[Temp Check] Add Wrapped Super OETH market to Moonwell on Base

General Information

• Asset Name : Wrapped Super OETH (wsuperOETHb)

• Address: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6

• Project & Token Description:

  • Super OETH (superOETHb) is the next iteration of OETH, a superior LST with an extremely tight 1:1 peg and high yields thanks to a combination of the OETH AMO and DVT direct staking through SSV/P2p. superOETHb yields are able to reach double digit levels, making it an exceptionally perfect token for lending and borrowing against ETH. superOETHb was built reusing 90% of the code from OETH, for which the codebase has already been audited 12+ times.
  • Super OETH is the first token in a new category of liquid staking: Supercharged LSTs. Supercharged LSTs will have materially higher yield while being designed for L2s, with a similar risk profile to mainnet LSTs. Ethereum liquid staking is amplified with chain-specific, auto-compounded incentives. Deep concentrated liquidity pools guarantee exits with minimal costs - users will never lose ability to convert back to ETH.
  • wsuperOETHb is a ERC-4626 tokenized vault designed to accrue yield in price rather than in quantity. The wsuperOETHb to superOETHb exchange rate can be read from the contract (function number 16), or via the superOETHb dapp.
  • Current exchange rate as of 10/3/24: 1 wsuperOETHb = 1.01410462 superOETHb

• Benefits to Moonwell Community:

  • This new Super OETH market would lead to additional increased TVL for Moonwell, additional revenue to the Moonwell Protocol and DAO from active loans and liquidations, and will attract a wider user base.
  • We’ve noticed many LSTs trade below their peg due to DEX fees and slippage, and to reflect the time value of money. LSTs that consistently trade below peg effectively impose a hidden exit fee - certain LSTs often trade ~0.25% below peg, meaning it takes three weeks of staking to break even. This may be ok for long-term holders, but is terrible for projects who plan to integrate the LSTs, or for users who plan to loop LTSs for additional yield. This is not the case with OETH, and it will not be the case with Super OETH.
  • Using Super OETH on Moonwell will produce significantly higher yield than the other supported LSTs and will have a near perfect ETH peg. Utilizing a concentrated Aerodrome liquidity pool with the tightest tick possible helps make Super OETH the most pegged L2 LST currently available, while being able to reach double digit yields.
  • Super OETH has a native yield of 15.10% APY - at the current ETH borrow rate on Moonwell Base of 0.7%, one loop at 75% LTV would now yield you 25.90% APY. After 5 loops that number jumps to 48.05%, or 50.79% when including the WELL emissions. These figures are not possible with the LSTs and LRTs currently supported on Moonwell. Our vision for Super OETH is for it to become both the most trusted LST, and also the most lucrative for those seeking to use an LST for leveraged staking.

Performance

• Super OETH has seen incredible growth since launch, growing from $7m to over $300m over the last few weeks. Super OETH has reached the number one spot by TVL on Defillama for yield projects on Base and accounts for a large amount of the Aerodrome Slipstream TVL.

Market Risk Assessment

• Market cap of the token: $322m (138k ETH)
• Total supply: 138k superOETHb
• The largest CEX/DEX
  • Super OETH is listed on 3 Aerodrome markets

• Emission schedule: No set emission schedule

Decentralization

• List the top token holders:
• Largest contracts:
  • 0x6446021f4e396da3df4235c62537431372195d38- Aerodrome deposit contract
  • 0x6fb655476fdcfb9712dd200308d941a1c6d1119e- 2nd Aerodrome deposit contract
  • 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6- wsuperOETHb contract
• List all of the privileged roles in the token contract: Certain functions can be called by Origin Guardians - Guardians use a 2 of 8 multisig with limited powers that can be found in the governance section of the superOETHb docs. All other necessary protocol powers require 5 of 8 signatures.
• Is the token pausable?: Yes
• Does the token have a blacklist?: No

Smart Contract Risks

• Provide Basescan links with verified contracts:
  • Super OETH Contract: 0xDBFeFD2e8460a6Ee4955A68582F85708BAEA60A3
  • Wrapped Super OETH Contract: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6
• Give the age of the token in days: 60 days
• Provide the number of transactions in the contract to date: there are 17,000+

