[GIP-174] rswETH & pufETH fundamental oracles and LTV increases
AI summary
This proposal, GIP-174, suggests implementing 'fundamental oracles' for rswETH and pufETH tokens within the Gearbox protocol. Fundamental oracles are a pricing mechanism that values these tokens based on their underlying assets, now that withdrawals are enabled. Additionally, it recommends increasing the Loan-to-Value (LTV) ratio for rswETH and pufETH from 90% to 93% in WETH Credit Managers, and for weETH, ezETH, and rsETH to 93% as well. This change aims to allow users to borrow more against these tokens.
If passed, users holding rswETH, pufETH, weETH, ezETH, and rsETH will be able to borrow more WETH against their collateral, increasing their capital efficiency and potentially enabling higher leverage strategies. This could lead to increased utilization of these tokens on Gearbox and higher yields for users, but also slightly increases the risk of liquidation if interest rates or market conditions shift unfavorably.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Summary
Chaos Labs provides a recommendation to implement a fundamental oracle for rswETH and pufETH. In parallel, we recommend an increase in the LT of rswETH and pufETH from 90% to 93% within WETH Credit Managers.
The recent enablement of withdrawals, allowing holders to unstake rswETH and pufETH into native ETH allows for the safe rollout of fundamental oracles and associated increases in the LTV to allow for safe, higher leverage.
Context
Following the successful passing of GIP 141, and GIP 154 to implement fundamental oracles for LRT and LST tokens with withdr…