Overview
Chaos Labs supports listing CRVUSD with collateral disabled as part of an overarching strategy to increase the offering of AAVE protocol with diversified stablecoins.
Liquidity and Market Cap
The CRVUSD token was introduced by Curve a few months ago, and since its launch, its TVL has increased to approximately $180 million.
Source: DefiLlama
When analyzing market cap and trading volumes of assets for listing, we look at the available historical data. The average market cap of CRVUSD is ~$106M, and the average daily trading volume is ~$52M (CeFi & DeFi).
We recommend listing CRVUSD with collateral disabled to allow a more controlled launch for the asset. We leave collateral enablement to a future date, pending future community vote and CRVUSD maturity.
In addition, we recommend listing CRVUSD with Borrowed in Isolation disabled. Enabling Borrowed in Isolation introduces risk to the isolated assets due to the correlation between the volatility of the isolated asset and that of the borrowed asset.
Recommendations
Following the above, we recommend listing CRVUSD with the following parameter settings:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | No |
| Supply Cap (CRVUSD) | 60M |
| Borrow Cap (CRVUSD) | 50M |
| Debt Ceiling | N/A |
| LTV | N/A |
| LT | N/A |
| Liquidation Bonus | N/A |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.00% |
| Variable Slope1 | 5.00% |
| Variable Slope2 | 80.00% |
| Uoptimal | 80.00% |
| Reserve Factor | 10.00% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 13.00% |
| Stable Slope2 | 300.00% |
| Base Stable Rate Offset | 3.00% |
| Stable Rate Excess Offset | 8.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
| Flahloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |