SIP - 10 : Add Wrapped liquid staked Ether (wstETH) market on Sonne Finance on Base

(The following is a copy of SIP-2, which was the proposal to add wstETH to Sonne on Optimism)

Lido is a third-party staking service that lets Ethereum users stake their ETH and earn stETH rewards in return.

wstETH is wrapped version of stETH.

For liquidity markets to achieve more, there is a need for volatile markets. The more riskier the asset is, the more profit the protocol's going to make.

But as you might know, we don't have treasury to pay in case of bad debt.

wstETH is the most dominant and arguably safest liquid staked ETH on crypto.

The only important con is potential liquidity issue with wstETH where the price of it might drop below what it's worth and create bad debt in case of potential Ethereum unstaking problems in the future.

wstETH liquidity on BASE is around $4M for now. The liquidity probably won't be an issue for liquidations.

Collateral factor : 60% Reserve factor : 18% Interest rate curve : Medium volatility curve (similar to wBTC) Will be incentivized : Yes

"YES" means supporting wstETH market on Sonne. "NO" means rejecting the proposal. "Abstain" means you don't support neither reject the proposal.