Background
The four active non-BNB Chain Venus deployments (Ethereum, Arbitrum, Base, zkSync) have been in an emergency-paused state since 2026-03-20, following the THE market exploit on 2026-03-15. BNB Core remained operational with parameter-level mitigations across several markets. This proposal specifies the formal off-boarding, parameter restoration, and cap right-sizing across all five Core deployments, and is a prerequisite cleanup pass ahead of unpausing the four chains.
BNB Chain Core Pool
Off-boarding actions
Removing as collateral (CF → 0%, borrow retained where useful)
- DAI (current CF 75%, debt backed: $37k) — Sky Protocol’s DAI → USDS migration has put DAI in effective deprecation. Leverage that depends on long-term DAI peg stability is a structurally worsening bet.
Already-deprecated assets (CF=0, caps → 0, borrows disabled)
- THE, TUSD, FIL — collateral factor already 0%; this proposal formalizes the wind-down state.
- MATIC — $94k supplied and $8k borrowed. Polygon’s MATIC → POL token rebrand removes any structural path to renewed demand as collateral or debt.
BNB Core caps summary
| Asset | Supply Cap | Supply Cap (rec) | Borrow Cap | Borrow Cap (rec) |
|---|---|---|---|---|
| BTCB | 22,770 | 13,000 | 3,531 | 3,531 |
| BNB | 2.67M | 1.6M | 2.01M | 800,000 |
| WBNB | 2.67M | 300,000 | 2.01M | 150,000 |
| ETH | 100,000 | 72,000 | 60,000 | 37,000 |
| USDC | 360M | 180M | 324M | 110M |
| asBNB | 216,000 | 130,000 | — | — |
| xSolvBTC | 2,000 | 1,200 | — | — |
| wBETH | 40,000 | 10,000 | 16,000 | 1,000 |
| Cake | 24M | 18M | 19.2M | 500,000 |
| FDUSD | 100M | 37M | 80M | 20M |
| XRP | 24M | 7.5M | 6M | 1M |
| USD1 | 16M | 5M | 14.4M | 4M |
| lisUSD | 12M | 5M | 10M | 4M |
| DOGE | 120M | 80M | 4.5M | 3M |
| ADA | 37.5M | 15M | 3M | 3M |
| LTC | 240,000 | 50,000 | 20,000 | 8,000 |
| LINK | 900,000 | 400,000 | 80,000 | 20,000 |
| MATIC | — | — | — | 0 |
| SolvBTC | 3,000 | 3,000 | 110 | 110 |
| THE | 14.5M | 0 | 8M | 0 |
| TUSD | 750,000 | 0 | 600,000 | 0 |
| FIL | 1.2M | 0 | 90,000 | 0 |
(Markets not listed are unchanged or unaffected.)
Ethereum Core Pool
Off-boarding actions
Full delist (CF → 0%, caps → 0, borrow disabled)
- TUSD (CF 75%, $230k supply, $78k borrow) — impaired issuer (2024 reserve discrepancy and 2025 SEC fraud charges against TrueCoin/TrustToken). Mint and redeem flows are no longer reliable.
- EIGEN (CF 50%, $7k supply, $895 borrow) — governance token with dust usage; single borrower at 100%. Not an adopted collateral across the DeFi landscape in 2026.
- BAL — governance token to a project with shutting-down leadership; we anticipate continued extreme volatility. CF already 0%.
- yvUSDS-1, yvUSDC-1, yvUSDT-1, yvWETH-1 — empty markets; close out caps.
Removing as collateral (CF → 0%, kept as borrow asset)
- DAI — same Sky DAI → USDS deprecation rationale as the BNB section.
- crvUSD, USDe — less-robust non-yield-bearing stables. Keep them borrowable so users can borrow or earn deposit yield, but don’t lend them collateral power that creates depeg risk on the collateral side.
Re-enable borrowing
Re-enable borrowing for USDT, WETH, WBTC, USDC, DAI, crvUSD, USDe, tBTC, USDS.
Caps summary
| Asset | Supply Cap | Supply Cap (rec) | Borrow Cap | Borrow Cap (rec) |
|---|---|---|---|---|
| USDT | 50M | 5M | 45M | 4M |
| WETH | 20,000 | 2,100 | 18,000 | 1,600 |
| sUSDS | 30M | 4.5M | — | — |
| WBTC | 1,000 | 65 | 850 | 52 |
| USDC | 50M | 5M | 45M | 4M |
| TUSD | 2M | 0 | 1.8M | 0 |
| weETHs | 2,800 | 2,000 | — | — |
| LBTC | 450 | 65 | — | — |
| EIGEN | 3M | 0 | 1.5M | 0 |
| DAI | 5M | 5M | 4.5M | 4M |
| BAL | 4.1M | 0 | 700,000 | 0 |
| crvUSD | 10M | 5M | 9M | 4M |
| USDe | 30M | 5M | 25M | 4M |
| sUSDe | 20M | 4M | — | — |
| tBTC | 120 | 65 | 60 | 52 |
| USDS | 65M | 5M | 7.68M | 4M |
| sFRAX | 10M | 4.3M | 2M | 2M |
| yvUSDS-1 | 640,000 | 0 | — | 0 |
| yvUSDC-1 | 400,000 | 0 | — | 0 |
| yvUSDT-1 | 630,000 | 0 | — | 0 |
| yvWETH-1 | 56 | 0 | — | 0 |
Arbitrum Core Pool
Off-boarding actions
Keep borrows disabled / do not re-enable
- ARB (CF 55%, $213k supply, $27k borrow) — borrow demand for ARB has been structurally weak both on Venus and across Arbitrum DeFi at large. Recommend keeping new borrows disabled after the emergency pause while reducing CF to 25%.
