[ARFC] Chaos Labs Risk Stewards - Increase Supply and Borrow Cap for EURe on V3 Gnosis - 04.08.2024


A proposal to:

  • increase EURe’s supply and borrow caps on Gnosis


The following recommendations were made using Chaos’ supply and borrow cap methodologies after analyzing user positions for the asset.


The supply and borrow caps for EURe on Gnosis V3 are currently at 82% and 44%, respectively.

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Both total supply and borrowing have grown significantly in the past month.

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The community has previously agreed to allow supply caps for stablecoins to be set at up to 75% of the circulating supply on a given chain; EURe’s current circulating supply on Gnosis is 8.4M.

Supply Distribution

78% of the supplied EURe is supplied by a single user, tagged as the Gnosis DAO treasury.

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EURe cannot be used as collateral, thus does not pose a risk of liquidations.

Borrow Distribution

Borrows of EURe are well distributed, with the top user borrowing 400K EURe against 4.2M sDAI collateral, for a health score of 8.28.

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sDAI is the most common collateral asset for EURe, followed by wstETH and WETH. The latter two are at risk of liquidation in the event that ETH’s price falls. However, this does not pose a risk to the EURe market.

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Considering the current liquidity and user positions on Gnosis, we recommend increasing the supply cap to 6M EURe and the borrow cap to 5.6M EURe.


Chain Asset Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
Gnosis EURe 3,000,000 6,000,000 2,800,000 5,600,000

Next Steps

We will move forward and implement these updates via the Risk Steward process.


Chaos Labs has not been compensated by any third party for publishing this ARFC.


Copyright and related rights waived via CC0

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