Gauntlet’s Recommendations
We support the addition of rETH to Aave v3 Optimism under the parameters proposed.
One thing to note is that unlike on Ethereum mainnet, where users can mint and burn rETH in exchange for ETH via the Rocket Pool smart contract - on L2, the quickest option to convert back to ETH is to swap on a DEX such as Uniswap for ETH. Otherwise, rETH on Optimism, like on Arbitrum, needs to be bridged back to mainnet in order to be arbitraged against the smart contract, which creates the possibility of temporary divergences between the rETH price on Optimism and the underlying ETH contained in the pool.
We look forward to community alignment on killswitches for LSTs that can drive further capital efficiency for rETH.