Re-enable borrowing
Re-enable borrowing for USD₮0, WBTC, WETH, USDC.
Caps summary
| Asset | Supply Cap | Supply Cap (rec) | Borrow Cap | Borrow Cap (rec) |
|---|---|---|---|---|
| USD₮0 | 20M | 5M | 18M | 4M |
| GM (0x47c0) | 2.65M | 2.65M | — | 0 |
| WBTC | 900 | 65 | 500 | 52 |
| GM (0x70d9) | 2M | 2M | — | 0 |
| WETH | 26,000 | 2,100 | 23,500 | 1,600 |
| USDC | 54M | 5M | 49M | 4M |
| ARB | 16M | 10M | 9M | 0 |
Base Core Pool
Off-boarding actions
Full delist
- wsuperOETHb (CF 73%, $106 supply, zero borrow) — near-zero organic demand on Venus, and on-chain liquidity for wsuperOETHb on Base is stressed. If demand returns, we can revisit by listing it directly into an eMode pool rather than re-listing outside.
Keep borrows disabled / do not re-enable (CF retained)
- wstETH — no organic borrow demand.
Re-enable borrowing
Re-enable borrowing for cbBTC, USDC, WETH.
Caps summary
| Asset | Supply Cap | Supply Cap (rec) | Borrow Cap | Borrow Cap (rec) |
|---|---|---|---|---|
| cbBTC | 400 | 65 | 200 | 52 |
| USDC | 30M | 5M | 27M | 4M |
| WETH | 10,000 | 2,100 | 9,000 | 1,600 |
| wstETH | 2,600 | 1,700 | 260 | 0 |
| wsuperOETHb | 2,000 | 0 | — | 0 |
zkSync Era Core Pool
Off-boarding actions
Full delist
- ZK (CF 40%, $0 borrow) — increased market volatility since launch, materially low on-chain liquidity. Current zkSync DEX depth cannot facilitate even mid five-figure liquidations without significant slippage.
- wUSDM (CF 0%, debt backed: $543k) — USDM is an asset from a shut-down protocol. CF is already 0 and borrows are already disabled. This formally zeroes supply and borrow caps.
- zkETH — deprecated asset; formal cleanup.
- wstETH (CF 71%, $7k Venus supply) — wstETH is generally a high-quality blue-chip collateral, but chain-wide wstETH on zkSync has fallen to ~$500k, with insufficient liquidity to facilitate material-sized liquidations. Off-board rather than grow this market.
Keep borrows disabled / do not re-enable (CF retained)
- WBTC — no organic borrow demand.
Re-enable borrowing
Re-enable borrowing for WETH, USDT, USDC.e, USDC.
Caps summary
| Asset | Supply Cap | Supply Cap (rec) | Borrow Cap | Borrow Cap (rec) |
|---|---|---|---|---|
| wUSDM | 5M | 0 | 4M | 0 |
| ZK | 300M | 0 | 100M | 0 |
| WETH | 6,000 | 450 | 3,400 | 225 |
| USDT | 4M | 1M | 3.3M | 800k |
| USDC.e | 31M | 1M | 28M | 800k |
| WBTC | 90 | 5 | 45 | 0 |
| USDC | 35M | 1M | 27M | 800k |
| wstETH | 350 | 0 | 35 | 0 |
| zkETH | 650 | 0 | — | 0 |
(zkSync caps sit below the standard non-BNB benchmark, reflecting chain-wide liquidity constraints flagged in the off-boarding bullets above.)
Methodology notes
Cap sizing. Active supply and borrow caps are generally set to ~2× the maximum observed supply / borrow over the past 3 months. This is tightened where on-chain liquidity, concentration risk, or liquidator capacity would be stressed. For non-BNB deployments, caps are also bounded around ~$5M notional for stables, 2,100 WETH, and 65 WBTC, conditional on meeting liquidity considerations. Full-offboarded assets have caps set to zero.
Liquidation thresholds. Unchanged across this proposal. CF→0 actions affect new borrow power only and do not trigger liquidations on existing positions.
Disclosure
Allez Labs has not been compensated by any third party for publishing this report.