Author: Euler Labs
Date: 2025-08-27
Summary
The Euler Yield market on Arbitrum will establish capital-efficient stablecoin looping opportunities, aiming to service the ever-expanding market for delta-neutral yield. This market is crucial for Euler’s success in Arbitrum’s upcoming 80M ARB DeFi Renaissance Incentive Program (DRIP) which has stablecoin looping as a core focus.
Assets
Risk Management
Euler Arbitrum will be governed by Euler DAO and risk-managed by Gauntlet and Objective Labs. Euler Labs invites Gauntlet and Objective Labs to provide initial recommendations for risk parameters for the Euler Arbitrum market.
Copyright
Copyright and related rights waived via CC0.
2 Likes
[Objective Labs]: Initial Recommendations for Arbitrum Yield
Caps
| Asset |
Supply cap (unit) |
Borrow cap (unit) |
| USDC |
100,000,000 |
90,000,000 |
| USDT |
100,000,000 |
90,000,000 |
| USDS |
50,000,000 |
45,000,000 |
| sUSDS |
20,000,000 |
18,000,000 |
| sUSDC |
20,000,000 |
18,000,000 |
| USDe |
20,000,000 |
18,000,000 |
| USR |
20,000,000 |
18,000,000 |
| USDai |
10,000,000 |
9,000,000 |
| thBILL |
10,000,000 |
0 |
| sUSDe |
20,000,000 |
0 |
| syrupUSDC |
20,000,000 |
0 |
| wstUSR |
5,000,000 |
0 |
| sUSDai |
5,000,000 |
0 |
| RLP |
5,000,000 |
0 |
| PT-USDai-20NOV2025 |
5,000,000 |
0 |
| PT-sUSDai-20NOV2025 |
2,000,000 |
0 |
LLTVs
| Collateral ↓ / Debt → |
USDC |
USDT |
USDS |
sUSDS |
sUSDC |
USDe |
USR |
USDai |
| USDC |
0.00 |
0.96 |
0.95 |
0.94 |
0.94 |
0.93 |
0.92 |
0.92 |
| USDT |
0.96 |
0.00 |
0.95 |
0.94 |
0.94 |
0.93 |
0.92 |
0.92 |
| USDS |
0.95 |
0.95 |
0.00 |
0.96 |
0.96 |
0.93 |
0.92 |
0.92 |
| sUSDS |
0.94 |
0.94 |
0.96 |
0.00 |
0.96 |
0.92 |
0.91 |
0.91 |
| sUSDC |
0.94 |
0.94 |
0.96 |
0.96 |
0.00 |
0.92 |
0.91 |
0.91 |
| USDe |
0.93 |
0.93 |
0.93 |
0.92 |
0.92 |
0.00 |
0.88 |
0.88 |
| USR |
0.92 |
0.92 |
0.92 |
0.91 |
0.91 |
0.88 |
0.00 |
0.88 |
| USDai |
0.92 |
0.92 |
0.91 |
0.91 |
0.91 |
0.88 |
0.88 |
0.00 |
| thBILL |
0.92 |
0.92 |
0.91 |
0.91 |
0.91 |
0.88 |
0.88 |
0.88 |
| sUSDe |
0.92 |
0.92 |
0.91 |
0.91 |
0.91 |
0.95 |
0.88 |
0.88 |
| syrupUSDC |
0.92 |
0.92 |
0.91 |
0.91 |
0.91 |
0.88 |
0.88 |
0.88 |
| wstUSR |
0.91 |
0.91 |
0.90 |
0.90 |
0.90 |
0.87 |
0.87 |
0.87 |
| sUSDai |
0.91 |
0.91 |
0.90 |
0.90 |
0.90 |
0.87 |
0.87 |
0.95 |
| RLP |
0.88 |
0.88 |
0.87 |
0.87 |
0.87 |
0.85 |
0.90 |
0.88 |
| PT-USDai-20NOV2025 |
0.85 |
0.85 |
0.84 |
0.84 |
0.84 |
0.83 |
0.80 |
0.93 |
| PT-sUSDai-20NOV2025 |
0.82 |
0.82 |
0.81 |
0.81 |
0.81 |
0.80 |
0.77 |
0.92 |
IRMs
| Asset |
Base Rate |
Kink (%) |
Rate @ Kink |
Rate @ 100% (Max) |
| USDC, USDT, USDS, USDe, USR, USDai |
0% |
90% |
8% |
25% |
| sUSDS, sUSDC |
0% |
90% |
3.25% |
25% |
Oracles
| Asset |
Oracle |
| USDC |
RedStone USDC/USD |
| USDT |
RedStone USDT/USD |
| USDS |
Chainlink USDS/USD |
| sUSDS |
Chainlink sUSDS/USDS * Chainlink USDC/USD |
| sUSDC |
ERC4626 sUSDS/USDS * Chainlink USDC/USD |
| USDe |
Chainlink USDe/USD |
| USR |
Chainlink USR/USD |
| USDai |
Fixed 1:1 |
| thBILL |
RedStone thBILL/USDC * RedStone USDC/USD |
| sUSDe |
RedStone sUSDe/USDe * Chainlink USDe/USD |
| syrupUSDC |
Chainlink syrupUSDC/USDC * RedStone USDC/USD |
| wstUSR |
Pyth wstUSR/USR * Chainlink USR/USD |
| sUSDai |
ERC4626 * Fixed 1:1 |
| RLP |
Pyth RLP/USD (Redemption Rate) |
| PT-USDai-20NOV2025 |
Pendle PT-USDai/USD |
| PT-sUSDai-20NOV2025 |
Pendle PT-sUSDai/USD |
We recommend fundamental oracles for yield-bearing stablecoins and market oracles for borrowable stablecoins. We note several exceptions: USDai is fixed 1:1 due to low liquidity, volatility around peg, and the lack of a suitable oracle. Pyth is used for RLP and wstUSR due to the lack of push oracles on Arbitrum at this stage.
2 Likes
Gauntlet supports the creation of Arbitrum Yield market and is aligned with Objective Labs’ recommendation for Arbitrum Yield market