[EXT] Chaos Labs - Risk Parameter Updates - 03/07/24

Venus Governance Venus - Governance Proposals
1

Summary

  1. FDUSD (Core Pool) - Increase supply Cap to 20,000,000
  2. FDUSD (Core Pool) - Increase borrow Cap to 16,000,000

Motivation

As FDUSD market cap and adoption continue to grow, and as we have seen high borrowing demand, especially during the Binance Launchpool staking programs, we wish to increase the caps to accommodate this demand.

Analysis

FDUSD market cap has grown, currently at $3.1B. We see a significant increase in trading volume over the past weeks, along with deeper liquidity in multiple markets. While on-chain liquidity at 10% depth (Current liquidation bonus) is stable and hasn’t improved since the last update, Low Collateral Factor allows us to increase exposure to FDUSD without a significant increase in VaR.

Ticker Current Supply Cap Recommended Supply Cap Current Borrow Cap Recommended Borrow Cap
FDUSD 15,000,000 20,000,000 8,000,000 16,000,000
5 Likes
2

Perfect! There is a lot of users waiting for this parameter adjustment. :clap:

3

Good idea, I hope the team will implement it quickly

4

the higher supply aand borrow amount we need. when the lanchpool/pad happen at binance, there is low liquidty. good suggestion but we have continue to increase

5

Excellent recommendations from Chaos Labs for the assigned market Fusd and guarantee the users’ investments.

6

Borrow cap for FDUSD is always at maximum utilization during the binance launchpools, lets do it!

7

Considering all the reasons, in my opinion it’s really good recommendation