Summary
A proposal to:
- Increase EURC’s supply cap on the Base 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.
EURC (Base)
EURC’s supply cap utilization has reached 65%, and its borrow cap utilization has reached 63%.
Supply Distribution
The supply of EURC presents no immediate liquidation risk, as all top suppliers have no borrowing activity. While the distribution is somewhat concentrated, with the top supplier accounting for 18% of the total supply, the absence of borrowing activity among suppliers ensures that no significant liquidation risk is present.
The top three borrowed assets against EURC are GHO, USDC, and EURC itself, all of which are stablecoins, significantly reducing the risk of large-scale liquidations.
Liquidity
EURC’s supply has experienced fluctuations but remained generally stable over the past three months, supporting a supply cap increase.
Recommendation
Given user behavior and on-chain liquidity, we recommend increasing the supply cap to 8.4M EURC.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Base | EURC | 4,200,000 | 8,400,000 | 3,800,000 | - |
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