[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.

[Jan 2026] Non-critical Parameter Updates by Risk Stewards
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[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.
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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.
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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.
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Objective Labs agrees that raising the max borrow APY is prudent given the unusually high APY for shMON.

8

[Gauntlet] Parameter Updates on Euler Base (2025-12-09)

Recommendation

Market Vault Supply Cap Borrow Cap
Euler Base wsuperOETHb 900→450 200→100
Euler Base rETH 250→175 100→50

Rationale

Due to low utilization, Gauntlet recommends reducing supply and borrow caps for wsuperOETHb and rETH. Both wsuperOETHb and rETH have seen maximum supply cap utilization under 15% for the last 60 days. Thus, we recommend reducing supply and borrow caps by 50%. These updates will have no impact on existing positions.

Next Steps

  • We welcome community feedback.
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Objective Labs supports Gauntlet’s parameter update proposals for PT-jrUSDe on Euler Yield, thBILL on Euler Theo, and wsuperOETHb and rETH on Euler Base.

We caution against further increases for PT-jrUSDe. Strata’s jrUSDe has poor DEX liquidity with a $100k jrUSDe causing 35% price impact against USDC.

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[Gauntlet] Parameter Updates for WMON on Euler Monad (2025-12-10)

Recommendation

Vault Asset Kink Borrow APY Max Borrow APY
Isolated shMON-WMON-USDC WMON 25%→10% 150%→50%
Isolated shMON-WMON-AUSD WMON 25%→10% 150%→50%
Isolated shMON-WMON-USDT WMON 25%→10% 150%→50%
Isolated gMON-WMON-AUSD WMON 3%→10% 15%→50%
Isolated gMON-WMON-USDC WMON 3%→10% 15%→50%
Isolated gMON-WMON-USDT WMON 3%→10% 15%→50%
Isolated sMON-WMON-AUSD WMON 3%→10% 15%→50%
Isolated sMON-WMON-USDC WMON 3%→10% 15%→50%
Isolated sMON-WMON-USDT WMON 3%→10% 15%→50%

Rationale:

As intrinsic APYs have stabilized on gMON, sMON and shMON, the above adjustments should bring the market closer to an efficient equilibrium.

Next Steps

We welcome community feedback.

11

[Gauntlet] Parameter Updates for thBILL on Euler Arbitrum Theo

Recommendation

Market Vault Supply Cap Borrow Cap
Euler Arbitrum Theo thBILL 15M→20M 13.5M→18M

Rationale:

Due to high demand for thBILL in Theo markets, we recommend a moderate increase in the supply cap to 20M and a proportional increase in the borrow cap to 18M.

12

[Gauntlet] Parameter Updates for RLUSD on Euler Prime

Recommendation

Market Asset Max Borrow APY
Euler Prime RLUSD 13% → 20%

Rationale:

Due to an ongoing liquidity crunch, Gauntlet recommends raising the Max Borrow APY for RLUSD on Euler Prime to help restore the market to optimal utilization. Gauntlet will continue monitoring this market to ensure that an efficient equilibrium is reached.

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14

[Gauntlet] Parameter Updates on Euler Yield (2025-12-23)

Market Vault Supply Cap Borrow Cap
Euler Yield PT-jrUSDe-15JAN2026 4.5M → 6M -

Rationale

PT-jrUSDe-15JAN2026 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 6M. There is 9.98M liquidity on Pendle for this market, and the recommended caps should handle any potential liquidations.

Next Steps

  • We welcome community feedback.