📝 Hey friends, Treehouse and Aave have officially collaborated, and tETH can now be used as collateral in the Aave v3 Prime market.

Moreover, you must enable E-Mode to borrow assets, which means that to fully enjoy the benefits and increase leverage in this operation, remember to select the correct mode. If you have tETH, this tutorial is for you to maximize your benefits~

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One, What is tETH

tETH is a yield-generating ETH token launched by @TreehouseFi, representing your staked ETH assets on-chain. But it is more flexible than traditional staking derivatives (like stETH, rETH): transparent yields, strong composability, and you can participate in points programs, such as their GoNuts event. For me, it is quite suitable for those who usually use DeFi; it feels more cost-effective than simple staking.

Two, Why enable E-Mode

Aave's E-Mode (Efficient Mode) is a feature designed for similar assets (like tETH and wstETH).

In normal mode, you may only be able to borrow 70% of the collateral asset. After enabling E-Mode, LTV can be raised to a maximum of 92%, significantly improving capital efficiency.

Since borrowing is done between ETH derivative assets, the asset volatility is lower, and the liquidation risk is lower. It is very suitable for native ETH strategies, arbitrage, hedging, and other plays.

How to enable: Go to Aave's settings -> Select E-Mode -> Switch to tETH/wstETH asset category to enable.

Three, Practical guide: tETH collateral borrowing (under E-Mode)

1️⃣ Open Aave v3 Prime market -> Visit link: https://app.aave.com/?marketName=proto_lido_v3

2️⃣ Connect wallet -> Ensure you already hold tETH -> If not, you can mint on the Treehouse platform (you can directly exchange ETH for tETH).

3️⃣ Deposit tETH into Aave -> Find tETH in the market -> Click Supply -> Supply and confirm the transaction

⚠️ Small tip: For first-time operations, your wallet will first ask you to authorize; just click confirm~

4️⃣ Lend other assets -> You can choose wstETH for borrowing -> Click Borrow to start borrowing

⚠️ Friendly reminder: Pay attention to the health factor when borrowing; do not over-leverage, and avoid liquidation due to greed.

Four, tETH's bonus point is a three-in-one benefit

1️⃣ Continuous earnings: The staked tETH itself continues to earn staking rewards without interruption.

2️⃣ You can also earn points: Participate in Treehouse's GoNuts program while using it to accumulate Nuts points, with future airdrops expected.

3️⃣ Maximize liquidity utilization: You can earn interest while using borrowed assets for more strategies (arbitrage, LP, hedging).

Don't let your assets sit idle; deposit tETH into Aave to continuously earn interest while borrowing funds for arbitrage, hedging, or cashing out without selling tokens. You can also earn Treehouse's Nuts points rewards, benefiting from both DeFi and airdrops!

👉 Operate now: https://app.aave.com/?marketName=proto_lido_v3

👉 Learn about Treehouse: https://treehouse.finance