# Creation of Linea Market **URL:** \ **Category:** Markets\ **Created:** [August 7, 2025, 11:35am UTC](https://forum.euler.finance/t/creation-of-linea-market/1598 "2025-08-07T11:35:06Z")\ **Posts on this page:** 3\ **Page:** 1
**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:** [August 7, 2025, 11:35am UTC](https://forum.euler.finance/t/creation-of-linea-market/1598/1 "2025-08-07T11:35:06Z")
**Author:** Euler Labs **Date:** 2025-08-07 **Summary** Euler is officially deploying on Linea Mainnet. [Linea](https://linea.build/) is a type 2 zero knowledge Ethereum Virtual Machine (zkEVM). A zkEVM replicates the Ethereum environment as a rollup. The Euler market on Linea will establish dedicated lending and borrowing facilities for blue chip assets to facilitate common trades like blue chip lending, stablecoin borrowing, and LST/LRT looping. This market positions Euler as a key competitor in the lending landscape on Linea while supporting key DEX pairs through EulerSwap. **Specification** **New Potential Assets** - **Assets:** Renzo ETH, WETH, EtherFi ETH, USDC, WBTC, USDT, Wrapped Staked ETH, DAI, USDe, Kelp ETH, EURe **Risk Management** Euler Linea 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 Linea market. **Copyright** Copyright and related rights waived via CC0. ---
**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:** [August 11, 2025, 10:07am UTC](https://forum.euler.finance/t/creation-of-linea-market/1598/2 "2025-08-11T10:07:21Z")
# [Objective Labs] Initial Parameters for Euler Linea Markets # Summary Objective Labs recommends initial support for a core set of assets: **ezETH, weETH, wstETH, wrsETH, WETH**. To improve risk isolation and align with early liquidity conditions, LSTs will be isolated in self-contained markets.This structure allows for targeted risk management per asset while offering ETH-native borrowing strategies. A key objective is to limit tail risk due to insufficient liquidity. ## Liquidity Assets demonstrate solid growing onchain liquidity on Linea: - ETH → USDC: 400 ETH incurs ~0.95% slippage. - wstETH → WETH: 1700 wstETH incurs ~1.36% slippage. - weETH → WETH: 1300 weETH incurs ~0.95% slippage. - ezETH → WETH: 1000 ezETH incurs ~0.92% slippage. - wrsETH → WETH: 1300 wrsETH incurs ~0.75% slippage. - USDC & USDT: - USDC: ~18.2M supply, 506K+ holders - USDT: ~4.7M supply, 226K+ holders Due to low liquidity in stablecoins, we recommend deploying vaults for USDC, USDT, DAI, USDe, EURe at a later date. # Structure We propose initially establishing 4 isolated markets. Each market will have two vaults, (LST) and WETH. Bidirectional borrows will be enabled for EulerSwap. - Euler Linea wstETH - Euler Linea weETH - Euler Linea ezETH - Euler Linea wrsETH In the following tables “_(LST)_” denotes the LST asset for the respective market. ## LTVs | Collateral | Debt | LLTV | OLTV | | --- | --- | --- | --- | | _(LST)_ | WETH | 95% | 94% | | WETH | _(LST)_ | 93% | 92% | ## Caps | **Market** | **Asset** | **Supply Cap** | **Borrow Cap** | | --- | --- | --- | --- | | Euler Linea wstETH | wstETH | 10000 | 5000 | | Euler Linea weETH | weETH | 5000 | 2500 | | Euler Linea ezETH | ezETH | 5000 | 2500 | | Euler Linea wrsETH | wrsETH | 5000 | 2500 | | _(All Markets)_ | WETH | 20000 | - | ## IRMs | **Market** | **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at max** | | --- | --- | --- | --- | --- | --- | | _(All Markets)_ | WETH | 0% | 90% | 2.7% | 8% | | _(All Markets)_ | _(LST)_ | 0% | 50% | 2% | 12% | We recommend a standard 10% interest fee on all vaults. ## **Oracles** We recommend using WETH as the unit of account, or alternatively, the Chainlink ETH/USD as a cross oracle for all markets and vaults. | **Asset** | **Price Feed** | | --- | --- | | WETH | - | | ezETH | Chainlink ezETH/ETH (Fundamental) | | weETH | Chainlink weETH/ETH (Fundamental) | | wstETH | Chainlink wstETH/ETH (Fundamental) | | wrsETH | - | > Note: wrsETH has no active price feed. We recommend delaying whitelisting of Euler Linea wrsETH until a suitable push oracle is deployed and configured. ---
**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:** [August 18, 2025, 1:53pm UTC](https://forum.euler.finance/t/creation-of-linea-market/1598/3 "2025-08-18T13:53:54Z")
# Summary We discussed this with Euler Labs last week. Gauntlet supports Objective Labs’ initial parameter recommendations, with the caveat that the existing DeRisk AutoStrategy will govern supply/borrow caps. Beginning 45 days after market launch, caps will be reviewed and adjusted based on observed demand and liquidity. # Rationale **Caps:** Objective Labs’ proposed caps are relatively aggressive compared with current DEX liquidity on Linea (ETH and LST pairs). To support early growth, we align with launching higher caps; however, if demand does not materialize as expected, we will proactively reduce caps in accordance with the existing derisking automation strategies set in place.