[Gauntlet] wsuperOETHb Recommendations for Compound V3 Base WETH market
If the community decides to list wsuperOETHb on Compound V3 WETH markets on Base, Gauntlet recommends the risk parameters below.
Base WETH Comet
| Asset | Collateral Factor | Liquidation Factor | Liquidation Penalty | Supply Cap |
|---|---|---|---|---|
| wsuperOETHb | 88% | 90% | 5% | 2000 |
Analysis
Liquidity Sources
| Pool Type | Pool Name | Pool TVL (Million USD) | 24H Volume (USD) | URL |
|---|---|---|---|---|
| Aerodrome Slipstream | OETHb / WETH 0.01% | $561.73 | $3,097,317.77 | Link |
| Aerodrome Base | OETHb / OGN | $15.98 | $149,813.04 | Link |
Total TVL: $577.7 million
Supply Cap
Given the above liquidity sources, Gauntlet recommends an intial supply cap of 2,000 wsuperOETH for Base WETH Comet, with the optionality to increase them if the market shows demand. This level is aligned with the liquidity available and aims to balance liquidators’ incentives with minimal slippage risk.
Volatility Analysis
wsuperOETHb/WETH
Volatility metrics for wsuperOETHb reveal elevated fluctuations relative to ETH, with a maximum drawdown of 4.6% over the past 180 days and an annualized daily log volatility of 15.4%.
Liquidation Factor (LF) and Collateral Factor (CF)
Since superOETH is an extension of OETH, Gauntlet recommends aligning the CFs, LFs and LPs to that recommended for OETH. This implies a Liquidation Factor at 90% a Collateral Factor at 88% and a Liquidation Penalty of 5%.
Next Steps
- We welcome community feedback