Overview
A proposal to increase the supply caps for lisUSD as it has reached 100%. The recommendations below were made utilizing Chaos’ supply cap methodology and after analyzing user positions for each asset.
Analysis
lisUSD
Examination of user positions shows that a single supplier makes up 97% of the market, taking on minimal stablecoin debt.
Given the current lisUSD on-chain liquidity relative to the existing supply cap of 500k, we propose doubling the supply cap.
Despite the current 2.5% depeg in the stablecoin, which can be attributed to the ability to mint the asset for zero interest in the current upward market, it’s crucial to acknowledge the lisUSD’s fully collateralized nature.
Moreover, it’s worth noting the stable growth observed in the stablecoin’s collateralization and supply over the last month. Consequently, we anticipate a mean-reverting value of $1.
Borrow Cap
We recommend against increasing lisUSD borrow caps due to the absence of any current borrowing activity.
Recommendation
| Current Supply Cap | Recommended Supply Cap | |
|---|---|---|
| lisUSD | 500,000 | 1,000,000 |