Chaos Labs - Risk Parameter Updates - 10/02/2023

Venus Governance Venus - Governance Proposals
1

Summary

  1. snBNB
    1. Increase supply cap to 2,000
    2. Increase borrow cap to 400
  2. MATIC
    1. Increase supply cap to 8,000,000
    2. Increase borrow cap to 3,000,000

Analysis

The recommendations below were made utilizing Chaos’ supply and borrow cap methodologies and after analyzing user positions for each asset.

snBNB

Following the launch of snBNB on the LST Isolated Pool, the Supply and Borrow Cap Utilization have reached 47% and 100%, respectively.

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We recommend increasing the supply cap to 2,000 and setting the borrow cap at 400 SnBnB.

Please note there is a single account currently supplying nearly 90% and borrowing 100% of all SnBNB. This concentration and user behavior is most likely a result of incentives in the SnBNB market. We will continue to monitor the usage and make additional recommendations as necessary.

MATIC

The supply and borrow cap for MATIC on the Core Pool are currently at 73% and 61% utilization, respectively.

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We recommend increasing the supply cap to 8M and the borrow cap to 3M.

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