Summary
- Increase PT-weETH-26DEC2024’s supply cap.
Analysis
The following recommendation utilized Chaos Labs’ supply and borrow cap methodologies after analyzing the asset’s user positions and market conditions.
PT-weETH (Liquid Staked ETH)
PT-weETH is approaching its supply cap following new deposits in the market.
There are only four suppliers in the market, and it is dominated by the largest, who is borrowing $400K WETH against $2.76M PT-weETH collateral.
However, on-chain liquidity indicates that this user could be efficiently liquidated, as the pool has become significantly more liquid since listing.
Given on-chain liquidity and user distribution, we recommend increasing the supply cap.
Specification
| Pool | Asset | Current Supply Cap | Recommended Supply Cap |
|---|---|---|---|
| Liquid Staked ETH | PT-weETH | 1,200 | 2,400 |