# Aave opens final governance for wrsETH collateral on Linea

> If executed, wrsETH would become non-borrowable collateral with a 400-token supply cap, 70% LTV, 73% liquidation threshold, a correlated WETH e-mode, and a capped exchange-rate oracle.

- URL: https://riadefi.com/on-chain/2025-08-19-aave-v3-linea-rseth-onboarding-aip/
- Type: Governance
- Stage: Proposed
- Evidence: confirmed
- Materiality: watch
- Event date: 2025-08-19
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-08-26
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

Aave opened on-chain governance to add wrsETH collateral to its Linea v3 instance.

## What changed

If executed, wrsETH would become non-borrowable collateral with a 400-token supply cap, 70% LTV, 73% liquidation threshold, a correlated WETH e-mode, and a capped exchange-rate oracle.

## What did not change

The reviewed evidence does not establish execution or a live reserve as of August 19.

## Confirmed

- The proposed asset is wrapped rsETH on Linea.
- The proposal sets a 400 wrsETH supply cap and disables borrowing.
- The proposed base LTV and liquidation threshold are 70% and 73%.
- The proposed oracle combines a wrsETH/rsETH ratio provider with an ETH/USD feed and CAPO constraints.

## Still open

- Final vote outcome and execution timing require on-chain confirmation.
- The official forum identified limited Linea liquidity and bridge, pricing, and multisig dependencies that require ongoing review.

## What it means for an advisor

- Do not treat wrsETH on Linea as available until execution and live configuration are verified.
- Review the additional LayerZero bridge, wrapper ownership, exchange-rate feed, and Linea liquidity dependencies.
- Check whether the final e-mode and supply cap remain consistent with the published risk analysis.

## Sources

1. [[Direct to AIP] Onboard rsETH to Aave V3 Linea Instance](https://governance.aave.com/t/direct-to-aip-onboard-rseth-to-aave-v3-linea-instance/22172) · Aave DAO · 2025-05-26
2. [Onboard rsETH to Aave V3 Linea Instance — Proposal 358](https://vote.onaave.com/proposal/?ipfsHash=0xe2d5e82594c356931465f14b6d7110e1a0b38a0536090f21312b73243139bd49&proposalId=358) · Aave Governance · 2025-08-19


---

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