[PCP-14]: Add support for wsuperOETHb on Seamless

[PCP] Support wsuperOETHb on Seamless

Simple Summary

This proposal aims to introduce a Lending/Borrowing market for wsuperOETHb on Seamless.

General Information wsuperOETHb contract address: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6 Current TVL: $7m Website: Origin Super OETH 2 Dapp: Origin Unified Defi Origin Protocol Twitter: x.com Origin Protocol Discord: Origin Protocol Origin Protocol Telegram: Telegram: Contact @originprotocol chain : Base Motivation and Benefits to Seamless The proposal seeks to introduce a new market into Seamless on Base for wsuperOETHb. The new market would lead to increased TVL for Seamless, additional revenue to the Seamless Protocol and DAO from active loans and liquidations, and will attract a wider user base. This new market will also help diversify the yield possibilities for current Seamless users, and will increase Seamless’s visibility to external audiences from co-marketing campaigns.

Super OETH Summary Super OETH 2 (superOETHb) is the next iteration of OETH, a superior LST with an extremely tight peg (1:1 redemptions to ETH thru Origin’s ARM) and high yields thanks to a combination of the OETH AMO 1 and DVT direct staking 2 through SSV/P2p. superOETHb yields are expected to reach double digit levels after ramping up over the next few weeks, 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. When you wrap superOETHb, you get back a fixed number of wsuperOETHb tokens. This number will not go up - you will have the same number of wsuperOETHb tokens tomorrow as you have today. However, the number of superOETHb tokens that you can unwrap to will go up over time, as wsuperOETHb earns yield at the same rate as standard superOETHb. The wsuperOETHb to superOETHb exchange rate can be read from the contract (function number 16), or via the OETH dapp.

Current exchange rate as of 9/6/24: 1 wsuperOETHb = 1.00349356 superOETHb

Obtaining superOETHb is effortless, users can convert their ETH into Super OETH via any of the following methods:

Minting on the Super OETH dapp Swapping on WETH/superOETHb - $6.7m TVL, $7.9k volume Swapping on OGN/superOETHb - $621k TVL, $8.5k volume Oracle Through its integration with Aerodrome, Super OETH is able to ensure a 1:1 peg with ETH at any scale. The Super OETH AMO holds a portion of the protocol’s underlying collateral in a concentrated liquidity pool with an extremely tight price range within a single tick above 1.0000 WETH. This allows anyone to sell superOETHb into the pool for at least 1 WETH (minus swap fees). The Aerodrome TWAP quoter, which works the same as the Uniswap TWAP oracle, can also be used to derive the price of superOETHb on chain. superOETHb is also derived from OETH, which has mainnet oracles from Chainlink, Tellor, and Dia.

Risk Analysis To ensure the successful integration of superOETHb into Seamless, the DAO may opt for a comprehensive risk assessment from Chaos Labs to determine:

Liquidity and Market Cap: ensuring sufficient depth for lending and borrowing activities Liquidation Threshold: determining the appropriate liquidation thresholds to minimize risk while maintaining an overall balanced market. Debt Ceiling: Setting a prudent debt ceiling to control the maximum amount of superOETHb that can be borrowed, mitigating the risk of market instability. Supply Cap, Borrow Cap, and Liquidation Bonus: Establishing caps on the supply and borrowing of superOETHb, alongside defining liquidation bonuses to incentivize liquidators.