Overview
Chaos Labs supports the listing of sUSDe on Aave V3’s Base instance. Below, we present our analysis along with initial risk parameter recommendations.
Market Cap & Liquidity
The total supply of sUSDe on Base currently stands at 3.13M, translating to a $3.59M market cap. Below, we present sUSDe’s total supply on Base over time. The data shows that sUSDe’s total supply began rising rapidly around mid-January 2025, reaching approximately 3.2M over the past month.
sUSDe’s liquidity on Base is primarily concentrated in two InfinityPools trading pairs: the sUSDe/USDC pool, which currently holds $4.5M TVL, and the wstETH/sUSDe pool, with $1.83M TVL. In addition, the two largest holders of sUSDe are also these two trading pools, holding 2.49M sUSDe and 576K sUSDe, respectively, representing 79% and 18% of the total supply.
sUSDe Top Holders
Below, we present the aggregated sUSDe DEX liquidity on Base paired against sUSDe over time. The chart shows a steady increase in liquidity over the past month, indicating strong and growing DEX liquidity.
Volatility
Compared to USD, sUSDe exhibits low volatility, with a daily annualized volatility of 4.13% and a 30-day daily annualized volatility of 4.03%.
Additionally, sUSDe’s market price in the InfinityPools sUSDe/USDC pool has remained relatively stable. The largest depeg observed occurred around February 2, 2025, with a deviation of approximately 120 bps, aligning with the overall performance of sUSDe on Ethereum during that period.
E-Mode
We recommend establishing a Stablecoin E-Mode for sUSDe, USDC, and GHO to enhance capital efficiency and potentially drive growth in the sUSDe market.
LTV, Liquidation Threshold, and Liquidation Bonus
We recommend aligning the initial parameters with those on the Ethereum Core instance while setting a slightly conservative LTV and LT. Although sUSDe’s total supply on Base is currently sufficient, its rapid growth has only occurred within the past month, leaving limited historical data for analysis. Given this, a cautious approach to LTV is warranted to account for potential market behavior uncertainties.
Supply Cap and Borrow Cap
We recommend setting sUSDe’s supply cap using our standard methodology, which calculates the cap as 2x the liquidity available under the Liquidation Bonus. Based on this approach, we propose a supply cap of 1.2M.
Considering the yield-bearing nature of sUSDe, we recommend designating sUSDe as non-borrowable for now.
Cross-Chain Infrastructure
sUSDe Base deployment uses LayerZero OFT standard to mint and redeem the asset from and to the original chain (Ethereum). Thanks to this, the bridging takes under 10 minutes on average, making it possible to arbitrage the DEX pools efficiently between the chains and maintain a high correlation between the original and bridged versions of sUSDe.
Unlike Base’s official bridge, LayerZero relies on external relayers to validate cross-chain messages.
IOAppCore.sol
Oracle/Pricing
Given our previous analysis of sUSDe’s current oracle risk, assuming the passing of the AIP, we recommend maintaining the approach outlined in this post: using the Chainlink sUSDe/USDe exchange rate feed, supplemented by the Chainlink USDT/USD market price feed.
Recommendation
sUSDe Market Configuration (Base Instance)
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | No |
| Collateral Enabled | Yes |
| Supply Cap | 1,200,000 |
| Borrow Cap | - |
| Debt Ceiling | - |
| LTV | 70.00% |
| LT | 73.00% |
| Liquidation Bonus | 8.50% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | - |
| Variable Slope1 | - |
| Variable Slope2 | - |
| Uoptimal | - |
| Reserve Factor | - |
| Stable Borrowing | Disabled |
| Flashloanable | No |
| Borrowable in Isolation | No |
| E-Mode Category | Stablecoin |
sUSDe Liquid E-mode Configuration
| Parameter | Value | Value | Value |
|---|---|---|---|
| Asset | sUSDe | GHO | USDC |
| Collateral | Yes | No | No |
| Borrowable | No | Yes | Yes |
| Max LTV | 88% | - | - |
| Liquidation Threshold | 90% | - | - |
| Liquidation Bonus | 4.0% | - | - |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
Copyright
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