[Gauntlet] wstETH initial asset listing recommendations (1/3/24)
Simple Summary
Gauntlet recommends the following wstETH initial parameter recommendations across Base v3 WETH, Ethereum v3 USDC, and Arbitrum v3 USDC.
| Comet | Collateral Factor | Liquidation Factor | Liquidation Penalty | Supply Cap |
|---|---|---|---|---|
| Base v3 WETH | 90% | 93% | 2.5% | 100 |
| Ethereum v3 USDC | 83% | 88% | 8% | 40k |
| Arbitrum v3 USDC | 78% | 83% | 10% | 2k |
Analysis
wstETH (contract address 0xc1CBa3fCea344f92D9239c08C0568f6F2F0ee452) has recently launched on BASE. We recommend setting a conservative supply cap of 100 to start, with plans of increasing it as liquidity continues to grow on-chain.
wstETH liquidity on Ethereum and Arbitrum is considerably higher. The recommended supply caps are set to values which result in ~10% DEX slippage, with the optionality to increase them if the market shows demand.
Next Steps
We welcome community feedback.