# Creation of Euler Uni Market on Unichain

**URL:** <https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390>\
**Category:** Markets\
**Tags:** multichain, uniswap\
**Created:** [May 1, 2025, 1:55pm UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390 "2025-05-01T13:55:17Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![EulerLabs](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/eulerlabs/32/580_2.png) [@EulerLabs](https://forum.euler.finance/u/EulerLabs)\
**Post date:** [May 1, 2025, 1:55pm UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/1 "2025-05-01T13:55:17Z")

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**Author:** Euler Labs  
**Date:** 2025-05-01  
**Summary**  
Unichain has seen massive growth with DEX liquidity surpassing $400M, driven by its highly successful incentives campaign. The Euler Uni market will establish dedicated lending and borrowing facilities for key assets, enabling efficient capital allocation and leveraging Unichain’s liquidity to support both institutional and retail demand. This market positions Euler as a core infrastructure provider in Unichain’s rapidly expanding DeFi ecosystem, enhancing protocol functionality and market access.  
**Specification**  
**New Assets**

- **Borrowable Assets:** USDC, USDT0, WETH, wstETH, weETH, rsETH, ezETH, WBTC, UNI

**Risk Management**  
Euler Uni will be governed by Euler DAO and risk-managed by Gauntlet and Objective Labs. Euler Labs invites Gauntlet and Objective Labs to provide initial recommendations for risk parameters for the Euler Uni market.

**Copyright**  
Copyright and related rights waived via CC0.

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<div class="post-metadata">

**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\
**Post date:** [May 2, 2025, 7:25am UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/2 "2025-05-02T07:25:52Z")

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Thank you @EulerLabs for submitting this proposal.

We recognize that lending on Unichain is a greenfield opprtunity with deeply liquid blue-chip pairs on Uniswap v4. Therefore we believe that establishing this market is highly strategic and demands a quick turnaround.

# Initial Risk Recommendations for Euler Uni

_Collateral on rows, debt on columns._

## Liquidation Loan-to-value Ratios (LLTVs)

| Asset | USDC | USDT0 | WETH | wstETH | weETH | rsETH | ezETH | WBTC | UNI |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| USDC | 0.00 | 0.96 | 0.86 | 0.84 | 0.84 | 0.83 | 0.83 | 0.86 | 0.65 |
| USDT0 | 0.96 | 0.00 | 0.86 | 0.84 | 0.84 | 0.83 | 0.83 | 0.86 | 0.65 |
| WETH | 0.86 | 0.86 | 0.00 | 0.95 | 0.95 | 0.93 | 0.93 | 0.86 | 0.65 |
| wstETH | 0.84 | 0.84 | 0.95 | 0.00 | 0.93 | 0.91 | 0.91 | 0.84 | 0.65 |
| weETH | 0.84 | 0.84 | 0.95 | 0.93 | 0.00 | 0.91 | 0.91 | 0.84 | 0.65 |
| rsETH | 0.82 | 0.82 | 0.93 | 0.91 | 0.91 | 0.00 | 0.91 | 0.83 | 0.65 |
| ezETH | 0.82 | 0.82 | 0.93 | 0.91 | 0.91 | 0.91 | 0.00 | 0.83 | 0.65 |
| WBTC | 0.86 | 0.86 | 0.86 | 0.84 | 0.84 | 0.83 | 0.83 | 0.00 | 0.65 |
| UNI | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.00 |

We recommend that the borrow LTVs be set to two percentage points lower than the liquidation LTVs.

## Caps

_All amounts are in units of the underlying._

| Asset | Supply cap | Borrow cap |
| --- | --- | --- |
| USDC | 30,000,000 | 27,000,000 |
| USDT0 | 30,000,000 | 27,000,000 |
| WETH | 6,000 | 5,400 |
| wstETH | 3,000 | 750 |
| weETH | 3,000 | 750 |
| rsETH | 2,000 | 500 |
| ezETH | 2,000 | 500 |
| WBTC | 200 | 180 |
| UNI | 1,000,000 | 800,000 |

## IRMs

_All rates are borrow APY._

| Asset | Base rate | Kink | Rate at kink | Rate at 100% (max) |
| --- | --- | --- | --- | --- |
| USDC, USDT0 | 0% | 90% | 5% | 80% |
| WETH | 0% | 90% | 2.4% | 80% |
| wstETH, weETH, rsETH, ezETH | 0% | 25% | 0.5% | 80% |
| WBTC | 0% | 90% | 1% | 80% |
| UNI | 0% | 80% | 8% | 80% |

To ensure initial growth we recommend that interest fee be temporarily set to 0% for the following vaults: USDC, USDT, WETH.

