Gauntlet Initial Parameter Recommendations: Ethereum Compound v3 WETH Comet
Simple Summary
Gauntlet provides the following initial parameters for listing rETH on the Ethereum Compound v3 WETH comet.
| Parameter | Value |
|---|---|
| Collateral Factor | 90% |
| Liquidation Factor | 93% |
| Storefront Price Factor | 100% |
| Liquidation Penalty | 2.5% |
| Supply Cap | 30,000 ($60M) |
Analysis
Rocket pool ETH (rETH) is a significant LST for staked ETH. With 500K tokens in circulating supply, rETH is one of the biggest LSTs on Ethereum. Given the asset’s sufficient liquidity on-chain, circulating supply, and user adoption, Gauntlet suggests the above risk parameters for initial asset listing.
We give supply cap recommendations based on the assets circulating supply, liquidity, and daily volume. rETH’s supply cap, set at 30,000 ($60M), is calculated using estimated liquidity available in depegging events and market depth in normal conditions. Given the asset’s significant liquidity, the supply cap can be increased as supply increases on this comet. We will monitor rETH supply growth of rETH and suggest increasing the cap as the market evolves.