[ARFC] Initiate ETH Correlated E-mode on Optimism

Simple Summary

This is to gauge the community’s interest in launching an ETH Correlated E-Mode on Optimism. We welcome feedback from all contributors and community members.

Risk Parameters

Below is an illustrative example of what an initial launch’s conservative supply cap, aggressive supply cap, LT, LTV and LB parameters may look like. Depending on the length of this community discussion, changing market conditions may warrant different parameters. These parameters are following Gauntlet’s LST E-Mode Methodology, and were posted originally in the table of that forum post.

For transparency, as inputs to our recommendations, the below table also shows our abnormal and normal calculations as stated in the methodology.

chain asset abnormal normal conservative aggressive LT LTV LB
optimism WSTETH 2800 1600 4020 8900 91 88 2

Next Steps

  • Welcome community feedback
  • Target Snapshot Vote

Thanks for putting this forward @Pauljlei.
As Chaos Labs proposed in a separate post, we support creating the ETH-correlated E-Mode on Optimism.

Regarding the specific caps, we have recently proposed an update to the supply cap of wstETH on Optimism, taking into account the coming launch of this E-Mode category with the suggested parameters.