Summary
A proposal to:
- Increase PT-sUSDE-31JUL2025’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 once again reached full supply cap utilization following the most recent adjustment.
Supply Distribution
The supply of PT-sUSDE shows a minor concentration, with a single position accounting for approximately 20% of the total supply, equivalent to $91M. However, as this position is borrowing USDC and USDT, both of which are highly correlated with the asset, the associated liquidation risk is significantly mitigated.
The remaining top positions are also borrowing USDT, USDC, and USDS, all of which are highly correlated assets, significantly reducing the risk of liquidation.
Liquidity & Market
Backed by on-chain liquidity in the Pendle AMM, the PT-sUSDE-31JUL2025 market currently supports swaps of up to 50M sUSDe with under 3% slippage.
The PT-sUSDE market has delivered a consistent yield over the past week, remaining within the 9% to 10% range for most of the period.
Recommendation
Given safe user behavior, the market’s liquidity, and the high demand for the asset, we recommend increasing the supply cap by 100M PT-sUSDE-31JUL2025.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-sUSDE-31JUL2025 | 450,000,000 | 550,000,000 | - | - |
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 AGRS recommendation.
Copyright
Copyright and related rights waived via CC0