weETH is the leading liquid restaking project with a huge market share. There is currently more than $2B of it in the AAVE v3 market, so demand for leverage/borrowing is strong for this asset. Users are leveraging wstETH market will probably use weETH market. With our lower and fixed rate we can lure a good share of that borrowing demand towards FiRM, just like wstETH.
We need a risk analysis from the risk working group to ensure the asset is safe and determine the best parameters for the market. Then its the usual step :
On-Chain Actions
Add weETH Market to DBR contract
Set borrowController of Market to FiRM BorrowController
Set FiRM Oracle price feed for weETH to the deployed Chainlink weETH/USD PriceFeed contract
Set market supply ceiling to XXX DOLA
Set daily limit in BorrowController to XXX DOLA
Set Collateral Factor to XX%
Set Liquidation Factor to XX%
Set Liquidation Incentive to XX%
Set Minimum Debt Amount in BorrowController to XXX DOLA
Any update for this @edo ? weETH is really a big market on Aave and the lower + fixed rate of Inverse could attract some borrowers. Given our biggest markets are WETH and BTC, more less like on Aave, I believe it make sense to add those most wanted and large asset, even if we grasp only a small share of it. Given our size, that would be nice.
We’re unfortunately at a standstill at the moment due to the eETH contract being upgradable behind a 3 day timelock. We have stricter rules against upgradeability compared to Aave, though it is still surprising they approved the market given this fact. If the Ether.Fi team extend the timelock to a duration greater than our governance process we would reconsider.
I see. What is the duration period again ? I imagine that puffer finance or renzo finance also have upgradeable contract and would have the same challenge?
Too bad, it could have been an interesting collateral options.