Summary
A proposal to:
- Increase UNI’s supply caps on Venus’s BNB Core Pool deployment.
- Increase DOGE’s supply caps on Venus’s BNB Core Pool deployment.
- Increase PT-weETH-26DEC2024’s supply caps on Venus’s Ethereum Liquid Staked ETH deployment.
Motivation
UNI (BNB)
UNI has reached 94% supply cap utilization on BNB Core Pool, and its borrow cap is at 45% capacity.
Supply Distribution
Most of the top UNI suppliers borrow stablecoins, such as USDT and USDC. Most suppliers maintain a high health score with a diverse mix of collaterals. Most of the top supply positions do not pose a risk of liquidation.
Overall, stablecoins represent 85.52% of the value borrowed against UNI.
Recommendation
Given users’ behavior and on-chain liquidity, we recommend increasing the supply cap to 900,000 UNI.
DOGE (BNB)
DOGE has reached 99% supply cap utilization on the BNB Core Pool, and its borrow cap is at 32% capacity.
Supply Distribution
The biggest DOGE supply position is significantly bigger than the rest, but its high health score poses a low liquidation risk. The majority of the DOGE collateral is used to borrow USDT and BNB. The first one, being a stablecoin, poses a low risk; the second one is more volatile, but the positions borrowing it maintain a safe health score.
Overall, USDT represents 54.53% of the value borrowed against DOGE.
Recommendation
Given users’ behavior and on-chain liquidity, we recommend increasing the supply cap to 120,000,000 DOGE.
PT-weETH-26DEC2024 (Ethereum)
PT-weETH-26DEC2024 has reached 97% supply cap utilization on Ethereum Liquid Staked ETH.
Supply Distribution
There are currently only 5 suppliers of PT-weETH-26DEC2024. Their health score is sufficient, and one of them is also using WETH to loop.
Overall, WETH represents 100% of the value borrowed against PT-weETH-26DEC2024.
Recommendation
Given users’ behavior and on-chain liquidity, we recommend increasing the supply cap to 5,000 PT-weETH-26DEC2024.
Specification
| Chain | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core Pool | UNI | 600,000 | 900,000 | 100,000 | - |
| BNB Core Pool | DOGE | 80,000,000 | 120,000,000 | 4,500,000 | - |
| Ethereum Liquid Staked ETH | PT-weETH-26DEC2024 | 2,400 | 5,000 | - | - |