Simple Summary
Gauntlet has conducted a review of current Loan-to-Value (LTV) parameters across Euler Prime. 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 | USDC | USDT | USDtb |
|---|---|---|---|
| XAUt | 75%→77% | 75%→77% | 75%→77% |
| tETH | 77% | 77% | 77% |
| rsETH | 77%→78% | 77%→78% | 77%→78% |
| ezETH | 77%→78% | 77%→78% | 77%→78% |
| weETH | 80%→82% | 80%→82% | 80%→82% |
| wstETH | 83%→84% | 83%→84% | 87%→88% |
| LBTC | 84%→85% | 84%→85% | 84%→85% |
| WETH | 85%→86% | 85%→86% | 85%→86% |
| cbBTC | 86% | 86% | 86% |
| WBTC | 86% | 86% | 86% |
| TBILL | 93%→94% | 93%→94% | 93%→94% |
| sBUIDL | 93%→94% | 93%→94% | 93%→94% |
| USDtb | 95%→96% | 95%→96% | - |
| USDT | 95%→96% | - | 95%→96% |
| USDC | - | 95%→96% | 95%→96% |
- USDC, USDT, and USDtb receive 1-2% increases per collateral as they are already fairly close to market rates across the board.
| Collateral / Debt | LBTC | cbBTC |
|---|---|---|
| tETH | 72%→74% | 72%→74% |
| rsETH | 72%→74% | 72%→74% |
| ezETH | 72%→74% | 72%→74% |
| weETH | 75%→77% | 75%→77% |
| wstETH | 77%→79% | 77%→79% |
| WETH | 78%→80% | 78%→80% |
| USDtb | 80%→82% | 80%→82% |
| USDT | 80%→82% | 80%→82% |
| USDC | 80%→82% | 80%→82% |
| LBTC | - | 90%→92% |
| cbBTC | 90%→92% | - |
| WBTC | 90%→92% | 90%→92% |
- LBTC and cbBTC see 2% increases across the board to maintain consistency and align with high market LTVs for the LBTC/cbBTC pair.
| Collateral / Debt | weETH | wstETH |
|---|---|---|
| LBTC | 75%→77% | 78%→80% |
| cbBTC | 77%→79% | 80%→82% |
| WBTC | 77%→79% | 80%→82% |
| USDtb | 80%→82% | 83% |
| USDT | 80%→82% | 83% |
| USDC | 80%→82% | 83% |
| rsETH | 90%→92% | 90%→92% |
| ezETH | 90%→92% | 90%-92% |
| tETH | 90%→92% | 93%→94% |
| weETH | - | 93%→94% |
| wstETH | 93%→94% | - |
| WETH | 93%→94% | 93%→94% |
- weTH and wstETH see 2% LTV increases for collaterals less than 92% LLTV and 1% increases for those equal to or above this threshold. wstETH/stable pairs already has competitive LLTVs with industry rates; however, weETH/stables are increased 2% to bring these more inline.
| Collateral / Debt | WBTC |
|---|---|
| tETH | 67%→69% |
| rsETH | 67%→69% |
| ezETH | 67%→69% |
| weETH | 70%→72% |
| wstETH | 72%→74% |
| WETH | 73%→75% |
| USDtb | 82%→84% |
| USDT | 82%→84% |
| USDC | 82%→84% |
| LBTC | 90%→92% |
| cbBTC | 90%→92% |
- WBTC sees 2% LTV increases across the board to maintain consistency and align with high market LTVs for the WBTC/LBTC and WBTC/cbBTC pairs.
| Collateral / Debt | WETH |
|---|---|
| LBTC | 80%→82% |
| cbBTC | 82%→84% |
| WBTC | 82%→84% |
| USDtb | 87% |
| USDT | 87% |
| USDC | 87% |
| tETH | 93%→94% |
| rsETH | 93%→94% |
| ezETH | 93%→94% |
| weETH | 93%→94% |
| wstETH | 95%→96% |
- WETH sees stable LTVs already at market rate thus leaving those unchanged. For remaining collateral under 90% Max LTV, a 2% increase is applied and 1% for collaterals over this threshold.
Rationale
- Competitiveness: LTVs closer to market norms will encourage usage of Euler while keeping a conservative risk buffer.
- Parameter Calibration: Increases are modest (1-2%) and align with on-chain liquidity and volatility metrics while maintaining effective liquidation support.
Next Steps
- We welcome community feedback