Security Posture

• What audits, if any, were performed?
  • superOETHb and wsuperOETHb were built reusing 90% of the OETH code, which was built reusing 95% of the OUSD code, of which many audits have been done since 2020. All OETH audits can be found in the audits section of the OETH docs. We have recently retained yAudit to look at our PRs as we code, and OpenZeppelin is also held on retainer to review 100% of the OETH and OUSD smart contract changes.
• Does the project have an active bug bounty program?
  • Origin maintains an active bug bounty with rewards ranging in size from $100 OUSD for minor issues to $1,000,000 OUSD for major critical vulnerabilities. The bug bounty program is currently administered by Immunefi, where Origin maintains a median resolution time of 6 hours.
• Provide emergency contacts with their estimated response time/availability
  • The Origin team is available 24 hours a day via Discord. On March 10 2023 when USDC depegged from the dollar (and therefore from OUSD), it took the Guardians/Origin engineers about 4 minutes to notice, and 16 minutes to start the process of moving the funds to a safer strategy. superOETHb and wsuperOETHb will have no exposure to stablecoins nor any other pegged asset aside from WETH.
  • Please also contact the Origin support team directly if there are any issues and someone from the Origin team will respond promptly: support@originprotocol.com
• List additional security and formal verification tools used in the development
  • We mostly manually verify deployments before the multisig tx is created. We use Sol2uml to verify deployed contracts. We also have Slither as part of our CI. We also have some scripts in our repo that we use as needed.

• List all monitoring services used by the token, if any.
  • We use an in-house solution based on Subsquid as our indexer and Grafana. We also add custom alerts on Tenderly for critical events.

Upgradability

• Is it upgradeable?: Yes, superOETHb is upgradable.
• Who is authorized to make an upgrade? Can an upgrade happen instantaneously or is there a time-lock delay?
  • All Super OETH contracts are owned by the Timelock contract. All upgrades will have to go through Timelock. The Timelock is controlled by the 5 of 8 multisig mentioned above. Signers are trusted contributors who are actively involved in the day-to-day management of the protocol and all have a vested interest in helping the protocol succeed. The initial timelock was set to 60 seconds to allow the protocol to ramp up quickly, but it has been increased to 48 hours.
• Which components are upgradeable?: The whole token contract can be upgraded.
• How does the upgradeability design work? Who manages it and how are upgrades performed?: All Super OETH contracts are owned by the Timelock contract. All upgrades will have to go through Timelock. The timelock is controlled by the 5 of 8 multisig mentioned above.
• Does it emit an event when the implementation is updated?
  • Yes, Upgraded(address indexed implementation)

Oracle Assessment

• Please view the discussion post for more information on the oracle

• How is the asset wrapped, staked, or otherwise created?

  • superOETHb can be minted from the contract, dapp, or swapped into from one of the above Aerodrome pools. Wrapped superOETHb can be created at any time using the 4626 contract, or the superOETHb dapp.

• On what network does the underlying asset exist?: The underlying asset exists on Base, with a portion of the yield coming from mainnet beacon chain staking.

• How can you verify that the amount of the asset that is minted is never more than the amount of the underlying asset that is locked, staked, or used as collateral?

  • The only way that users can obtain superOETHb is by first providing the protocol ETH or WETH. Additional superOETHb may be minted by the protocol AMO, but these tokens are owned by Origin Protocol and only ever enter circulation when someone provides ETH to the Aerodrome pool.

• Is there a way to verify proof of reserves (PoR) on the same network as the market?

  • The protocol mainly holds WETH in the Vault, Aerodrome pool and Bridged wOETH.
  • The bridged wOETH holds ETH on the mainent in the validators. The Vault holds WETH until it deposits it somewhere. The Aerodrome pool has WETH as part of its liquidity.

• What specific events might cause the price to “depeg” or no longer be the same as the price of the underlying asset?

  • If more circulating superOETHb was supplied to the Aerodrome pool than the amount of ETH in the pool, a depeg could theoretically occur. This is mitigated by the question above.
  • OETH validator slashing may cause a depeg. However, the size of the slash will likely be smaller than the underlying superOETHb yield, so in this case the yield for superOETHb will temporarily be smaller.

Please see the forum discussion for more detail on this proposal