Collateralization under stress
Liquid Collective (LsETH)'s assessment for RD-F-068 — scored not_applicable on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
No lending market; no collateralization ratio applicable. LsETH is fully backed 1:1 by staked ETH by design (conversion rate = totalETHSupply / totalLsETHSupply). The only under-collateralization vector is slashing reducing totalETHSupply, handled by conversion rate adjustment and the 3-tier slashing coverage program. Per PD-024, lending-only factors are not_applicable for non-lending protocols.
Sources #
- DocsLiquid Collective — LsETH tokenomics documentationLsETH tokenomics: conversionRate = totalETHSupply / totalLsETHSupply; slashing reduces totalETHSupply, decreasing conversion rateretrieved 2026-05-17
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →