Gauntlet has proposed beginning the deprecation of Compound V3's Ethereum wstETH Comet by zeroing the supply-side interest rate curve and setting all collateral supply caps to zero, effectively closing the market to new participants while leaving existing positions unaffected. The rationale is a near-complete absence of organic borrow demand, with the only meaningful recent activity tied to the April 2026 rsETH incident rather than genuine market use.
For Armada's crypto-repo desk, the wstETH Comet has served as an external benchmark for liquid staking token collateral financing costs. Its deprecation narrows the available DeFi reference rate universe for wstETH and similar LST assets, requiring Armada to rely more heavily on Aave V3 or other active markets for LTV and rate calibration. The rsETH incident association also warrants a review of any LST collateral concentration risk in Armada's existing or proposed crypto-repo book.