[OGP-DRAFT] - Add wstETH as Collateral in Ethos v2

Governance Proposals
1

Proposal Title: Integration of wstETH as Collateral in Ethos Reserve v2

Proposal Chain: Optimism
Type (Choose one): OIP
Proposal Author: A S
Date: 12/4/2023

Executive Summary

This proposal offers the addition of Wrapped Staked Ether (wstETH) as a new collateral type in the Ethos Reserve v2. Recognizing wstETH’s growing prominence in the DeFi space and user desires to utilize wstETH as collateral, this integration aims to enhance Ethos Reserve v2 to become the best place to drive DeFi on Optimism.

Proposal Motivation:

  • DeFi Growth: With the increasing popularity of staking solutions for Ethereum, wstETH has emerged as a premier staking asset. Its inclusion in Ethos Reserve can attract a new segment of DeFi users to the protocol.
  • Strategic Advantage: Implementing this proposal could position OATH as a forward-thinking protocol that adapts to evolving DeFi trends.

Proposal Specifics:

Market trends indicate a rise in wstETH usage within DeFi, suggesting its increasing demand as a valuable collateral asset. With the launch of Ethos Reserve v2, considering additional collateral options to drive increased user adoption makes sense. As wstETH has become battle tested over time, it offers a unique opportunity to push the boundary of capital efficiency and thus warrants a conversation regarding adding it as collateral on Ethos Reserve.

Team Experience

The development team is composed of DeFi analysts and blockchain developers with extensive experience in Ethereum-based protocols, staking mechanisms, and DeFi primitives.

Key Objectives & Success Metrics

  • Objective: Successfully integrate wstETH as collateral in Ethos Reserve.
  • Success Metric: Increase total value locked (TVL) in Ethos Reserve and capture at least 10% of market share of wstETH on Optimism in the first six months from initial collateral offering

Length of Engagement & Budget Breakdown

N/A

Partnerships

Target: Lido Finance. Potential collaboration for wstETH integration and promotion.

Risk Assessment

wstETH price fluctuations and oracle price feeds during market volatility add additional protocol risk.

Standard risks associated with integrating new assets & smart contracts into Ethos Reserve’s codebase.

Additional Details

Post-integration, continuous monitoring and evaluation of wstETH’s performance as collateral will be essential. Further adjustments based on community feedback, protocol performance, and market trends will be considered.

4 Likes
2

Having more variety of reliable collaterals are important for the protocol growth.

:100: in favour. Send it

1 Like
3

this one is a no-brainer for me
gprc review and vote with haste
thanks AS

3 Likes
4

100% for wsteth on V2

5

:100: percent! Looking forward to this addition.

6

wstETH is well adopted on Optimism as the LST with the most TVL and would make Ethos a more compelling platform, thanks for organizing this proposal.

1 Like
7

thanks andrew, this is ready for gprc review.

8

Let’s get this done already, damn it. My wstEth has been sitting idle for weeks.
Agree!

1 Like
9

I’ll mark as ready for GPRC to review as I doubtful there is much interest in adjusting the proposal. @Justin Bebis can you comment on launch system parameters for wstETH for consideration?

10

Hey guys, Kenneth here. I’m a Defi Protocol Relations contributor at Lido DAO.

This is a proposal that I am excited about and fully supportive of. One of the main priorities for Lido at the moment is the growth of wstETH on layer 2s and the adoption of stETH through accessibility and utility. I believe that having wstETH added as a collateral asset in Ethos v2 helps with this goal since leveraging on stETH has by far been the highest demanded use case for stETH.

Hope to see this gets passed through snapshot and eventually implemented! Do ping me if there’s any support you guys would require.

3 Likes
11

Marking ready for GPRC review. Slam dunk in my opinion.

12

Let’s speed track this to review and then vote.

1 Like
13

send it with haste.

14

Nothing to argue against it here. I fully support it!

1 Like
15

put it on votee reeeeeee

2 Likes
16

are we even discussing this? LESS GOOOOOOOO ALREADYYYYYYYYY
(sorry for psycho breakdown)

1 Like
17

Easy work,

Ready for Review from me!

1 Like
18

Vote Passed.

Snapshot Link: Snapshot

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