---
# System prepended metadata

title: Creation of Layer Zero OFT WBTC Market on Unichain and adjustments to original WBTC Market on Unichain
tags: [WBTC (OFT)]

---

# [Gauntlet] - Recommendations for  Layer Zero WBTC (OFT-enabled) Market on Euler Unichain (2025-05-20)

In line with Unichain’s vision for cross-chain native assets and superchain interoperability (see [recent tweet](https://x.com/gauntlet_xyz/status/1924927048251793648)), Gauntlet recommends the below risk parameters for the new LayerZero WBTC market, if the community decides to list the new LayerZero WBTC market. The initial recommendations for the WBTC (Original) market are available [here](https://forum.euler.finance/t/creation-of-euler-uni-market-on-unichain/1390/3).

**Contract Addresses**  
- **WBTC (OFT-enabled)**: `0x0555e30da8f98308edb960aa94c0db47230d2b9c`  
- **WBTC (Original)**:       `0x927b51f251480a681271180da4de28d44ec4afb8`

### Cap Recommendations
Gauntlet expects DEX Liquidity to gradually migrate from WBTC (Original) to WBTC (OFT-enabled). Unichain is clearly prioritizing WBTC (OFT-enabled) pools so Gauntlet recommends that the risk parameters reflect the same and the recommendations for WBTC (OFT-enabled) are given below. 

| Asset               | Supply cap        | Borrow cap       |
|---------------------|------------------:|-----------------:|
| WBTC (OFT-enabled)  |               100 |               90 |


### LTV Recommendations

We maintain the same liquidation-LTV (LLTV) for WBTC (OFT-enabled) as initially proposed for WBTC (Original). We recommend borrow LTVs as two percentage points less than the corresponding LLTVs:

|  ↓Collateral / Debt →	        | USDC     | USDT0     | WETH     | wstETH     | weETH     | rsETH  | ezETH     | UNI   |
|-------------------------------|---------:|----------:|---------:|-----------:|----------:|----------:|----------:|------:|
|  **WBTC(OFT)**                      | 0.86     | 0.86      | 0.80     | 0.79       | 0.78      | 0.77  | 0.77       | 0.77  |


### Interest Rate Curve Recommendations

We maintain the same Interest Rate Curve Recommendations for WBTC (OFT-enabled) as initially proposed for WBTC (Original):

| Asset                  | Base rate | Kink | Rate at kink | Rate at 100% (max) |
|------------------------|----------:|-----:|------------:|-------------------:|
| WBTC (OFT-enabled)     |       0%  |  90% |        1%   |               80%  |

### Rationale
- WBTC (OFT-enabled) currently acheived an additional ~$12M TVL on May 20, 2025 with just one day of incentives. We set its supply cap at 100 and borrow cap at 90 to match expected growth while managing risk. 


### Next Steps
* We welcome community feedback.  