Gauntlet’s wrsETH Recommendation - Optimism
Gauntlet has conducted a market risk analysis for rsETH on Optimism for the initial asset listing
Summary
We recommend onboarding wrsETH as collateral on Moonwell OP deployment with the following risk recommendations.
Risk Parameter Recommendations
| Parameters | Values |
|---|---|
| CF | 74% |
| Supply Cap | 400 |
| Borrow Cap | 160 |
| Protocol Seize Share | 3% |
IR Recommendations
| IR Parameters | Recommended |
|---|---|
| Base | 0 |
| Kink | 0.35 |
| Multiplier | 0.15 |
| Jump Multiplier | 4.5 |
| Reserve Factor | 0.15 |
Supporting Data
Supply and Borrow Caps
DEX Liquidity as of 10/9/24
| Dex Category | TVL(mil) | URL |
|---|---|---|
| beethoven_x_optimism (Balancer) | 2.21 | Link |
| beethoven_x_optimism (Balancer) | 1.14 | Link |
| velodrome-finance-v2 | 0.56 | Link |
Total TVL: $3.91M
Gauntlet assumes the use of Market Rate Oracles, and therefore recommend setting the supply cap at 400 wrsETH and borrow cap at 160 wrsETH.
Collateral Factor, IR Parameters
We recommend aligning the CF and IR Parameters for the rsETH Optimism instance to that of the Base instance.