## Oracles

In line with best practices we recommend market price oracles for USDC, USDT0, WETH, and UNI, and fundamental oracles for LSTs and WBTC.

| Asset | Name | Methodology |
| --- | --- | --- |
| USDC | RedStone USDC/USD | Market |
| USDT0 | RedStone USDT0/USD | Market |
| WETH | RedStone WETH/USD | Market |
| wstETH | RedStone wstETH/ETH \* RedStone WETH/USD | Fundamental |
| weETH | RedStone weETH/ETH \* RedStone WETH/USD | Fundamental |
| rsETH | RedStone rsETH/ETH \* RedStone WETH/USD | Fundamental |
| ezETH | RedStone ezETH/ETH \* RedStone WETH/USD | Fundamental |
| WBTC | RedStone BTC/USD | Fundamental |
| UNI | RedStone UNI/USD | Market |

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<div class="post-metadata">

**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\
**Post date:** [May 7, 2025, 3:54am UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/3 "2025-05-07T03:54:56Z")

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# [Gauntlet] - Initial Recommendations for Euler Unichain Market (2025-05-06)

Gauntlet has reviewed Euler Labs’ proposal to initialize an Euler DAO governed lending market on Unichain. Given Unichain’s meteoric rise in DeFi TVL over the past few weeks, we agree that setting up such a market will provide an early liquidity boost for Unichain users and allow Euler to capture a strategic growth opportunity.

# Risk Parameter Recommendations

We will provide recommendations for the assets in the proposal by Euler Labs: USDC, USDT0, WETH, wstETH, weETH, rsETH, ezETH, WBTC, and UNI. Currently the top 12 DEX pools on Unichain, all Uniswap V4 pools having over $1M TVL, are composed of these assets.

## Cap Recommendations

We are generally aligned with Objective Labs based on present DEX liquidity and concentration. We note that UNI has a single ETH/UNI liquidity pool where swapping 500K UNI results in ~21% price impact.

| **Asset** | **Supply cap** | **Borrow cap** |
| --- | --- | --- |
| USDC | 30,000,000 | 27,000,000 |
| USDT0 | 30,000,000 | 27,000,000 |
| WETH | 6,000 | 5,400 |
| wstETH | 3,000 | 750 |
| weETH | 3,000 | 750 |
| rsETH | 2,000 | 500 |
| ezETH | 2,000 | 500 |
| WBTC | 200 | 180 |
| UNI | **500,000** | **400,000** |

## LTV Recommendations

ETH LSTs/LRTs presently have up to a couple of liquidity paths for liquidators to swap, and instant redemptions may be limited due to available atomic liquidity on Unichain as well as bridge limitations and integration overhead. Most activity is expected to loop LST/LRT against WETH. We also note that the annualized log volatility of WBTC/USDC daily returns over the last 30 days is presently ~0.53, versus ~0.9 for ETH/USDC, indicating heightened recent risk for ETH and LSTs/LRTs against non-ETH exposure. For reference, the same metric for UNI/USDC is ~0.93.

Our recommended adjustments to Objective Labs’ recommendations are below.

We likewise recommend borrow LTVs as two percentage points less than the corresponding LLTVs.

| **Asset** | **USDC** | **USDT0** | **WETH** | **wstETH** | **weETH** | **rsETH** | **ezETH** | **WBTC** | **UNI** |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **USDC** | 0.00 | 0.96 | 0.86 | 0.84 | **0.83** | **0.82** | **0.82** | 0.86 | **0.68** |
| **USDT0** | 0.96 | 0.00 | 0.86 | 0.84 | **0.83** | **0.82** | **0.82** | 0.86 | **0.68** |
| **WETH** | 0.86 | 0.86 | 0.00 | 0.95 | **0.94** | 0.93 | 0.93 | **0.8** | **0.63** |
| **wstETH** | 0.84 | 0.84 | 0.95 | 0.00 | 0.93 | **0.92** | **0.92** | **0.79** | **0.62** |
| **weETH** | **0.83** | **0.83** | **0.94** | 0.93 | 0.00 | 0.91 | 0.91 | **0.78** | **0.61** |
| **rsETH** | 0.82 | 0.82 | 0.93 | **0.92** | 0.91 | 0.00 | 0.91 | **0.77** | **0.6** |
| **ezETH** | 0.82 | 0.82 | 0.93 | **0.92** | 0.91 | 0.91 | 0.00 | **0.77** | **0.6** |
| **WBTC** | 0.86 | 0.86 | **0.8** | **0.79** | **0.78** | **0.77** | **0.77** | 0.00 | **0.63** |
| **UNI** | **0.68** | **0.68** | **0.63** | **0.62** | **0.61** | **0.6** | **0.6** | **0.63** | 0.00 |

