Summary
A proposal to:
- Increase PT-sUSDE-31JUL2025’s supply cap on the Ethereum Core instance.
- 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-sUSDE-31JUL2025 (Ethereum Core)
PT-sUSDE-31JUL2025 has reached its full supply cap utilization 3 days after the cap was raised.
Supply Distribution
Following the recent supply cap increase, the supply concentration of the largest position has improved, with its share dropping from 35% to 24% of the total supply. Additionally, all the top positions continue to borrow USDC and USDT, which are both highly correlated with PT-sUSDE, further mitigating the risk of liquidations.
The distribution of total borrowed assets is highly concentrated in stablecoins, with zero exposure to other assets.
Liquidity & Market
Backed by on-chain liquidity in the Pendle AMM, the PT-sUSDE-31JUL2025 market currently supports swaps of up to 55M sUSDe with under 3% slippage.
The on-chain liquidity for the asset has been in an upward trend, with total SY liquidity increasing from 40 million to 55 million in recent weeks.
The PT-sUSDE market has shown consistent yield growth over the past few days, reaching a peak of 9.8% before settling around 9.2% currently.
Recommendation
Given user behavior, the market’s liquidity, and the high demand for the asset, we recommend increasing the supply cap by 110M PT-sUSDE-31JUL2025.
PT-eUSDE-29MAY2025 (Ethereum Core)
PT-eUSDE-29MAY2025’s supply cap utilization has reached 94%.
Supply Distribution
The asset’s distribution is moderately concentrated, with the largest supplier holding around 15% of the total supply. However, this position is not a significant concern at the moment, as it is primarily borrowing USDT, which has a strong correlation with PT-eUSDE.
The remaining suppliers also do not present significant risk, as they are borrowing USDT and USDC assets that are highly correlated with PT-eUSDE, thereby substantially reducing liquidation risk.
Currently, 66% of PT-collateralized debt is denominated in USDT, which significantly reduces the risk of large-scale liquidations.
Liquidity & Market
Backed by on-chain liquidity in the Pendle AMM, the PT-eUSDE-29MAY2025 market currently supports swaps of up to 175M with under 3% slippage.
Recommendation
Given the market’s liquidity, overall safe user behavior, and the asset’s approaching maturity, we recommend increasing the supply cap by 180 million PT-eUSDE-29MAY2025.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-sUSDE-31JUL2025 | 340,000,000 | 450,000,000 | - | - |
| Ethereum Core | PT-eUSDE-29MAY2025 | 550,000,000 | 730,000,000 | - | - |
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