Summary
The following supply cap increases are recommended based on LlamaRisk’s risk analysis, which considers user behavior, on-chain liquidity, and position concentration:
- Increase supply cap for wrsETH on Mantle from 52,000 to 70,000.
- Increase supply cap for rsETH on Ethereum Core from 480,000 to 530,000.
- Increase supply cap for PT-srUSDe-25JUN2026 on Ethereum Core from 30,000,000 to 60,000,000.
wrsETH (Mantle)
wrsETH has reached its 52,000 token supply cap on the Mantle instance. Demand is driven by leveraged staking strategies, with users supplying wrsETH as collateral and borrowing WETH in E-Mode to capture the restaking yield differential.
Supply Distribution
Source: LlamaRisk, April 9, 2026
The supply distribution is concentrated, with the majority of positions maintaining health factors consistent with LST looping strategies. Given the full correlation between wrsETH and WETH, such positioning presents limited liquidation risk, mainly attribute to the highly unlikely slashing risk of the internal exchange rate for rsETH.
Liquidity
wrsETH liquidity on Mantle is primarily allocated within Merchant Moe V2.2, paired with WETH. Selling 480 wrsETH (~$1.1M) would incur approximately 3.24% price impact. While absolute depth is modest, the correlated nature of the collateral and borrows limit liquidation risk.
Recommendation
Given persistent demand for wrsETH leveraged staking on Mantle and limited liquidation risk from the correlated collateral, we recommend increasing the supply cap from 52,000 to 70,000.
rsETH (Ethereum Core)
rsETH has reached 99.9% supply cap utilization (479,596/480,000) on the Ethereum Core instance. Demand continues to be driven by leveraged restaking strategies, with users supplying rsETH and borrowing ETH or WETH in E-Mode.
Supply Distribution
Source: LlamaRisk, April 9, 2026
Positions are concentrated among restaking participants with health factors reflecting the correlated nature of rsETH and ETH. The E-Mode configuration provides enhanced capital efficiency for these strategies, resulting in tight health factors.
Recommendation
Given persistent demand, correlated collateral characteristics, and adequate on-chain liquidity for rsETH on Ethereum, we recommend increasing the supply cap from 480,000 to 530,000.
PT-srUSDe-25JUN2026 (Ethereum Core)
PT-srUSDe-25JUN2026 has reached 100% supply cap utilization (30M/30M). Demand is driven by users seeking fixed-yield exposure through leveraged PT strategies.
Supply Distribution
Source: LlamaRisk, April 9, 2026
Suppliers follow a consistent pattern of supplying PT-srUSDe-25JUN2026 as collateral and borrowing stablecoins, capturing the fixed yield while leveraging the position. The current yield of PT-srUSDe-25JUN2026 is above the stablecoin borrow rate, allowing to generate a positive ROI for yield leverage positions.
Liquidity
Source: LlamaRisk, April 9, 2026
The primary trading venue is the Pendle AMM pool on Ethereum, which holds $12.2M in total liquidity. The pool is SY-heavy (87% SY / 13% PT), favorable for absorbing PT sells during liquidations. Pool TVL has shown sustained growth since inception.
Recommendation
Given persistent demand and adequate Pendle AMM liquidity, we recommend increasing the supply cap from 30,000,000 to 60,000,000.
Specification
| Instance | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Mantle | wrsETH | 52,000 | 70,000 |
| Ethereum Core | rsETH | 480,000 | 530,000 |
| Ethereum Core | PT-srUSDe-25JUN2026 | 30,000,000 | 60,000,000 |
Next Steps
We will move forward and implement these updates via the Risk Steward process.
Disclosure
This review was independently prepared by LlamaRisk, a DeFi risk service provider funded in part by the Aave DAO. LlamaRisk is not directly affiliated with the protocol(s) reviewed in this assessment and did not receive any compensation from the protocol(s) or their affiliated entities for this work.
The information provided should not be construed as legal, financial, tax, or professional advice.