Gearbox DAO

Author

Chaos Labs

Overview

Chaos Labs recommends increasing the Quota Limit on Gearbox for the following asset:

• rstETH on wstETH Pool

This recommendation was made utilizing our Quota Limit methodology.

Motivation

rstETH has exhibited a consistent growth trend over the past three months and has now reached 100% of its quota limit.

rstETH’s supply has declined over the past three months and currently stands at 23.75K as of the time of writing. Nevertheless, the current supply level still provides sufficient room to support an increase in the supply cap.

The majority of rstETH’s supply is concentrated in the wstETH/rstETH Liquidity Pool on Balancer, which currently holds a TVL of $3.43M. As shown in the chart below, the liquidity in this pool has remained stable over the past two months, providing sufficient support for a quota increase.

Given the above considerations, we recommend increasing rstETH’s Quota to 4.8K.

Specification

Chain	Pool	Asset	Recommended Quota Limit
Mainnet	wstETH v3	rstETH	4,800

Txn log

Txn log can be found here Md5 checksum is 9f91f60d0dce3cb89be44c0b2df8835f

Execution

It’s proposed to sign the txn listed above by the Technical Multisig as soon as the quorum is gathered (contingent on winning choice being “For”). Txn will be timelocked for 36 hours to be executed contingent on the actual result of the vote after it ends.

This structure is proposed to be able to execute the increase earlier.