Summary
A proposal to:
- Increase the supply cap of PT-srUSDe-2APR2026 on the Ethereum Core Instance
All cap 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-srUSDe-2APR2026
PT-srUSDe-2APR2026 has reached its supply cap of 50 million tokens. Given that the cap has been reached in a relatively short period, the market is showing strong demand.
Supply Distribution
The supply distribution of PT-srUSDe-2APR2026 is highly concentrated, with the top user accounting for over 68% of the market. As shown in the plot below, suppliers are borrowing a range of stablecoins, with USDC and USDe holding dominant positions.
The users are recursively collateralizing stablecoin debt with srUSDe principal tokens to increase their net exposure to the spread between the underlying appreciation rate of the principal token and stablecoin borrow costs. As is common in such markets, health factors cluster near 1.02 as users aim to maximize leverage. Given the substantial correlation between debt and collateral assets, the positions present minimal liquidation risk.
Market
The implied yield of PT-srUSDe-2APR2026 is currently 4.71%. Relative to comparable PT markets, this represents an advantage of approximately 40 bps. Given the high likelihood of leveraged positioning, this difference can materially increase net returns.
Liquidity
At the time of writing, PT-srUSDe-2APR2026 liquidity within the Pendle AMM is sufficient to execute a sell order of 15 million tokens with a price impact of under 150 bps. Given the current supply cap and the high correlation between debt and collateral assets, these liquidity levels support an increase in the asset’s supply cap.
Recommendation
Given the strong lending demand for the asset, substantial on-chain liquidity, and minimal liquidation risk, we recommend increasing the supply cap for PT-srUSDe-2APR2026 on the Ethereum Core instance.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Ethereum Core | PT-srUSDe-2APR2026 | 50,000,000 | 100,000,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclosure
Chaos Labs has not been compensated by any third party for publishing this AGRS recommendation.
Copyright
Copyright and related rights waived via CC0.