List Lido wstETH on Unichain Core Pool

Proposals
1

## Summary

This proposal seeks to list Lido’s Wrapped Staked ETH (wstETH) as a collateral asset on Unichain’s Core Pool. Given wstETH’s deep liquidity, strong adoption, and critical role in the Ethereum staking ecosystem, its inclusion will enhance Unichain’s lending and borrowing market. The listing will allow users to borrow against their staked ETH while maintaining staking yield, improving capital efficiency and expanding Unichain’s user base.

## Background

Lido’s wstETH is a wrapped version of stETH, designed to be compatible with DeFi applications by ensuring a stable balance while maintaining staking rewards. wstETH is one of the most widely used liquid staking derivatives (LSDs), with extensive integration across major DeFi protocols. Listing wstETH on Unichain will attract ETH stakers looking for additional utility without unstaking their assets.

## Motivation

Integrating wstETH into Unichain’s Core Pool aligns with the protocol’s goals of expanding high-quality collateral choices and attracting more liquidity. The listing will:

  • Enhance Capital Efficiency: Users can use staked ETH as collateral to borrow assets while still earning staking rewards.
  • Expand User Base: The popularity of wstETH within DeFi will drive new users to Venus.
  • Increase Protocol Revenue: Borrowing activity around wstETH will generate additional fees for Venus.
  • Improve DeFi Accessibility: Users seeking leverage or additional liquidity on staked ETH will benefit from a seamless experience.

About Lido

Lido.fi is a decentralized liquid staking platform behind stETH & wstETH that allows users to participate in Ethereum staking to earn ETH rewards without sacrificing liquidity.

Website: https://lido.fi/ 1
Twitter: x.com
Discord: Lido

Specifications

Oracle & Price Feeds: Chainlink Oracle

5 Likes
2

I like that suggestion. This is a great opportunity for ETH holders to increase the scope of their liquid staking tokens. I’m in favor of

3

I like this proposal. wstETH should be listed on every chain of Venus. Lido is a good partner of Venus.

4

In favor of this proposal. Let’s add new markets on Unichain.

5

Hurry up! List Lido wstETH on Unichain Core Pool. Since wstETH has good liquidity on unichain, it is time to list it on Venus protocol.

6

You have my support. Lido is a great partner and this would be a good opportunity for Venus.

7

Overview

Chaos Labs supports listing wstETH on Venus’s Unichain Core pool. Below we provide our analysis.

wstETH

wstETH is one of the most popular collateral assets in DeFi and is already deployed on multiple Venus pools; we recently recommended listing the asset on the ZkSync Core pool.

Market Cap and Liquidity on Unichain

While there is no contract address provided in the proposal, using the contract address provided on Lido’s governance forum points to a wstETH token with a supply of just 0.0093; there are an additional 0.0095 stETH on Unichain.

Additionally, a review of Uniswap’s UI reveals no wstETH liquidity pools on Unichain.

Listing Parameters

While the current liquidity is not sufficient for a traditional listing, we are able to recommend listing the asset as deposit-only, meaning it cannot be used as collateral and cannot be borrowed.

Should we observe deposits and an increase in on-chain liquidity, we will reassess the asset’s ability to be used as collateral and/or borrowed.

Specification

Parameter Value
Asset wstETH
Chain Unichain
Pool Core
Collateral Factor 0%
Liquidation Threshold 0%
Supply Cap 1,000
Borrow Cap -
Kink -
Base -
Multiplier -
Jump Multiplier -
Reserve Factor -

Disclaimer

Chaos Labs has not been compensated by any third party for publishing this recommendation.

Copyright

Copyright and related rights waived via CC0

1 Like
8

Overview

Chaos Labs provides an adjustment to wstETH’s parameters in order to better align it with its risk profile and increase its functionality on Venus.

Motivation

In recent weeks, wstETH’s liquidity on Unichain has increased dramatically because of incentives, creating a vastly different risk profile for the asset.

It is currently paired with ETH on Uniswap; this pool grew rapidly following the introduction of incentives in April. However, the new period of incentives, from May 13 to May 27, has already led to significant outflows.

image
image1759×1308 125 KB

Previously, its low liquidity led us to recommend that the asset be listed as supply-only. As a result, it would have had limited utility.

Recommendation

Given this sharp increase in liquidity, we recommend allowing the asset to be used as collateral, setting its LT slightly more conservative than on Arbitrum because of the volatile liquidity on Unichain. Specifically, we recommend an LT of 72.5% and a CF of 70%.

Additionally, we recommend allowing the asset to be borrowed. Specifically, we recommend setting its IR curve equivalent to that of other volatile assets, allowing relatively cheap borrowing until the Kink, set to 45%. We recommend setting its Reserve Factor to 25%, finding that supply yield is unlikely to be a motivating factor for suppliers, and prioritizing building a safety buffer for the asset on Unichain.

Finally, we recommend increasing the asset’s supply and borrow caps in accordance with our usual methodology, setting the supply cap to 2x the liquidity available below the Liquidation Incentive. We note that the volatile liquidity and changing incentives prevent us from recommending anything more aggressive.

This leads to a supply cap recommendation of 14,000 wstETH. We recommend setting the borrow cap to 50% of this value.

Specifications

Parameter Value
Asset wstETH
Chain Unichain
Pool Core
Supply Cap 14,000
Borrow Cap 7,000
CF 70.00%
LT 72.50%
Liquidation Incentive 10%
Base 0
Multiplier 0.15
Jump Multiplier 3.0
Kink 45%
Reserve Factor 25%

Disclaimer

Chaos Labs has not been compensated by any third party for publishing this recommendation.

1 Like
9

let’s do it! We meed to list wstETH on unichain ASAP