Summary
This proposal integrates Ether.fi ETH (eETH) specifically Wrapped Ether.fi ETH (weETH) into Fluid. This proposal will initialize the weETH asset on the Liquidity layer, update wstETH market rates and deploy the weETH/wstETH vault.
Proposal
Ether.fi is a staking solution that empowers users to stake within Eigenlayer, receiving a token receipt in the form of eETH and a wrapped version weETH which can then be utilized across various DeFi platforms. This proposal enables Wrapped Ether.fi ETH (weETH) within the Fluid ecosystem. This proposal sets the parameters for weETH on the liquidity layer as well as updates to the wstETH rate curve and deploys the weETH/wstETH vault and sets its supply and borrowing parameters.
Liquidity Layer
Proposed weETH Rate Curve
(Not in use as weETH can’t be borrowed so utilization will always stay 0%)
- Utilization 0%: 0% Rate
- Utilization 50%: 20% Rate
- Utilization 80%: 40% Rate
- Utilization 100%: 100% Rate
Current wstETH Rate Curve
- Market Rates:
- Utilization 0%: 0% Rate
- Utilization 50%: 1% Rate
- Utilization 80%: 4% Rate
- Utilization 100%: 100% Rate
Proposed wstETH Rate Curve
- Market Rates:
- Utilization 0%: 0% Rate
- Utilization 50%: 15% Rate
- Utilization 80%: 30% Rate
- Utilization 100%: 150% Rate
Proposed Token Config updates:
- weETH
- Threshold: 0.3%
- Fee: 10%
- wstETH
- Threshold: 0.3%
- Fee: 70%
Vault Protocol
weETH/wstETH Vault Parameters
-
Supply Configuration:
- Mode: 1
- Expand Percent: 25%
- Expand Duration: 12 hours
- Base Withdrawal Limit: 4000 weETH
-
Borrow Configuration:
- Mode: 1
- Expand Percent: 25%
- Expand Duration: 12 hours
- Base Debt Ceiling: 4000 wstETH
- Max Debt Ceiling: 10000 wstETH
-
Core Settings:
- Supply Rate Magnifier: 1x
- Borrow Rate Magnifier: 1x
- Collateral Factor: 90.5%
- Liquidation Threshold: 93%
- Liquidation Max Limit: 95%
- Withdraw Gap: 5%
- Liquidation Penalty: 1%
- Borrow Fee: 0%
-
Deployment Address:
Vault will be deployed realtime via proposal. -
Oracle Address:
0x9eC721a12b6005aF8c6E8CFa9c86B5f12ff473E4 -
Rebalancer Address:
0x264786EF916af64a1DB19F513F24a3681734ce92
Reason
The introduction of weETH and the weETH/wstETH vault enhances the utility of the Fluid protocol by tapping into the growing demand for LRT-based assets like Wrapped Ether.fi ETH (weETH), enabling Fluid to participate in Eigenlayer and earn Eigenpoints. First introduced by @DMH in their proposal: Onboarding weETH/stETH Vault to Fluid. This vault significantly improves the utilization of the wstETH asset within the Fluid ecosystem. Currently, there is approximately $63 million in wstETH on Fluid, with this liquidity being underutilized. The weETH/wstETH vault aims to enhance wstETH market rates on the liquidity layer, leveraging these assets more effectively.
Conclusion
This proposal integrates Ether.fi into Fluid by integrating weETH into Fluid and making the following changes:
- Initializes and sets weETH market rates
- Updates wstETH market rates
- Deploys weETH/wstETH Vault
