[Gauntlet] - wrsETH collateral risk recommendations for Base, Optimism, and Scroll for WETH v3 Comets
Gauntlet recommends the following risk parameters for wrsETH across WETH Comets on Base and Optimism. Gauntlet also recommends initializing a WETH Comet on Scroll given the outstanding wrsETH float.
Base Recommendations
| Parameter | Value |
|---|---|
| Collateral Factor | 88% |
| Liquidation Factor | 91% |
| Liquidation Penalty | 4% |
| Supply Cap | 230 |
Optimism Recommendations
| Parameter | Value |
|---|---|
| Collateral Factor | 88% |
| Liquidation Factor | 91% |
| Liquidation Penalty | 4% |
| Supply Cap | 220 |
Analysis
wrsETH Liquidity sources on Base
| Dex Category | TVL(mil) | Link |
|---|---|---|
| aerodrome-base | 2.19 | Link |
Total TVL: 2.19 million
wrsETH Liquidity sources on Optimism
| Dex Category | TVL(mil) | Link |
|---|---|---|
| beethoven_x_optimism | 2.02 | Link |
Total TVL: 2.29 million
Supply Cap
Given the use of exchange rate oracles, gauntlet advises setting caps to half of the available unwrap limit for wrsETH to rsETH, since unwrapping wrsETH to access the underlying or staked ETH is only possible through conversion to rsETH.
Collateral Factor, Liquidation Factor and Liquidation Penalty
Gauntlet recommends aligning the CF, LF and LP with those recommended in this post, contigent on the use of Exchange Rate Oracles.