Summary
Gauntlet recommends re-listing the Frontier Theo market as an isolated market on Arbitrum to be risk-managed by Gauntlet and Objective Labs.
LTVs
We recommend aligning Borrow LTVs & LLTVs with those in the existing Frontier Theo market.
Borrow LTV
| Collateral / Debt | USDC | thBILL | USD₮0 |
|---|---|---|---|
| USDC | - | 90% | 94% |
| PT-thBILL-27NOV2025 | 90% | 94% | 90% |
| thBILL | 90% | - | 90% |
| USD₮0 | 94% | 90% | - |
LLTV
| Collateral / Debt | USDC | thBILL | USD₮0 |
|---|---|---|---|
| USDC | - | 91% | 95% |
| PT-thBILL-27NOV2025 | 91% | 95% | 91% |
| thBILL | 91% | - | 91% |
| USD₮0 | 95% | 91% | - |
Supply & Borrow Caps
| Asset | Supply Cap | Borrow Cap |
|---|---|---|
| USDC | 100M | 90M |
| PT-thBILL-27NOV2025 | 30M | - |
| thBILL | 10M | 9M |
| USD₮0 | 100M | 90M |
For thBILL, we see slightly more than $13M volume across chains. Given that $6.56M has already been supplied in this market, we propose a conservative $10M supply cap and a proportional borrow cap. These can be increased once demand for the new market becomes clear.
| Chain | DEX | Liquidity($) |
|---|---|---|
| Ethereum | Uniswap V3 | 4.03M |
| Arbitrum | Uniswap V3 | 9.23M |
For PT-thBILL-27NOV2025, the existing market has just over $22M supplied. However, there is only ~$15.1M in the Pendle pool for this token. Given this, we recommend a $30M supply cap to capture existing demand while keeping liquidity in mind. We recommend the same cap for PT-thBILL-18FEB2026 as we expect demand to grow after November 27th. Once Gauntlet and Objective Labs begin monitoring this market, additional adjustments to these caps can be made promptly as needed.
IRM Curve
We recommend aligning IRM curves with those in the Euler Arbitrum Yield market.
| Market | Asset | Base Rate | Kink (%) | Rate @ Kink | Rate @ 100% (Max) |
|---|---|---|---|---|---|
| Arbitrum thBILL | USDC | 0% | 90% | 8% | 25% |
| Arbitrum thBILL | thBILL | 0% | 90% | 8% | 25% |
| Arbitrum thBILL | USD₮0 | 0% | 90% | 8% | 25% |
Oracles
We recommend using the below oracles.
- PT-thBILL-27NOV20205/thBILL: Pendle Market AMM with a TWAP of 900s → 0xF51f47ed3f7412EB10Cd2C0B6a7D190524D43bDc
- thBILL/USDC: Redstone Exchange Rate → 0x8503441080c639AC94FCd98eDF16E77d6106688f
Next Steps
- We welcome community feedback.