Next Steps
We appreciate the community’s interest and feedback on Gauntlet’s methodology for LST Emode. We hope that the analysis above helps organize and systemize the discussion around managing risk for LST Emode - on factors such as short-term and long-term correlation, arbitraguer profitability, abnormal vs. normal price variances, and how to implicitly model risks on the redemption mechanism.
The discussion has brought forward important design decisions for the community. To simplify the governance process, our Snapshot vote will include the below options, which are essentially our original Options but without a CONSERVATIVE and AGGRESSIVE delineation:
- Option 1: Include all LST-BASE assets in the same pool
- Option 2: Include single LST-BASE pools
- Option 3: Add Emode-specific caps
- Option 4: NO - do not add Emode-specific caps
- Option 5: YES borrowing power outside Emode
- Option 6: NO borrowing power outside Emode
- Option 7: Remove LST Emode
The Snapshot will be “multi-select” (voters can select multiple options), as it may be possible for voters to want to select Option 1 and Option 3, as they are not mutually exclusive.
As mentioned above, we target a Snapshot vote on Wednesday, 5/3/2023.