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 on opening and closing positions. To mitigate this, it's proposed to add an adapter allowing direct deposits to Mellow vaults, which will eliminate slippage on position openings. This adapter has undergone Decurity audit .

Technical specification

Set reserve oracles for rstETH, steakLRT, Re7LRT, amphrETH, pzETH to be wstETH fundamental oracle (wstETH/stETH exchange rate * ETH price). Deploy and connect Mellow deposit adapter to Restaking WETH Credit Manager.

Transaction log

Txs log can be found here Md5 checksum is d63f63c751ee2c134c3d628426e3a934