Parameters Update
Following the passing of the snapshot and Soneium’s improved metrics, Chaos Labs provides initial parameters for the Soneium Deployment.
USDT0
Initially, we recommended listing USDT, the canonical bridged version of Tether, due to its official status and liquidity on Soneium. Since then, the liquidity landscape has shifted, and USDT0 has emerged as the dominant variant. USDT0 is an ERC20-compliant token deployed directly on Soneium and integrates cross-chain minting and burning functionality in line with the Omnichain Fungible Token (OFT) standard. Unlike USDT, which relies on traditional bridging infrastructure with associated settlement delays and risks, USDT0 enables native interoperability across chains through coordinated mint and burn actions. This design provides faster settlement finality and reduces exposure to bridge-related vulnerabilities. Given its deeper liquidity and growing user adoption, USDT0 is now the preferred stablecoin for listing on Aave. Below, we provide an overview of USDT0’s on-chain statistics.
| Asset | Supply on Soneium | Market Cap on Soneium | 24H DEX Volume on Soneium | Sell Liquidity | SoneiumScan |
|---|---|---|---|---|---|
| USDT0 | 4,067,295 | $4.07M | $2.82M | $2.5M | URL |
Supply and Borrow Caps
Building upon the rationale behind setting supply caps, we base our proposal on Chaos Labs’ methodology, which involves setting the cap at twice the available liquidity at the price impact corresponding to the Liquidation Penalty. However, considering that Soneium is a rapidly evolving new chain and has experienced significant growth in recent periods, we believe it is appropriate to take these factors into account. As such, we are inclined to offer initial parameters that are less conservative than usual, to better accommodate the network’s current trajectory and borrowing demand.
Specification
Following the above analysis, we recommend the following initial parameters for the creation of the Soneium deployment:
| Parameter | |||
|---|---|---|---|
| Asset | USDT0 | USDC.e | WETH |
| Isolation Mode | No | No | No |
| Enable Borrow | Yes | Yes | Yes |
| Enable Collateral | Yes | Yes | Yes |
| Loan To Value | 75% | 75% | 80% |
| Liquidation Threshold | 78% | 78% | 83% |
| Liquidation Bonus | 5% | 5% | 6% |
| Reserve Factor | 10% | 10% | 15% |
| Liquidation Protocol Fee | 10% | 10% | 10% |
| Supply Cap | 5,000,000 | 8,000,000 | 800 |
| Borrow Cap | 4,500,000 | 7,200,000 | 720 |
| Debt Ceiling | N/A | N/A | N/A |
| UOptimal | 90% | 90% | 90% |
| Base | 0 | 0 | 0 |
| Slope1 | 5.5% | 5.5% | 2.7% |
| Slope2 | 40% | 40% | 80% |
| Stable Borrowing | No | No | No |
| Flashloanable | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No |
| Borrowable in Isolation | No | No | No |
| E-Mode Category | N/A | N/A | N/A |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
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