[Dec 2025] Non-critical Parameter Updates by Risk Stewards

Euler DAO Markets
1

This is the monthly continuation of CapRiskSteward updates.

Previous update threads:

Summary

Euler Labs and Objective Labs recently developed the CapRiskSteward smart contract as a fast lane for non-critical parameter updates. Following its implementation for the Euler DAO markets, we propose that service providers follow a notification process for in-scope changes. By establishing this process we seek to give the Euler community full transparency into the work done by service providers to optimize and grow Euler DAO markets.

2

[Gauntlet] Parameter Updates for WMON on Euler Monad

Recommendation

Vault Asset Kink Borrow APY Max Borrow APY
Isolated shMON-WMON-USDC WMON 3%→25% 15%→50%
Isolated shMON-WMON-AUSD WMON 3%→25% 15%→50%

Rationale:

Due to elevated utilization in Monad markets involving WMON and shMON, Gauntlet recommends increasing the Kink Borrow APY to 25% and the Max Borrow APY to 50%. These adjustments will bring these markets towards a more stable equilibrium.

Next Steps

  • We welcome community feedback.
3

[Gauntlet] Parameter Updates for thBILL on Euler Arbitrum Theo

Recommendation

Market Vault Supply Cap Borrow Cap
Euler Arbitrum Theo thBILL 10M→15M 9M→13.5M

Rationale:

Since listing the Euler Arbitrum Theo market, we have seen the supply cap for thBILL filled. We recommend a increase in the supply cap to 15M and a proportional increase in the borrow cap to 13.5M.

Next Steps

  • We welcome community feedback.
4

Objective Labs supports Gauntlet’s recommendations for Isolated shMON-WMON-USDC and Isolated shMON-WMON-AUSD on the grounds of shMON’s high observed APY.

Cap increases for thBILL are reasonable and within safety margins.

5

[Gauntlet] Parameter Updates on Euler Yield (2025-12-04)

Market Vault Supply Cap Borrow Cap
Euler Yield PT-jrUSDe-18Dec2025 3M → 4.5M -

Rationale

PT-jrUSDe-18Dec2025 has demonstrated strong user demand on Euler Yield, consistently reaching its supply cap over the past several days. To accommodate this ongoing demand and support market growth, we recommend increasing the cap to 4.5M. There is 9.2M Liquidity on Pendle for and seem capable to handle any potential liquidations.

Next Steps

  • We welcome community feedback.
6

[Gauntlet] Parameter Updates for WMON on Euler Monad

Recommendation

Vault Asset Max Borrow APY
Isolated shMON-WMON-USDC WMON 50%→150%
Isolated shMON-WMON-AUSD WMON 50%→150%

Rationale:

Due to the high intrinsic APY in Monad markets involving WMON and shMON, Gauntlet recommends increasing the Max Rate from 50% to 150%. This increase in Max Rate should be sufficient for Lender and Borrowers to self-adjust in a high-intrinsic-APY market.

Next Steps

  • We welcome community feedback.
7

Objective Labs agrees that raising the max borrow APY is prudent given the unusually high APY for shMON.