Summary
A proposal to:
- Increase SolvBTC’s supply cap on Venus’s BNB Core deployment.
SolvBTC (BNB Core Pool)
SolvBTC’s supply cap utilization has reached 100%.
Supply Distribution
SolvBTC supply is highly concentrated, with the largest supplier accounting for around 44% of the total. However, since this user mainly borrows BTCB and has a healthy score of 1.33, we do not see this as a significant risk at the moment. Other key suppliers also show strong health scores, which helps keep liquidation risk well managed.
The primary asset borrowed against SolvBTC is BTCB, making up 42% of the total, which lowers the chance of large-scale liquidations.
Liquidity
SolvBTC’s liquidity currently supports selling up to 55 SolvBTC into USDT with less than 5% slippage, which justifies a supply cap increase.
Recommendation
Given the user-behavior and on-chain liquidity, we recommend increasing SolvBTC’s supply cap.
Specification
| Market | Asset | Current Supply Cap | Recommended Supply Cap | Current Borrow Cap | Recommended Borrow Cap |
|---|---|---|---|---|---|
| BNB Core | SolvBTC | 2,000 | 3,000 | - | - |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.