Swap one third (1/3) of rETH for WETH

Summary

Use the new swap capability of the OETH vault to convert 900 rETH to WETH, which would then be allocated to the Convex AMO strategy.

Background

Until recently, OETH could not change the makeup of its underlying collateral beyond wrapping/unwrapping ETH and staking frxETH. Its yield-generating capability was at the mercy of whichever tokens were deposited by minters. For example, if only LSTs were deposited and no one ever gave ETH to the protocol, then we wouldn't be able to put our Convex strategy to use. Luckily, a good mix of collateral has been deposited.

Last week, an upgrade to OETH vault was deployed to allow the Strategists to swap collateral using 1inch. This feature was developed after an extensive analysis of different DEX aggregators. It also includes multiple security precautions to prevent the Strategists from swapping to any collateral that hasn't been whitelisted and prevents them from incurring substantial losses. See the pull request for more details.

An initial swap will be conducted this week to convert 50 stETH into frxETH. The feature was tested thoroughly prior to deployment, but this small transaction will confirm that everything works as intended in the wild. The purpose of this proposal is to recommend the first meaningful swap to follow.

Analysis*

Active strategies

Name	Allocation	Exposure	APR
Convex AMO (ETH)	$18,905,747	53.44%	16.48%
Lido (stETH)	$1,516,339	4.29%	4.00%
Rocket Pool (rETH)	$5,329,588	15.04%	3.17%
Frax staking (frxETH)	$5,455,794	15.42%	4.82%
Morpho Aave (WETH)	$200,072	0.57%	2.27%

Swap

(900 rETH out)

Option	Token in	ETH cost	Break-even	APY impact
A	frxETH	-0.191	4.3 days	+10bp
B	stETH	-0.547	24.9 days	+5bp
C	WETH	-0.359	2.2 days	+33bp

* DYOR plz: see OETH yield model

Reasoning

We're big fans of Rocket Pool, and they have been supportive of OETH. However, users are quite vocal about the fact that they are coming to OETH for higher yield. rETH is our lowest-earning collateral type. Swapping some of it for WETH (and subsequently allocating it to the Convex AMO) is the obvious way to maximize yield given our current set of whitelisted strategies.

OETH's other long-term primary value proposition is diversification. By holding OETH, users have exposure to a diversified set of the safest LSTs and farming opportunities. While this proposal would result in less diversification by reducing the protocol's already low exposure to rETH, the increased concentration would be on ETH itself rather than another LST. To the extent that OETH can be backed by ETH and generate a higher yield than LSTs and other aggregators, it should.