This proposal seeks approval to list USDtb as collateral and borrow asset on the Euler Yield and Euler Prime markets on Ethereum mainnet. USDtb’s addition will provide users with a more diverse choice when using Euler.
Motivation & Context
What Is USDtb
USDtb is a stablecoin backed by Blackrock’s BUIDL fund, built by Ethena Labs and distributed by Pallas (BVI) Limited, an unaffiliated party remote from Ethena Labs operations. USDtb is fully backed by Blackrock BUIDL, USDC, and USDT, with assets held in trusted custodians such as Copper, Komainu, and Coinbase Custody. There is full on-chain visibility into the backing assets for USDtb with this dashboard.
USDtb launched in Q4 2024, and has grown to over $1.4 billion as of this proposal’s writing. USDtb also has $20 million of market liquidity on Curve, which can be found in this pool. As eligible accepted counterparties can easily mint and redeem USDtb on demand, 24/7, USDtb has maintained parity with a dollar since its launch.
Benefits of USDtb
Onboarding USDtb to Euler will provide users with more choice when providing collateral or opening borrows to build DeFi strategies, such as looping on top of Pendle PTs or other forms of rewarding collateral.
Important Links and Details
USDtb website
USDtb documentation
Ethena website
Ethena Twitter/X account
Ticker: USDtb
Contract address: 0xC139190F447e929f090Edeb554D95AbB8b18aC1C
Github: ethena-labs · GitHub
Risk Parameters
We defer to Euler risk service providers to recommend reasonable risk parameters for USDtb
Oracles
USDtb has one primary oracle provider at the moment: Pyth. Pyth has two USDtb oracles live: 1) an on-chain price oracle that references liquidity pool pricing, and 2) a NAV rate oracle that verifies that backing assets are sitting in the correct custody addresses.
Implementation
Should this proposal pass, USDtb is to be added to the Euler Yield and Euler Prime Markets both as collateral and as a borrowable asset.
1 Like
[Gauntlet] - Parameter Recommendations for USDtb on Euler Prime and Euler Yield (2025-04-16)
Gauntlet has assessed the author’s proposal to list USDtb on Euler Prime and Euler Yield. The asset is developed by Ethena Labs, whose algorithmic dollar-pegged USDe has maintained relatively strong positioning from a market fluctuation and risk perspective, owing to a combination of reserves fidelity, transparency, and governance structure.
USDtb is backed directly, or slightly overcollateralized in its backing, primarily by BUIDL, BlackRock’s tokenized money market fund open only to whitelisted investors, and USDC and USDT. As the underlying are fiat-backed tokens, USDtb presents a generally less risky profile to users compared to a synthetic stablecoin, and its organizational structure with division between development, issuance, and custody further strengthens this position.
Concerning present risk, we note the following:
- All on-chain liquidity, about $20M, currently lives in the single Curve pool referenced by the author.
- “Instantaneous” redemption capacity is severely low, currently less than 20K USDC, which is a concern for liquidations. “Rapid” redemption capacity (defined within 24 hours) is currently 140M USDC (and 1.2B BUIDL).
- Over 96% of the current supply sits in an EOA which appears to be owned by Ethena.
We believe each of these points will mitigate as adoption of this new token expands. To control for the present liquidity profile, we recommend a NAV or otherwise fundamental oracle be used initially to price to USD. Given the asset backing structure, risk of any prolonged market depeg is minimal.
Cap Recommendations
For both Euler Prime and Euler Yield:
- Set USDtb supply cap to 20,000,000
- Set USDtb borrow cap to 18,000,000
We note that the recommendation for the same asset made recently to bootstrap the Euler T-bill market is higher at a 50M supply cap. This difference is due to the latter market being geared more toward institutional users with extremely low likelihoods of liquidation.
