Overview
Chaos Labs supports listing native USDC on Venus’s ZkSync deployment.
ZkSync Liquidity
USDC is one of the most trusted assets in DeFi, thus not requiring a detailed analysis. However, we provide information on its ZkSync liquidity in this section. Native USDC currently has a total on-chain supply of 8.599M.
Blockscout
Encouragingly, its liquidity is well distributed, with large swaps routed across a variety of DEXes and pools.
This ensures that no single user, DEX, or pool, is largely responsible for USDC’s on-chain liquidity.
Collateral Factor and IR Curve Parameters
We recommend setting all CF and IR Curve parameters equivalent to USDC.e’s, finding that they are essentially the same assets, albeit USDC.e does carry some bridging risk.
Supply and Borrow Cap
Chaos Labs’ approach to initial supply caps involves setting the Supply Cap at 2x the liquidity available under the Liquidity Penalty (set at 10%) price impact. This leads to a recommendation of 1.25M for the supply cap, with the borrow cap set at 80% of this value.
USDC.e Recommendation
Given that USDC.e remains the larger of the two assets as of this writing, we recommend not altering that market. However, should native USDC grow relative to USDC.e, we may recommend actions to deprecate the USDC.e market, as it carries inherent bridging risk.
Blockscout
Recommendations
| Parameter | Value |
|---|---|
| Pool | ZkSync Core |
| Collateral Factor | 72% |
| Liquidation Threshold | 75% |
| Supply Cap | 1,250,000 |
| Borrow Cap | 1,000,000 |
| Kink | 80% |
| Base | 0.0 |
| Multiplier | 0.0875 |
| Jump Multiplier | 0.8 |
| Reserve Factor | 10% |
Disclaimer
Chaos Labs has not been compensated by any third party for publishing this recommendation.