StakeWise Seeks Separate Vote on osETH Freeze in Aave Plan

A poster signing as StakeWise’s founder asked Aave’s decentralized autonomous organization (DAO) on Nov. 11 to vote separately on freezing its staked Ether token osETH within a broader Aave V3 Core proposal.

Risk adviser LlamaRisk proposed on Nov. 10 that Aave freeze osETH, Lombard’s yield-bearing Bitcoin token LBTC and Rocket Pool’s liquid staking token rETH, along with six smaller reserves. The proposal names two other tokens: Kelp DAO’s restaked Ether token rsETH and Threshold Network’s Bitcoin token tBTC, both already frozen on Core.

As of Nov. 9, the three proposed new freezes had $538.6 million in collateral backing $364.1 million in debt. osETH accounted for most of that exposure, with $279.4 million in collateral backing $256.6 million in WETH debt.

A freeze would prevent new deposits of an affected asset and stop users from using it to support additional borrowing. Its loan-to-value ratio, which governs borrowing capacity against collateral, would be set to zero. Existing positions would remain open under the proposal.

The broader proposal to change the assets accepted in Aave V3 Core was covered in an earlier TokenPost story. As of Nov. 11, LlamaRisk’s plan remained under discussion on Aave’s governance forum, and no vote had been posted on Snapshot by that date.