Interest Rate Curve Recommendations
Euler Prime
Set
- kink utilization of 90%
- kink borrow APY of 5%
- max borrow APY of 80%
Euler Yield
Set
- kink utilization of 90%
- kink borrow APY of 6.5%
- max borrow APY of 80%
LTV Recommendations
Euler Prime
| Collateral |
Debt |
LLTV |
Borrow LTV |
| USDtb |
cbBTC |
80% |
78% |
| USDtb |
cbETH |
80% |
78% |
| USDtb |
eBTC |
80% |
78% |
| USDtb |
ETHx |
80% |
78% |
| USDtb |
ezETH |
80% |
78% |
| USDtb |
LBTC |
80% |
78% |
| USDtb |
mETH |
80% |
78% |
| USDtb |
rETH |
80% |
78% |
| USDtb |
rsETH |
80% |
78% |
| USDtb |
tETH |
80% |
78% |
| USDtb |
SolvBTC |
80% |
78% |
| USDtb |
tBTC |
75% |
73% |
| USDtb |
USDC |
95% |
93% |
| USDtb |
USDS |
95% |
93% |
| USDtb |
USDT |
95% |
93% |
| USDtb |
WBTC |
82% |
80% |
| USDtb |
weETH |
80% |
78% |
| USDtb |
WETH |
87% |
85% |
| USDtb |
wM |
95% |
93% |
| USDtb |
wstETH |
83% |
81% |
| cbBTC |
USDtb |
80% |
78% |
| cbETH |
USDtb |
80% |
78% |
| eBTC |
USDtb |
77% |
75% |
| ETHx |
USDtb |
74% |
72% |
| ezETH |
USDtb |
77% |
75% |
| LBTC |
USDtb |
80% |
78% |
| mETH |
USDtb |
77% |
75% |
| rETH |
USDtb |
77% |
75% |
| rsETH |
USDtb |
77% |
75% |
| tBTC |
USDtb |
75% |
73% |
| tETH |
USDtb |
77% |
75% |
| USDC |
USDtb |
95% |
93% |
| USDS |
USDtb |
94% |
92% |
| USDT |
USDtb |
95% |
93% |
| WBTC |
USDtb |
75% |
73% |
| weETH |
USDtb |
80% |
78% |
| WETH |
USDtb |
85% |
83% |
| wM |
USDtb |
90% |
88% |
| wstETH |
USDtb |
87% |
85% |
Euler Yield
| Collateral |
Debt |
LLTV |
Borrow LTV |
| USDtb |
DAI |
95% |
93% |
| USDtb |
PYUSD |
95% |
93% |
| USDtb |
RLUSD |
95% |
93% |
| USDtb |
USD0 |
95% |
93% |
| USDtb |
USDC |
95% |
93% |
| USDtb |
USDS |
95% |
93% |
| USDtb |
USDT |
95% |
93% |
| USDtb |
USDe |
95% |
93% |
| USDtb |
sDAI |
95% |
93% |
| USDtb |
sUSDS |
95% |
93% |
| USDtb |
wM |
95% |
93% |
| USDtb |
wUSDL |
95% |
93% |
| USDtb |
wUSDM |
95% |
93% |
| DAI |
USDtb |
93% |
91% |
| PT-USD0+±26JUN2025 |
USDtb |
84% |
82% |
| PT-eUSDE-29MAY2025 |
USDtb |
86% |
82% |
| PT-sUSDE-29MAY2025 |
USDtb |
81% |
79% |
| PYUSD |
USDtb |
93% |
91% |
| USD0 |
USDtb |
90% |
88% |
| USD0++ |
USDtb |
90% |
88% |
| USDC |
USDtb |
95% |
93% |
| USDS |
USDtb |
93% |
91% |
| USDT |
USDtb |
95% |
93% |
| USDe |
USDtb |
90% |
88% |
| eUSDe |
USDtb |
88% |
84% |
| mBASIS |
USDtb |
90% |
88% |
| mEDGE |
USDtb |
95% |
93% |
| mMEV |
USDtb |
95% |
93% |
| sDAI |
USDtb |
93% |
91% |
| sUSDS |
USDtb |
93% |
91% |
| sUSDe |
USDtb |
90% |
88% |
| wM |
USDtb |
93% |
91% |
Next Steps
- We welcome community feedback.
Summary
Thank you @n_ethena for submitting this proposal. Objective Labs recommends the integration of USDtb on Euler Prime and Euler Yield. We believe this integration is highly strategic for Euler DAO and paves the way for closer collaboration between Ethena and Euler. Subject to approval by Ethena’s Risk Committee, Euler vaults can be onboarded as backing assets (similar to a direct deposit mechanism), which would unlock borrowable liquidity for Euler’s users and allow Ethena to generate extra lending yield in surplus of US treasury bill rates.
Fundamentals
USDtb is a bankruptcy remote USD stablecoin issued by Pallas (BVI) Ltd., a BVI business company wholly owned by Pallas Foundation, a Cayman Islands exempted foundation company limited by guarantee. Authorized parties can mint USDtb or redeem it to USDC, fiat, or BUIDL.
USDtb’s total supply is 1.44B, fully collateralized with blue-chip backing that consists of $1.30B in BlackRock’s BUIDL fund and 140M in USDC. USDtb targets a 90% allocation in BUIDL with the rest acting as a liquidity buffer to facilitate redemptions. USDtb’s backing is spread across public wallets held by regulated custodians: Coinbase, Copper and Komainu.
Distribution and Liquidity
97.8% of USDtb supply is held by Ethena-affiliated addresses. USDtb is used to back Ethena’s delta-neutral stablecoin USDe, providing an alternative source of yield when basis yield is low. Presently USDtb comprises 28% of the USDe portfolio.
USDtb has $20M in total DEX liquidity, allocated across a single USDtb/USDC pool on Curve. This pool can accommodate a $8M USDtb swap with 0.2% price impact. The sole LP in the pool is Ethena’s Reserve Fund.
Strategic Considerations
Due to USDtb’s unique distribution model we believe that the biggest strategic opportunity for Euler DAO with this listing is to onboard Euler vaults as backing for USDtb. This would allow Ethena to directly deposit USDtb on Euler, providing them with extra yield over the risk-free rate while unlocking important supply-side liquidity for Euler users. While this is subject to the approval of Ethena’s Risk Committee, we believe Euler DAO should signal eagerness to accommodate this provision by proactively onboarding USDtb on Euler Prime and Euler Yield.
Objective Labs: Risk Parameter Recommendations for USDtb on Euler Prime and Euler Yield
We are aligned with Gauntlet’s proposal for caps, interest rate model, and LTVs.