# \[ARFC\] Add wstUSR to Aave v3 Core Instance **URL:** \ **Category:** New Asset\ **Created:** [March 15, 2025, 8:25am UTC](https://governance.aave.com/t/arfc-add-wstusr-to-aave-v3-core-instance/21443 "2025-03-15T08:25:01Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [March 15, 2025, 8:25am UTC](https://governance.aave.com/t/arfc-add-wstusr-to-aave-v3-core-instance/21443/1 "2025-03-15T08:25:01Z")
# [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](https://resolv.xyz/)’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%](https://etherscan.io/token/0x66a1e37c9b0eaddca17d3662d6c05f4decf3e110#balances) of USR on Ethereum is staked and further insights are available on this Dune [dashboard](https://dune.com/saul/resolv-labs-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](https://app.resolv.xyz/overview) - 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](https://docs.resolv.xyz/litepaper/protocol-mechanics/collateral-pool/liquidity-management) 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/](https://resolv.xyz/) Collateral pool addresses: [Resolv App](https://app.resolv.xyz/overview) GitHub: [resolv-im · GitHub](https://github.com/resolv-im) Docs: [What is Resolv? | Resolv Docs](https://docs.resolv.xyz/litepaper) Audit: [Security | Resolv Docs](https://docs.resolv.xyz/litepaper/resources/security) Twitter: [https://x.com/resolvlabs](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 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 via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**Author:** ![ChaosLabs](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/chaoslabs/32/6850_2.png) [@ChaosLabs](https://governance.aave.com/u/ChaosLabs)\ **Post date:** [March 20, 2025, 5:05pm UTC](https://governance.aave.com/t/arfc-add-wstusr-to-aave-v3-core-instance/21443/2 "2025-03-20T17:05:29Z")
We have provided a comprehensive overview of the Resolv Protocol in the following post: > [@\[ARFC\] Add USR to Aave v3 Core Instance](https://governance.aave.com/t/arfc-add-usr-to-aave-v3-core-instance/21444/2): > > Overview Chaos Labs recommends listing Resolv’s USR stablecoin within Aave V3’s Ethereum Core Instance Deployment. Below we present a comprehensive analysis and recommendations. Resolv Resolv is a protocol that operates the USR stablecoin and the Resolv Liquidity Pool (RLP). USR maintains stability through delta-neutral ETH-denominated spot and perpetual positions across multiple exchanges, similar to Ethena. RLP, meanwhile, functions as the protocol’s liquid insurance pool, serving as the juni… Our parameter specification, which we have aligned with @LlamaRisk, is as follows: | **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% | - | - | - | # **Disclaimer** Chaos Labs has not been compensated by any third party for publishing this ARFC. # **Copyright** Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain) ---
**Author:** ![LlamaRisk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/llamarisk/32/12865_2.png) [@LlamaRisk](https://governance.aave.com/u/LlamaRisk)\ **Post date:** [March 21, 2025, 12:40pm UTC](https://governance.aave.com/t/arfc-add-wstusr-to-aave-v3-core-instance/21443/3 "2025-03-21T12:40:02Z")
## Summary LlamaRisk supports onboarding USR to Aave v3 Core Instance contingent upon establishing a formal bug bounty program. We recommend introducing this asset similar to sUSDe, with lower general LTV/LT while enabling a wstUSR Stablecoins Liquid E-Mode for enhanced stablecoin borrowing. We propose including USDC, USDT, and GHO in this E-Mode. The wstUSR review builds on the [USR report](https://governance.aave.com/t/arfc-add-usr-to-aave-v3-core-instance/21444/3), which remains the reference for in-depth analysis of Resolv protocol. > **Collateral Risk Assessment** > > ### General Asset Features > > Staked USR (stUSR) maintains the same value as USR, with amounts growing through staking rewards primarily allocated to stUSR and RLP holders. stUSR doesn’t absorb losses; RLP bears any losses. wstUSR is the non-rebasing ERC20 version of stUSR with accumulating value. > > ### Liquidity > > Over 80% of the token supply is concentrated on Pendle - SY wstUSR: 0x6c78661c00D797C9c7fCBE4BCacbD9612A61C07f. > > ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/5/536066298b6783881710c724eb2c27437268e27d.png) > > _Source: [Etherscan](https://etherscan.io/token/tokenholderchart/0x1202F5C7b4B9E47a1A484E8B270be34dbbC75055), Date: March 12th, 2025_ > > wstUSR distribution shows concentration in Pendle and Spectra V2: > > - Pendle: wstUSR (27 Mar 2025) - $34.1M TVL > - Spectra: wstUSR (27 Mar 2025) - $507K TVL > - Spectra: wstUSR (26 Jun 2025) - $14.9M TVL > > stUSR can be unstaked to USR anytime without waiting periods, sharing their liquidity. With stUSR having limited direct liquidity pools, wstUSR parameters should align closely with USR. > > ### Stability > > wstUSR is backed by RLP as an insurance layer against counterparty, market, and liquidity risks. The current USR collateralization ratio is approximately 118.30%. RLP supply has grown alongside USR/stUSR, maintaining consistent protection. > > ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/3/37faa9f2f61ef3633064e0788f0281f39582795b.png) > > _Source: [Dune LLR](https://dune.com/queries/4832364/8006100), Date: March 10th, 2025_ > > ### Yield Venues > > Primary venues for wstUSR are Pendle, Spectra V2, and Morpho, where the most liquid market offers $11.95M for USDC borrowing at 7.34% using PT-wstUSR-27MAR2025 collateral. Deploying wstUSR on Aave could enable yield-leveraging similar to sUSDe strategies, with existing stUSR supply and instant unstaking as a reference for overall liquidity and supply caps. > > ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/7/77e93576b4e3ca33a78001ee06bef84b13e1dbfa.jpeg) > > _Source: [DefiLlama](https://defillama.com/yields?token=STUSR&token=WSTUSR), Date: March 17th, 2025_ ## Aave V3 Specific Parameters Parameters are presented jointly with @ChaosLabs. ## Price feed Recommendation Building on our recommendation for USR, which was for using the Proof-of-Reserves (PoR) oracle, we recommend employing wstUSR’s [internal exchange rate](https://etherscan.io/address/0x7f45180d6fFd0435D8dD695fd01320E6999c261c) in conjunction with CAPO, protecting against potential rate inflation risk. ### Disclaimer This review was independently prepared by LlamaRisk, a community-led decentralized organization funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work. The information provided should not be construed as legal, financial, tax, or professional advice.