Summary
A proposal to:
- Increase asBNB’s supply cap on Venus’s BNB Core deployment.
- Increase SOL’s borrow cap on Venus’s BNB Core deployment.
asBNB (BNB Core Pool)
asBNB’s supply cap utilization has reached 100%.
Supply Distribution
asBNB’s supply distribution shows a concentration risk, with the top supplier holding 90% of the total supply. However, since this user is borrowing BNB and maintains a health score of 1.32, we consider the risk of immediate liquidation to be low.
Liquidity
Based on the fact that asBNB can be atomically redeemed for slisBNB, we can also factor in the liquidity of slisBNB. At present, selling 3.5K slisBNB for BNB incurs less than 3% slippage, providing liquidators with a dependable means to unwind large positions and reducing the likelihood of bad debt.
Recommendation
Given the user-behavior and on-chain liquidity, we recommend increasing asBNB’s supply cap.
SOL (BNB Core Pool)
SOL’s borrow cap utilization has reached 98%, while its supply cap utilization stands at 59%.
Borrow Distribution
The borrowing of SOL is highly concentrated in a single position, accounting for 80% of total borrowing. However, as this user is actively managing the position and maintains a relatively strong health score of 1.14, we believe the risk of immediate liquidation is limited.
The largest collateral backing SOL is BTCB, which accounts for 86% of the total distribution.
Liquidity
SOL’s liquidity has increased over the past two weeks. Currently, selling 3K SOL would incur less than 6% price slippage.
Recommendation
Given the user-behavior and on-chain liquidity, we recommend increasing SOL’s borrow cap.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core | asBNB | 48,000 | 72,000 | - | - |
| BNB Core | SOL | 72,000 | - | 9,000 | 18,000 |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.