# \[TEMP CHECK\] Onboard LsETH to Aave V3 Core Instance **URL:** \ **Category:** New Asset\ **Created:** [August 6, 2025, 10:02am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832 "2025-08-06T10:02:28Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [August 6, 2025, 10:02am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/1 "2025-08-06T10:02:29Z")
## **[TEMP CHECK] Onboard LsETH to Aave V3 Core Instance** ## **Author: ACI** ## **Date: 2025-08-06** ## **Summary** This is a TEMP CHECK to gauge community sentiment for onboarding Liquid Collective’s LsETH on Aave V3 Core. ## **Motivation** LsETH is an Ether liquid staking token. It’s unique in that it meets the security and compliance standards needed to serve both individual and institutional participants, and LsETH has recently gained traction with the Ethereum Treasury Company market. Over the past two months TVL has rapidly increased as the Crypto Treasury Company sector has gained traction, with TVL currently sitting around $1.3bn. We believe this sector will continue to see growth and present a set of new users to introduce to Aave. ## **Chain to be deployed/listed** Aave v3 Core instance on Ethereum mainnet. ### **Proof of Liquidity and Deposit Commitments** - $200m of LsETH deposits are committed in the first 3 months after onboarding. - 0.25-1% of token is committed to Aave incentives post-TGE. ## Specification Token Contract: 0x8c1bed5b9a0928467c9b1341da1d7bd5e10b6549 ### Risk Parameters: Initial Risk Parameters will be provided by Risk service providers during the ARFC phase. ## **Useful Links** Dune dashboard: [https://dune.com/liquidcollective/liquidcollective](https://dune.com/liquidcollective/liquidcollective) Docs: [What is Liquid Collective? | Liquid Collective](https://docs.liquidcollective.io/v1/) ## **Disclaimer** The Aave Chan Initiative is not directly affiliated with Liquid Collective and did not receive compensation for creating this proposal. ## **Next Steps** 1. Period of discussion on this TEMP CHECK. 2. TEMP CHECK Snapshot vote for this proposal. 3. If TEMP CHECK is a YAE, publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage. 4. 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 under [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**Author:** ![kpk](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/kpk/32/14763_2.png) [@kpk](https://governance.aave.com/u/kpk)\ **Post date:** [August 6, 2025, 10:20am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/2 "2025-08-06T10:20:08Z")
We are generally supportive of introducing additional liquid staking tokens like LsETH to Aave V3, as they can enhance capital efficiency and attract new users. That said, we are particularly interested in reviewing the risk assessment by the Risk Service Providers, especially regarding the on-chain liquidity profile and potential concentration risks associated with LsETH. We look forward to engaging further during the ARFC stage. ---
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [August 6, 2025, 10:54am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/3 "2025-08-06T10:54:17Z")
# Summary Onboarding Liquid Collective’s ETH Liquid Staking Token (LST) on Aave provides institutional borrowers with a new, high-quality collateral option to borrow stablecoins and, when rates permit, WETH for leveraged staking strategies. With over $200 million in committed deposits and a $1.3 billion market cap, this integration is estimated to generate $109,000-160,000 monthly in protocol revenue within the first quarter, with future revenue growth expected. Alongside this, onboarding LsETH will strengthen Aave’s position in the growing Digital Asset Treasury sector. ACI supports this onboarding and will be voting FOR at TEMP CHECK. # Asset information | Attribute | Answer | | --- | --- | | Asset class | Staking Token/ETH LST | | Systems & projects associated | Liquid Collective | | [https://docs.liquidcollective.io/v1/](https://docs.liquidcollective.io/v1/) | | | Basic utilities | ETH Liquid Staking Token | | Planned future developments | Planned expansion in the Digital Asset Treasury market | | Use-cases of Aave onboarding | Collateral for borrowing stablecoins, and WETH when rates allow. This LST is aimed towards institutional users who have expressed demand for stablecoin borrow in particular. If WETH borrow rates reduce, LsETH may also be attractive for borrowing WETH against for the leveraged yield trade. | | Yield mechanism | Staking yield | | Previous adverse events | None | | Borrow assets | Stablecoins: USDT, USDC, GHO | # **Commercial information** | Attribute | Answer | | --- | --- | | Current marketcap | $1.3bn | | Committed Aave deposits | $200m | | Expected Aave deposits | \>$200m | | Expected monthly revenue | Assuming 1.5 health factor on $200m deposits with borrow composition of 45% USDT, 45% USDC, 10% GHO monthly revenue would be $109-160k. | | Aave incentives budget | Once TGE occurs, 0.25-1% of token supply is earmarked for Aave incentives. | ---
**Author:** ![EzR3aL](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/ezr3al/32/10721_2.png) [@EzR3aL](https://governance.aave.com/u/EzR3aL)\ **Post date:** [August 6, 2025, 4:27pm UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/4 "2025-08-06T16:27:15Z")
I am supportive of this TEMP CHECK. LsETH seems to be a good asset from an economical and growth perspective to the DAO but also gives Aave user another LST asset they can choose from, expanding the selection we already offer. Secondly I would like to thank @ACI for this perfect business and growth analysis. This is really helpful to make a proper decision already at TEMP CHECK stage and should help other delegates as well on deciding if it makes sense to proceed with a TEMP CHECK at all. ---
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [August 13, 2025, 10:32am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/5 "2025-08-13T10:32:20Z")
The current proposal has been escalated to [TEMP CHECK Snapshot](https://snapshot.box/#/s:aavedao.eth/proposal/0x6f269b20b8cf2806a25bd119a744f27c2238dcbe769be4a0de0071c13da54c0d). Vote will start later today, we encourage everyone to participate. ---
**Author:** ![69420](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/69420/32/6920_2.png) [@69420](https://governance.aave.com/u/69420)\ **Post date:** [August 13, 2025, 9:44pm UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/6 "2025-08-13T21:44:45Z")
> [@ACI](#): > > - $200m of LsETH deposits are committed in the first 3 months after onboarding. Where are these commitments? This token appears to incur a 5% loss to slippage back to ETH once going above a few hundred ETH ---
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [August 18, 2025, 9:45am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/7 "2025-08-18T09:45:59Z")
After Snapshot monitoring, the current [TEMP CHECK Snapshot](https://snapshot.box/#/s:aavedao.eth/proposal/0x6f269b20b8cf2806a25bd119a744f27c2238dcbe769be4a0de0071c13da54c0d) ended, reaching out both Quorum and YAE as winning option with 874.9K votes. Therefore [[TEMP CHECK] Onboard LsETH to Aave V3 Core Instance](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832) has PASSED. Next step will be the publication of an ARFC to continue gathering feedback from both community and Risk Service Providers. Closing thread to focus on ARFC. ---
**Author:** ![ACI](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/aci/32/4780_2.png) [@ACI](https://governance.aave.com/u/ACI)\ **Post date:** [August 18, 2025, 9:46am UTC](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832/8 "2025-08-18T09:46:06Z")
Closed on August 18, 2025, 9:46am UTC