Summary
- UNI (Core Pool) - increase supply to 400,000
- WBETH (Core Pool) - increase borrow cap to 8,000
- ETH (Core Pool) - increase borrow cap to 60,000
- USDC (Core Pool) - increase borrow cap to 200,000,000
- TWT (DeFi Isolated Pool) - increase supply cap to 3,000,000
- USDT (GameFi Isolated Pool) - increase borrow cap to 1,100,000
- FDUSD (Core Pool) - increase supply cap to 30,000,000
Analysis
The following recommendations where made utilizing Chaos Labs’ supply and borrow cap methodology and after analyzing user positions and market conditions for each asset.
UNI
The supply cap for UNI on Venus Core Pool is currently at 100% utilization.
The recent increase in UNI supply is mainly due to a single user supplying OVER 82K UNI tokens, amounting to 27% of the total supply. The user is also supplying over ~$10.5M in other assets, including BTC and BNB, and borrowing $2.47M in ETH against his collateral, leading to a health score of 3.66
Utilizing our supply cap methodology and given current liquidity conditions we recommend a modest increase of the cap to 400K.
WBETH
The borrow cap for WBETH on Venus Core Pool is currently at 100% utilization.
Utilizing our supply and borrow cap methodology, we recommend doubling the borrow cap, setting it at 8K WBETH
TWT
The supply cap for TWT on the Venus DeFi Isolated Pool is currently at 99% utilization.
The recent increase in TWT supply is mainly due to a single user supplying over 555K TWT tokens. The user is currently borrowing ~$55K in USDT against his collateral, leading to a health score of 8.18
Utilizing our supply cap methodology, we recommend increasing the cap to 3M.
USDT
The borrow cap for USDT on the Venus GameFi Isolated Pool is currently at 100% utilization.
This is mainly due to a single user borrowing over $780K USDT against his $11.2M FLOKI collateral, bringing his health score to 7.16. Given this usage and considering current liquidity conditions allowing for an increase in the USDT borrow cap, we recommend a moderate increase of the cap to 1.1M.
Following this increase, we will monitor the cap utilization and borrow distribution and make additional recommendations as necessary.
USDC
The borrow cap for USDC on the Venus Core Pool is currently at 83% utilization.
Utilizing our supply cap methodologywe recommend increasing the cap to 200M.
ETH
The borrow cap for ETH on the Venus Core Pool is currently at 86% utilization.
Utilizing our supply cap methodology, we recommend increasing the cap to 60K.
FDUSD
The supply cap for FDUSD on the Venus Core Pool is currently at 100% utilization.
The recent increase in supply was mainly due to the following users:
- user supplying $2M FDUSD used to borrow 1.5K BNB (~$842K), bringing his health score to 1.78.
- user supplying over $2.23M FDUSD. This user also supplies 63 BTCB ($4.06M) used to borrow 6.54K BNB (~$3.67M), bringing his health score to 1.34.
We observe significant trading volume over the past weeks, along with deeper liquidity in multiple markets. While on-chain liquidity at 10% depth (Current liquidation bonus) is stable and hasn’t improved. The low Collateral Factor allows us to increase exposure to FDUSD without a significant increase in VaR, and we therefore recommend increasing the cap to 30M.
Recommendations
| Pool | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| Core | UNI | 300,000 | 400,000 | 100,000 | No Change |
| Core | WBETH | 40,000 | No Change | 4,000 | 8,000 |
| Core | ETH | 100,000 | No Change | 40,000 | 60,000 |
| Core | USDC | 258,000,000 | No Change | 124,700,000 | 200,000,000 |
| Defi | TWT | 1,500,000 | 3,000,000 | 500,000 | No Change |
| GameFi | USDT | 1,200,000 | No Change | 800,000 | 1,100,000 |
| Core | FDUSD | 20,000,000 | 30,000,000 | 16,000,000 | No Change |
