Chaos Labs supports the proposed supply and borrow cap increases in this proposal.
Utilizing our supply cap methodology, we conducted stress tests encompassing both moderate and severe scenarios.
For the moderate stress scenario, we employed the price trajectory of MATIC during the LUNA crash, while for the severe stress scenario, we utilized the price trajectory of LUNA.
Outlined below are the results of the simulations.
In the moderate case, no additional simulated protocol loss is observed,
In the severe case, the simulated protocol losses amount to ~$80K.
