[ARFC] Initiate ETH Correlated E-mode on Optimism

[Pauljlei]

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

[ChaosLabs]

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

@ChaosLabs

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:

1. Creating an ETH-correlated E-Mode on Optimism
2. Adding rETH to the E-Mode on Ethereum.
3. We do not recommend any immediate changes to the supply caps of the assets, as can be seen in our methodology post

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.