[TEMP CHECK] Add FXS to Ethereum V3

Should the community wish to list FXS on Ethereum v3, Gauntlet recommends the following parameters.

Parameters

Parameter Recommendation
Isolation Mode YES
Borrowable YES
Collateral Enabled YES
Stable Borrowing NO
Supply Cap (FXS) 800000
Borrow Cap (FXS) 500000
Debt Ceiling $4M
LTV 35%
LT 45%
Liquidation Bonus 10%
Liquidation Protocol Fee 10%
Reserve Factor 20%
Base Variable Borrow Rate 0
Variable Slope 1 0.09
Variable Slope 2 3.00
Uoptimal 0.45

LTV, LT, LB, Liquidation Protocol Fee, IR

FXS annualized historical volatility is roughly ~ 95%. We recommend initializing FXS with LT/LTV/LB/IR params in line with assets with similar risk profile set on Aave v3.

Initial Supply and Borrow Caps

FXS is a new asset listing, we use our conservative methodology to recommend initial supply caps. These caps are limited by FXS liquidity.

  • FXS has a 25% depth value of ~$4.5M
  • FXS circulating market cap is ~$425M
  • FXS ADV is roughly ~$20M

Isolation Mode

In line with other assets of similar historical volatility and market cap, we recommend initializing FXS in isolation mode. We recommend a debt ceiling of $4M, limited by our initial supply cap.

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