Summary
A proposal to:
- Increase PT-sUSDe-25SEP2025’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-sUSDe-25SEP2025 (Ethereum Core)
PT-sUSDe-25SEP2025 has reached 100% supply cap utilization, growing by 50% from 400M to 600M over the last 5 days, indicating persistent demand.
Supply Distribution
The PT-sUSDe supply distribution shows moderate concentration, with the top supplier representing approximately 15% of the total and top 10 suppliers having cumulative share of 60%. The users are predominantly borrowing USDT, USDC and USDe, presenting minimal liquidation risk as the debt and collateral assets are tightly correlated .
The largest borrowed assets are USDT and USDC with total dominance of over 90%, facilitated by the PT-sUSDe Stablecoins E-mode.
Liquidity and Market
Pendle AMM liquidity for PT-sUSDe is sufficient to facilitate a 43M swap with less than 2% price slippage, supporting an increase in supply caps.
PT-sUSDe’s on-chain liquidity has retained a stable growth trajectory, with SY liquidity holding steady at 40M (recently reaching 42M) while PT liquidity is maintaining around 17M.
There is additionally more than 29M worth of PT buy orders before 15.0% implied yield. Providing additional liquidity buffer in a scenario where liquidations occur.
Over the past week, the PT-sUSDe market has exhibited consistently increasing yield, currently reaching 12%.
Recommendation
Considering user behavior, market liquidity, and strong demand, we recommend raising the supply cap by 400M to 1000M.
Specification
| Instance | Asset | Current Proposed Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Ethereum Core | PT-sUSDE-25SEP2025 | 600,000,000 | 1,000,000,000 |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.
Copyright
Copyright and related rights waived via CC0