Author

Chaos Labs

Summary

Chaos Labs recommends increasing the Quota Limit on Gearbox for the following asset:

• tETH on Ethereum ETH V3

This recommendation was made utilizing our Quota Limit methodology, taking into account the oracle configuration on Gearbox.

Supply Growth

tETH

Over the last few days, tETH has grown to represent 15% of all quoted ETH on Gearbox Ethereum v3, and has reached 100% of its quota limit. tETH’s on-chain liquidity has decreased over time after a large increase back in January. With the implementation of a fundamental oracle that effectively isolates delta exposure, the risk associated with increasing the quota limit is significantly reduced, relative to the current tETH total supply and configured risk parameters. Therefore, we recommend raising the Quota Limit in the WETH market to 4,000 to support further growth.

Trade WETH v3 pool

tETH quota limit: 4000 WETH

Txn log

Txn log can be found here Md5 checksum is 62e6887a0178e0abcac59f54cadbd952