[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.