# Aave executes wrsETH onboarding on Avalanche

> wrsETH became collateral-enabled with a 5,000-unit supply cap, a capped exchange-rate oracle path, and a wrsETH/WETH E-mode allowing 93% maximum LTV and a 95% liquidation threshold.

- URL: https://riadefi.com/on-chain/2025-11-25-aave-v3-avalanche-rseth-onboarding/
- Type: Economic change
- Stage: Executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-11-25
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Advisor-relevant: no
- Affects: Aave v3 (protocol)

## What happened

Aave Governance V3 executed proposal 414, adding wrapped rsETH as collateral on the Avalanche instance.

## What changed

wrsETH became collateral-enabled with a 5,000-unit supply cap, a capped exchange-rate oracle path, and a wrsETH/WETH E-mode allowing 93% maximum LTV and a 95% liquidation threshold.

## What did not change

wrsETH was not enabled for ordinary borrowing. Execution did not approve Avalanche, Kelp DAO, LayerZero, wrsETH, or the new E-mode for Ketju clients.

## Confirmed

- Proposal 414 executed on November 25, 2025.
- The wrsETH supply cap is 5,000 units.
- Base collateral parameters are 0.05% LTV and a 0.1% liquidation threshold.
- The wrsETH/WETH E-mode uses 93% LTV and a 95% liquidation threshold.
- The reserve uses a capped wrsETH/ETH/USD oracle path and is not borrowable.

## Still open

- Live wrsETH liquidity, utilization, liquidation performance, and holder concentration on Avalanche.
- The continuing security of Kelp, wrapper, LayerZero, multisig, bridger-role, and oracle dependencies.
- Whether high E-mode leverage remains liquidatable during bridge, wrapper, or staking-token stress.

## What it means for an advisor

- Review the Aave memo for the new cross-chain wrapper, bridge, oracle, and high-leverage E-mode dependencies.
- Keep the Avalanche reserve outside any Ethereum-only Aave approval unless separately reviewed.
- Monitor live liquidity and liquidation capacity before recognizing the reserve as advisor-accessible exposure.

## Sources

1. [Onboard rsETH to Aave V3 Avalanche Instance](https://app.aave.com/governance/v3/proposal/?proposalId=414) · Aave Governance V3 · 2025-11-21


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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.