Summary
A proposal to:
- Increase FLOKI’s borrow cap on the BNB GameFi pool.
All recommended increases are backed by Chaos Labs’ risk simulations, which consider the user behavior, on-chain liquidity, and price impact, ensuring that the higher cap does not introduce additional risk to the platform.
Motivation
FLOKI (BNB GameFi)
FLOKI has reached 41% supply cap utilization and its borrow cap is 100% utilized.
Supply Distribution
None of the top supply positions are at high risk of liquidation, reducing the chance that liquidations could cause a spike in utilization.
Even still, the asset is only 28% utilized and thus can absorb significant liquidations without utilization reaching unhealthy levels.
Borrow Distribution
Borrows are highly concentrated, with the largest user accounting for virtually all of the activity.
This user is borrowing FLOKI against FLOKI and USDT, lowering liquidation risk.
Liquidity
FLOKI’s on-chain liquidity has remained stable in recent months, supporting an increase in its borrow cap.
Recommendation
Given on-chain liquidity and user positions, we recommend doubling the borrow cap; there is no need to increase the supply cap at this time.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB GameFi | FLOKI | 68,000,000,000 | - | 8,000,000,000 | 16,000,000,000 |