0x49b4564c…6c52sent to0xa8a608b9…2022·#25,926,101·0x1747dd10…b94b33
# Removal of ETHx from the collateral basket
[https://forum.reserve.org/t/rfc-removal-of-ethx-from-the-collateral-basket/1623](https://forum.reserve.org/t/rfc-removal-of-ethx-from-the-collateral-basket/1623)
### Summary
- This RFC proposes the removal ETHx from the collateral basket, reallocating its 5% weighting to frxETH, resulting in a basket comprised of 50% stETH, 25% weETH and 25% frxETH.
- ETHx liquidity has deteriorated significantly over the past year. Removing the position now avoids the risk of a more difficult or costly exit if this trajectory continues.
- ETHx also has the lowest yield of the current collateral assets, while its 5% allocation provides only a limited diversification benefit.
- The rebalance has limited impact on ETHplus at a high level. Blended yield increases from 2.33% to 2.35% while the diversification ratio decreases only slightly from 0.65 to 0.63.
- Redemption capacity improves from approximately 65% to 100% of current ETHplus supply in a single transaction below the 0.5% slippage threshold.
- The proposal therefore represents a proactive simplification of the basket while ETHx remains small and manageable, rather than a reactive response to an immediate ETHplus-level liquidity constraint in the future.