Summary
A proposal to increase:
Gnosis
- EURe - Supply and Borrow Cap
- USDC - Supply and Borrow Cap
- wstETH - Supply Cap
Motivation
The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset.
EURe
The supply cap for EURe on Gnosis V3 is currently at 89% utilization.
Given current liquidity and as EURe is listed as a non-collateral asset, we recommend increasing the supply cap by 2X to 1,5M and the borrow cap to 1.4M.
USDC
The supply cap for USDC on Gnosis V3 is currently at 84% utilization.
Considering the liquidity on Gnosis we recommend doubling the supply and borrow cap and setting them at 3M and 2.8M, respectively.
wstETH
The supply cap for wstETH on Gnosis V3 is currently at 82% utilization.
wstETH is currently primarily used to borrow WETH, as can be seen in the borrow distribution chart on the Chaos Risk Platform:
Utilizing our methodology for LSTs and considering liquidity conditions and the borrow distribution on Aave, we recommend increasing the wstETH supply cap to 7.5K.
Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Gnosis | EURe | 750,000 | 1,500,000 | 750,000 | 1,400,000 |
| Gnosis | USDC | 1,500,000 | 3,000,000 | 1,500,000 | 2,800,000 |
| Gnosis | wstETH | 5,000 | 7,500 | 400 | N/A |
Next Steps
Once we receive feedback from @Gauntlet on the above recommendations, we will move forward to implement these updates via the Risk Steward process.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this ARFC.
Copyright
Copyright and related rights waived via CC0