Author

apeir99n, de-snake

Summary

This proposal is aimed at the following changes:

• Onboarding pufETH to Ethereum’s WETH pool
• Onboarding rswETH to Ethereum’s WETH pool
• Increasing borrowing limits for USDC and WETH pools

Motivation

Gearbox is actively used now for leverage farming of points. The main use cases now are farming points of Ethena, Renzo, Ether.fi, Kelp. Adding more LRTs will help to diversify the assets exposure for WETH pool, which is good both from a risk perspective and from a pool utilization perspective. Increasing limits allows to keep high utilization rate of pool’s assets.

Assets Overview

pufETH

Puffer operates as a decentralized native liquid restaking protocol native to its ecosystem. Prior to its mainnet launch, pufETH serves as a yield-generating token, mirroring the yield of wstETH, while also providing users the opportunity to accumulate both Puffer and EigenLayer points.

Asset

0xd9a442856c234a39a81a089c06451ebaa4306a72

Oracles

Redstone

Composite oracle that combine asset’s oracle and Chainlink’s ETH/USD oracle(similar to other LSDs and LRTs, see GIP-96) will be used.

Liquidity sources

1inch routing (1% price impact for 3000 pufETH sell) goes through 145M Curve pool as well as 0.5M Uni v3 and 0.5M Balancer pools. Top liquidity sources:

• Curve pufETH/wstETH
• Uniswap V3 WETH/pufETH
• Balancer pufETH/wstETH

rswETH

Swell is a non-custodial staking protocol with a mission to deliver the world’s best liquid staking and restaking experience, simplify access to DeFi, while securing the future of Ethereum and restaking services.

With Swell, users are able to earn passive income by staking or restaking ETH to earn both blockchain rewards and restaked AVS rewards, and in return be provided with a yield-bearing liquid token (LST or LRT) to hold or participate in the wider DeFi ecosystem to earn additional yield.

Asset

0xFAe103DC9cf190eD75350761e95403b7b8aFa6c0

Oracles

• Redstone PULL

• Redstone PUSH

Composite oracle that combine asset’s oracle and Chainlink’s ETH/USD oracle(similar to other LSDs and LRTs, see GIP-96) will be used

Liquidity sources

Matcha.xyz routing (0.53% price impact for 3000 rswETH sell): Routes with a 50/50 ratio through $7.7M TVL PancakeSwap V3 pool and $27M Balancer Tri-LRT pool.

Top liquidity sources by now:

1. Balancer Tripool (weETH/ezETH/rswETH). 1.21% price impact for 2000 rswETH sell in this pool only
2. PancakeSwap V3 (rswETH/WETH). 0.67% price impact for 2000 rswETH sell in this pool only
3. Maverick + UniV3 + Curve. Pretty small and can together process around 350 rswETH with 0.8% price impact

Borrowing limits for Pools

The current code base is already battle tested, while at the same time the risk per asset is isolated using a Quota limit. Therefore it is proposed to increase the maximum borrowing limit for most popular Credit Managers: 200 kWETH for WETH pool / Restaking Credit Manager, 150M USDC for USDC Pool / Tier 1 USDC Credit Manager. Technical Multisig can change Borrowing Limits gradually or one-time at its own discretion.

Technical specification

Quota

Asset	Quota increase fee	Min quota rate	Max quota rate	Limit
pufETH	0%	0.05%	30%	10000 WETH
rswETH	0%	0.05%	30%	10000 WETH

Technical Multisig can do Quota Limits and Borrowing Limit changes gradually or one-time at its own discretion.

Collateral tokens & LTVs

pufETH and rsEwTH will be added as available collateral for WETH Restaking Credit Manager:

Token	LTV	Comment
pufETH	90%
rswETH	90%

Execution transactions

You can find list of executed transactions here. md5 checksum: 2b52ef3afde9dd73f34ad1b774b92a0b.

Voting

Simple Approve/Reject