Summary
A proposal to:
- Increase PT-eUSDE-29MAY2025’s supply cap on the Ethereum Core instance.
All increases are backed by Chaos Labs’ risk simulations, which consider user behavior, on-chain liquidity, and price impact, ensuring that higher caps do not introduce additional risk to the platform.
PT-eUSDE-29MAY2025 (Ethereum Core)
PT-eUSDE-29MAY2025 has reached 77% of its supply cap utilization within the first 4 hours of its Aave listing, and we expect significant demand for the asset over the next days.
Supply Distribution
The asset’s supply is fairly concentrated, with the top 4 users accounting for 78.5% of the total. The biggest supplier maintains a supply-only position, with the rest of the top positions borrowing highly correlated assets such as USDT and USDC. None of the positions poses a liquidation risk.
Recommendation
Given safe user behavior and the market’s liquidity, combined with the high demand for the asset, we recommend increasing the supply cap to 250,000,000 PT-eUSDE-29MAY2025.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-eUSDE-29MAY2025 | 150,000,000 | 250,000,000 | - | - |
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 ARFC.
Copyright
Copyright and related rights waived via CC0