Summary
Should the community wish to list ETHx, Gauntlet recommends the following parameters from a market risk perspective. We give further color below.
Assessment
Market Share
ETHx has 0.37% of the overall LST marketshare as of end of Nov, ranking it 8th by market share.
Liquidity
- ETHx circulating supply is ~40k ETHx.
- The primary liquidity venues for ETHx include the ETHx - wstETH (~$26m TVL) and ETHx - WETH pools (~$11m TVL) on Curve.
- A 3.8k (~$8M) swap of ETHx to ETH incurs ~2% slippage.
Staking Yield
Staking yields have hovered around ~4%.
Recommendations
Supply and Borrow Caps
Given its liquidity profile and expected WETH debt borrowed against ETHx, Gauntlet recommends initial supply caps of 10k ETHx, 25% of the circulating supply.
Emode
Given its relatively short price history, Gauntlet does not recommend listing in ETH-correlated emode at this time.
| Parameter | Recommendation |
|---|---|
| Isolation Mode | NO |
| Borrowable | YES |
| Borrowable in Isolation | NO |
| Collateral Enabled | YES |
| Stable Borrowing | NO |
| Supply Cap | 10000 ETHx |
| Borrow Cap | 1000 ETHx |
| Debt Ceiling | N/A |
| LTV | 71% |
| LT | 76% |
| Liquidation Bonus | 7.5% |
| Liquidation Protocol Fee | 10% |
| Reserve Factor | 15% |
| Base Variable Borrow Rate | 0 |
| Variable Slope 1 | 7% |
| Variable Slope 2 | 300% |
| Uoptimal | 45% |