[ARFC] Onboarding ETHx to Aave V3 Ethereum


Should the community wish to list ETHx, Gauntlet recommends the following parameters from a market risk perspective. We give further color below.


Market Share

ETHx has 0.37% of the overall LST marketshare as of end of Nov, ranking it 8th by market share.

Screenshot 2023-11-30 at 9.50.16 PM


  • ETHx circulating supply is ~40k ETHx.
  • The primary liquidity venues for ETHx include the ETHx - wstETH (~$26m TVL) and ETHx - WETH pools (~$11m TVL) on Curve.
  • A 3.8k (~$8M) swap of ETHx to ETH incurs ~2% slippage.

Staking Yield

Staking yields have hovered around ~4%.
Screenshot 2023-12-01 at 1.17.48 PM


Supply and Borrow Caps

Given its liquidity profile and expected WETH debt borrowed against ETHx, Gauntlet recommends initial supply caps of 10k ETHx, 25% of the circulating supply.


Given its relatively short price history, Gauntlet does not recommend listing in ETH-correlated emode at this time.

Parameter Recommendation
Isolation Mode NO
Borrowable YES
Borrowable in Isolation NO
Collateral Enabled YES
Stable Borrowing NO
Supply Cap 10000 ETHx
Borrow Cap 1000 ETHx
Debt Ceiling N/A
LTV 71%
LT 76%
Liquidation Bonus 7.5%
Liquidation Protocol Fee 10%
Reserve Factor 15%
Base Variable Borrow Rate 0
Variable Slope 1 7%
Variable Slope 2 300%
Uoptimal 45%