# Aave advances LsETH collateral onboarding to ARFC review

> LsETH moved to the ARFC diligence and parameter-setting stage.

- URL: https://riadefi.com/on-chain/2025-08-18-aave-v3-ethereum-core-lseth-onboarding-temp-check/
- Type: Governance
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: watch
- Event date: 2025-08-18
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-09-03
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

Aave's TEMP CHECK approved advancing Liquid Collective's LsETH for potential collateral onboarding on Ethereum Core.

## What changed

LsETH moved to the ARFC diligence and parameter-setting stage.

## What did not change

No collateral reserve was added. Risk parameters, caps, oracle configuration, and final governance approval remained outstanding.

## Confirmed

- The TEMP CHECK passed on August 18, 2025, with quorum and YAE as the winning option.
- The proposal targets Aave v3 Ethereum Core.
- The proposed LsETH contract is 0x8c1bed5b9a0928467c9b1341da1d7bd5e10b6549.
- The official post said initial risk parameters would be provided during ARFC review.

## Still open

- Secondary liquidity, holder concentration, redemption timing, platform controls, and final Aave risk parameters remained unresolved.
- The claimed deposit commitments were not independently evidenced in the primary governance post.

## What it means for an advisor

- Monitor the ARFC without treating LsETH as approved Aave collateral.
- Require analysis of Liquid Collective's permissioned mint and redemption paths, validator and platform dependencies, liquidity, oracle design, and concentration.
- Verify any deposit commitments before using them in liquidity assumptions.

## Sources

1. [[TEMP CHECK] Onboard LsETH to Aave V3 Core Instance](https://governance.aave.com/t/temp-check-onboard-lseth-to-aave-v3-core-instance/22832) · Aave DAO · 2025-08-06


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.