VIP40: Support TUSD and adjust CAKE borrow cap

TUSD is a stablecoin issued and operated by TrustToken. At present, its Total Supply exceeds 1.4 billion U.S. dollars, and ranks 6th among all stablecoins. At present, TUSD has a wide range of use cases in various Defi, and has been adopted by two major lending protocols, Aave and Compound.

Venus’ risk team also conducted a risk analysis on TUSD. The specific assessment results are as follows:

Through this VIP, Venus will introduce TUSD. TUSD is Similar as BUSD/DAI, but the reserve factor is 20% instead of 10% based on risk evaluation. The Daily XVS reward for TUSD is 50.

For the Interest Rate model of TUSD, we suggest using the same stablecoin jump rate model as USDT BUSD USDC and DAI

[Base0bps_Slope500bps_Jump10900bps_Kink80

b=0, a1=5%, a2=109%,kink=80%]

CAKE

When Venus Protocol initially launched support for CAKE, we predicted the pool size for the medium term to be close to 1.5M Cake (supply+borrow), and a borrow cap of 500K CAKE tokens was initially set. Due to the rapid increase in supply for the Cake pool, the borrowing cap has been reached already.

Venus has already implemented a safe and appropriate interest rate model for CAKE and we will therefore increase the borrow Cap limit from 500K to 1.5M CAKE, allowing for a continuous growth of Venus.

Venus Team
2021.9.8

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