Hi Everyone 
@llamaxyz will create a Snapshot to advance wstETH towards being listed on Arbitrum starting Monday 6th February.
- YAE - wstETH with eMode
- YAE - wstETH without eMode
- NAE
- ABSTAIN
We will provide an option to list wstETH with and without eMode. We note here Aave elected to list wstETH on Optimism without an eMode at launch.
Risk Parameters
The following parameters are to be used which are derived from the Chaos and Gauntlet post. @Llamaxyz opted to include the more conservative value for the initial listing with an expectation that the parameters will be actively maintained after the listing goes live.
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (in tokens) | 1,200 |
| Borrow Cap (in tokens) | 190 |
| Debt Ceiling | 0 |
| LTV | 70.0% |
| LT | 79.0% |
| Liquidation Bonus | 7.2% |
| Liquidation Protocol Fee | 10% |
ETH eMode Category
| Category | Assets Included | Loan to Value | Liquidation Threshold | Liquidation Bonus |
|---|---|---|---|---|
| Ethereum Correlated | wstETH wETH | 90% | 93% | 2% |
Borrow Rates
| Category | Value |
|---|---|
| Base | 0.25% |
| Slope1 | 4.50% |
| Slope2 | 80.00% |
| Uoptimal | 45.00 |
| Reserve Factor | 15.00 |
Regarding the more qualitative assessment of wstETH on Arbitrum, wstETH on Arbitrum is very similar to Optimism as shared here.
As the Arbitrum bridge is owned by Lido DAO on Ethereum, no action can be taken on the bridge without explicit Lido DAO approval with exception to pausing the bridge. L1 and L2 upgrades are implemented via governance approval on Ethereum and utilise the Aave Governance Cross-Chain bridges contracts.
There is a 3 of 5 multisig on Arbitrum that performs the Emergency Brake role, which can pause deposits and withdrawals in the bridge contract. Do note resuming operations can only be performed by the Aragon Agent. Details about the signers on the multisig are mentioned in the original proposal.
We would like for @bgdlabs to share with us how the oracles will be constructed for each scenario with and without an eMode. There are some more technical considerations with respect to if it is just listing wstETH as collateral relative to if wstETH and wETH are included in an Ethereum eMode Category. Ideally, some insight into this aspect before the Snapshot vote would be ideal.