Summary
A proposal to:
- Increase PT-sUSDE-31JUL2025’s supply cap on the Ethereum Core instance.
- Increase PT-USDE-31JUL2025’s supply cap on the Ethereum Core instance.
- Increase PT-eUSDE-14AUG2025’s supply cap on the Ethereum Core instance.
- Increase ETH’s borrow cap on the BNB Chain 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-sUSDE-31JUL2025 (Ethereum Core)
PT-sUSDE-31JUL2025 has again reached full supply cap utilization following the most recent cap increase.
Supply Distribution
The supply distribution of PT-sUSDE is not concentrated, with the top supplier accounting for 14% of the total and the top 10 accounting for less than 70% combined. The top user is borrowing USDT and USDC, both of which are highly correlated with the collateral asset, reducing liquidation risk.
Other top suppliers are also borrowing USDT, USDC, and USDS, minimizing the likelihood of large-scale liquidations.
Liquidity and Market
Backed by on-chain liquidity in the Pendle AMM, the PT-sUSDE-31JUL2025 market currently supports swaps of up to 65M sUSDe with under 3% slippage, up from 62M at the time of our last recommendation.
The asset’s on-chain liquidity has been steady in recent days, with total SY liquidity holding at just under $67M.
The PT-sUSDE-31JUL2025 market has maintained a steady yield since May 10, primarily ranging between 9% and 10%.
Recommendation
Given user behavior, the market’s liquidity, and the high demand for the asset, we recommend increasing the supply cap by 150M PT-sUSDE-31JUL2025.
PT-USDE-31JUL2025 (Ethereum Core)
PT-USDE-31JUL2025 rapidly reached full supply cap utilization following its listing on Aave.
Supply Distribution
The supply distribution of PT-USDE is somewhat concentrated, with the largest supplier representing nearly 74% of the total.
As in the market above, these users are effectively limited to borrowing assets that are highly correlated with PT-USDE, significantly reducing the risk of liquidations in this market.
Additionally, the floating PT-USDE supply increased significantly since our previous listing recommendation to 80M PT-USDE.
Liquidity and Market
PT-USDE-31JUL2025’s Pendle AMM liquidity currently supports swaps of up to 8M USDe with under 3% slippage.
The asset’s on-chain liquidity has improved recently, with SY liquidity rising to nearly 10M in the past few days.
Finally, the market has displayed a gradually rising yield since April, increasing from 6% to just under 9% as of this writing.
Recommendation
Given user behavior, the market’s liquidity, and the high demand for the asset, we recommend doubling the asset’s supply cap.
PT-eUSDE-14AUG2025 (Ethereum Core)
PT-eUSDE-14AUG2025 also rapidly reached nearly full supply cap utilization following its listing on Aave.
Supply Distribution
The supply distribution of PT-eUSDE is less concentrated than above, with the largest supplier representing 32.5% of the total.
As in the other PT markets, these users are limited to borrowing assets that are highly correlated with PT-eUSDE, reducing the risk in this market.
Liquidity and Market
PT-eUSDE-14AUG2025’s Pendle AMM liquidity currently supports swaps of 47M eUSDE at less than 3% price slippage.
The asset’s on-chain liquidity has improved substantially recently, as total SY liquidity has reached $50M, up from $32M since initial listing recommendations.
Finally, the market’s APY has ranged between 11% and 8% since its launch, recently dipping to 8% before recovering to just under 8.5%.
Recommendation
Given user behavior, the market’s liquidity on Pendle, and the high demand for the asset, we recommend increasing the asset’s supply cap.
ETH (BNB Chain)
ETH on BNB Chain has reached fully borrow cap utilization following new activity in the market.
Borrow Distribution
ETH borrows are somewhat concentrated, with the top three wallets accounting for 67.75% of the total amount borrowed. However, these three users are all borrowing ETH against wstETH, limiting their risk of liquidation.
Recent borrowing activity has largely been driven by wstETH collateral, maintaining this as a relatively low risk market.
Liquidity
ETH’s liquidity is relatively strong on BNB Chain and is sufficient to support an increase in the asset’s borrow cap.
Recommendation
Taking into account user behavior and on-chain liquidity, we are able to recommend doubling ETH’s borrow cap.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-sUSDE-31JUL2025 | 650,000,000 | 800,000,000 | - | - |
| Ethereum Core | PT-USDE-31JUL2025 | 40,000,000 | 80,000,000 | - | - |
| Ethereum Core | PT-eUSDE-14AUG2025 | 100,000,000 | 200,000,000 | - | - |
| BNB Chain | ETH | 10,000 | - | 4,000 | 8,000 |
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