Thank you @Gauntlet for the thoughtful analysis. Objective aligned with the proposed supply cap increase.
eUSDe is practically a 1:1 ERC4626 wrapper of USDe with instant withdrawals. USDe is deeply liquid with a substantial chunk of liquidity in highly concentrated pools around 1.
Ethereal eUSDe is a highly strategic asset for Euler. The first supply cap ($5M) was filled within 3 days. The second supply cap increase ($10M) was filled in within than 5 hours. We believe that the large jump in supply cap is warranted to satisfy demand for eUSDe. We are also looking forward to Gauntlet’s risk analysis for PT-eUSDe on Euler Yield.