Gearbox DAO

Author

Chaos Labs

Summary

Chaos Labs has conducted research on the potential integration of RE7LRT and recommends implementing it using similar parameters to those previously applied in the integration of Mellow LRTs.

Note: The following analysis is based exclusively on market risk considerations, deliberately excluding centralization and third-party risk factors. Should the community seek to mitigate exposure to Mellow, it may be prudent to consider the implementation of more conservative supply and borrow caps.

Analysis

What is RE7LRT?

Re7LRT is a Mellow vault token curated by RE7 Capital, with over 12,000 wstETH currently constituting its underlying asset. Alongside amphrETH, rstETH, wstETH, and steakLRT, it offers users targeted exposure to the Symbiotic restaking infrastructure. For more details, please refer to the Gearbox Blog Post.

RE7LRT currently holds a total on-chain liquidity of 797 ETH in the Balancer Pool, which it shares with the aforementioned LRTs. Chaos Labs proposes setting the quota limit to 7,000, in line with other Mellow LRTs limits increase in GIP-163. The recommendation comes after taking the rapid growth of RE7LRT along with the limited bad debt risk profile of its fundamental oracle along with withdrawals enabled.

Recommendation

Parameter	Value
Asset	RE7LRT
Chain	Ethereum
Credit Manager	Restaking WETH
Quota Limit	7000
minRate	.5%
maxRate	30%
Liquidation Threshold	0.90
Main oracle: fundamental Mellow price feed adapter.

Transaction log

Txs log can be found here Md5 checksum is 86fc017aeda088c07dc3f1975747cc52.