Major capital efficiency unlock for rsETH holders on Aave v3 Core market:
- E-Mode activation enables rsETH <> ETH loops at up to 93% LTV (previously capped at lower ratios)
- 14x leverage now possible in one click via Contango integration
- ~$1.1B ETH liquidity available to borrow on Core market
- Current conditions deliver ~9% rewards on leveraged ETH exposure
- rsETH supply on Aave Core crossed $1B, making it the #8 largest asset on the platform
Key improvements:
- Tighter loops with less idle capital
- Competitive borrow rates even near utilization kink
- One-click execution removes manual looping friction
- Cross-chain expansion: $65M+ supply on Avalanche and Base markets
Risk reminder: Higher leverage amplifies both returns and liquidation risk. E-Mode works best for correlated assets but requires active position management.
E-Mode is designed for correlated assets. With rsETH <> ETH now in E-Mode: ⍛ Up to 93% LTV ⍛ Lower liquidation risk ⍛ Much tighter health factors Meaning: you can do more with the same rsETH.
If you hold rsETH, this is a real unlock. Use rsETH on Aave v3 - Core market → enable E-Mode → design tighter strategies. ⚓ app.aave.com/reserve-overvi…
Before E-Mode: rsETH loops were capped by conservative LTVs → more idle capital. After E-Mode: rsETH <> ETH loops unlock up to 93% LTV, making them structurally more efficient, not riskier. Same asset. Better math.
With E-Mode, rsETH <> ETH now runs at up to 93% LTV. In practice: ⍛ Much tighter loops ⍛ Less capital sitting idle ⍛ ~14× leverage possible on the Core market At current conditions, this can push ~9% rewards on ETH exposure - driven by efficiency.
E-Mode is now unlocked for rsETH on @aave v3 - Core market. This is one of the biggest capital-efficiency unlocks for rsETH since launch. Here’s why this matters 🧵
Turbocharge your rsETH with @Contango_xyz! 🌊 What used to take multiple manual actions to loop rsETH now happens in one click. Clean rsETH leverage - up to ~14x - executed instantly on @aave v3 - Core via Contango. The unlock isn’t just higher leverage. It’s removing manual
For users who already loop rsETH, the @aave v3 - Core market is now the cleanest place to do it. 👻 Start looping! ⚓ app.aave.com/reserve-overvi…
The rsETH <> ETH Core market on @aave v3 is delivering up to 8.94% rewards on 14x leverage. With E-Mode now live, rsETH <> ETH loops are way more capital-efficient on Aave. Start looping! ⚓ app.aave.com/reserve-overvi…
Core market = the difference. ⍛ ~$1B ETH available to borrow ⍛ Deepest, most conservative lending venue in DeFi ⍛ Built for size and stress, not experiments That’s the liquidity rsETH loops can now tap into.
Now that rsETH E-Mode is live on the @aave v3 - Core market, it’s worth revisiting what this actually unlocks. 🧵
✧ rsETH integrations & milestones ⍛ rsETH E-Mode went live on @aave v3 - Core market, unlocking up to 93% LTV for rsETH <> ETH loops, enabling leverage up to ~14x and ~9% rewards. ⍛ rsETH integration on @Contango_xyz introduced one-click E-Mode looping with up to 14x
rsETH just crossed $1B+ in supply on the @aave v3 - Core market. 👻 That makes rsETH the #8 largest asset by supply on Aave. Caps almost maxed - supply before they fill. 👀 ⚓ app.aave.com/reserve-overvi…
This is huge for rsETH🍀 @Contango_xyz just enabled E-Mode looping, taking rsETH leverage from ~3x up to 14x in one click. No more manual looping. Just instant leverage.
rsETH from @KelpDAO just upgraded to emode on @aave. You can now crank up leverage to almost 14x. Plus, this loop can easily take 5000 ETH and still spit out a 7% ROE.
Why this matters ⍛ ~$1.1M ETH liquidity available to borrow per market ⍛ High LTVs (up to 92%) enable efficient looping ⍛ Even near kink, borrow rates stay competitive vs vault rewards Reward-bearing collateral boosts power, but also risk. Manage wisely. Explore the
🏁 Final Epoch Alert: Arbitrum DRIP Season 1 Ends
**Last Call for ARB Rewards** Arbitrum DRIP Season 1 has entered its final epoch, marking the last opportunity for users to earn additional ARB token rewards. **Key Details:** - Final epoch now active for DRIP Season 1 - Users can stake rsETH across supported protocols - Extra ARB incentives available during this closing period **Background Context:** rsETH has shown strong performance on Arbitrum, recently becoming the #2 ETH derivative by market cap on the network. The DRIP program has run through multiple epochs, with this final phase concluding Season 1. Participants can explore available opportunities at [arbitrumdrip.com/opportunities](https://arbitrumdrip.com/opportunities).
🌱 What's next?
**New Vaults Launch on Silo Finance** KelpDAO's agETH and hgETH tokens can now be used as collateral on Silo Finance. Users can: - Leverage agETH and hgETH holdings to borrow ETH - Access improved loan-to-value ratios - Benefit from more efficient borrowing terms This integration expands liquidity options for liquid restaking token holders, allowing them to unlock capital without selling their positions.
Krunch by Kelp: Monthly Newsletter on Stablecoin Infrastructure and On-Chain Credit
Kelp has launched **Krunch**, a monthly newsletter focused on institutional developments in crypto infrastructure. The newsletter covers three main areas: - Institutional stablecoin infrastructure - Real-world asset (RWA) convergence - Evolution of on-chain credit markets Krunch aims to deliver signal over noise, providing substantive insights without promotional content. Readers can subscribe to receive the newsletter directly via [Kelp's website](https://kerneldao.com/kelp/#:~:text=Stay%20updated%20with%20Kelp).
Stablecoins shift from speculation to settlement infrastructure

**The infrastructure shift is here.** Stablecoins are moving from speculative assets to payment rails. Circle's USDC now integrates with Visa and Mastercard, while Galaxy Digital forecasts stablecoins will surpass ACH payment volume in 2026. **Institutions are deploying capital.** BlackRock, Franklin Templeton, and JPMorgan have moved tokenized funds into production. Standard Chartered's CEO expects most transactions to eventually settle on blockchain. **Real-world credit is connecting to on-chain liquidity.** Tala's $50M USDC facility serves 13M users in emerging markets. Huma Finance has processed $8B linking stablecoin liquidity to payment flows. **The opportunity: $9-11T locked in settlement buffers.** Global payment systems move $200T+ annually, but capital sits idle in receivables and settlement delays. **KUSD targets this gap.** Kelp's stablecoin earns from real-world repayments tied to payment flows and trade finance—not DeFi emissions or speculation. Returns come from actual capital movement through working capital cycles. Short-term, settlement-native credit with on-chain transparency.