# \[TEMP CHECK\] Onboard tETH to Aave v3 Prime Instance **URL:** \ **Category:** New Asset\ **Created:** [March 25, 2025, 2:46pm UTC](https://governance.aave.com/t/temp-check-onboard-teth-to-aave-v3-prime-instance/21566 "2025-03-25T14:46:55Z")\ **Posts on this page:** 4\ **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:** [March 25, 2025, 2:46pm UTC](https://governance.aave.com/t/temp-check-onboard-teth-to-aave-v3-prime-instance/21566/1 "2025-03-25T14:46:55Z")
## [TEMP CHECK] Onboard tETH to Aave v3 Prime Instance ## Author: ACI ( Aave Chan Initiative) ## Date: 2025-03-25 * * * # **Summary** This proposal aims to onboard tETH to Aave V3 Prime Instance. ETH is a liquid staking token (LST) from Treehouse that converges the fragmented on-chain ETH interest rates market. Holders of _tETH_ earn real yield in excess of Ethereum’s Proof-of-Stake (PoS) rewards through interest rate arbitrage while still being able to use _tETH_ for DeFi activities. _tETH_ is also foundational to supporting the implementation of Decentralized Offered Rates (DOR). # **Motivation** Assets like tETH are designed to unify fragmented interest rate markets and optimize yield generation. Users contribute ETH and receive tETH, redeemable for their initial ETH plus additional yield. This yield comes from a dynamic strategy that balances staking rewards and interest rate arbitrage on lending protocols. For tETH, this ensures baseline yields equivalent to native ETH staking while capturing additional returns from rate inefficiencies. These assets are composable across DeFi, enabling broader usability. By onboarding tETH to Aave V3 Prime Instance, we can: - **Enhance capital efficiency** : Users can borrow against tETH, unlocking liquidity while continuing to earn restaking rewards. - **Increase protocol revenue** : More borrowing activity leads to higher interest income for Aave. - **Expand Aave’s influence in restaking finance** : Positioning Aave as a central lending hub for LRTs. # **Specification** Risk Parameters will be updated by Risk Service Providers at ARFC stage, and ARFC will be updated accordingly. ## Useful links > **[Treehouse | The Decentralized Fixed Income Layer](https://www.treehouse.finance/)** > > Treehouse is the decentralized fixed income layer, building yield solutions and unifying on-chain interest rates through its products, tAssets and DOR. > **[Introduction | Treehouse Protocol](https://docs.treehouse.finance/protocol/tasset/introduction)** # Disclaimer This proposal is directly powered by ACI (Aave Chan Initiative). ACI did not received compensation for creation of 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. 3. Publication of 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 via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**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:** [April 15, 2025, 11:30am UTC](https://governance.aave.com/t/temp-check-onboard-teth-to-aave-v3-prime-instance/21566/2 "2025-04-15T11:30:34Z")
The current proposal has been escalated to [TEMP CHECK Snapshot](https://snapshot.box/#/s:aavedao.eth/proposal/0x4343f284bc897b2f3f2b94389f89e235088169c5eeceae8e58468456a77ee74c). Vote will start tomorrow, we encourage everyone to participate. ---
**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:** [April 20, 2025, 6:29am UTC](https://governance.aave.com/t/temp-check-onboard-teth-to-aave-v3-prime-instance/21566/3 "2025-04-20T06:29:25Z")
After Snapshot monitoring, the current [TEMP CHECK Snapshot](https://snapshot.box/#/s:aavedao.eth/proposal/0x4343f284bc897b2f3f2b94389f89e235088169c5eeceae8e58468456a77ee74c) ended recently, reaching out both Quorum and YAE as winning option. Next step will be the publication of an ARFC to continue gathering interest from both Community and Risk Services Providers, before moving forward through governance. Closing post 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:** [April 20, 2025, 6:29am UTC](https://governance.aave.com/t/temp-check-onboard-teth-to-aave-v3-prime-instance/21566/4 "2025-04-20T06:29:28Z")