Thanks for the proposal @LlamaRisk .
Some points of feedback/questions from our side:
- The Target Liquidity/s on the new proposed wstETH and USDe - or even the eligibility for inclusion of wstETH - seem pretty high for us in comparison with the existing assets covered.
The rationale is that collateral backing wstETH is mainly comprised of assets directly correlated, oracle-wise, to ETH via CAPO, so deficit accrual would only occur when the value of the exchange rate negatively dislocates. This type of deficit, while important to handle in the future, is not really something so trivial to parametrise at the moment.
The same happens with USDe, but in lower magnitude, as there really are non-correlated collaterals backing USDe (WETH, wstETH, WBTC, amongst others), but the majority are price-correlated (sUSDe, PTs). Probably the recommended for USDe Target Liquidity should take that into account and be lower, as definitely the non-price-correlated collateral for USDe is way lower than, let’s say, USDC. - Could it be possible to include a more exhaustive list of parameters proposed on the system (still with comparison to the previous), akin to the one we included in the initial Umbrella activation HERE?
Even if, for configuration purposes, some of those could be inferred, others, like Deficit Offset, cannot. And definitely having references of APYs would help the community on the voting stage.