As a follow-up update, we will be submitting a governance proposal for the Operational oracles update PT2, which will contain the following:
- Update of the stETH feed on Aave v2 Ethereum to a 1:1 value with ETH, representing the “exchange rate” of the stETH rebasing token, following the strategy of pricing LSTs on “primary price”.
- Update of the Aave v3 Ethereum, Optimism and Arbitrum CSPA feeds to be composed with wstETH/stETH and ETH/USD internal feeds, removing an intermediate stETH/ETH that was introducing undesired exposure to stETH secondary market price. (props to @Gauntlet for this suggestion on L2s, where the stETH/ETH feed is not available).
Pending for a following update will be applying the same pricing mechanics for wstETH on Aave v3 Polygon, where the wstETH/stETH exchange rate feed is not available yet. We are coordinating with Chainlink to get it live.