Summary
A proposal to:
- 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.
PT-USDe-31JUL2025 (Ethereum Core)
PT-USDe-31JUL2025 has reached 100% of its supply cap utilization.
Supply Distribution
PT-USDe’s supply is moderately concentrated, with the top supplier holding approximately 37% of the total. However, as this user is borrowing USDe, the liquidation risk remains low. Additionally, all other top suppliers are borrowing USDe, USDT, or sUSDe, which further lowers the likelihood of liquidation events.
Liquidity and Market
The PT-USDe-31JUL2025 market on Pendle currently has limited liquidity due to its upcoming maturity. As a result, even a relatively small $2K swap would incur nearly 3% slippage, which is a reasonable outcome given how shallow liquidity tends to be this close to expiry.
Since our last check-in, the asset’s on-chain liquidity has declined slightly, with approximately $2M in SY liquidity and around $1.5M in PT liquidity.
Over the past week, the PT-USDe-31JUL2025 market has experienced a rising yield, climbing from 12% to 15%. This pattern is consistent with the mechanism of PT tokens, where yields tend to rise as the token nears maturity and its price moves closer to par, resulting in a higher implied return for holders.
Recommendation
Given user-behavior and the market’s close proximity to maturity, we recommend increasing the supply cap to 350M.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Ethereum Core | PT-USDe-31JUL2025 | 300,000,000 | 350,000,000 | - | - |
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