[TEMP CHECK] Onboard rstETH to Aave V3 Prime Instance

Governance New Asset
1

[TEMP CHECK] Onboard rstETH to Aave V3 Prime Instance

Author: ACI

Date: 2024-12-18

Summary

This is a TEMP CHECK to gauge community sentiment for onboarding P2P’s rstETH on AAVE V3 Ethereum.

To align best with goals of all relevant stakeholders, this proposal suggests onboarding rstETH to the Aave v3 Prime instance.

Motivation

rstETH is a restaking vault token built on top of Mellow and Symbiotic. It currently has over $250m in TVL and is one of the largest Mellow restaking vaults.

Adding rstETH to the Aave v3 Prime instance brings additional synergies for all stakeholders.

rstETH will add additional demand for wstETH borrowing, making the wstETH looping more favorable for the main users. Incentives from P2P and other members of the Symbiotic and Mellow ecosystem can bring additional wstETH liquidity to the Prime instance, bolstering the existing liquidity mining campaigns.

Chain to be deployed/listed

Aave v3 Prime instance on Ethereum

Proof of Liquidity and Deposit Commitments

Stakeholders in the ecosystem have expressed support for liquidity commitments and incentives. We invite relevant members of the community to provide further details on these during the TEMP CHECK comment phase.

Specification

rstETH: 0x7a4EffD87C2f3C55CA251080b1343b605f327E3a

Risk Parameters:

Initial Risk Parameters will be provided by Risk service providers during the ARFC phase.

Useful Links

P2P

Documentation

Github

Disclaimer

The Aave Chan Initiative is not directly affiliated with P2P and did not receive compensation for creation this proposal.

Next Steps

  1. Period of comment 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.

2 Likes
2

Hi AAVE community!

I’m Nick from Mellow and we as a team are super excited about the opportunity for rstETH to get onboarded to the Aave v3 Prime instance as the fist product launched on our stack starting to participate on the biggest lending market.

We want to support this proposal and we are going to commit additional incentives on the borrow side of the market with x4 Mellow Points boost, which will be the highest boost on our platform.

Also huge thanks to ACI for preparing this temp check proposal!

5 Likes
3

Current proposal has been escalated to TEMP CHECK Snapshot.

Vote will start tomorrow, we encourage everyone to participate.

2 Likes
4

After Snapshot monitoring, the current TEMP CHECK Snapshot ended recently, reaching out both Quorum and YAE as winning option, with 860.2K votes.

Therefore [TEMP CHECK] Onboard rstETH to Aave V3 Prime Instance has PASSED.

Next step will be the publication of an ARFC to continue gathering interest from both community and Service Providers.

5

Hey! Vlad from P2P.org is here

We are happy to see this proposal on the AAVE protocol and are confident that it can contribute to the further development of the project and industry in general. rstETH is built on Mellow and Symbiotic protocols, where P2P provides infrastructure services, which ensures a high level of stability and reliability at the institutional level. We glad to support this initiative and are open to looking into the possibility of developing it with our resources.

6

Michigan Blockchain has supported the proposal to onboard rstETH to the Aave V3 Prime instance. rstETH, introduced by Restake Finance, offers yield from Ethereum staking rewards (3–5%) plus EigenLayer restaking rewards (10%+), making it a valuable asset for Aave users. Its full liquidity and integration into DeFi protocols allow users to optimize their yield strategies. The integration is expected to boost wstETH borrowing demand and enhance user engagement within Aave. Additionally, ecosystem partners like P2P plan to provide incentives to strengthen wstETH liquidity. This proposal aligns with Aave’s goals to diversify assets and maintain competitiveness in DeFi. We believe rstETH will enhance liquidity and drive growth within the Aave ecosystem.
-Kerem Dillice