The discussion primarily revolves around the proposal by Pauljlei for the initiation of an ETH Correlated E-Mode on Optimism. The proposed parameters for the initial launch are based on Gauntlet's LST E-Mode Methodology, which includes values for conservative and aggressive supply caps, LT, LTV, and LB for the WSTETH asset on the Optimism chain¹. The proposal is currently in the stage of gathering community feedback and is heading towards a snapshot vote.

In response to this proposal, ChaosLabs has shown support and further suggested the inclusion of rETH to the E-Mode on Ethereum. They have not recommended any immediate changes to the supply caps of the assets. However, they have proposed an update to the supply cap of wstETH on Optimism, considering the proposed E-Mode category launch².

In conclusion, the discussion is centered around the launch of an ETH Correlated E-Mode on Optimism with specific parameters. The community is actively providing feedback, and a snapshot vote is anticipated. The inclusion of rETH in the E-Mode on Ethereum and the update to the supply cap of wstETH on Optimism are also under consideration.