We would like to propose on addition of a wOETH market to the Compound V3 stablecoin markets for USDC and USDS.
Token Asset Name
Wrapped OETH (wOETH)
Specification
wOETH is already well supported on Compound V3 via the mainnet Ethereum market. This is beneficial for leverage looping the underlying OETH yields, but not for taking a long position on the price of ETH, since ETH-based assets are both the collateral and the borrow token. I am proposing to onboard wOETH alongside the other supported LST/LRTs and crypto assets on the mainnet USDC and USDS markets.
Adding support for wOETH to these markets would lead to additional increased TVL for Compound, additional revenue to the Compound Protocol and DAO from active loans and liquidations, and will attract a wider user base for users looking to take a long position on ETH using Compound.
All of the technical information on wOETH can be found on the original wOETH proposal from 2024.
wOETH is already supported and listed on the V3 Mainnet WETH comet. If the community wishes to proceed with listing it on the Mainnet USDC and USDS comets, Gauntlet recommends the following risk parameters:
Given the observed slippage, Gauntlet recommends setting both supply caps to 7000 wOETH. The ~2% slippage on both swaps falls well below the 10% liquidation penalty, ensuring sufficient incentive for liquidators.
CF/LF/LP
Gauntlet recommends aligning the CF, LF, and LP for the USDC Comet and USDS Comet to that of other ETH derivatives on these Comets.
Hi, just making you aware that there was a contract upgrade for OETH a few days ago that strengthens OETH’s security by using Beacon chain merkle proofs. You can find the executed proposal here: Origin Dapp
