Summary
- CAKE (Core Pool)
- Increase Supply Cap to 21,000,000
Analysis
CAKE
The supply cap for CAKE on the Venus core pool is currently at 100% utilization.
Utilizing our supply cap methodology, and considering the current usage on Venus and liquidity conditions, we recommend an increase of 50% to the supply cap of CAKE to 21M CAKE.
Borrow Distribution
There are currently $12.51M of assets borrowed against CAKE on Venus core pool, mainly USDT.
Top Suppliers
The top ten users collectively contribute approximately 70% of the overall CAKE supply. Despite this concentration, these users are generally active and maintain healthy positions.
Stress Tests
Examining our stress scenarios, we noticed a slight increase in Value at Risk (VaR) as we simulated an increase in the supply cap and a substantial decline in CAKE price (simulated scenario of a ~33% drop in CAKE price). Given these results, we propose a 50% increase in the supply cap.
Liquidity
Liquidity vs USDT has been steady over the past months, with ~3,000,000 CAKE subject to up to 10% price impact.
