Proposal: Add Support for stETH (Lido)

Relevant read:


Apologies if this has been answered elsewhere, but would AAVE be listing stETH or wstETH? The advantage of the latter is that staking rewards are recognized as appreciation of wstETH, whereas with stETH they’re recognized as an increase in balance. The advantage of stETH though is they’ll be exchangeable at a 1:1 rate with ETH once ETH2.0 goes live.

I think using wstETH is a better idea, as all other underlying tokens on AAVE have static balances. Plus, it will make it easier for users to distinguish gains from staking vs lending. Curious to hear other opinions here.


Are there any updates to this proposal? Thanks!

I agree with this thought. wstETH can be a better idea because user’s collateral value appreciates overtime. With increasing value of collateral, the users have lower risk of liquidation. It is also great to separate the rewards from lending and rewards from staking.

Although, the issue will be the additional liquidation complexity. If we assume 6% APY, wstETH / stETH exchange rate will be round 1.79 (1.06^10). Curve might not be the best venue to trade wstETH/ ETH anymore. Liquidators have to find other way to hedge its positions

Any updates on this proposal?

Today, more than 1.2M ETH (~$4.4B) are staked through Lido.
It seems even more of a no-brainer now due to the growth in TVL and reputation Lido - and stETH - have had since January.

Would love to know Aave’s team thoughts too


Hi everyone,

Since it has been some time, we have updated our proposal for listing stETH on Aave using the A.R.C. format. Please find the new proposal here: ARC: Add support for stETH (Lido)

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