Euler Prime
Cap Recommendations
| Asset | Current Supply Cap | New Supply Cap | Current Borrow Cap | New Borrow Cap |
|---|---|---|---|---|
| WBTC | 500 | 600 | 425 | 510 |
WBTC supply cap is trending upwards and has seen up to 77% supply cap usage in the past month. The entire recommended supply cap could be swapped on DEX for less than 5% price impact. Borrow exposure is varied among WETH, USDC, and BTC derivatives.
Interest Rate Curve Recommendations
| Asset | Current Kink Borrow APY | New Kink Borrow APY | Current Max Borrow APY | New Max Borrow APY | Current Kink | New Kink |
|---|---|---|---|---|---|---|
| cbBTC | 2.79% | 1% | 122.55% | 100% | 85% | 85% |
| WBTC | 2.79% | 1% | 122.55% | 100% | 85% | 85% |
| wstETH | 4.6% | 2.5% | 145.96% | 80% | 40% | 85% |
| USDS | 9.42% | 7.5% | 101.38% | 80% | 90% | 90% |
| USDC | 6% | 7.5% | 70% | 80% | 90% | 90% |
| USDT | 6% | 7.5% | 70% | 80% | 90% | 90% |
These recommendations are to align curves with current market demand and reduce fragmentation within the ecosystem.
LTV Recommendations
None at this time.
Euler Yield
Cap Recommendations
| Asset | Parameter | Current Value | New Value |
|---|---|---|---|
| mMEV | Supply Cap | 3,000,000 | 6,000,000 |
mMEV has seen extremely fast adoption since its recent listing on Yield and currently sits at 100% supply cap usage. Its TVL has risen from under $2M to over $10M in about 3 weeks. Given the growth rate, we are aligned on this proposal for the same increase by Objective Labs. However, we note that instant redemption capacity has actually decreased in 3 weeks, from ~$900k to ~$760k. We will continue to monitor this as redemptions remain the primary avenue for liquidation. Borrow exposure is primarily to USDC.
Interest Rate Curve Recommendations
| Asset | Current Kink Borrow APY | New Kink Borrow APY | Current Max Borrow APY | New Max Borrow APY | Current Kink | New Kink |
|---|---|---|---|---|---|---|
| USDC | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| USDT | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| wM | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| PYUSD | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| DAI | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| FDUSD | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| USDS | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| USD0 | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| RLUSD | 16.18% | 7.5% | 101.38% | 80% | 90% | 90% |
| USDe | 12.75% | 7.5% | 848.77% | 80% | 30% | 90% |
These recommendations are to align curves with current market demand and reduce fragmentation within the ecosystem. We are generally aligned with this proposal with similar changes by Objective Labs, though believe the kink APY can be reduced further and remain competitive due to the zero reserve factor for these assets.
LTV Recommendations
None at this time.
Euler Base
Cap Recommendations
None at this time.
Interest Rate Curve Recommendations
| Asset | Current Kink Borrow APY | New Kink Borrow APY | Current Max Borrow APY | New Max Borrow APY | Current Kink | New Kink |
|---|---|---|---|---|---|---|
| cbBTC | 2.79% | 1% | 122.55% | 100% | 85% | 85% |
| wstETH | 4.6% | 2.5% | 145.96% | 80% | 40% | 85% |
| EURC | 9.42% | 7.5% | 101.38% | 80% | 90% | 90% |
| USDC | 6% | 7.5% | 70% | 80% | 90% | 90% |
| USDS | 6% | 7.5% | 70% | 80% | 90% | 90% |
These recommendations are to align curves with current market demand and reduce fragmentation within the ecosystem.
LTV Recommendations
None at this time.
Next Steps
- We welcome community feedback