Gauntlet - Parameter Recommendations for mBASIS on Euler Base (2025-03-05)
In light of the proposal by Midas, Gauntlet recommends the following risk parameters to the protocol. The rationale is similar to that for mEDGE and mMEV on Euler Prime that was posted on 2025/02/27, given the similar redemption and oracle pricing mechanisms.
We additionally note that because atomic liquidations currently require going through Midas protocol directly without the option of standard DEXes, we recommend that specialized liquidator bots be set up to monitor Midas markets on Euler.
Cap Recommendations
Gauntlet will recommend this asset is not initially borrowable as it presently has limited DeFi and DEX integration.
- Set supply cap to 2,000,000
- Set borrow cap to 0
Present TVL of mBASIS is $8.6M, though on Base the only atomic liquidity available to liquidators at present is limited to ~$600K available in a shared liquidity pool, which if depleted will require non-atomic redemptions until the pool is topped up again.
The proposed supply caps are mindful of expected TVL growth for this token while recognizing the present liquidity constraints.
Interest Rate Curve Recommendations
These assets are recommended to not be borrowable initially, so no IR curve need be set.
LLTV Recommendations
Here we aim to maximize risk-adjusted capital efficiency for users. We anticipate usage of markets in particular for looping mBASIS / USDC.
This table assumes mBASIS as the collateral asset.
Borrow LTVs are recommended as two percentage points less than the recommended LLTVs per collateral/debt pair.
| Debt | LLTV |
|---|---|
| USDC | 95% |
| USDS | 90% |
| EURC | 90% |
Next Steps
- We welcome community feedback