[NIP-89] List a Convex ETH/ETHx Vault (Mainnet)

Summary This proposal is to list a Convex ETHx/ETH leveraged vault on Mainnet. This vault will enable users to borrow ETH and deploy it into the ETHx/ETH Curve pool to earn swap fees and CRV incentives. ETHx can be freely redeemed for ETH, and this strategy provides opportunities to maximize yield on ETHx through providing liquidity to the Curve pool and staking on Convex.

Rationale ETHx has sufficient on-chain liquidity across both Curve and Balancer, providing liquidity to support leveraged positions. Notional users can take advantage of this by borrowing ETH to deposit into the Curve ETHx/ETH pool where users can earn ETHx staking yield, swap fees, and CRV incentives.

The following factors support the listing of this vault:

• On-Chain Liquidity ETHx has sufficient onchain liquidity across Curve and Balancer to support a meaningful amount of exposure. Across Curve and Balancer, ETHx maintains approximately 59.7% liquidity from non-ETHx assets, offering good support to ETHx peg stability.

Protocol	Pool	Chain	ETHx liquidity	Non-ETHx liquidity	% non-ETHx liquidity
Curve	ETHx/ETH	Mainnet	1089	1316	54.7%
Balancer	ETHx/wstETH	Mainnet	283	335	54.2%
Balancer	ETHx/rsETH	Mainnet	188	668	78%
Total			1560	2319	59.7%

• Oracle The vault will use Redstone’s ETHx/ETH oracle for pricing. This oracle ensures a secure and reliable price feed for the ETHx/ETH pair with a tight 0.5% divergence threshold, mitigating risk for leveraged positions.

  • Provider: Redstone
  • Address: 0xc799194cAa24E2874Efa89b4Bf5c92a530B047FF
  • Price pair: ETHx/ETH
  • Divergence threshold: 0.5%

• Smart Contract Risk ETHx has been audited by reputable security firms, including Halborn, Sigma Prime, and Code Arena.

  • Links to audits: ETHx Audit Reports

• Redemption ETHx is freely redeemable for ETH. This ensures that any potential depeg event will be temporary.

Vault Parameters

Parameter	Proposed Value
LiquidationRate	1.03 (3%)
MinCollateralRatioBPS	0.14
MaxDeleverageCollateralRatioBPS	0.27
MaxRequiredAccountCollateralRatioBPS	1.00
Maximum Vault Capacity	750 ETH
Minimum Borrow Size	30 ETH
feeRate5BPS	10 (50 Bps)
ReserveFeeShare	80%

Strategy Parameters

Parameter	Proposed Value
maxPoolShare	25%
oraclePriceDeviationLimitPercent	2%

Conclusion The Convex ETHx/ETH leveraged vault offers a compelling opportunity for Notional users to earn yield on their ETH positions. With robust on-chain liquidity, reliable pricing through Redstone, and strong audit coverage for ETHx, this vault is a low-risk, high-yield strategy for ETH holders looking to maximize their returns through leverage.