[ARC] Gauntlet Recommendations for wstETH and rETH on ETH V3

Simple Summary

Gauntlet would like to flag that assets wstETH and rETH borrow caps are above the 75% threshold. As per our Methodology, Gauntlet would recommend the following changes to borrow cap:

  • Increase wstETH Borrow Cap from 3k to 6k.
  • Increase rETH Borrow Cap from 1.2k to 2.4k


Asset Current Borrow Cap Conservative Borrow Cap Rec Aggressive Borrow Cap Rec
rETH 1,200 2,482 2,482
wstETH 3,000 11,644 11,644




Given the framework here, Gauntlet plans on publishing an AIP for this set of recommendations next week.

Hi @Pauljlei,

May I suggest upgrading the rETH oracle to use the Chainlink Oracle whilst performing this update, link shared below:

rETH/ETH: 0x536218f9E9Eb48863970252233c8F271f554C2d0

@bgdlabs - Do you have any thoughts on using this oracle.

Currently, rETH on Aave v3 Ethereum uses our sync adapter solution, in this case, composed by the ETH/USD Chainlink feed and the getExchangeRate() function returning the rETH/ETH value, queried directly from the rETH smart contract.
This works flawlessly given the “static” nature of the updates of that getExchangeRate() value, not introducing any technical risk to Aave.

Given there are other pending updates on oracles regarding LSTs on different networks, we recommend not including this change in this proposal. BGD will submit a proposal batching together all the oracles updates.


Update: we plan on publishing an AIP tomorrow, 3/21/2023, for these parameter changes.

We would like to flag that the supply for rETH has reached ~77% of the supply cap.

We recommend a 2X increase to the supply cap, per our supply cap methodology. Would it be possible to update this AIP to incorporate this change?

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Thanks @ChaosLabs - we have already prepared this payload, but will include the rETH changes in our next AIP here.

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AIP: Aave - Open Source Liquidity Protocol