[Direct to AIP] Onboard rsETH to Aave V3 Linea Instance
Author: ACI
Date: 2025-05-26
2025-06-04 The current proposal has been updated with Risk Services Providers analysis.
Summary
This proposal seeks to onboard rsETH to the Aave V3 deployment on the Linea network.
As the onboarding of rsETH has already been approved and executed on the Ethereum, Arbitrum, and Base Aave V3 instances, this proposal follows the Direct-to-AIP path to extend rsETH support to the Linea instance without repeating the full ARFC process.
Motivation
rsETH is a liquid staking token issued by Kelp DAO, offering users access to rewards from ETH staking while maintaining liquidity and DeFi composability. Its integrations on Aave across other networks have proven successful in terms of risk profile and utility.
Given that:
- rsETH has already passed governance and risk assessments for Ethereum, Arbitrum, and Base,
- Linea is a supported Aave V3 deployment with growing activity and integration potential,
- A precedent has been set for using the Direct-to-AIP path when onboarding previously approved assets to new instances,
This proposal aims to onboard rsETH to Linea V3 under the same configuration parameters used for other L2s, adjusted for market conditions where appropriate.
Specification
2025-06-04 The current proposal has been updated with Risk Services Providers analysis.
wrsETH Market Configuration (Linea Instance)
Parameter | Value |
---|---|
Asset | wrsETH |
Isolation Mode | No |
Borrowable | No |
Collateral Enabled | Yes |
Supply Cap | 400 |
Borrow Cap | - |
Debt Ceiling | - |
LTV | 70% |
LT | 73% |
Liquidation Penalty | 10% |
Liquidation Protocol Fee | 10.00% |
Variable Base | - |
Variable Slope1 | - |
Variable Slope2 | - |
Uoptimal | - |
Reserve Factor | - |
Stable Borrowing | Disabled |
Flashloanable | Yes |
Siloed Borrowing | No |
Borrowable in Isolation | No |
E-Mode Category | wrsETH/WETH |
wrsETH/WETH Isolated Liquid Liquid E-mode Configuration
Parameter | Value | Value |
---|---|---|
Asset | wrsETH | WETH |
Collateral | Yes | No |
Borrowable | No | Yes |
Max LTV | 90% | - |
Liquidation Threshold | 93% | - |
Liquidation Bonus | 1.0% | - |
Useful Links
- [ARFC] Add rsETH to Aave V3 Ethereum
- [ARFC] Onboard rsETH to Ethereum and Arbitrum and Base V3 Instances
- rsETH Documentation: https://docs.kelpdao.xyz/
Disclaimer:
This proposal is powered by Skywards. The Aave Chan Initiative is not directly affiliated with Kelp DAO and did not receive compensation for creation of this proposal.
Next Steps
- Publication of the proposal (current stage) collect community & service providers feedback.
- Publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright:
Copyright and related rights waived under CC0