In the RFC To Adjust Liquidity Constraints, we were adjusting the basket to get to 30k ETH+ slippage. It seems with the updated liquidity we have now checked that box, which implies that we can keep the collateral basket as is.
This separate RFC for adding Stader’s ETHx raises a different set of question for ETH+: what are the criteria for a new LST to be added? In the past ETH+ was 50/50 stETH/rETH, then it became 33/33/33 stETH/rETH/sfrxETH. Following those changes, it would seem to me that in the spirit of maximizing diversification, the addition of ETHx should ideally target a 25/25/25/25 stETH/rETH/sfrxETH/ETHx weighting.
However, it seems that ETHx may be more liquidity-constrained than the other options. The choice we seem to be making is to offset the liquidity constraints of ETHx inclusion by impacting diversification and upping the weighting of stETH. An alternative would be, maintain the equal weighting of stETH/rETH/sfrxETH and add in ETHx until the chosen liquidity constraint of 30k is hit. So instead of 50/20/20/10 stETH/rETH/sfrxETH/ETHx, we would see if 30/30/30/10 would meet liquidity requirements, if not 31/31/31/7. But ideally, we would want to get to 25/25/25/25 over time.
I think finding a way to make the criteria for inclusion/weighting as procedural as possible will also give other LSTs a path to joining the ETH+ basket in the future. I’m a big fan of the builders at Stader and I’m looking forward to seeing them included.