Overview

Yesterday Gearbox launched leveraged restaking and has already filled the 2500 ETH cap. Due to the strong demand from the user side, it seems reasonable to further expand leveraged restaking offers further. This proposal aims to achieve that, by offering an increase in limits, adding new LRT assets, and removing the Degen NFT requirement for access.

Note: This proposal is urgent. After reaching the quorum with majority voting to approve, the technical multisig will queue the required transaction immediately (before the voting ends). Timelock ETA will be set up to 4 hours after the end of voting.

Should the proposal be rejected after transactions are set up, the veto multisig will cancel all transactions they mature.

Onboarding Renzo for Trade WETH pool and increasing quota limits for weETH

1. Restaking narrative has exploded over the past couple of months, reaching over 3.5 billion TVL. And although Gearbox has begun a leveraged restaking narrative with Ether Fi, there are other promising alternatives on the market. This proposal suggests to onboard Renzo protocol, to provide more strategy variety and also increase total available LRT on-chain liquidity.
2. Due the high demand, this proposal suggests to increase the quota limit for weETH to 15,000 WETH*.

Asset	Quota increase fee	Min quota rate	Max quota rate	Limit
ezETH	0%	0.05%	30%	15,000 WETH
weETH	0%	0.05%	30%	15,000 WETH

Add new WETH Restaking Credit Manager

A new dedicated Credit Manager will be created specifically for LRT assets. This manager doesn’t require any access control (DegenNFT), because LRT assets are liquid ERC-20 tokens that are traded on dexes and have deep liquidity there. The new Credit Manager will also have a slightly lower liquidation premium, to allow for higher LTs and leverage.

Limits & fees

1. Minimal debt principal - 25 WETH
2. Maximal debt principal - 500 WETH
3. Interest spread - 25%
4. Liquidation premium - 3%
5. DAO liquidation fee - 1%
6. Expiration liquidation premium - 2%**
7. DAO expiration liquidation fee - 1%**
8. Credit Manager debt limit - 30000 WETH*
9. DegenNFTs are not required to open accounts

Collateral tokens & LTVs

Token	LTV	Comment
ezETH	91.5%
weETH	91.5%
rETH	0	Used for routing, can’t be used as collateral
rETH-f	0	Curve LP token, added for compatibility, can’t be used as collateral

Adapters

The following is the list of contracts for which adapters are connected to the CM:

• UNISWAP_V3_ROUTER
  • rETH/ETH 0.05% pool
  • rETH/ETH 0.01% pool
• BALANCER_VAULT
  • Balancer rETH/weETH pool
  • Balancer rETH/WETH pool
  • Balancer ezETH/WETH pool
  • Balancer ezETH/weETH/rswETH pool
• CURVE_RETH_ETH_POOL

Controller Policies Change

GIP-91 introduced Timelock Policies, allowing quota limit increases by 30% and credit manager debt limit increases by 70% per month without additional voting. However, due to high demand, the delay in changing the limits leads to degradation of UX. So it is proposed to allow the ControllerTimelock’s RISK_ROLE (the technical multisig) to change values freely within the caps stated above (i.e. to any value up to 15000 WETH for weETH/ezETH and 30000 WETH for credit manager borrowing limit) without additional governance voting.

In practice this means that the following policies will be set:

IPoolV3.setCreditManagerDebtLimit(cm, limit)

Sets the max debt per Credit Account.

admin	RISK_ROLE
delay	12 hours
exactValue	Not restricted
minValue	Not restricted
maxValue	Not restricted
updatePeriod	Not restricted
minPctChangeDown	Not restricted
minPctChangeUp	Not restricted
maxPctChangeDown	Not restricted
maxPctChangeUp	Not restricted
minChange	Not restricted
maxChange	Not restricted

IPoolQuotaKeeperV3.setTokenLimit(token, limit)

Sets a new quota limit for a token.

admin	RISK_ROLE
delay	12 hours
exactValue	Not restricted
minValue	Not restricted
maxValue	Not restricted
updatePeriod	Not restricted
minPctChangeDown	Not restricted
minPctChangeUp	Not restricted
maxPctChangeDown	Not restricted
maxPctChangeUp	Not restricted
minChange	Not restricted
maxChange	Not restricted

Note that RISK_ROLE is currently the main technical multisig, so this does not increase governance risk, but allows the multisig to update caps under a shorter delay.

Remove WBTC farm incentives

We see (check here) high utilization of USDC and WETH pools while the utilization of WBTC pool is less than 10%. In this regard, it is proposed to remove LM rewards from WBTC pool.

Notes

* This is the maximal quota limit per asset / credit manager debt limit. The timelock controller can set the cap to any value at or below this maximum with a 12 hour delay.

** Note that this Credit Manager will not have an expirable Credit Facade connected initially, but these fees need to be set regardless.

Voting

Simple Approve/Reject voting