[TEMP CHECK] Add wstUSR to Aave v3 Core Instance

Governance New Asset
1

[TEMP CHECK] Add wstUSR to Aave v3 Core Instance

title: [TEMP CHECK] Add wstUSR to Aave v3 Core on Ethereum
author: @ ACI & @TokenLogic
created: 2025-03-03

Summary

The proposal aims to onboard Resolv’s wstUSR, to Aave v3 protocol Core Market on Ethereum.

Motivation

Resolv is a decentralized protocol designed to manage USR, a stablecoin backed by a delta-neutral, ETH-denominated strategy. To ensure USR remains overcollateralized, Resolv operates the Resolv Liquidity Pool (RLP), which serves as a liquid insurance reserve. Details relating to onboarding USR can be found here.

wstUSR is the wrapped version of stUSR, staked USR. wstUSR, like wstETH is designed for better compatibility with DeFi protocols. 42.65% of USR on Ethereum is staked and further insights are available on this Dune dashboard. Staked USR holders receive 70% of the Base Rewards from the Collateral Pool which consists of the ETH, USDC and USDT used to mint USR.

Collateral Pool

The Collateral Pool holds the assets backing USR and is structured to generate yield while mitigating exposure to ETH price fluctuations by employing hedging strategies similar to those used by Ethena. 70% of the Base Reward generated by the Collateral Pool are directed to staked USR holders. The other 30% is allocated to the insurance like asset RLP.

The composition of the Collateral Pool ($653.65M) is majority ETH-correlated ($582.65M), 56.8% of which is wstETH, and the remainder ($71.00M) held in stablecoins. The assets are currently allocated as shown below:

  • 55.1% held in on-chain treasury
  • 24.7% secured in institutional custody—leveraging Ceffu for Binance collateral and Fireblocks for Deribit; and,
  • 20.2% is allocated to exchanges, including Binance Hyperliquid and Deribit.

Furthermore, to efficiently manage short-term liquidity demands, such as redemptions or margin requirements, Resolv utilizes Aave v3 on Ethereum to borrow WETH against wstETH.

Screenshot 2025-02-23 at 14.31.38

At the time of writing, the Collateral Pool is generating a return of 5.69% and staked USR is providing a 7.12% return to stakers.

Ongoing Points Campaign

Resolv is currently running a points-based incentive campaign, with Season 1 scheduled to conclude between the end of Q1 and the beginning of Q2. As part of this initiative, wstUSR holders earn 5 points per wstUSR held daily, providing an additional incentive for participation.

Specification

Ticker: wstUSR

Contract address on mainnet: 0x1202F5C7b4B9E47a1A484E8B270be34dbbC75055

Chainlink oracle: upcoming

Project: https://resolv.xyz/

Collateral pool addresses: Resolv App

GitHub: resolv-im · GitHub

Docs: What is Resolv? | Resolv Docs

Audit: Security | Resolv Docs

Twitter: https://x.com/resolvlabs

Risk Parameters will be provided by Risk Services Providers at the earliest possible and ARFC will be updated with that feedback.

Disclosure

The ACI and TokenLogic are not directly affiliated with Resolv and did not receive compensation for creation this proposal.

Next Steps

  1. If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage.
  2. If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage. Publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
  3. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal

Copyright

Copyright and related rights waived via CC0.

4 Likes
2

Let Resolv cook! Gr8 team with a mission to build a truly decentralized version of Ethena.

3

The current proposal has been escalated to TEMP CHECK Snapshot.

Vote will start tomorrow, we encourage everyone to participate.

4

We’re interested in seeing the opinion of the risk providers here. UXD Protocol was the precursor to (and inspiration behind) Ethena but did not succeed due to a lack of open interest and hedging options. We’d like to better understand Resolv’s model, the venues it uses for hedging, and its risk profile. Ethena have themselves said that USDe is not a stablecoin, and we’d like to better grasp USR’s risk profile in this context.

5

After Snapshot monitoring, the current TEMP CHECK Snapshot ended recently, reaching out both Quorum and YAE as winning option, with 822.6K votes.

Therefore [TEMP CHECK] Add wstUSR to Aave v3 Core Instance has PASSED.

Next step will be the publication of an ARFC to continue gathering interest from both service providers and community.
Closing thread to focus on ARFC.