Aave approves stS collateral parameters for its Sonic market

What happened

Aave's ARFC Snapshot approved advancing stS as collateral on Aave V3 Sonic, with a 30 million stS supply cap, CAPO pricing, and a high-efficiency stS/wS E-mode configuration.

What changed

The proposal advanced to the AIP stage with concrete collateral, liquidation, cap, oracle, and E-mode parameters. If executed, it would introduce a slashable liquid-staking-token dependency and enable leveraged stS/wS positions.

What did not change

The ARFC approval did not list stS on-chain or make the reserve live. It did not change Ketju's approved Aave exposure or establish stS as client-appropriate.

Confirmed

• The ARFC vote passed on April 14 with quorum and YAE as the winning option.
• The proposed regular-mode stS LTV and liquidation threshold were 66% and 68%.
• The proposed stS/wS liquid E-mode LTV and liquidation threshold were 87% and 90%.
• The proposal specified a 30 million stS supply cap and CAPO pricing based on the stS exchange rate and S price feed.

Still open

• The final AIP payload, vote, and execution date.
• Live oracle, CAPO, liquidity, liquidation, slashing, and 14-day native-unbonding performance after onboarding.
• Whether proposed liquidity commitments materialized.
• Whether stS concentration or validator exposure changed before execution.

What it means for an advisor

• Review Aave's Sonic collateral and liquidation dependency map before any stS reserve is treated as acceptable.
• Monitor the AIP and verify executed parameters, oracle configuration, caps, and live exit liquidity.
• Do not extend Ketju approval from the watched Aave protocol to stS or leveraged Sonic strategies.