Following are the initial analysis and risk parameters recommendations by Chaos Labs.
As of the day of this analysis (01/17/2022), cbETH has a market cap of ~$1B and daily trading volumes of $5M-$20M, with the two major liquidity venues being Coinbase and Uniswap V3.
Source: CoinGecko, 01/17/2022
-1% Depth in Uniswap V3 is approx. 30K-50K ETH.
In addition, the token has experienced cbETH/ETH ratio as low as 90% around two weeks after the launch.
While the counter-party risk is low with Coinbase as the issuing entity, cbETH is a new asset (launched on 09/22/2022) and a centralized token, requiring further and ongoing analysis to understand its complexity and usage before recommending increased caps and considering less conservative configurations.
Given the above, we recommend listing cbETH with borrowing disabled.
We recommend setting the LT at 74% and LTV at 71%. Since this is a new asset, we recommend not opening it in emode immediately but instead revisiting this option several weeks after the market is deployed and stable in production.
Initial risk parameter recommendations:
| Symbol | Isolation Mode | Borrowable | Collateral Enabled | LTV | LT | LB | RF | LPF | Debt Ceiling | Supply Cap | Borrow Cap |
|---|---|---|---|---|---|---|---|---|---|---|---|
| cbETH | NO | NO | YES | 71% | 74% | 10% | N/A | 0.10 | N/A | 15K | N/A |