[ARFC] Add wstUSR to Aave v3 Core Instance
title: [ARFC] Add wstUSR to Aave v3 Core on Ethereum
author: @ ACI & TokenLogic
created: 2025-03-15
Risk Parameters updated 2025-03-25
Summary
The proposal aims to onboard Resolv’s wstUSR, to Aave v3 protocol Core Market on Ethereum.
Motivation
Resolv is a decentralized protocol designed to manage USR, a stablecoin backed by a delta-neutral, ETH-denominated strategy. To ensure USR remains overcollateralized, Resolv operates the Resolv Liquidity Pool (RLP), which serves as a liquid insurance reserve. Details relating to onboarding USR can be found here.
wstUSR is the wrapped version of stUSR, staked USR. wstUSR, like wstETH is designed for better compatibility with DeFi protocols. 42.65% of USR on Ethereum is staked and further insights are available on this Dune dashboard. Staked USR holders receive 70% of the Base Rewards from the Collateral Pool which consists of the ETH, USDC and USDT used to mint USR.
Collateral Pool
The Collateral Pool holds the assets backing USR and is structured to generate yield while mitigating exposure to ETH price fluctuations by employing hedging strategies similar to those used by Ethena. 70% of the Base Reward generated by the Collateral Pool are directed to staked USR holders. The other 30% is allocated to the insurance like asset RLP.
The composition of the Collateral Pool ($653.65M) is majority ETH-correlated ($582.65M), 56.8% of which is wstETH, and the remainder ($71.00M) held in stablecoins. The assets are currently allocated as shown below:
- 55.1% held in on-chain treasury
- 24.7% secured in institutional custody—leveraging Ceffu for Binance collateral and Fireblocks for Deribit; and,
- 20.2% is allocated to exchanges, including Binance Hyperliquid and Deribit.
Furthermore, to efficiently manage short-term liquidity demands, such as redemptions or margin requirements, Resolv utilizes Aave v3 on Ethereum to borrow WETH against wstETH.
Ongoing Points Campaign
Resolv is currently running a points-based incentive campaign, with Season 1 scheduled to conclude between the end of Q1 and the beginning of Q2. As part of this initiative, wstUSR holders earn 5 points per wstUSR held daily, providing an additional incentive for participation.
Specification
Ticker: wstUSR
Contract address on mainnet: 0x1202F5C7b4B9E47a1A484E8B270be34dbbC75055
Chainlink oracle: upcoming
Risk Parameters have been provided by Risk Services Providers and ARFC has been updated accordingly 2025-03-25
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap | 45,000,000 |
| Borrow Cap | - |
| Debt Ceiling | - |
| LTV | 73% |
| LT | 78% |
| Liquidation Bonus | 6% |
| Liquidation Protocol Fee | 10% |
| Variable Base | - |
| Variable Slope1 | - |
| Variable Slope2 | - |
| Uoptimal | - |
| Reserve Factor | - |
USR Stablecoins Emode
| Parameter | Value | Value | Value | Value |
|---|---|---|---|---|
| Asset | wstUSR | USDC | USDT | GHO |
| Collateral | Yes | No | No | No |
| Borrowable | No | Yes | Yes | Yes |
| LTV | 90.00% | - | - | - |
| LT | 92.00% | - | - | - |
| Liquidation Penalty | 2.00% | - | - | - |
Useful Links
Project: https://resolv.xyz/
Collateral pool addresses: Resolv App
GitHub: resolv-im · GitHub
Docs: What is Resolv? | Resolv Docs
Audit: Security | Resolv Docs
Twitter: https://x.com/resolvlabs
Disclosure
The ACI and TokenLogic are not directly affiliated with Resolv and did not receive compensation for creation this proposal.
Next Steps
- Publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
- 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 via CC0.
