[PCP] LTV Parameter Adjustments of Custom rwstETH and rwETH Markets for New ILMs

Project and Asset Integrations
1

TL;DR - Seamless core contributors propose the adjustment of LTV parameters of the existing custom WETH and wstETH markets in order to prepare for new ILM strategies.

Background/Context:
This is a follow up to two existing proposals, which introduced the custom wstETH and custom ETH markets for ILMs.

Making these updates to LTV and corresponding liquidation thresholds will allow for future new ILM strategies to be launched, most notably higher leverage strategies of the current wsteth/eth and eth/usdc ILMs.

Proposal:
As far as market parameter adjustments, the current proposal follows:

[1] Increase LTV and liquidation threshold parameters for the custom wstETH market (rwstETH):

  • LTV to 90% (equivalent to the wstETH-ETH e-mode)
  • LT to 93%

[2] Increase LTV and liquidation threshold parameters for the custom ETH market (rWETH):

  • LTV to 90%
  • LT to 93%

Resources/References:
ILM Github - GitHub - seamless-protocol/ilm: integrated liquidity market
ILM specs - ilm/SPECS.md at main · seamless-protocol/ilm · GitHub

Next Steps:
Based on currently established community governance standards, suggest the ~5 day period begins for open discussion period for the community to share its thoughts or suggestions.

3 Likes
2

I approve of this proposal to allow for more ILM strategies to be released. Assuming these proposals are wETH and wstETH related then these updates make sense. Thanks

3

Great initiative. Fully support this proposal. We need more and more ILM strategies.

4

This sounds like a good idea. The ILMs are recently growing and it seems it would be good to have some more variation in the strategies

5

Increasing the LTV and liquidation thresholds for ILM strategies is a smart move, a really nice suggestion, and I fully support it!

6

Fully support this proposal and looking forward for the ILMs expansion

1 Like
7

Supportive - this makes sense as core contirbutors are focused on launching more ILMs.

There should be a future conversation potentially on if even more aggressive LTVs (surpassing e-mode) or warranted or prudent (potentially with some analysis?)

May I suggest the cooldown period already begins as there has been half a dozen positive reponses so far, so onchain proposal can begin about 2 days from now?

2 Likes