Summary
This proposal seeks to substantially increase the supply and borrow caps of weETH, USDC, and USDT0 vaults on Euler DAO’s Unichain market.
Optimism’s Superstacks campaign incentivizes Euler’s weETH and USDT0 vaults on Unichain with the highest 6x XP multiplier. Downstream of this incentive campaign, we have observed an unprecedented surge of supply demand in Euler’s weETH and USDT0 vaults, with second-order effects observed in the WETH and USDC vaults.
Caps were raised twice through CRS with the maximum 1.5x multipliers with the same filled hours after the cap raises were executed.
To keep Euler DAO’s Unichain market scaling effectively and satisfy unprecedent demand, we recommend the following cap adjustments:
| Market |
Vault |
Supply Cap |
Borrow Cap |
| Euler Unichain |
WETH |
20k |
18k |
| Euler Unichain |
weETH |
20k |
5k |
| Euler Unichain |
USDC |
100M |
90M |
| Euler Unichain |
USD₮0 |
100M |
90M |
[Gauntlet] - Euler Unichain Vaults Caps Recommendations
Summary
Gauntlet has reviewed Objective Lab’s proposal to significantly increase the supply and borrow caps for the weETH, USDC, and USDT0 vaults on Euler DAO’s Unichain market and supports the cap adjustments. For WETH, we lean toward a more measured adjustment, specifically, a 1.5x scaling, based on its current utilization and onchain circulation.
| Market |
Vault |
Supply Cap |
Borrow Cap |
| Euler Unichain |
WETH |
13500 |
12200 |
| Euler Unichain |
weETH |
20,000 |
5,000 |
| Euler Unichain |
USDC |
100,000,000 |
90,000,000 |
| Euler Unichain |
USD₮0 |
100,000,000 |
90,000,000 |
Rationale
Utilization
| market_type |
underlying_symbol |
supply_utilization |
borrow_utilization |
| Euler Unichain |
WETH |
0.488956 |
0.476115 |
| Euler Unichain |
USDC |
0.571119 |
0.533431 |
| Euler Unichain |
USD₮0 |
0.972452 |
0.663545 |
| Euler Unichain |
weETH |
0.999999 |
0.999408 |
WETH current supply cap is 9K with a supply cap utilization around 50%.
Onchain Circulation
WETH on Unichain: ~7.6K
Next Steps
- We welcome community feedback.
Gauntlet is closely tracking onchain circulation, and WETH on Unichain has rapidly increased to ~17K within hours of our recommendation. In light of this update, Gauntlet is aligned with Objective Labs proposal for WETH, weETH, USDC, and USDT0.
| Market |
Vault |
Supply Cap |
Borrow Cap |
| Euler Unichain |
WETH |
20,000 |
18,000 |
| Euler Unichain |
weETH |
20,000 |
5,000 |
| Euler Unichain |
USDC |
100,000,000 |
90,000,000 |
| Euler Unichain |
USD₮0 |
100,000,000 |
90,000,000 |
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