Onboarding ETHx to Aave V3 Ethereum














Onboarding ETHx to Aave V3 Ethereum







Author

karpatkey_TokenLogic

Creator

0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922

Simple Summary

This publication onboards Stader Lab's ETHx onto the Ethereum Aave v3 deployment as collateral and includes it the ETH-correlated E-Mode category.

Motivation

Liquid staking tokens (LSTs) have proven to be popular collateral assets on Aave. The ETHx represents Stader’s staked ETH and provides its users with liquid staking benefits. Supporting ETHx on Aave V3 promotes LST diversity and complements existing assets like stETH, cbETH and rETH.

Given their high correlation to ETH, LSTs are commonly used as collateral to borrow ETH and engage in yield leveraged staking. Several communities have built products that automate such strategies on top of Aave. The inclusion of ETHx in the ETH-category E-Mode enables these strategies to maximize the yield potential of the recursive strategy.

The risk parameters have been provided by Chaos Labs, and the smart contracts of ETHx reviewed by BGD Labs. Further details, including LlamaRisk's more qualitative assessment, can be found on the Aave governance forum.

Specification

The table below illustrates the configured risk parameters for ETHx

ParameterValue
Isolation Modefalse
BorrowableENABLED
Collateral Enabledtrue
Supply Cap (ETHx)3,200
Borrow Cap (ETHx)320
Debt CeilingUSD 0
LTV74.5 %
LT77 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor15 %
Base Variable Borrow Rate0 %
Variable Slope 17 %
Variable Slope 2300 %
Uoptimal45 %
Stable BorrowingDISABLED
Stable Slope10 %
Stable Slope20 %
Base Stable Rate Offset0 %
Stable Rate Excess Offset0 %
Optimal Stable To Total Debt Ratio0 %
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0xD6270dAabFe4862306190298C2B48fed9e15C847

References

Copyright

Copyright and related rights waived via CC0.

by BGD Labs