0xb4a5ecea…1044sent to0x868fe81c…f753·#20,807,123·view on Etherscan
# [IP] Addition of Stader’s ETHx to the ETH+ collateral basket 2.0
[https://forum.reserve.org/t/ip-addition-of-stader-s-ethx-to-the-eth-collateral-basket-2-0/925](https://forum.reserve.org/t/ip-addition-of-stader-s-ethx-to-the-eth-collateral-basket-2-0/925)
On the 22nd of August a collateral basket change was proposed in the Ethereum Plus, ETH+ forum. The proposal advocated for the addition of Stader’s ETHx to the basket in order to improve risk diversification, allow the basket to reflect the evolving Ethereum staking ecosystem, and potentially increase ETH+ yields. The initial proposal allocated 10% to ETHx however, after consideration by the community and MEV Capitals analysis, it has been found that the current liquidity constraints on ETHx limit allocation to 8%. During this analysis, it was also highlighted that liquidity during both ETH+ minting and redemptions could be improved by allocating 50% to wrapped staked ETH, wstETH, and 21% to both staked Frax ETH, sfrxETH and Rocket Pool ETH, rETH.
This proposal outlines a two-step plan for collateral basket change in order to improve basket diversification, spread risk, and potentially improve ETH+ yields as the initial RFC set out to do with the addition of ETHx and titrate wstETH, rETH, and sfrxETH allocations to improve minting and redemption liquidity. Given this is a two-step plan, if passed this RFC will result in the changes according to the step 1 collateral basket change, a second RFC will then be live on the forum for community discussion once the stated safety requirements below have been met before a second IP is pushed on-chain to achieve the final collateral basket change.