Propose to support swETH as collateral for TAI. swETH is a recently launched LST by swellnetwork.io
Benefits
Adding swETH as collateral will will improve collateral diversification of the system, making it more resilient against a single collateral failure. It will increase TAI liquidity and also increase user exposure to TAI, expanding TAI’s audience to swETH holders.
Risks
Volatility
swETH shown expected volatility, commensurate with other existinng TAI LSD collaterals
Qualitative Risk:
Audits:
Sigma Prime
Swell has a bug bounty up to $100k on Immunifi
Liquidity Risk
Circulating supply= 44,050 swETH = $78M
Current liquidity
| Pool | TVL |
|---|---|
| ETH/swETH UniV3 | $6M |
| Balancer WETH/swETH | $20M |
| Maverick ETH/swETH | $20M |
Exposure Risk
Very low due to the proliferation of swETH. Not a limiting factor with a reasonable debt ceiling.
Correlation Risk
| Correlation | Details |
|---|---|
| price | swETH has strong price correlation with other LSD collaterals |
| code | beside base layer eth staking, swETH has no known code or contract correlations with other collaterals |
| organizational | swETH has no known organizational correlations with existing LSD providers |
Price Feed
Redstone feed:
https://app.redstone.finance/#/app/token/SWETH
Parameters
Recommend swETH-A/B with identical parameters as RETH-A/B.