Author

Chaos Labs

Summary

Chaos Labs recommends increasing the Quota Limit on Gearbox’s Optimism deployment for the following asset:

• ezETH

This recommendation was made after analyzing on-chain liquidity and utilizing our Quota Limit methodology.

On-chain Supply Growth

ezETH

ezETH’s Arbitrum on-chain supply has grown since listing, along with on-chain DEX liquidity.

Given the enhancement achieved by implementing a fundamental oracle, which effectively isolates delta exposure, the associated risk of increasing the quota limit is significantly minimized. Consequently, we propose raising the Quota Limit within the WETH market to 1,000, as the additional risk incurred by this adjustment is expected to be negligible.

Specification

Increase ezETH Optimism quota from 350 to 1,000.

Transaction log

Transaction log is available here Md5 checksum: b196b8e709c79c4de7b9c921cb369f44