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