Summary
A proposal to:
- Increase the supply cap of XAUt on the Ethereum Core instance.
- Increase the supply cap of PT-sUSDE-9APR2026 on the Plasma 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.
XUAt (Ethereum Core)
Over the past month, XUAt’s total supply has shown a clear upward trend, increasing from 2K to 10K tokens. As of the time of writing, the supply cap utilization has reached 100%.
Supply Distribution
The supply distribution of XAUt is concentrated, with the largest supplier accounting for 67% of the total supply. However, we do not view this position as posing a material risk at this stage. The position currently maintains a solid health score of 1.43, which significantly mitigates the near-term risk of liquidation.
The remaining top suppliers also maintain healthy positions, with an average health score above 1.5. This further reduces the likelihood of liquidation risk across the broader supplier base.
The largest share of debt against XAUt is USDe, which currently accounts for 74% of the total debt asset distribution, followed by USDT and USDC.
Liquidity
Currently, XAUt liquidity is primarily on Fluid and Uniswap. The Fluid XAUt/PAXG liquidity pool holds a TVL of approximately $5.8M. On Uniswap, the XAUt/WBTC pool holds a TVL of $7.8M, while the XAUt/USDT pool holds $6.6M in TVL. Taken together, this available liquidity is sufficient to absorb the sell of approximately 2.5K XAUt into USDT under LB, supporting a supply cap increase.
Recommendation
Given the user distribution and on-chain liquidity, we recommend increasing XAUt’s supply cap.
PT-sUSDe-9APR2026 (Plasma)
PT-sUSDe-9APR2026 reached its 400M supply cap on the Plasma instance shortly after being doubled, underscoring strong market appetite for looping strategies centered around this maturity.
Supply Distribution
The supplier distribution of PT-sUSDe-9APR2026 shows moderate concentration, with the largest supplier accounting for roughly 20% of total supply and several other large participants comprising the majority of the remaining supply. A significant portion of demand is driven by users rolling over exposure from the 15JAN maturity. Users are primarily borrowing USDT0 and USDe against PT collateral and recursively scaling their positions to enhance net returns. Thus, given the expected close price trajectory between the collateral and the borrowed assets, the likelihood of liquidation remains low.
Liquidity
On-chain liquidity for PT-sUSDe-9APR2026 on Pendle has improved since our last review and is sufficient to accommodate sizable position unwinds. In particular, the AMM can facilitate the sell of approximately 35M PT-sUSDe-9APR2026 into USDT0 with around 1.2% slippage.
Recommendation
Given sustained demand for PT-sUSDe-9APR2026 looping, conservative positioning among users, low liquidation risk, and ample on-chain liquidity, we propose an increase to the PT-sUSDe-9APR2026 supply cap on the Plasma instance.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Ethereum Core | XAUt | 10,000 | 20,000 |
| Plasma | PT-sUSDe-9APR2026 | 400,000,000 | 800,000,000 |
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.