# Chaos Labs - Risk Parameter Updates - 03/17/25

**URL:** <https://community.venus.io/t/chaos-labs-risk-parameter-updates-03-17-25/4992>\
**Category:** Venus - Governance Proposals\
**Created:** [March 17, 2025, 2:04pm UTC](https://community.venus.io/t/chaos-labs-risk-parameter-updates-03-17-25/4992 "2025-03-17T14:04:06Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![chaoslabs](https://community.venus.io/user_avatar/community.venus.io/chaoslabs/32/2278_2.png) [@chaoslabs](https://community.venus.io/u/chaoslabs)\
**Post date:** [March 17, 2025, 2:04pm UTC](https://community.venus.io/t/chaos-labs-risk-parameter-updates-03-17-25/4992/1 "2025-03-17T14:04:06Z")

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# **Summary**

A proposal to:

- Increase UNI’s supply cap on the BNB Core 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.

## UNI (BNB Core)

UNI’s supply cap utilization has reached 100%, while its borrow cap stands at 5%.

 ![Screenshot 2025-03-14 at 3.20.37 PM](https://community.venus.io/uploads/default/original/2X/f/f99bf56cb7a7e2fcd4a003e0006c527a6cb98dd7.png)

 ![Screenshot 2025-03-14 at 4.05.48 PM](https://community.venus.io/uploads/default/original/2X/e/ed7402814e4be4aa3c77e7c0b11c60d3a6f91b5f.png)

### **Supply Distribution**

The largest UNI supplier accounts for 73% of the total supply distribution, presenting a high concentration risk. However, since this user maintains a high health score and is actively managing their position, the risk of liquidation is currently low.

 ![Screenshot 2025-03-14 at 4.06.14 PM](https://community.venus.io/uploads/default/original/2X/3/3bfdad4d0452893f4d1281d72ea8fa284a38b341.png)

The rest of the top suppliers all maintain robust health scores, minimizing liquidation risks.

The top borrowed asset against UNI is XRP, accounting for 70% of the total distribution, with BNB as the second most borrowed asset.

 ![Screenshot 2025-03-14 at 4.10.29 PM](https://community.venus.io/uploads/default/original/2X/9/9ffaea77a50589d71282816d2848724cc03eac95.png)

### **Liquidity**

UNI’s liquidity has been relatively low over the past three months, with a 9K UNI sell currently incurring less than 10% price slippage. However, considering user behavior, it remains reasonable to consider an increase in its supply cap, though conservative approaches are necessary.

 ![Screenshot 2025-03-14 at 4.17.16 PM](https://community.venus.io/uploads/default/original/2X/4/41ac3baa1bec310d18492215df139324a291d923.jpeg)

### **Recommendation**

Given user behavior and on-chain liquidity, we recommend increasing the supply cap to 2M.

# **Specification**

| **Market** | **Asset** | **Current Supply Cap** | **Recommended Supply Cap** | **Current Borrow Cap** | **Recommended Borrow Cap** |
| --- | --- | --- | --- | --- | --- |
| BNB Core | UNI | 1,560,000 | 2,000,000 | 100,000 | - |

## **Disclaimer**

Chaos Labs has not been compensated by any third party for publishing this recommendation.