Summary
A proposal to:
- Increase asBNB’s supply cap on Venus’s BNB Core deployment.
- Increase xSolvBTC’s supply cap on Venus’s BNB Core deployment.
asBNB (BNB Core Pool)
asBNB’s supply cap utilization has again reached 100% following rapid new deposits.
Supply Distribution
The supply of asBNB remains highly concentrated, with the top supplier representing over 99% of the total.
Given this user’s wide variety of collateral assets and relatively strong health score of 1.38, they do not pose a risk to the protocol at this time.
Debt backed by asBNB collateral is primarily in BNB, followed by $41K of BTCB.
Liquidity
On‑chain liquidity for asBNB itself is still shallow; swapping 50 asBNB incurs more than 10 % slippage. However, as mentioned in the initial listing recommendation and previous cap increases, asBNB can be redeemed atomically for slisBNB, which benefits from deeper on‑chain markets. A swap of 5,500 slisBNB to BNB currently results in less than 5% slippage, giving liquidators an efficient path to unwind larger positions and limiting bad debt risk.
Recommendation
Taking into account full supply cap utilization and supplier activity, we recommend increasing asBNB’s supply cap.
xSolvBTC (BNB Core Pool)
xSolvBTC has reached 97.4% supply cap utilization following deposits in the market.
Supply Distribution
Supply is not highly concentrated and the two largest users are borrowing BTCB against xSolvBTC, significantly reducing the likelihood of liquidation. Other top suppliers are not borrowing or maintain strong health scores.
BTCB represents the vast majority of volume borrowed against the asset, limiting the liquidation risk in this market.
Liquidity
On‑chain liquidity for xSolvBTC is relatively strong, with a 40 xSolvBTC to USDT swap able to be completed with less than 5% price slippage.
Recommendation
Taking into account the borrowing activity against xSolvBTC, especially that it is being used as collateral for correlated assets, we recommend increasing its supply cap.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core | asBNB | 6,000 | 24,000 | - | - |
| BNB Core | xSolvBTC | 500 | 750 | 0 | - |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.