# \[RFC\] Addition of Stader's ETHx into the ETH+ LST Basket

**URL:** <https://forum.reserve.org/t/rfc-addition-of-staders-ethx-into-the-eth-lst-basket/897>\
**Category:** ETHPLUS (ETH+)\
**Created:** [August 22, 2024, 10:13am UTC](https://forum.reserve.org/t/rfc-addition-of-staders-ethx-into-the-eth-lst-basket/897 "2024-08-22T10:13:33Z")\
**Posts on this page:** 1\
**Showing post:** 17

<div class="post-metadata">

**Author:** ![MEVCapital](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.reserve.org/mevcapital/32/480_2.png) [@MEVCapital](https://forum.reserve.org/u/MEVCapital)\
**Post date:** [September 3, 2024, 2:49pm UTC](https://forum.reserve.org/t/rfc-addition-of-staders-ethx-into-the-eth-lst-basket/897/17 "2024-09-03T14:49:32Z")

</div>

Hello, thank you @knight_mayr for your proposal.

We recently shared our research on the composition of the ETH+ asset basket as part of the [RFC to Adjust Liquidity Constraints](https://forum.reserve.org/t/rfc-adjusting-the-eth-collateral-basket-to-adjust-liquidity-constraints-to-protect-eth-holders-from-slippages/885). We invite you to [review it](https://forum.reserve.org/t/rfc-adjusting-the-eth-collateral-basket-to-adjust-liquidity-constraints-to-protect-eth-holders-from-slippages/885/16) to understand our thoughts on the matter.

**Regarding ETHx, we also support your desire to include it in the current asset basket.**

We believe this would lead to better decentralization and increased attractiveness in the short/medium term.

Here is our recommendation for the inclusion of ETHx:

- **50% wstETH**
- **28% sfrxETH**
- **17% rETH**
- **5% ETHx**

As highlighted in our previous report, we consider it crucial to improve liquidity during the minting process of ETH+. Therefore, we are opting to significantly reduce the allocation of rETH in favor of increasing wstETH.

As for ETHx, its inclusion would enhance overall liquidity in the ETH+ asset basket and be beneficial for decentralization.

Check out our simulations:

### Mint price Impact

**Actual ETH+ basket composition price impact**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/50fe737facc36092fcd86b63feee74e6b3ade11f.jpeg)

- As of September 3rd, it would take around **42 days** to absorb the price impact from minting 12,000 ETH+ given the current ETH+ APR.

**New ETH+ basket composition price impact**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/a45f2f643fad8d40661eb17bf08fdd873ce5338f.jpeg)

- With the new allocation, it would also take **15 days** (based on the current ETH+ APR).

### Redemption price Impact :

**Actual ETH+ basket composition price impact**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/f0f90bb6c23a89209a53e289f8b5205d2c361671.jpeg)

**New ETH+ basket composition price impact**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/f802239bbf01117f2b20d3e5c675de755223592f.jpeg)

With this new composition, the price impact during minting and redemption has significantly decreased.

To recap, the new allocation will:

- **Increase the expansion** of ETH+ by improving mint liquidity
- **Boost ETH+ yield** by adding ETHx
- **Enhance redemption liquidity** without exposing wstETH to more than 50%

We also have other composition ideas:

- **wstETH: 48%**
- **sfrxETH: 28%**
- **rETH: 17%**
- **ETHx: 7%**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/1834715856edbe9ec09334f22df5f7e6cb30ddc0.jpeg)

Or:

- **wstETH: 50%**
- **sfrxETH: 21%**
- **rETH: 21%**
- **ETHx: 8%**

 ![](https://europe1.discourse-cdn.com/flex005/uploads/reserve/original/1X/0657786b16bc476ae8674d4091c34b6131fd83b8.jpeg)

Please feel free to share your thoughts/responses to further the discussion.

---

_[View the full topic](https://forum.reserve.org/t/rfc-addition-of-staders-ethx-into-the-eth-lst-basket/897)._