Should the community wish to list WOO on Arbitrum v3, Gauntlet recommends the following parameters.
Parameters
| Parameter | Recommendation |
|---|---|
| Isolation Mode | YES |
| Borrowable | YES |
| Collateral Enabled | YES |
| Stable Borrowing | NO |
| Supply Cap (WOO) | 6000000 |
| Borrow Cap (WOO) | 4500000 |
| Debt Ceiling | $500k |
| 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
WOO annualized historical volatility is roughly ~ 95%. We recommend initializing WOO with LT/LTV/LB/IR params in line with assets with similar risk profile set on Aave v3.
Initial Supply and Borrow Caps
Given WOO is a new asset listing, we use our conservative methodology to recommend initial supply caps. These caps are limited by WOO liquidity.
- WOO has a 25% depth value of ~6m via WOOFi sPMM pool
- WOO circulating market cap is ~69m
- WOO ADV is roughly ~50m
Isolation Mode
In line with other assets of similar historical volatility and market cap, we recommend initializing WOO in isolation mode. We recommend a debt ceiling of $500k, limited by our initial supply cap.