WETH & wstETH Comets Interest Rate Curve Recommendations on Mainnet

Simple Summary

Given heightened market activity and elevated volatility across ETH markets, Gauntlet recommends the following Interest Rate (IR) Curve updates across WETH comets on Ethereum. These changes are designed to keep borrow costs low and avoid liquidations during the volatile period.

Motivation

The recent Kelp exploit has led to heightened volatility and shifting dynamics across ETH-correlated assets. In this environment, LST/LRT-based looping strategies are facing a significantly high negative carry.

The …