Simple Summary
Gauntlet has conducted a review of current Loan-to-Value (LTV) parameters across Euler Base. Based on market comparisons and internal modeling, we recommend modest upward adjustments to maintain competitiveness while ensuring risk controls remain robust.
Recommendations
Note: We increase Max LTV and LLTV by the same amount in all recommendations. Thus, we only show LLTV. Max LTV will simply be 2% less than this value both before and after.
LLTV
| Collateral / Debt | WETH | USDC | cbBTC |
|---|---|---|---|
| wstETH | 94%->95% | 83%->84% | 77%->79% |
| weETH | 94%->95% | 80%->82% | 75%->77% |
| cbETH | 93%->94% | 80%->82% | 75%->77% |
| USDC | 85%->86% | - | 80%->82% |
| cbBTC | 75%->80% | 80%->82% | - |
| LBTC | 75%->80% | 80%->82% | 90%->92% |
| WETH | - | 87%->88% | 78%->80% |
Rationale
- LTVs closer to market norms will encourage usage of Euler while keeping a conservative risk buffer.
- Increases align with on-chain liquidity and volatility metrics while maintaining effective liquidation support.
Next Steps
- We welcome community feedback