Author

@Chaos Labs

Summary

A proposal to:

Increase the Quota Limit for ezETH on Ethereum and Arbitrum Switch to a fundamental oracle

Motivation

Renzo Protocol plans to enable ezETH withdrawals within the next week. As a result, we find it prudent to update ezETH’s Quota Limits to allow for new positions to be opened. Chaos Labs’ methodology for setting this Quota Limit is based on 2x the price impact under the 3% Liquidation Bonus.

Additionally, we recommend switching to a fundamental oracle to protect against market volatility by reflecting the intrinsic value of locked assets. This proactive measure aims to mitigate potential risks associated with sharp market fluctuations and liquidity constraints, thus ensuring greater stability.

Specification

We propose the following changes:

Chain: Ethereum Pool: ezETH Quota Limit: 0 -> 15,000 Fundamental Oracle (Primary): RedStone Market Oracle (Reserve): Chainlink ezETH / ETH (0x636A000262F6aA9e1F094ABF0aD8f645C44f641C) ETH / USD Conversion Oracle: Chainlink ETH / USD (0x5f4eC3Df9cbd43714FE2740f5E3616155c5b8419)

Chain: Arbitrum Pool: ezETH Quota Limit: 0 -> 700 Fundamental Oracle (Primary): Chainlink ezETH / ETH Exchange Rate (0x989a480b6054389075CBCdC385C18CfB6FC08186) Market Oracle (Reserve): Chainlink ezETH / ETH (0x11E1836bFF2ce9d6A5bec9cA79dc998210f3886d) ETH / USD Conversion Oracle: Chainlink ETH / USD (0x639Fe6ab55C921f74e7fac1ee960C0B6293ba612)

Transaction log

Transaction logs can be found here, md5 checksums are 31548a8b1fc296f90b8d372d63c1f82d (Mainnet) and 494a1b52ced03612d9efb8059f0f8d6c (Arbitrum).

Voting

Simple Approve/Reject