Summary
A proposal to:
- Increase THE’s supply and borrow caps on Venus’s BNB Core deployment.
THE (BNB Core)
THE has reached 96% supply cap utilization and 65% borrow cap utilization.
Supply Distribution
THE’s supply is not highly concentrated and all of the top suppliers maintain relatively strong health scores, loop, or do not borrow against their position.
The most popular asset borrowed against THE is USDT, followed by THE itself.
Borrow Distribution
As described above, there is some looping in the market; all of the largest THE borrow positions are against THE collateral combined with other collateral assets, reducing the risk of liquidation.
Recommendation
Given user behavior and on-chain liquidity, we recommend increasing the asset’s supply and borrow caps.
This increase is backed by Chaos Labs’ risk simulations, which consider user behavior, on-chain liquidity, and price impact, ensuring that the higher cap does not introduce additional risk to the platform.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core Pool | THE | 2,400,000 | 4,800,000 | 1,200,000 | 2,400,000 |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.