[Anthias Labs] Risk Parameter Recommendations (5/19/26)
Anthias Labs proposes the following parameter changes for the month of June. For more information on current parameters, please refer to our monitoring dashboard here.
Base
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| wrsETH Collateral Factor | 74% | 68% |
Rationale
wrsETH
As many are now aware, KelpDAO’s rsETH recently experienced a serious incident involving its LayerZero route from Unichain to Ethereum. The route was configured with a 1-of-1 DVN setup, which allowed an attacker to exploit the bridge path and withdraw approximately 116,500 rsETH on Ethereum. The attacker then supplied this rsETH as collateral on Aave and other protocols accepting it across Ethereum and Arbitrum, and borrowed against it.
Moonwell was unaffected by this incident because the protocol had already moved risk-off in the wrsETH market by setting both supply and borrow caps to zero. In light of the incident, we recommend continuing the deprecation of the wrsETH market on Base by gradually reducing the collateral factor until it reaches zero. This approach gives existing users a controlled path to unwind any remaining positions. The first drop (74% to 68%) should not cause any liquidations.
OP Mainnet
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| cbETH Reserve Factor | 10% | 99% |
| cbETH Collateral Factor | 81% | 1% |
| weETH Supply Cap | 1 wei | 90 weETH |
| wrsETH Collateral Factor | 74% | 68% |
IR Parameters
| cbETH IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0.01 |
| Kink | 0.45 | 0 |
| Multiplier | 0.065 | 0 |
| Jump Multiplier | 3 | 0 |
Rationale
cbETH
We have maintained a risk-off stance in the cbETH market on OP Mainnet for some time, with supply and borrow caps set to zero. This is primarily because DEX liquidity remains essentially nonexistent and cannot reliably support flashloan liquidations, which are critical for a healthy lending market. As a final risk-off measure, we recommend flattening the interest rate curve, increasing the reserve factor to 99%, and reducing the collateral factor to 1%. Currently, only negligible dust amounts are supplied and borrowed in the market (approximately 0.15 cbETH), so lowering the collateral factor to 1% will have virtually no practical impact on users. These parameter changes will effectively wind down and deprecate the market for the foreseeable future.
weETH
In mid-April 2026, ether.fi completed the migration of its Cash product from Scroll to OP Mainnet. This move brought over $220 million in TVL, and 300,000 accounts to Optimism, significantly boosting on-chain activity and liquidity. As a result, weETH has benefited from improved DEX liquidity.
We had previously adopted a risk-off stance for weETH on OP Mainnet by setting supply and borrow caps to zero, as DEX liquidity at the time was very thin and could not reliably support flashloan liquidations. However, liquidity has since improved and can now support a lending market with carefully managed caps. We recommend a conservative supply cap of 90 weETH, targeting an amount that results in ~5% slippage when swapping to USDC. We do not support an increase to the borrow cap at this time, weETH should be used as collateral only.
Pictured below: a swap of 90 weETH to USDC results in ~5% slippage.
wrsETH
For the same reasons listed above on the Base deployment, we recommend taking steps to deprecate the wrsETH market by gradually reducing collateral factor to zero. The initial proposed reduction from 74% to 68% may trigger the liquidation of a single remaining user position; however, that position supplies only approximately $10 in collateral and therefore has negligible impact on the overall market.
Address: 0x1fc6356b0d5ac182ba2e753cb49c08832a95dbeb
Additional Links
Anthias Labs has not been compensated by any third party for any statements made. All opinions and suggestions provided are based solely on our independent analysis and are not influenced by external entities.