Summary
A proposal to:
- Increase asBNB’s supply cap on Venus’s BNB Core deployment.
asBNB (BNB Core Pool)
asBNB’s supply cap utilization has once again reached full capacity at 100%, indicating strong user demand.
Supply Distribution
The supply of asBNB is highly concentrated, with the top supplier holding 99% of the total distribution, which presents a concentration risk. However, since this user maintains a health score of 1.35 and is primarily borrowing BNB, a correlated asset, we do not view this as a significant concern at this time.
Debt backed by asBNB collateral is primarily concentrated in BNB, which makes up 98% of the total borrowed asset distribution.
Liquidity
Onchain liquidity for asBNB remains limited, with a swap of 60 asBNB resulting in over 10% slippage. However, as highlighted in the original listing and past supply cap adjustments, asBNB can be atomically redeemed for slisBNB, which enjoys significantly deeper liquidity. At present, selling 4.5K slisBNB for BNB incurs less than 3% slippage, offering liquidators a reliable route to unwind large positions and helping to mitigate the risk of bad debt.
Recommendation
Given the observed user behavior and current on-chain liquidity, we recommend increasing the supply cap for asBNB.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core | asBNB | 24,000 | 48,000 | - | - |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.