Summary
Chaos Labs has completed a comprehensive analysis to provide informed recommendations for the launch parameters for the Venus deployment on Arbitrum. These initial recommendations aim to ensure a safe and efficient launch and are the basis for future optimization post-launch after observing usage on each pool.
Core Pool
Collateral Factor
- We recommend starting with Collateral Factor and Liquidation Threshold parameters in line with those of similar assets in the BNB Core Pool and Ethereum Core Pool.
- These parameters may be further optimized utilizing our simulation platform post launch
Supply and Borrow Caps
- Initial supply caps are set according to our Supply Methodology. This methodology determines how much of a particular asset can be liquidated with less slippage than the Liquidation Incentive (10%). We recommend setting supply caps at two times this value.
- Borrow caps are set to allow utilization over the Kink while preventing borrowing of all available supply if both caps are reached.
- This is a conservative approach to listing, and we will recommend increasing caps if and when we observe high utilization.
Interest Rates
- Recommendations are derived from observed historical rates and IR settings on other deployments.
- We currently target a 7% Borrow rate for stablecoins at the Kink.
Additional Parameters
- Close Factor: 50%
- Liquidation Incentive: 10%
- minLiquidatableCollateral: 100 USD
XVS Bridge Parameters:
Arbitrum bridge to/from Ethereum, BNB and opBNB
-
Daily limit: 100,000 USD
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Single transaction: 20,000 USD
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mintable XVS on Arbitrum: 500,000 XVS
| Asset | WBTC | WETH | USDC | USDT | ARB |
|---|---|---|---|---|---|
| Collateral Factor | 75% | 75% | 78% | 78% | 55% |
| Liquidation Threshold | 80% | 80% | 80% | 80% | 60% |
| Supply Cap (Asset) | 900 | 26,000 | 54,000,000 | 20,000,000 | 16,000,000 |
| Borrow Cap (Asset) | 500 | 23,500 | 49,000,000 | 18,000,000 | 9,000,000 |
| Kink | 45% | 80% | 80% | 80% | 45% |
| Base | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Multiplier | .15 | .035 | .0875 | .0875 | .15 |
| Jump Multiplier | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
| Reserve Factor | 20% | 20% | 10% | 10% | 20% |