great proposal with excellent analysis on the various parameters! i think your analysis makes it clear that the additional risk this would create is manageable.
however, tbh i dont see a redemption with a fee of 2.5% being used a lot, but i understand it opens up opportunities for for example lending markets. this is of course a much welcomed new utility!
also the gain in capital efficiency in liquidity provision sounds like a big pro for treasury. is it safe to assume this frees up the bottom range (0.925-0.99 eBTC/WBTC: 10% of funds allocated to liquidity provision, ref) completely, currently 4.5wbtc? or would it rather be better to keep it, but tighten it to for example .975-.99?
i understand this last part is not strictly part of this proposal, but im trying to gauge the various benefits.