[Gauntlet] Recommendations for rsETH on Mainnet USDC and USDT Comet
Simple Summary
Should the community choose to onboard rsETH on the Compound V3 USDC and USDT Comets on Mainnet, we recommend the following initial parameter recommendations:
Risk Parameters
| Comet | Collateral Factor (CF) | Liquidation Factor (LF) | Liquidation Penalty (LP) | Supply Cap |
|---|---|---|---|---|
| Mainnet USDC | 85% | 90% | 5% | 1500 |
| Mainnet USDT | 85% | 90% | 5% | 1500 |
- Collateral Factor, Liquidation Factor & Penalty: rsETH LTVs are similar to mETH LTV on USDT Comet.
- rsETH ($1.8B) and mETH ($1.4B) are similar in terms of market cap size
- We recommend that rsETH list with similar LTV ratios as mETH
- Supply Cap: 3000 rsETH (total caps for Mainnet USDC and USDT Comets) can be swapped to ETH with ~3% slippage
DEX Liquidity
| Asset | DEX | Pool Name | Pool TVL (USD) | 24 h Volume (USD) | URL |
|---|---|---|---|---|---|
| rsETH | Uniswap V3 | wstETH / rsETH 0.05% | 11,643,647 | 818,841 | Link |
| rsETH | Balancer | rsETH / WETH / rsETH / WETH 0.01% | 8,555,675 | - | Link |
| rsETH | Balancer | rsETH / agETH / agETH / rsETH 0.04% | 5,396,840 | 724,314 | Link |
| rsETH | Uniswap V3 | rsETH / ETHx 0.3% | 3,164,521 | 932 | Link |
Total DEX liquidity for rsETH is approximately $29.1M
Oracles
We recommend using the same on-chain oracle for the rsETH to ETH conversion, then leveraging Chainlink’s ETH/USD price feed for the cross-rate.
Next Steps
We welcome community feedback.