0x49b4564c…6c52sent to0x868fe81c…f753·#24,472,518·view on Etherscan
# ETHplus Rebalance Proposal Q1 2026 - Step 2
[https://forum.reserve.org/t/ip-ethplus-rebalance-proposal-q1-2026/1407/7](https://forum.reserve.org/t/ip-ethplus-rebalance-proposal-q1-2026/1407/7)
The first step of the Q1 2026 ETHplus rebalance was completed successfully on 27th Jan 2026 with no interruption to yield distribution. Execution was completed safely, with only 15% of the backing buffer utilised and the buffer remaining above 100% throughout.
Step 1 has improved executional depth relative to the December basket. The interim basket now supports redemptions below the 0.5% slippage threshold up to 22,500 ETH, compared to approximately 5,250 ETH previously, while mint capacity below the same threshold remains above 50,000 ETH.
These improvements have been achieved without compromising yield or diversification. Blended yield remains unchanged at 2.61% and concentration risk has been reduced, with ETHplus’ share of total frxETH TVL falling from 9.19% to 6.56%.
Completing the second step of the rebalance is expected to extend redemption capacity below the 0.5% slippage threshold to approximately 30,000 ETH while maintaining yield and diversification profiles, furthering ETHplus into mandate compliance and providing significant headroom for further supply growth.
I now plan to liaise with ABC Labs on scheduling the second step of the rebalance. Their operational oversight is greatly appreciated in order to mitigate loss. Once timing is confirmed I will announce it here and on ETHplus socials. As always, feedback from governors is welcomed.