As the community has voted to onboard weETH to Aave v3 Ethereum, ACI has created the following proposal to include onboarding of weETH to Aave v3 Arbitrum as well. This proposal can proceed direct to AIP and can be included in the upcomming AIP vote for weETH onboarding absent any dissent from the community.
Title: [ARFC] Onboarding of weETH to Aave v3 on Arbitrum
Author: ACI ( Aave Chan Initiative)
Date: 2024-04-01
Summary:
This ARFC seeks to add Ether.fi Liquid Restaking Token weETH to Aave V3 Arbitrum. After the successful ARFC Snapshot to onboard to Aave v3 Ethereum, this proposal will go direct-to-AIP following the asset onboarding framework.
Motivation:
eETH is an LRT that allows users to stake their ETH, accrue staking rewards, and receive additional rewards through native restaking on EigenLayer.
Ether.fi has also launched eETH on Arbitrum, allowing users on the L2 to get exposure to the LRT yield and points. As weETH has already been approved for onboarding to Aave v3 Ethereum by the DAO, this proposal aims to extend the onboarding of weETH to Aave v3 Arbitrum.
Proof of Liquidity and Deposit Commitments:
Anyone who deposits weETH into Aave on Arbitrum will accumulate ether.fi and EigenLayer points to be used for future incentives.
Specification
weETH Arbitrum: 0x35751007a407ca6feffe80b3cb397736d2cf4dbe
The oracle for this asset is expected to use a CAPO implementation.
Risk Parameters
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap (weETH) | 1000 |
| Borrow Cap (weETH) | 100 |
| Debt Ceiling | - |
| LTV | 72.50% |
| LT | 75.00% |
| Liquidation Bonus | 7.50% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.0% |
| Variable Slope1 | 7.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Reserve Factor | 15.00% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
| E-Mode Category | ETH-correlated |
Useful Links
ARFC Snapshot to onboard weETH to Aave v3 Ethereum
Disclaimer
This proposal is powered by Skywards. The Aave Chan Initiative is not directly affiliated with Ether.fi and did not receive compensation for creation this proposal.
Next Steps
- Discussion period on the governance forum with addition of risk parameters.
- Publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright
Copyright and related rights waived via CC0.