information of any potential Proof of Liquidity and Deposit Commitments will be provided during ARFC stage.

Specification

rstETH: https://etherscan.io/address/0x7a4EffD87C2f3C55CA251080b1343b605f327E3a

Risk Parameters:

E-Mode Category: rstETH/wstETH

Parameter	Value	Value
Asset	rstETH	wstETH
Collateral	Yes	No
Borrowable	No	Yes
LTV	90%	-
LT	93%	-
Liquidation Penalty	1%	-

rstETH Risk Parameters (Non E-mode)

Parameter	Value
Asset	rstETH
Isolation Mode	No
Borrowable	No
Collateral Enabled	Yes
Supply Cap	5000
Borrow Cap	-
Debt Ceiling	-
LTV	0.05%
LT	0.1%
Liquidation Penalty	7.5%
Liquidation Protocol Fee	10.00%
Variable Base	-
Variable Slope1	-
Variable Slope2	-
Uoptimal	-
Reserve Factor	-
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowable in Isolation	No
E-Mode Category	rstETH/wstETH

MINIMUM_SNAPSHOT_DELAY	ratioReferenceTime	maxYearlyRatioGrowthPercent
7 days	monthly	9.68%

Useful Links

P2P

Documentation

Github [TEMP CHECK] Onboard rstETH to Aave V3 Prime Instance TEMP CHECK Snapshot

Disclaimer

The Aave Chan Initiative is not directly affiliated with P2P and did not receive compensation for creation this proposal.

Next Step

1. Publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
2. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright

Copyright and related rights waived under CC0.