Overview
Chaos Labs is providing risk parameter recommendations for adding DAI to the Venus Core Pool on Ethereum, should the Venus community decide on its addition. Following is our analysis and risk parameter recommendations for the initial listing.
Liquidity and Market Cap
Over the last 180 days, DAI has an average market cap of $4.59B. It has a daily average trading volume of $196M over this timeframe.
Collateral Factor
We recommend setting the Collateral Factor to 75%, at parity with stablecoin parameters on the BNB market.
Supply Cap and Borrow Cap
We propose setting the initial Supply and Borrow Caps at the same levels as USDC and USDT in the Ethereum Core Pool, given DAI’s extensive on-chain liquidity.
This leads us to recommend a 50M DAI supply cap and a borrow cap of 45M DAI.
IR Curves
We recommend setting the IR curve in line with those of the major stablecoins on the Ethereum Core pool:
- Base - 0%
- Kink - 80%
- Multiplier - 15%, aligned with our Stablecoin IR proposal.
- Jump Multiplier - 250%
- Reserve factor - 10%
Recommendation:
| Parameter | Value |
|---|---|
| Borrowable | Yes |
| Collateral Factor | 75% |
| Liquidation Threshold | 77% |
| Supply Cap | 50,000,000 |
| Borrow Cap | 45,000,000 |
| IR — Base | 0% |
| IR — Multiplier | 15% |
| IR — Jump Multiplier | 250.00% |
| IR — Kink | 80.00% |
| Reserve Factor | 10.00% |