Snapshot 7: tETH Redemption Parameter Adjustments

Summary

This proposal seeks community approval to adjust key parameters within Treehouse’s tETH redemption framework.

Specifically, the proposal recommends:

• Reducing the Fast Track redemption fee from 2% to 0.5%

• Reducing the minimum Normal Track redemption amount from 200 wstETH to 50 wstETH

These adjustments aim to reduce redemption friction while maintaining responsible liquidity and treasury management.

Motivation

Treehouse currently offers three redemption pathways for tETH:

• Swap Redemption via on-chain liquidity pools

• Fast Track Redemption with a 2% fee

• Normal Track Redemption with a withdrawal period and a 200 wstETH minimum

Community feedback has identified two primary concerns:

• The 2% Fast Track redemption fee being prohibitively high

• The 200 wstETH minimum Normal Track redemption threshold being inaccessible for many users

While the existing parameters were introduced to safeguard liquidity during earlier growth phases, the ecosystem has matured in liquidity depth and treasury stability.

Adjusting these parameters is expected to:

• Improve user confidence in tETH’s liquidity

• Enhance capital efficiency

• Increase accessibility for small to mid-sized holders

• Strengthen trust in Treehouse’s infrastructure by enhancing redemption efficiency

Specification

If approved, this proposal will implement the following parameter adjustments:

Fast Track Redemption Fee

• Current fee: 2%

• Proposed fee: 0.5%

Minimum Normal Track Redemption Amount

• Current minimum: 200 wstETH

• Proposed minimum: 50 wstETH

The DAO retains authority to revise these parameters through future governance proposals.

Implementation

If approved:

• The Fast Track redemption fee and minimum Normal Track redemption threshold parameters will be updated within the redemption logic.

• The Treehouse front-end dApp interface will be updated to reflect the new values.

No structural changes to redemption mechanics are proposed.

Voting Options

• For – Approve the proposed redemption parameter adjustments

• Against – Reject the proposal

• Abstain – Record sentiment without voting for or against

Vote Outcomes

If FOR passes:
The Fast Track redemption fee will be reduced to 0.5%, and the Normal Track minimum redemption threshold will be reduced to 50 wstETH.

If AGAINST passes:
No changes will be made to the current redemption parameters.

If ABSTAIN:
No direct effect; recorded for sentiment but not counted toward quorum.