Authors

@desnakeee

Summary

This proposal aims to change risk parameters for v3 Optimism deployment.

Motivation

The major part of Gearbox utilization comes from Ethereum use cases, namely leveraged restaking and points farming. Currently, other use cases contribute very little to the protocol’s revenue, yet they still require monitoring for associated risks. That is the main reason for the recent reassessment of risk parameters (GIP-130, GIP-137), with the goal of maximally reducing the risk surface while not hurting the protocol’s utilization.

Key risk parameters

The approach is to set the parameters of major tokens to match those used in Ethereum and Arbitrum deployments. The parameters of deployment-specific tokens are adjusted according to their liquidity.

WETH market parameters

WETH v3 pool limits

Token	Proposed limit
yvWETH	0
yvUSDC.e	0
WLD	0
SNX	0
OP	150

WETH Tier 1 Optimism Credit Manager parameters

It’s proposed to forbid OP token (Set LT=0) in WETH Tier 1 Optimism Credit Manager.

minDebt	7
maxDebt	150
liquidationPremium	0.05
liquidationPremiumExpired	0.05

token	Proposed LT
USDC.e	0.87
WBTC	0.9
wstETH	0.9
rETH	0.9

Ramp start: July 22, 2024 20:00 GMT Ramp duration: 14 days

Trade WETH Tier 2 Optimism Credit Manager parameters

minDebt	0.35
maxDebt	7
liquidationPremium	0.05
liquidationPremiumExpired	0.05

token	New LT
USDC.e	0.87

Ramp start: July 22, 2024 20:00 GMT Ramp duration: 14 days

It’s proposed to add following tokens to credit manager with the parameters stated below:

token	LT
OP	0.8
WBTC	0.9
wstETH	0.9
rETH	0.9

It’ s proposed to add following adapters:

• Uniswap V3:
  • WETH/OP 0.3%
  • WETH/OP 0.05%
  • WETH/WBTC 0.3%
  • WETH/WBTC 0.05%
  • WETH/wstETH 0.01%
• Balancer
  • wstETH/WETH CLP (0x7ca75bdea9dede97f8b13c6641b768650cb837820002000000000000000000d5)
  • rETH/WETH (0x4fd63966879300cafafbb35d157dc5229278ed2300020000000000000000002b)
• Velodrome
  • WETH/OP Concentrated volatile
  • OP/USDC.e Concentrated volatile
  • wstETH/WETH Concentrated stable

USDC.e market parameters

Main USDC.e v3 pool limits

Token	Proposed limit
yvWETH	0
yvUSDC.e	0
yvDAI	0
yvUSDT	0
WLD	0
SNX	0
OP	500000

USDC.e Tier 1 Optimism Credit Manager parameters

It’s proposed to forbid OP token (Set LT=0) in USDC.e Tier 1 Optimism Credit Manager.

minDebt	20000
maxDebt	400000
liquidationPremium	0.05
liquidationPremiumExpired	0.05

token	Proposed LT
WBTC	0.87
WETH	0.87
wstETH	0.87
rETH	0.87

Ramp start: July 22, 2024 20:00 GMT Ramp duration: 14 days

USDC.e Tier 2 Optimism Credit Manager parameters

minDebt	1000
maxDebt	20000
liquidationPremium	0.05
liquidationPremiumExpired	0.05

token	Proposed LT
WETH	0.87

Ramp start: July 22, 2024 20:00 GMT Ramp duration: 14 days

It’s proposed to add following tokens to credit manager with the parameters stated below:

token	LT
OP	0.8
WBTC	0.87
wstETH	0.87
rETH	0.87

It’ s proposed to add following adapters:

• Uniswap V3:
  • WETH/WBTC 0.3%
  • WETH/WBTC 0.05%
  • wstETH/WETH 0.01%
  • OP/USDC.e 0.3%
  • WETH/OP 0.3%
  • WETH/OP 0.05%
  • USDC/OP 0.3%
• Balancer
  • wstETH/WETH CLP (0x7ca75bdea9dede97f8b13c6641b768650cb837820002000000000000000000d5)
  • rETH/WETH (0x4fd63966879300cafafbb35d157dc5229278ed2300020000000000000000002b)
• Velodrome
  • WETH/OP Concentrated volatile
  • OP/USDC.e Concentrated volatile
  • WETH/USDC.e Concentrated volatile
  • wstETH/WETH Concentrated stable
  • wstETH/OP Basic volatile
  • USDC/USDC.e Concentrated stable

PartialLiquidationBotV3 & its permissions

It’s proposed to deploy the PartialLiquidationBotV3 contract on Optimism and connect it as a special permissions bot for all current Credit Managers, which will enable partial liquidations.

Reserve price feeds

Partial liquidations require tokens to have reserve price feeds as they currently rely on withdrawals being available.

It’s proposed to set Redstone pull feeds as reserve feeds for the following tokens:

1. USDC – https://app.redstone.finance/#/app/token/USDC

Transaction log

Transaction logs can be found here, md5 checksum is 6d2ba315a6aab267c62e5b5233b66142.

Voting

Simple Approve/Reject