[GIP 164] ezETH Quota Limit and CM Limits Increase on Optimism
AI summary
This proposal, recommended by Chaos Labs, suggests increasing the 'Quota Limit' for ezETH on Gearbox's Optimism deployment. The Quota Limit is a safety mechanism that restricts the total amount of a specific asset that can be deposited into the protocol. The recommendation is to raise the limit for ezETH in the WETH market to 3,000, based on an analysis of ezETH's on-chain liquidity and supply on Optimism.
If approved, this change would allow more ezETH to be deposited into Gearbox on Optimism, potentially increasing the protocol's total value locked and the utility of ezETH within Gearbox. It benefits users who wish to deposit more ezETH and the protocol by potentially attracting more capital. No one directly loses from this change, but it slightly increases the protocol's exposure to ezETH.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Summary
Chaos Labs recommends increasing the Quota Limit on Gearbox’s Optimism deployment for the following asset:
- ezETH
This recommendation was made after analyzing on-chain liquidity and utilizing our Quota Limit methodology.
On-chain Supply Growth & Liquidity
ezETH currently has a total supply of 5,850 on Optimism. It maintains liquidity across Velodrome and Uniswap pools totaling $4.4 million, or approximately 1,630 ETH.
Recommendation
We recommend raising the Quota Limit in the WETH market to 3,000, given the risk profile of ezETH on Optimism.