Thanks for putting forward this ARFC @MarcZeller
Chaos Labs supports increasing the supply cap for cbETH to 60K, utilizing our supply and borrow cap methodology with the liquidity and liquidation data below.
It’s worth noting that our analysis considers a 15% price drop between cbETH and ETH, which leads to the majority of the liquidations, as can be seen in the images below (the first simulation dropping the price of cbETH only, and the second simulating a drop in price of both cbETH and WETH). This is a conservative assumptions as our primary assumption for setting the LT on E-Mode configurations is maintaining a reasonable spread between asset prices.
Source: Chaos Labs Risk Dashboard
Source: Chaos Labs Risk Dashboard