[Gauntlet] - tETH Risk Recommendations for Arbitrum USDC, USDT, and WETH Comets
Simple Summary
Should the community choose to list tETH on the Arbitrum USDC, USDT, and WETH Comets, Gauntlet recommends the following risk parameters:
Risk Parameters
| Comet | Collateral | Supply Cap | Collateral Factor (CF) | Liquidation Factor (LF) | Liquidation Penalty (LP) |
|---|---|---|---|---|---|
| Arbitrum USDC | tETH | 50 | 80% | 85% | 10% |
| Arbitrum USDT | tETH | 50 | 80% | 85% | 10% |
| Arbitrum WETH | tETH | 50 | 88% | 93% | 4% |
DEX Liquidity
| Pool Type | Pool Name | Pool URL | TVL ($) | 24H Volume ($) |
|---|---|---|---|---|
| Balancer | tETH / wstETH | https://balancer.fi/pools/arbitrum/v2/0x65c2d90b33f7bf693a7ef54662435f2cf3251c210000000000000000000005e7 | 2.03M | 1.11K |
Total TVL: $2.03MM
Slippage
USDC
USDT
WETH
Analysis
Supply Caps
Given the observed slippage, Gauntlet recommends setting all supply caps to 50 tETH. This implies a cumulative supply cap of 150 tETH. Although each cap can be liquidated with minimal slippage, the aggregate begins to approach liquidity constrains(even on the most liquid comet) as seen below.
CF/LF/LP
Gauntlet recommends aligning the CF, LF, and LP for the USDC and USDT Comets to that of other ETH derivatives on the these comets. Similarly, we align these with ETH derivatives already listed on the Arbitrum WETH comet.
Next Steps
- We welcome community feedback.