[Gauntlet] - ezETH, tETH, and rsETH Risk Recommendations

Proposals
1

Simple Summary

Gauntlet would like to recommended changes to the Collateral Factors, Liquidation Factors and Liquidation Penalties for ezETH, tETH and rsETH across all WETH and wstETH comets they are deployed on.

Risk Parameters

WETH Comet

Asset Current Collateral Factor Recommended Collateral Factor Current Liquidation Factor Recommended Liquidation Factor Current Liquidation Penalty Recommended Liquidation Penalty Chain
ezETH 88% 90% 91% 93% 6% 4% Ethereum
ezETH 88% 90% 91% 93% 6% 4% Arbitrum
ezETH 88% 90% 91% 93% 6% 4% Base
ezETH 88% 90% 91% 93% 6% 4% Optimism
ezETH 88% 90% 91% 93% 6% 4% Unichain
tETH 88% 90% 91% 93% 4% 4% Ethereum
rsETH 88% 90% 91% 93% 4% 4% Ethereum
rsETH 88% 90% 91% 93% 4% 4% Arbitrum
rsETH 88% 90% 91% 93% 4% 4% Base
rsETH 88% 90% 91% 93% 4% 4% Optimism

wstETH Comet

Asset Current Collateral Factor Recommended Collateral Factor Current Liquidation Factor Recommended Liquidation Factor Current Liquidation Penalty Recommended Liquidation Penalty Chain
ezETH 88% 90% 91% 93% 6% 4% Ethereum
tETH 88% 90% 91% 93% 4% 4% Ethereum
rsETH 88% 90% 91% 93% 4% 4% Ethereum

Rationale

We recommend updating the Collateral Factor, Liquidation Factor and Liquidation Penalties of ezETH, tETH and rsETH to match that of weETH across all wstETH and WETH comets, given the maturity of LRT markets and the similarity in risk profiles across these assets.

Next Steps

  • Gather community feedback
  • Post on-chain proposal
2 Likes
2

Proposal 454 Review

Summary

Timeline: From 2025-07-03 To 2025-07-03

Total Issues: 1 (0 resolved)

Medium Severity Issues: 1 (0 resolved)

Overview

Proposal Title: [Gauntlet] - ezETH, tETH, and rsETH Risk Recommendations

Tally URL: Tally | Compound | [Gauntlet] - ezETH, tETH, and rsETH Risk Recommendations

Analysis

Issue

There seems to be no call to the Unichain in the proposal, we suggest that the proposal is cancelled and resubmitted again with correct steps.

The implemented test verifies the correct configuration of ezETH, rsETH, tETH, and wrapped rsETH as collateral assets across Compound Comet markets on multiple supported chains. The following risk parameters were tested and asserted against on-chain configuration:

  • Collateral Factor: 0.90e18 (90%)
  • Liquidation Factor: 0.93e18 (93%)
  • Liquidation Penalty: 0.04e18 (4%)

Chains and Assets Verified

Chain Market Assets Checked
Ethereum WETH ezETH, rsETH, tETH
Ethereum wstETH ezETH, rsETH, tETH
Arbitrum WETH ezETH, rsETH
Base WETH ezETH, wrapped rsETH
Optimism WETH ezETH, wrapped rsETH

Each call to checkCollateralConfig validated that:

  • borrowCollateralFactor == 0.90e18
  • liquidateCollateralFactor == 0.93e18
  • 1e18 - liquidateCollateralFactor == 0.04e18

These values were pulled from the deployed Configuration contract and verified using Config.getConfiguration().

Medium Severity

Unichain Market Not Updated Due to Missing Cross-Chain Call

The proposal does not include any cross-chain calls targeting Unichain. As a result, the ezETH market on Unichain will not be updated with the intended collateral parameters.

To ensure the asset configuration is properly applied across all intended chains, including Unichain, consider canceling and resubmitting the proposal with the correct reconfiguration calls to Unichain.

Conclusion

OpenZeppelin reviewed Proposal 454 and verified that all configurations across supported chains have been correctly applied. However, Unichain was not included in the execution steps. It may be advisable to cancel the proposal and resubmit it with the appropriate call to update the Unichain market.