Chaos Labs - Deprecate stkBNB - 09/25/24

Summary

A proposal to initiate stkBNB deprecation and delisting on the Venus BNB Liquid Asset Pool on BNB. This ensures the safety of the Venus protocol.

Motivation

stkBNB is a Liquid Staked BNB token from the provider pStake. pStake has recently pivoted into liquid BTC staking and its other integrations received little updates or incentives since. This has caused stkBNB supply to shrink significantly from 18,000 stkBNB to 430 stkBNB over the last 6 months.

On Venus, following a 40 stkBNB withdrawal in July, the stkBNB asset received very little usage. With a current TVL of $60 or 0.11 stkBNB, the pool does not pose a major risk, however it should be deprecated immediately.

Deprecation Plan

Given the insignificant stkBNB supply on Venus and the lack of open borrow positions, the best course of action to safely deprecate stkBNB is to:

  • Pause MINT - complementary to setting supply caps to 0
  • Pause BORROW - complementary to setting borrow caps to 0
  • Pause ENTER_MARKET - will not allow users to use stkBNB as collateral. This update will not affect users who have already enabled stkBNB as collateral.
  • Reduce stkBNB Collateral Factor to 0%
  • Increase the Reserve Factor to 100%