Title: List cbETH on Arbitrum as a Collateral Type and Tradable Currency on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 10 October 2023
The following is a proposal to onboard Coinbase Wrapped Stacked ETH (cbETH) as a tradable currency and collateral option on Notional V3. The Anthias team thinks this market could prove valuable for the Notional community and thus would like the community to consider & discuss onboarding cbETH as a collateral type.
- Token contract address (Etherscan)
- Project Website
- Project Github
- Social media/community channels
- Protocol Analytics Dashboard
1. The asset is an ERC-20 token
- Yes: $1,692.28 | Coinbase Wrapped Staked ETH (cbETH) Token Tracker | Etherscan
- $1,691.28 | Coinbase Wrapped Staked ETH (cbETH) Token Tracker | Arbiscan
2. The asset has been traded for at least 3 months
3. A sufficiently robust chainlink oracle for the asset exists
- Yes (verified tier): cbETH / ETH | Chainlink
4. At least two high-quality audits have been conducted
- OpenZeppelin Audit: Coinbase Liquid Staking Token Audit - OpenZeppelin blog
- Note: Only one public audit at time of publishing this proposal–We recommend the community to discuss whether not having two audits should disqualify cbETH as a collateral type.
5. The token is held by more than 1,000 unique wallets
- Yes–over 41,000 holders at time of publishing this proposal: $1,692.28 | Coinbase Wrapped Staked ETH (cbETH) Token Tracker | Etherscan
6. The current float (circulating supply/max supply) is above 25%
- cbETH has an infinite max supply, but circulating supply and 24-hour trading volume is significant enough that liquidity issues are unlikely in the near future.
7. The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists
- Yes–cbETH has over $4.5M TVL on Balancer alone at time of publishing this proposal: Balancer
1. Provide a brief overview of the proposed asset and its underlying project.
- Coinbase Wrapped Staked ETH (cbETH) is Coinbase’s liquid staking token. The staked asset is Ether (ETH), and the staking provider and token issuer is Coinbase. cbETH follows the cToken model, which allows it to be ERC-20 compliant and easier to integrate with DeFi more broadly. cbETH can be unwrapped for staked ETH plus accrued rewards net of Coinbase staking fees and any network-imposed penalties. Rewards and penalties affecting Coinbase staked ETH change the conversion rate between cbETH and underlying staked ETH.
2. How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- cbETH allows holders to gain staking rewards while maintaining the flexibility of a wrapped token. cbETH is currently a collateral asset on major DeFi lending platforms including Aave.
- cbETH on Aave: Aave - Open Source Liquidity Protocol
- $1.59M in cbETH borrowed on Aave V3’s Ethereum market as of time of publishing.
- cbETH was also approved as a collateral type on Euler Finance before Euler’s hack in March of 2023.
3. Detail why you believe the project should be added to Notional either as a collateral asset or as a tradable asset and the potential benefits of doing so. Explain why you think the demand for this asset is sufficient to list it on Notional.
- Integration of cbETH as a collateral asset on Notional V3 would allow holders of cbETH to gain functionality and borrowing power while continuing to earn yield via liquid staking. As outlined in this proposal, cbETH meets the criterias laid out in the asset onboarding framework to be a suitable collateral and tradable asset. cbETH is also a relatively new asset by a very established player in the space (Coinbase), so its adoption will likely continue to grow, especially as users look for alternative liquid staking providers.
4. Provide information regarding the organization behind the project.
- cbETH was created by the team at Coinbase. As outlined in the cbETH whitepaper, the contracts are upgradable by the “admin.” Hildobby of Dragonfly recently found that Coinbase is behind 14.1% of staked ETH.
5. Provide information regarding past hacks or major bugs and how the team addressed them.
- Coinbase is known as one of the most security-focused organizations in the blockchain space. The company was affected by an exploit in 2021, but the issue was patched quickly, and all exploit victims were reimbursed by Coinbase.
6. Provide an overview of the token’s market data.
Market Cap: $321,411,427
24H Volume: $4,337,216
cbETH Volatility (cbETH price compared to ETH over past 12 months)
cbETH DEX Liquidity = cbETH has over $7.7M in DEX Liquidity via DEX Guru: DexGuru
cbETH DEX Slippage = On Mainnet, DEX Slippage can be expected to be ~0.5% for trades selling cbETH for ETH at $1,000,000 or less. On Arbitrum, a $500,000 trade would lead to roughly 2% slippage.
7. Provide an overview of the token emission schedule and major holders.
- There is no emissions schedule. Users with staked ETH via Coinbase can wrap their staked ETH to obtain the cbETH token.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding cbETH as a collateral type to Notional V3. Please share thoughts/questions in the comments of this forum post, and feel free to reach out to 0xBroze (@0xBroze on Discord or @OxBroze on Telegram) with any questions.
Anthias is a risk management organization that also builds tools for easily monitoring liquidation risk for DeFi borrowing/lending markets. The Anthias team has shipped multiple grants for Euler, Aave, Compound, and more.