If the community decides to list the following assets, Gauntlet recommends the below risk parameters:
WETH Comet on BASE
Asset
Collateral Factor
Liquidation Factor
Liquidation Penalty
Supply Cap
wstETH
90%
93%
2.5%
1200
ezETH
80%
85%
10%
500
USDC Comet on BASE
Asset
Collateral Factor
Liquidation Factor
Liquidation Penalty
Supply Cap
wstETH
80%
85%
10%
700
USDC Comet on Arbitrum
Asset
Collateral Factor
Liquidation Factor
Liquidation Penalty
Supply Cap
wstETH
80%
85%
10%
1,500
USDC Comet on Ethereum
Asset
Collateral Factor
Liquidation Factor
Liquidation Penalty
Supply Cap
wstETH
82%
87%
8%
15,000
Analysis
wstETH was recommended within this forum post approximately 7 months ago to be listed on WETH Comet on BASE and USDC Comets on Ethereum and Arbitrum. Gauntlet would like to push these recommendations on-chain with updated parameters while including adding ezETH to the BASE WETH Comet and wstETH to the BASE USDC Comet. Gauntlet is recommending listing the assets again in order to improve capital efficiency, especially within the BASE WETH Comet that currently has one collateral asset,cbETH.
Liquidity
wstETH → USDC Liquidty Profile
Chain
25% Slippage
Ethereum
29k ($100M)
Arbitrum
2.8k ($9.8M)
BASE
1.4k ($4.8M)
ezETH → WETH Liquidty Profile
Chain
25% Slippage
BASE
1.9k ($5.7M)
The Aerodrome pools are overweighted with WETH to allow for high liquidity for ezETH relative to the circulating supply on BASE.
As mentioned in the [Franklin DAO] Request for comment on: Market pricing vs. exchange rate pricing for LSTs and potential oracle implementations post, Gauntlet supports exchange rate oracles for wstETH and ezETH within the correlated WETH Comet if the community decides to pursue this strategy. The exchange rate-based risk parameters could facilitate higher caps and Liquidation Factors along with more conservative Liquidation Penalties.
As shown in the chart below, the market rate of ezETH has regained its peg to the exchange rate since the introduction of withdrawals.
The yield from staking ETH and earning ezETH can be volatile and is influenced by various factors such as validator performance, network conditions, and staking competition. Yield rates can fluctuate, and there is no guarantee of consistent returns. Gauntlet would like to flag this potential risk to the community.
Thank you @Gauntlet for the recommendations. wstETH and ezETH are popular assets that will help to increase borrowing avenues for their holders. wstETH has been a dominant collateral asset on top lending protocols. The Growth program supports this initiative and will put developer resources behind this to expedite the deployment of these.
Additionally, I would also like to suggest listing ezETH as collateral on the
USDC Comet on Arbitrum
WETH comet on Arbitrum
USDC Comet on Optimism.
USDT Comet on Optimism
We aim to start coding on these assets in the coming weeks and push them for community vote. Look forward to any feedback on the action items
The deployments have been blocked due to Exchange rate conversation. Thanks to @Gauntlet revisiting these assets and giving refreshed parameters, this will help a lot in expediting the launch of the assets.
We will keep the community updated on the launch of these assets
Add wstETH as collateral into cUSDCv3 on Arbitrum\n\n
Proposal summary\n\n
Compound Growth Program [AlphaGrowth] proposes to add wstETH into cUSDCv3 on Arbitrum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Arbitrum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds wstETH to the USDC Comet on Arbitrum. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Arbitrum.
Compound Growth Program [AlphaGrowth] proposes to add ezETH into cWETHv3 on Base network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Base. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds ezETH to the WETH Comet on Base. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Base.
Compound Growth Program [AlphaGrowth] proposes to add wstETH into cWETHv3 on Base network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Base. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds wstETH to the WETH Comet on Base. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Base.
Compound Growth Program [AlphaGrowth] proposes to add wstETH into cUSDCv3 on Base network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Base. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds wstETH to the USDC Comet on Base. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Base.
Add wstETH as collateral into cUSDCv3 on Ethereum Mainnet\n\n
Proposal summary\n\n
Compound Growth Program [AlphaGrowth] proposes to add wstETH into cUSDCv3 on Ethereum Mainnet network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Ethereum Mainnet. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The CF/LF/LP parameter recommendations for WETH Comets on the ezETH platform were detailed in the accompanying forum post.
OP Chain
Dex Category
Pool address
TVL(mil)
velodrome-finance-slipstream
0xb71ac980569540ce38195b38369204ff555c80be
2.49
uniswap_v3_optimism
0xb40da71c49c745dd3ab801882b1d410760541678
1.12
The ezETH OP DEX total value locked (TVL) amounts to $3.61M, with approximately $1M of ezETH available for swapping into ETH within the OP ecosystem. Currently, the limited DEX liquidity constrains the market’s capital efficiency. Gauntlet will advise against listing ezETH on the USDC Comet while maintaining initially conservative supply caps for the WETH Comet.
Add ezETH as collateral into cWETHv3 on Arbitrum\n\n
Proposal summary\n\n
Compound Growth Program [AlphaGrowth] proposes to add ezETH into cWETHv3 on Arbitrum network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Arbitrum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds ezETH to the WETH Comet on Arbitrum. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Arbitrum.
Add ezETH as collateral into cWETHv3 on Optimism\n\n
Proposal summary\n\n
Compound Growth Program [AlphaGrowth] proposes to add ezETH into cWETHv3 on Optimism network. This proposal takes the governance steps recommended and necessary to update a Compound III WETH market on Optimism. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds ezETH to the WETH Comet on Optimism. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Optimism.
Add ezETH as collateral into cUSDCv3 on Arbitrum\n\n
Proposal summary\n\n
Compound Growth Program [AlphaGrowth] proposes to add ezETH into cUSDCv3 on Arbitrum network. This proposal takes the governance steps recommended and necessary to update a Compound III USDC market on Arbitrum. Simulations have confirmed the market’s readiness, as much as possible, using the Comet scenario suite. The new parameters include setting the risk parameters based off of the recommendations from Gauntlet.\n\n
The first proposal action adds ezETH to the USDC Comet on Arbitrum. This sends the encoded addAsset and deployAndUpgradeTo calls across the bridge to the governance receiver on Arbitrum.
. 
