[Gauntlet] Parameter Recommendations for Euler Base

Euler DAO
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Summary

Gauntlet reviewed current Loan-to-Value (LTV) parameters across ETH, LSTs, and LRTs on Base. Based on market comparisons and internal modeling, we recommend modest adjustments to maintain competitiveness while ensuring robust risk controls:

Recommendations

Liquid Staking / Restaking Tokens (LSTs, LRTs)
- LTVs are ~50 bps below comparable market levels on Base

We recommend the following adjustments:

Collateral / Debt cbETH ezETH rETH weETH WETH wstETH wsuperOETHb
ezETH 0.90 → 0.91 - 0.90 → 0.91 0.90 → 0.91 0.90 → 0.91 0.90 → 0.91 0.80 → 0.81
weETH 0.93 → 0.935 0.93 → 0.935 0.93 → 0.935 - 0.93 → 0.94 0.93 → 0.935 0.80 → 0.805
wstETH 0.93 → 0.935 0.93 → 0.935 0.93 → 0.935 0.93 → 0.935 0.93 → 0.94 - 0.80 → 0.805

Rationale

  • Competitiveness: Proposed LTVs will aid in driving user demand while keeping a conservative risk buffer
  • Parameter Calibration: Increases are modest (5-10 bps) and align with on-chain liquidity and volatility metrics while maintaining effective liquidation support

Next Steps

  • We welcome community feedback
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Objective Labs is aligned with Gauntlet’s recommendation to increase LLTVs across ETH, LST, and LRT markets on Base. These modest adjustments improve competitiveness while keeping robust risk controls in place. Increasing LLTV naturally improves borrower safety at constant debt levels, and only becomes riskier if users choose to borrow closer to the new ceiling. We believe this trade-off appropriately balances capital efficiency with prudent liquidation buffers. We will monitor user activity post implementation.