I agree - this is a priority. The biggest risk to sETH2 holders is a mass liquidation event stemming from the price of ETH exceeding the strike, because the option vault would be selling sETH2 to settle with the option buyers. This, however, is no different to a whale selling their sETH2 and is something our pool experiences once in a while anyway. As for SWISE, I personally don’t see a clear-cut way for the option vaults to have a negative impact. Perhaps someone else could help me brainstorm this.
1 Like