Summary
A proposal to:
- Increase FBTC’s supply cap on the Ethereum Core instance.
- Increase PT-USDe-31JUL2025’s supply cap on the Ethereum Core 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.
FBTC
FBTC’s supply cap utilization has reached 88%.
Supply Distribution
FBTC’s supply distribution is highly concentrated in a single position, which does present a concentration risk. However, we do not view this as a significant concern at this time. The address in question is a Gnosis Safe multisignature wallet that currently supplies all of the FBTC on Aave, amounting to $18.9M, while borrowing $7.4M in USDT. This results in a health score of 1.99, substantially reducing the likelihood of liquidation. In addition, the position appears to be actively managed, which further mitigates potential risk.
Liquidity
Currently, a 100 FBTC sell incurring less than 5% price slippage, supporting a supply cap increase.
Recommendation
Given user behavior and the market’s liquidity, we recommend increasing the supply cap.
PT-USDe-31JUL2025 (Ethereum Core)
PT-USDe-31JUL2025 has once again reached 95% of its supply cap utilization, reflecting continued strong user demand.
Supply Distribution
The supply of PT-sUSDE is well distributed, with the top supplier accounting for only 7% of the total. Additionally, all positions are currently borrowing USDC, USDT, or USDS, assets that are highly correlated with the collateral, greatly reducing the risk of liquidation.
Liquidity and Market
PT-USDe-31JUL2025’s Pendle AMM liquidity has improved significantly since our last recommendation, with an 90M swap incurring less than 3% price slippage.
The PT-USDe-31JUL2025 market has also maintained a relatively stable yield range, consistently hovering between 8% and 9%.
Recommendation
Given user behavior, the market’s liquidity, and the high demand for the asset, we recommend increasing the supply cap by 300M PT-sUSDE-31JUL2025.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-sUSDE-31JUL2025 | 1,300,000,000 | 1,600,000,000 | - | - |
| Ethereum Core | FBTC | 200 | 400 | 100 | - |
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