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

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
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