Following on from the successful launch of the steakUSDC and the ground-breaking steakPYUSD earlier in January, Steakhouse Financial will expand its line of curated MetaMorpho vaults with steakETH and steakWBTC. These vaults add exposure to crypto-currencies and will allow us, in time, to explore alternative sources of demand for on-chain repo.
In addition to providing yield on those crypto-currencies, adding those vaults will allow us to use rehypothecation in the medium term by adding those vaults as accepted collaterals for some of our stablecoin vaults.
ETH
- What is it? WETH lending will allow wstETH holders to borrow ETH and loop their exposure to wstETH. Steakhouse Financial has contributed to Lido DAO since 2022 and we believe in the value of repo lending for the most liquid LST on the market.
- Specificity: In addition to the current Morpho wstETH/ETH market, we will use a new market that relies on the exchange rate from wstETH:ETH as the canonical market price. We describe some of the rationale in the introduction to our latest proposal at Curve and in our subsequent reply to WormholeOracle who raised some important questions. In brief, we accept this tradeoff in consideration of the deep liquidity of stETH and that the primary withdrawal mechanism at Lido will remain functional even in the presence of secondary market price deviations. To date, this mechanism has withdrawn a cumulative 3.8m ETH
- Morpho Blue Markets: At this stage, the current market relies on the Chainlink price oracle for wstETH:ETH. We will therefore rely on a new wstETH:ETH market with 94.5% LLTV and the exchange rate for wstETH:stETH in an adapter as the canonical price
WBTC
- What is it? WBTC is Bitcoin held in custody at BitGo. BitGo received a qualified custodian charter from the NY Department of Financial Services in 2021 and is the leading and most liquid bitcoin representation on Ethereum at the moment.
- Morpho Blue Markets: As this stage we only plan to accept wstETH as collateral with a 86% LLTV