Following the discussion on LSD price feeds and redeemability, we published the Chaos Labs LSD Methodology Update, which we will consider in future E-Mode and risk parameter recommendations.
In response to @bgdlabs comments above, we endorse the following two proposed enhancements:
- Establish separate supply caps for E-Mode.
- Allow an asset to be part of multiple E-Mode categories.
These improvements are expected to increase utilization and risk controls for LSDs significantly.
In the short term and for the purpose of the upcoming vote, we support the current configuration of the emode categories across all networks and support the following:
- Creating an ETH-correlated E-Mode on Optimism
- Adding rETH to the E-Mode on Ethereum.
- We do not recommend any immediate changes to the supply caps of the assets, as can be seen in our methodology post
- For stMATIC and MaticX, if the community decides on a higher risk appetite regarding counter-party risk, we will recommend increasing the supply caps according to the outcome of the snapshot vote.