[Direct-to-AIP] Onboard wrsETH to Aave v3 Plasma Instance
Title: [Direct-to-AIP] Onboard wrsETH to Aave v3 Plasma Instance
Author: @ACI
Created: 2025-09-29
Summary
This publication proposes adding wrsETH as collateral to the Aave v3 instance on the Plasma network using the Direct-to-AIP 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.
Following the strong adoption of wrsETH on Linea, where it is the largest LRT, this publication proposes onboarding wrsETH to Plasma. wrsETH has established a reliable track record across Aave markets, with users deposits of ~$1B on Core, ~$370M on Linea and smaller balances on other networks.
Given that:
- rsETH has already passed governance and risk assessments for Ethereum, Arbitrum, and Base;
- Plasma is a supported Aave V3 deployment with growing activity and integration potential; and,
- A precedent has been set for using the Direct-to-AIP path when onboarding previously approved assets to new instances.
By bringing wrsETH to Plasma, users will benefit from an additional network where they can utilize the asset under consistent risk parameters.
Specification
Kelp’s wrsETH has already been approved and executed on the Ethereum, Arbitrum, Linea and Base Aave V3 instances, following the Direct-to-AIP process, this proposal when implement will extend rsETH support to the Plasma instance.
The following parameters are proposed for risk service providers comment.
| Parameter | Value |
|---|---|
| Asset | wrsETH |
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap | 20,000 |
| Borrow Cap | - |
| Debt Ceiling | - |
| LTV | 0.05% |
| LT | 0.10% |
| Liquidation Penalty | 7.0% |
| 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 | see below |
eMode Category
| Parameter | wrsETH | WETH |
|---|---|---|
| Collateral | Yes | No |
| Borrowable | No | Yes |
| Max LTV | 93% | - |
| Liquidation Threshold | 95% | - |
| Liquidation Bonus | 1.0% | - |
eMode Category
| Parameter | wrsETH | USDT | USDE |
|---|---|---|---|
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 75% | - | - |
| Liquidation Threshold | 78% | - | - |
| Liquidation Bonus | 7.5% | - | - |
Useful Links
[ARFC] Add rsETH to Aave V3 Ethereum
[ARFC] Onboard rsETH to Ethereum and Arbitrum and Base V3 Instances
[Direct to AIP] Onboard rsETH to Aave V3 Linea Instance
rsETH Documentation: https://docs.kelpdao.xyz/
Disclosure
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
Publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright
Copyright and related rights waived via CC0.