Chaos Labs - Risk Parameter Updates - 12/19/23


  1. BUSD
    1. Reduce CF to 0.30
  2. XVS (Core Pool)
    1. Supply Cap - increase to 1,750,000



Following the deprecation plan for BUSD and our previous recommendation below, we recommend further reducing the CF for BUSD, to 30% in this proposal.

Currently, this reduction would result in 296 accounts affected with a total liquidation value of approximately $400K.

The list of accounts at risk of liquidation can be found here.

Following this CF reduction, we plan to recommend a final CF reduction, bringing it down to 0. to finalize the market deprecation. We urge users to proactively wind down their BUSD collateralized positions ahead of time to avoid liquidations should the community decide to adopt this approach.


The supply cap for XVS in Venus Core Pool is at full utilization.

Given the current XVS on-chain liquidity and protocol usage, we recommend a modest increase of the caps, from 1.5M to 1.75M.


Utilizing our supply cap methodology, we’ve conducted stress tests to evaluate the impact of raising the cap on Value at Risk (VaR). Below are the results from both severe and moderate stress-test scenarios.

Severe Scenario

In our severe stress-test scenario, the simulated VaR following an increase of the supply cap by 1.5X increases by nearly $100,000.

Moderate Scenario

In our moderate stress-test scenario, modeling a ~35% drop in the price of XVS, the simulated VaR following an increase of the supply cap by 1.5X increases by nearly $45,000.


Perfect! Yes that’s what we need. Step by step solution for BUSD and i also like the part about supply increase for XVS! Good one.

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yes we need to increase supply cap of xvs token. because xvs investors want to supply their token but there is no enough space. appreciate for this proposal.

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