Discussion: Adding Staked ETH as collateral

Ideas
1

Many discussions have been done about adding Lido stETH as collateral for minting TCAP. After the last community call, we had a session with Preston to talk about the benefits of adding stETH as collateral as some community members requested it, we agreed that it’s a good time to push for it and wanted to have some discussions first. Just have in mind this:

Pros

  • Allows the depositors of collateral to keep earning interests while getting minting TCAP.

Cons

  • Price wise, 1 ETH != 1 stETH. Meaning that we might need to define a good threshold for liquidation ratio to avoid excessive liquidations in case market situations move the price of stETH.

https://twitter.com/LidoFinance/status/1595010097528315904

https://twitter.com/euler_mab/status/1594956079003312130?t=0TUwdeabIMN2YqRxdJQy_A&s=19

Requirements to deploy

  1. Deploy a stETH Vault -
  2. Have a chainlink oracle - STETH / USD Price Feed | Chainlink
  3. Community Discussion -
    • Define Collateral Ratio -
  4. Offchain vote -
  5. Onchain vote -
1 Like
Adding Staked ETH as Collateral
2

I think adding stETH is a step in the right direction.
I also think rETH should be added too, they recently got a Chainlink oracle and supply is growing. Compared to Lido, Rocket Pool is more decentralized.

3

I am all for adding stETH ($5.6b mkt cap as of today) as a potential collateral, and would like to through out the idea of adding cbETH as well ($1.1b mkt cap). moving foward these two will likely be the top staked ETH derivatives in terms of size, thus giving TCAP minting privileges to the largest staked ETH assets.