Summary
Steakhouse proposes onboarding weETH as eligible collateral for Steakhouse Prime Morpho vaults across ETH and USD lending markets. The proposal follows a full protocol review benchmarked against our internal Prime risk framework.
EtherFi has delivered the governance changes required to meet the Prime threshold. As a reminder, we also suggest Steakhouse USDC (Vault V1) users to migrate to Steakhouse USDC Prime Instant (v2) via the migration tool available on our app or on the Morpho frontend.
1. Purpose
This proposal opens weETH for use as collateral in Steakhouse-curated Prime-branded Morpho lending markets. It rests on a Protocol Hardening Specification delivered to the EtherFi team containing full technical detail, code-level analysis, and implementation guidance.
The review benchmarks EtherFi against two standards: our internal thresholds for counterparty risk under the Steakhouse risk management framework (Steakhouse Docs | Risk, Products & Markets | Steakhouse Financial), and a stretch target of architectural parity with Lido. Today, Lido’s wstETH shows a useful example to follow and draw ideas from to set the engineering baseline for Prime vaults.
2. Review Outcome
We have been working for the last few months with EtherFi to meet minimum requirements for us to list this collateral on the Prime vaults. Previously weETH was listed on our High Yield vaults only, on Aave, where it was the second biggest collateral, and on SparkLend, where it is currently the second largest liquid staking token, with ~$168m supplied.
2.1. Governance hardening
EtherFi has completed the three governance changes we requested that bring weETH to the Prime bar.
AVS Operator Manager → Upgrade Timelock
AvsOperatorManager ownership moved from the OPERATING_ADMIN Safe (3/5 msig, no timelock) to the UPGRADE_TIMELOCK (6/10 msig, 10 days timelock). Eliminates instant multisig discretion over EigenLayer slashing registration.
Multisig Expansion to 6-of-10
UPGRADE_ADMIN Safe restructured from 4-of-7 (all internal) to 6-of-10 with at least six external ecosystem signers. No single organization controls upgrade authority. The OPERATING_ADMIN Safe has added external signers on the same basis. Executed via Safe.addOwnerWithThreshold().
Timelock Extension to ≥10 Days
UPGRADE_TIMELOCK extended from 72 hours to ≥10 days via updateDelay(). OPERATING_TIMELOCK extended from 8 hours to 48 hours.
2.2. Bridge Security
Additionally, following the rsETH bridge exploit, the team has executed bridge hardening measures (https://x.com/ether_fi/status/2047350564300931556), including deprecating smaller venues and bolstering security for bridge activity going over LayerZero:
- Pinning LayerZero send/receive message libraries
- Pinning the DVN set and raised the threshold to 4/4 (unanimous)
- Tightening pair-wise rate limits on EtherFi-owned bridge contracts
As a result, LayerZero’s multisig has no on-chain path to modify the weETH bridge config, every inbound message must be attested by all 4 DVNs and per-route rate limits bound potential exploit blast radius.
3. Implementation
Steakhouse will deploy new Morpho markets for weETH/USDC, weETH/USDT and weETH/ETH using our meta oracle configuration and add them to Prime USD and ETH vaults.
A 7-day Steakhouse timelock activates before markets become live in Prime vaults. During this period, vault users can propose a veto via the Aragon DAO mechanism connected to each vault.
| Specification | weETH/USDC | weETH/USDT | weETH/ETH |
|---|---|---|---|
| Market ID | 0x34377fc4f617c51818e92c79df31ff270c6a91bc94ad32e367fdf59b9f4ac5dd | 0x19cc9b90c4ecde78f4644f4d5ebc938fbadf30f6e4cae95485192f038b23e1f3 | 0x37e7484d642d90f14451f1910ba4b7b8e4c3ccdd0ec28f8b2bdb35479e472ba7 |
| LLTV | 77% | 77% | 94.5% |
| Oracle | weETH/ETH Exchange Rate x Chainlink ETH/USD SVR | weETH/ETH Exchange Rate x Chainlink ETH/USD SVR | weETH/ETH Exchange Rate |
4. Disclosures
Steakhouse Financial did not receive any compensation from EtherFi or affiliates, nor expectation or promise of quid-pro-quo in any way.