[GIP-146] ezETH on Optimism and LT Increase
AI summary
This proposal, GIP-146, seeks to integrate ezETH, a liquid restaking token, into the Gearbox protocol on the Optimism network. It also proposes to increase the Liquidation Threshold for ezETH across all chains where it is currently listed (Ethereum, Arbitrum, and Optimism) from 0.87 to 0.90. This means users borrowing against ezETH will be able to borrow more before their collateral is at risk of liquidation. The proposal sets an initial Quota Limit of 350 for ezETH on Optimism, which is a cap on the total amount of ezETH that can be supplied to Gearbox.
If passed, Gearbox users on Optimism will gain the ability to use ezETH as collateral for borrowing, expanding the protocol's utility and attracting new users. The increased Liquidation Threshold for ezETH across all chains benefits ezETH holders by allowing them to borrow more against their assets, but it also slightly increases the risk for lenders if ezETH's price drops sharply. There are no direct treasury allocations or payments to individuals in this proposal.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Overview
Chaos Labs supports listing ezETH on Gearbox Optimism; our analysis and risk parameter recommendations for the initial listing are below.
Note: The following analysis is conducted solely from a market risk viewpoint, excluding centralization and third-party risk considerations. If the community aims to reduce exposure to ezETH, adopting more conservative supply and borrow caps should be considered.
Liquidity and Market Cap
ezETH’s current market cap is $3.3B, with an average market cap of $1.5B over the last 180 days; its average daily volume over the sam…