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.
[Gauntlet] Parameter Updates for Euler Arbitrum (2026-02-12)
| Vault |
Kink Rate |
| USDC |
6.5%→4% |
| USDT |
6.5%→4% |
Since the recent market drawdown, both USDC and USDT vaults have fallen well below optimal utilization. The reduced kink rate aligns Euler with industry rates and should push utilization back towards kink.
Next Steps
- We welcome community feedback.
[Gauntlet] Parameter Updates for Euler Arbitrum Yield (2026-02-12)
| Vault |
Kink Rate |
| USDC |
8%→7% |
After the latest drawdown, the USDC vault has dropped to below 40% utilization. The reduced kink rate aligns Euler with prevailing market rates and is expected to drive utilization back toward optimality.
Next Steps
- We welcome community feedback.
[Gauntlet] Parameter Updates for Euler Arbitrum Theo (2026-02-12)
| Vault |
Kink Rate |
| thBILL |
8%→6% |
As seen above, the thBILL vault has been underutilized relative to kink since the end of 2025. The recommended rate update should push utilization towards a more optimal range and align Euler with broader industry levels.
Next Steps
- We welcome community feedback.
[Gauntlet] Parameter Updates for Euler Unichain (2026-02-18)
| Vault |
Kink Rate |
| USDT0 |
6.5% → 5.5% |
| USDC |
6.5% → 5.5% |
| WETH |
2.4% → 2% |
USDT0
As shown below, the USDT0 vault has fallen below optimal utilization following the recent market downturn. The recommended rate update should push utilization toward a more optimal range and align Euler with broader industry levels.
USDC
Although the USDC vault has seen consistent strong utilization, we recommend this update to retain consistency with the above USDT0 vault, as well as align this vault with the competitive industry rates.
WETH
Since late 2025, the WETH vault has consistently operated below optimal utilization relative to its kink rate. This reduction should move the market toward a more efficient equilibrium and align the vault with broader market rates.
Next Steps
- We welcome community feedback.
[Gauntlet] Parameter Updates for Euler Base (2026-02-18)
| Vault |
Kink Rate |
| cbBTC |
0.6% → 0.3% |
| AERO |
8.87% → 6% |
cbBTC
Since the recent market downturn, cbBTC vault utilization has fallen substantially. We propose a modest kink rate reduction to boost competitiveness and encourage more efficient utilization.
AERO
Since late 2025, the AERO vault has remained well below kink utilization. While utilization briefly trended upward, it reversed in recent weeks. The proposed kink rate cut aligns this market with competitive industry rates and should drive the vault toward improved utilization.
Next Steps
- We welcome community feedback.
