Summary
A proposal to:
- Increase xSolvBTC’s supply cap on Venus’s BNB Core deployment.
xSolvBTC (BNB Core Pool)
xSolvBTC’s supply cap utilization has reached 100%.
Supply Distribution
The supply of xSolvBTC is concentrated, with the top supplier holding 50% of the total distribution. However, as this user is borrowing BTCB, a closely correlated asset, we do not believe this poses significant risk at this time.
The remaining top suppliers either do not have any borrowing activity or maintain high health scores, which significantly reduces the risk of liquidations.
The largest borrowed asset against xSolvBTC is BTCB, accounting for 83% of the total borrowed distribution. This strong correlation significantly reduces the likelihood of large-scale liquidations.
Liquidity
Currently, a 40 xSolvBTC sell incurring less than 5% price slippage, supporting a supply cap increase.
Recommendation
Given the safe user behavior and on-chain liquidity, we recommend increasing xSolvBTC’s supply cap by 50 xSolvBTC.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core | xSolvBTC | 100 | 150 | - | - |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.