Summary
A proposal to:
- Decrease ZK’s debt ceiling and supply cap.
ZK (ZKsync)
The ZKsync team has identified a compromised admin account that claimed $5M worth of ZK tokens that had gone unclaimed since the airdrop. The account then began swapping these tokens for ETH, driving down the price of ZK.
While this situation remains fluid, we recommend taking action to ensure the Aave protocol is properly protected.
ZK’s debt ceiling utilization utilization is currently at 31% and its supply cap utilization is at 37%; its borrow cap (just 20M) is 24% utilized.
While the asset’s supply cap and debt ceiling currently pose no cause for significant concern, it is preferable for Aave to reduce any potential risk vectors.
Recommendation
While its debt ceiling is already relatively low, we recommend lowering the value to $250K to prevent new borrowing activity in the market. Additionally, we recommend lowering its supply cap to 150M to prevent significant new deposits.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Debt Ceiling | Recommended Debt Ceiling |
|---|---|---|---|---|---|
| ZKSync | ZK | 288,000,000 | 150,000,000 | $800,000 | $250,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this AGRS recommendation.
Copyright
Copyright and related rights waived via CC0