Chaos Labs - Monthly Community Update

Governance
18

June 2024

This update highlights Chaos Labs’ activities and proposals in June.

Highlights

sUSDe CAPO Recommendation

Following our previous recommendation in favor of listing sUSDe, we provided a CAPO recommendation for the market to help reduce the consequences of potential price manipulation. We found that, while difficult to determine an effective value, setting a 14-day minimum snapshot delay and cap of 50% APY, we can effectively adjust the capped value if yield were to surge quickly.

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Deployment on zkSync

Following our assessment of the network, we recommended deploying on zkSync, beginning with the assets USDC, USDT, WETH, and wstETH. We found that, while DEX volume has decreased in recent weeks, on-chain liquidity is strong enough to support Aave; on-chain activity also remains high enough to facilitate growth.

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Rapid weETH and Scroll Cap Increases

Following a community decision to favor aggressive caps for weETH, we have continued to facilitate increasing its caps, publishing detailed analyses of the markets to ensure that risk is mitigated however possible. Additionally, following incentivizes from Scroll, we observed rapid growth in market size and have been facilitating consistent cap increases on the network.

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Scroll

What’s Next

In the coming months, the Chaos team will continue its focus on the following areas:

  • GHO: ongoing recommendations, including parameters for cross-chain GHO.
  • Continuous optimization of risk parameters on all V3 deployments.
  • Further updates on the development of Chaos Labs Risk Oracles.
  • Analysis and parameter recommendations for new assets and markets.