[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Ham 🦋 [@HamDefi](/creator/twitter/HamDefi) on x XXX followers Created: 2025-05-31 09:39:07 UTC @ETHPlus_ has seen monumental growth this year, mainly due to larger LPs looping via @MorphoLabs. These larger players conduct larger operations than what has been seen in the past, topping out the mint and redemption curves for the underlying collateral basket. The needs of these larger LP has prompted us to review to collateral basket with a balanced approach to scalability, yield, and risk, ensuring ETHplus remains a leading rToken capable of supporting growing institutional demand. Currently the only guidelines we have in place we considering collateral basket changes are the ETHplus mandate - Ethereum alignment, sustainable staking diversification, and holder value but this is broad and does not comment on the price impact curves which have become more apparent as TVL has grown. Using other forum posts I have developed another set of guidelines to consider when considering collateral basket changes: - Threshold Slippage - XXX% - Target size under Redemption Threshold - 30k ETH - Largest collateral basket allocation - XX% - Diversification Ratio - previously ranged between 60-70% Under these new guidelines the liquidity of single collateral assets and potential ETHplus basket compositions were assessed leading to the proposed basket composition: - @LidoFinance wstETH, XX% - @Rocket_Pool rETH, XX% - @OriginProtocol OETH, XX% - @fraxfinance sfrxETH, XX% - @staderlabs ETHx, X% Optimising for redemption curve, diversification and yield profile without over-allocating to wstETH, even though it's tempting given it's deep on-chain liquidity. My only hesitation with this basket is the immediate entry of OETH to XX% of the collateral basket, despite it being operational for over X years with zero exploits, a TVL of ~$120m and it already being part of the @bsdETH_ collateral basket as wsOETHb this is a new arena for the protocol. Most of my concerns can be mitigated with a X step collateral basket change proposal with the intermediate step outlined below. Intermediate Step - @LidoFinance wstETH, XX% - @Rocket_Pool rETH, XX% - @OriginProtocol OETH, XX% - @fraxfinance sfrxETH, XX% - @staderlabs ETHx, X% Ultimately this is down to governors and is only one suggestion but I think it does a good job of optimising what I think is important to RSR governors while also supporting our larger ETHplus holders to conduct operations at scale and provides assurances that ETH+ is able to handle redemptions well past the amount of they hold in case they need to liquidate their holdings. XXX engagements  **Related Topics** [mint](/topic/mint) [morpholabs](/topic/morpholabs) [ethplus](/topic/ethplus) [coins arbitrum](/topic/coins-arbitrum) [Post Link](https://x.com/HamDefi/status/1928748062404440539)
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Ham 🦋 @HamDefi on x XXX followers
Created: 2025-05-31 09:39:07 UTC
@ETHPlus_ has seen monumental growth this year, mainly due to larger LPs looping via @MorphoLabs. These larger players conduct larger operations than what has been seen in the past, topping out the mint and redemption curves for the underlying collateral basket.
The needs of these larger LP has prompted us to review to collateral basket with a balanced approach to scalability, yield, and risk, ensuring ETHplus remains a leading rToken capable of supporting growing institutional demand.
Currently the only guidelines we have in place we considering collateral basket changes are the ETHplus mandate - Ethereum alignment, sustainable staking diversification, and holder value but this is broad and does not comment on the price impact curves which have become more apparent as TVL has grown.
Using other forum posts I have developed another set of guidelines to consider when considering collateral basket changes:
- Threshold Slippage - XXX%
- Target size under Redemption Threshold - 30k ETH
- Largest collateral basket allocation - XX%
- Diversification Ratio - previously ranged between 60-70%
Under these new guidelines the liquidity of single collateral assets and potential ETHplus basket compositions were assessed leading to the proposed basket composition:
- @LidoFinance wstETH, XX%
- @Rocket_Pool rETH, XX%
- @OriginProtocol OETH, XX%
- @fraxfinance sfrxETH, XX%
- @staderlabs ETHx, X%
Optimising for redemption curve, diversification and yield profile without over-allocating to wstETH, even though it's tempting given it's deep on-chain liquidity.
My only hesitation with this basket is the immediate entry of OETH to XX% of the collateral basket, despite it being operational for over X years with zero exploits, a TVL of ~$120m and it already being part of the @bsdETH_ collateral basket as wsOETHb this is a new arena for the protocol. Most of my concerns can be mitigated with a X step collateral basket change proposal with the intermediate step outlined below.
Intermediate Step
- @LidoFinance wstETH, XX%
- @Rocket_Pool rETH, XX%
- @OriginProtocol OETH, XX%
- @fraxfinance sfrxETH, XX%
- @staderlabs ETHx, X%
Ultimately this is down to governors and is only one suggestion but I think it does a good job of optimising what I think is important to RSR governors while also supporting our larger ETHplus holders to conduct operations at scale and provides assurances that ETH+ is able to handle redemptions well past the amount of they hold in case they need to liquidate their holdings.
XXX engagements
Related Topics mint morpholabs ethplus coins arbitrum