Authors

desnakeee.eth

Summary

This proposal aims to attach wstETH market oracle as reserve to Mellow LRTs & allow direct deposits to Mellow via the new adapter.

Motivation

Mellow LRTs experienced remarkable adoption on Gearbox, reaching full quota capacity in under 2 days. However, liquidity levels for these assets remain relatively low, rendering full liquidations of particularly large Credit Accounts unfeasible. Implementing a reserve oracle will enable partial liquidations, mitigating potential risks for the protocol.

Another problem caused by the liquidity profile is price impact …