The calculated price feed and redeemability mechanisms of the said assets (and other LSTs in general) are considered in our analyses and recommendations.
The 50% limit of total circulating supply in our supply cap methodology is set to strike a balance between allowing the growth of the protocol and mitigating counterparty and concentration risk. While Chaos Labs does not recommend increasing the supply cap beyond 50% of the total on-chain circulating supply, the community should ultimately decide how to approach this issue as it pertains to the appetite for counterparty risk, as noted in the comment by @MarcZeller.
We are targeting a Snapshot vote for Tuesday, April 18th, to gauge the community’s preference with respect to limiting the supply caps for LSTs, which will be considered in future supply cap recommendations. The options we propose are:
- Limit supply cap to 50% of on-chain circulating supply
- Limit supply cap to 75% of on-chain circulating supply
- Do not limit the supply cap as a percentage of the circulating supply