wstETH borrows enabled

Governance
1

This is a petition to enable borrows for wstETH. There are some high level strategies that require full access to this asset.

For example, you can freeze a position when you have ETH as collateral and wstETH as borrow, with very little health and positive APR with current market conditions. The asset was enabled for a long period of time with no drawback that I noticed.

With borrows disabled wstETH cant fully grow, not allowing people to discover this strategies.

Hopefully the asset is fully enabled sometime soon.

1 Like
2

The use case is worth discussing. Before considering any re enablement, please provide the original reason for disabling wstETH borrows, updated oracle safeguards, liquidity and liquidation analysis, and proposed conservative risk parameters. This should be reviewed by Aave risk service providers before any governance action.
governance. @Terminal