# Integrate rsETH on Euler Arbitrum

**URL:** <https://forum.euler.finance/t/integrate-rseth-on-euler-arbitrum/1531>\
**Category:** Markets\
**Created:** [July 10, 2025, 7:02am UTC](https://forum.euler.finance/t/integrate-rseth-on-euler-arbitrum/1531 "2025-07-10T07:02:52Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\
**Post date:** [July 10, 2025, 7:02am UTC](https://forum.euler.finance/t/integrate-rseth-on-euler-arbitrum/1531/1 "2025-07-10T07:02:53Z")

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# Summary

Objective Labs reocmmends the integration of rsETH into the Euler Arbitrum market as a collateral and borrowable asset. rsETH expands Euler Arbitrum’s LRT offering as the first lending market integration onchain.

# **Fundamentals**

rsETH is a liquid restaking token (LRT) issued by Kelp DAO, representing ETH restaked via EigenLayer. It is deployed across multiple chains and has undergone audits from Sigma Prime, MixBytes, and Code4rena, highlighting Kelp DAO’s focus on security and protocol integrity. Users earn yield from both staking and restaking activities. rsETH offers a current APY of ~2.7%, based on the 7-day moving average from DeFiLlama.

## Liquidity

rsETH liquidity on Arbitrum is modest and fragmented. Most depth exists in rsETH-WETH LPs across Balancer, Aura, and others, with TVL mostly under $500K. A trade simulation shows 5% slippage on ~$280K, highlighting the need for conservative risk settings.

# Parameters

## Caps

| Asset | Supply Cap | Borrow Cap |
| --- | --- | --- |
| rsETH | 60 | 30 |

The proposed caps of 60 rsETH supply and 30 rsETH borrow anticipate expected liquidity growth in the coming weeks.

### **IRMs**

| **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** |
| --- | --- | --- | --- | --- |
| rsETH | 0% | 50% | 1% | 40% |

### LTVs

| Collateral | Debt | LLTV |
| --- | --- | --- |
| rsETH | WETH | 93% |
| rsETH | wstETH | 92% |
| rsETH | weETH | 91% |
| WETH | rsETH | 93% |
| wstETH | rsETH | 92% |
| weETH | rsETH | 91% |

Borrow LTVs are recommended 2% below LLTVs.

### Oracle

We recommend using a fundamental oracle: **Chainlink’s rsETH/ETH exchange rate feed** on Arbitrum, crossed by the same ETH/USD oracle already used in the market.

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**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\
**Post date:** [July 14, 2025, 3:35pm UTC](https://forum.euler.finance/t/integrate-rseth-on-euler-arbitrum/1531/2 "2025-07-14T15:35:02Z")

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Gauntlet is aligned with Objective Labs’ recommendations, with one minor adjustment:

- **Arbitrum DEX liquidity** sits at $859K (~269 rsETH as of Monday, July 14th). A 60 rsETH supply cap represents roughly 22% of total liquidity, which is well within acceptable limits.
- **LTV parameters** match the rsETH LTVs currently used on Unichain’s LST market.
- **IRM reference** appears labelled as WETH but should apply to rsETH. Please update accordingly.

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**Author:** ![EulerLabs](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/eulerlabs/32/580_2.png) [@EulerLabs](https://forum.euler.finance/u/EulerLabs)\
**Post date:** [July 23, 2025, 10:24am UTC](https://forum.euler.finance/t/integrate-rseth-on-euler-arbitrum/1531/3 "2025-07-23T10:24:10Z")

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This proposal has been implemented [Arbitrum One Transaction Hash: 0x01f7f40fc1... | Arbitrum One](https://arbiscan.io/tx/0x01f7f40fc1861579c37a642d489de6576813f9ad984c4139762dc64595278145)