Add WETH to the wrsETH wstETH E-Mode on Aave V3 Base Instance
Add WETH to the wrsETH wstETH E-Mode on Aave V3 Base Instance
Author
Aave-chan Initiative
Creator
0x57ab7ee15cE5ECacB1aB84EE42D5A9d0d8112922
Simple Summary
This proposal seeks to extend utility for wrsETH on the Aave V3 Base market by adding WETH borrowing to the existing wrsETH/wstETH E-Mode category.
Motivation
rsETH—issued by Kelp DAO—is already integrated across various Aave deployments and has exhibited a stable risk and liquidity profile. On Base, wrsETH suppliers currently rely primarily on stablecoin borrowing and the existing wstETH E-Mode, which limits the efficiency of yield-maximizing leveraged positions.
By adding WETH as a borrowable asset in the wrsETH/wstETH E-Mode, Aave unlocks traditional wrsETH–WETH looping strategies.
Given strong sidelined demand and Kelp’s growing LRT ecosystem, we expect significant additional rsETH inflows to Base, enabling the market to absorb excess WETH supply while restoring balanced utilization levels.
Specification
The wrsETH/wstETH emode on the Base instance will receive the following parameters
| Parameter | Value | Value | Value |
|---|---|---|---|
| Asset | wrsETH | wstETH | WETH |
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 92.5% | - | - |
| Liquidation Threshold | 94.5% | - | - |
| Liquidation Bonus | 1.0% | - | - |
The caps changes mentioned in the original forum post was updated by the risk stewards.
References
- Implementation: AaveV3Base
- Tests: AaveV3Base
- Snapshot: Direct-to-AIP
- Discussion
Copyright
Copyright and related rights waived via CC0.