Summary
A proposal to:
- Increase FLOKI’s borrow cap on Venus’ BNB GameFi deployment.
Motivation
FLOKI (BNB GameFi)
FLOKI has reached 48% supply cap utilization on BNB GameFi, and its borrow cap is at 100% capacity.
Borrow Distribution
Most top FLOKI borrowers use USDT as collateral, with some also using FLOKI. The largest FLOKI borrower represents a significant portion of the total market, with borrowing activity concentrated among a few wallets. The high volatility of the borrowed asset presents a risk of liquidation, but the biggest positions maintain a conservative health score.
In aggregate, USDT represents 84.48% of the value backing FLOKI loans.
Recommendation
Given the conservative users’ behavior and the market liquidity, we recommend increasing the borrow cap to 4,000,000,000.
Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB GameFi | FLOKI | 68,000,000,000 | - | 2,000,000,000 | 4,000,000,000 |