## Interest Rate Curve Recommendations

We are generally aligned with Objective Labs on recommendations mirroring IRMs in Euler Prime for initialization. For UNI, we recommend a decrease in the kink borrow APY, given mainnet borrowing demand: 10% utilization with 1.6% borrow APY on Aave V3 Core, and 8% utilization with 4.7% borrow APY on Compound V2. The large disparity in these rates may indicate low demand elasticity on mainnet. Demand may be asymmetric on Unichain given its governance and staking utility there.

| **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** |
| --- | --- | --- | --- | --- |
| USDC, USDT0 | 0% | 90% | 5% | 80% |
| WETH | 0% | 90% | 2.4% | 80% |
| wstETH, weETH, rsETH, ezETH | 0% | 25% | 0.5% | 80% |
| WBTC | 0% | 90% | 1% | 80% |
| UNI | 0% | 80% | **5%** | 80% |

## Oracles

The RedStone oracle setup proposed by Objective Labs has an appropriate risk profile for this market. However the [current](https://app.redstone.finance/app/feeds/?page=1&sortBy=popularity&sortDesc=false&perPage=32&networks=130) set of available RedStone oracles does not include a fundamental wstETH/ETH oracle, which we would recommend (in lieu of a market oracle).

# Next Steps

- We welcome community feedback.

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<div class="post-metadata">

**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\
**Post date:** [May 21, 2025, 5:05pm UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/4 "2025-05-21T17:05:36Z")

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# [Gauntlet] - Recommendations for Layer Zero WBTC (OFT-enabled) Market on Euler Unichain (2025-05-20)

In line with Unichain’s vision for cross-chain native assets and superchain interoperability (see [recent tweet](https://x.com/gauntlet_xyz/status/1924927048251793648)), Gauntlet recommends the below risk parameters for the new LayerZero WBTC market, if the community decides to list the new LayerZero WBTC market. The initial recommendations for the WBTC (Original) market are available [here](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/3).

**Contract Addresses**

- **WBTC (OFT-enabled)**: `0x0555e30da8f98308edb960aa94c0db47230d2b9c`
- **WBTC (Original)**: `0x927b51f251480a681271180da4de28d44ec4afb8`

### Cap Recommendations

Gauntlet expects DEX Liquidity to gradually migrate from WBTC (Original) to WBTC (OFT-enabled). Unichain is clearly prioritizing WBTC (OFT-enabled) pools so Gauntlet recommends that the risk parameters reflect the same and the recommendations for WBTC (OFT-enabled) are given below.

| Asset | Supply cap | Borrow cap |
| --- | --- | --- |
| WBTC (OFT-enabled) | 100 | 90 |

### LTV Recommendations

We maintain the same liquidation-LTV (LLTV) for WBTC (OFT-enabled) as initially proposed for WBTC (Original). We recommend borrow LTVs as two percentage points less than the corresponding LLTVs:

| ↓Collateral / Debt → | USDC | USDT0 | WETH | wstETH | weETH | rsETH | ezETH | UNI |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **WBTC(OFT)** | 0.86 | 0.86 | 0.80 | 0.79 | 0.78 | 0.77 | 0.77 | 0.63 |

### Interest Rate Curve Recommendations

We maintain the same Interest Rate Curve Recommendations for WBTC (OFT-enabled) as initially proposed for WBTC (Original):

| Asset | Base rate | Kink | Rate at kink | Rate at 100% (max) |
| --- | --- | --- | --- | --- |
| WBTC (OFT-enabled) | 0% | 90% | 1% | 80% |

### Rationale

- WBTC (OFT-enabled) currently acheived an additional ~$12M TVL on May 20, 2025 with just one day of incentives. We set its supply cap at 100 and borrow cap at 90 to match expected growth while managing risk.

### Next Steps

- We welcome community feedback.

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<div class="post-metadata">

**Author:** ![EulerLabs](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/eulerlabs/32/580_2.png) [@EulerLabs](https://forum.euler.finance/u/EulerLabs)\
**Post date:** [June 6, 2025, 4:20pm UTC](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/5 "2025-06-06T16:20:09Z")

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New WBTC vault was onboarded yesterday and the old one phased out: [Unichain Mainnet Network Transaction Hash: 0x2d0a478271... | Uniscan](https://uniscan.xyz/tx/0x2d0a478271f980fd9fa33eefe0d1e9bdc98d1d7a9fbf999d1f1080d9547d0bdf)