# \[Jul 2025\] Non-critical Parameter Updates by Risk Stewards **URL:** \ **Category:** Markets\ **Created:** [July 1, 2025, 11:47am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525 "2025-07-01T11:47:26Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 1, 2025, 11:47am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/1 "2025-07-01T11:47:26Z")
_This is the monthly continuation of CapRiskSteward updates._ Previous update threads: - [[April 2025] Non-critical Parameter Updates by Risk Stewards](https://forum.euler.finance/t/april-2025-non-critical-parameter-updates-by-risk-stewards/1364) - [[May 2025] Non-critical Parameter Updates by Risk Stewards](https://forum.euler.finance/t/may-2025-non-critical-parameter-updates-by-risk-stewards/1391) - [[Jun 2025] Non-critical Parameter Updates by Risk Stewards](https://forum.euler.finance/t/jun-2025-non-critical-parameter-updates-by-risk-stewards/1423/1) ## Summary Euler Labs and Objective Labs recently [developed](https://forum.euler.finance/t/optimizing-on-chain-management-of-euler-vaults/1357) the `CapRiskSteward` smart contract as a fast lane for non-critical parameter updates. Following its implementation for the Euler DAO markets, we propose that service providers follow a notification process for in-scope changes. By establishing this process we seek to give the Euler community full transparency into the work done by service providers to optimize and grow Euler DAO markets. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 1, 2025, 11:50am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/2 "2025-07-01T11:50:25Z")
# Objective Labs: Parameter Updates on Ethereum (2025-07-01) | Market | Vault | Supply Cap | Borrow Cap | | --- | --- | --- | --- | | Euler Yield | PT-syrupUSDC-28AUG2025 | 15M → **30M** | 0 | | Euler Yield | USDC | 225M → **300M** | 200M → **270M** | | Euler Yield | RLUSD | 150M → **200M** | 100M → **180M** | ## Rationale - Euler Yield PT-syrupUSDC-28AUG2025 has reached 98% of its supply cap with 95% growth in the last 7 days. - Euler Yield USDC has reached 83% of its supply cap and 83% of its borrow cap with 22% supply growth in the last 7 days. - Euler Yield RLUSD has reached 82% of its supply cap and 98% of its borrow cap with 37% supply growth and 60% borrow growth in the last 7 days. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 2, 2025, 12:17pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/3 "2025-07-02T12:17:44Z")
# Objective Labs: Parameter Updates on Unichain (2025-07-02) | Market | Vault | Supply Cap | Borrow Cap | | --- | --- | --- | --- | | Euler Unichain | sUSDC | 40M → **80M** | 32M → **64M** | ## Rationale - Euler Unichain sUSDC has reached 96% of its supply cap with 30% growth over the last 7 days. ---
**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\ **Post date:** [July 2, 2025, 7:57pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/4 "2025-07-02T19:57:13Z")
Gauntlet is aligned with the proposed Cap adjustments for PT-syrupUSDC-28AUG2025, USDC, and RLUSD. **PT-syrupUSDC-28AUG2025** - PT liquidity (~$15M) comfortably supports expanding the cap to 30M, and we note it matures in fewer than 60 days. **USDC** - Deep on-chain liquidity justifies raising the supply cap to $300M and the borrow cap to $270M. **RLUSD** - Top RLUSD positions are borrowing stablecoins and then looping them to generate yield. - There has been strong demonstrated user demand. - Onchain liquidity can support the cap increase. We will monitor demand post-implementation and recommend adjustments accordingly. ---
**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\ **Post date:** [July 2, 2025, 8:11pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/5 "2025-07-02T20:11:44Z")
# [Gauntlet] – Parameter Updates on Euler Prime Ethereum (07-02-2025) | Symbol | Borrow caps | Supply caps | | --- | --- | --- | | **cbETH** | 5,000 → 2,500 | 12,500 → 6,000 | | **USDS** | 9,000,000 → 4,500,000 | 10,000,000 → 5,000,000 | | **rETH** | 2,500 → 1,250 | 6,250 → 3,125 | | **sUSDS** | 3,200,000 → 1,600,000 | 8,000,000 → 4,000,000 | **Rationale:** The 30-day high supply and borrow cap utilization is below 10%. To reduce risk exposure, we recommend a 50% reduction in supply and borrow caps. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 3, 2025, 4:33am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/6 "2025-07-03T04:33:30Z")
Objective Labs has reviewed Gauntlet’s CRS items on Ethereum dated 07-02-2025 and is fully aligned. Reducing caps for these vaults lowers tail risks. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 8, 2025, 4:58pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/7 "2025-07-08T16:58:03Z")
# Objective Labs: Parameter Updates on Ethereum (2025-07-08) | **Market** | **Vault** | **Supply Cap** | **Borrow Cap** | | --- | --- | --- | --- | | Euler Yield | PT-syrupUSDC-28AUG2025 | 30M → **45M** | 0 | | Euler Yield | PT-eUSDe-14AUG2025 | 70M → **35M** | 0 | | Euler Yield | PT-USDS-14AUG2025 | 20M → **10M** | 0 | ## Rationale - Euler Yield PT-syrupUSDC-28AUG2025 has reached 100% of its supply cap with 100% growth in the last 7 days. We recommend - Supply cap utilization for PT-eUSDe-14AUG2025 and PT-USDS-14AUG2025 remains below 10%. To prevent unnecessary risk exposure, we recommend reducing the supply caps by 50%. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 9, 2025, 2:59pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/8 "2025-07-09T14:59:47Z")
This CRS proposal has been executed on Jul-09-2025 02:59:11 PM UTC. > **[Ethereum Transaction Hash: 0x84c8037c39... | Etherscan](https://etherscan.io/tx/0x84c8037c3972c7de4fe34951a2b51ca04ce317a0d4fdbe92c672519253033147)** > > Call Exec Transaction Function By 0xb12e6e49...8819Eda87 on 0xBdAa3FCc...3896a976d | Success | Jul-09-2025 02:59:11 PM (UTC) ---
**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\ **Post date:** [July 9, 2025, 6:05pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/9 "2025-07-09T18:05:35Z")
# [Gauntlet] – Parameter Updates on Euler Yield on Ethereum (2025-07-09) | Market | Vault | Borrow Cap | Supply Cap | | --- | --- | --- | --- | | Euler Yield | mBASIS | - | 3M → 1.5M | | Euler Yield | syrupUSDC | 9M → 4.5M | 10M → 5M | **Rationale:** The 30-day supply and borrow cap utilization has been consistently low (below 10%). To reduce risk exposure, we recommend reducing them by 50%. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 10, 2025, 1:03pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/10 "2025-07-10T13:03:49Z")
Objective Labs supports Gauntlet’s CRS recommendations on Ethereum dated 2025-07-09. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 10, 2025, 1:26pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/11 "2025-07-10T13:26:41Z")
# Objective Labs: Parameter Updates on Unichain (2025-07-10) | Market | Vault | Supply Cap | Borrow Cap | | --- | --- | --- | --- | | Euler Unichain | USDC | 100M → **150M** | 90M → **135M** | ## Rationale - Euler Unichain USDC has reached 92% of its supply cap with 57% growth over the last 7 days. ---
**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\ **Post date:** [July 11, 2025, 5:24pm UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/12 "2025-07-11T17:24:59Z")
Gauntlet is aligned with the Objective Labs 2025-07-10 USDC CRS proposal on Euler Unichain. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 14, 2025, 9:20am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/13 "2025-07-14T09:20:06Z")
This CRS proposal has been executed on Jul-14-2025 09:19:23 AM UTC. > **[Ethereum Transaction Hash: 0x6c228995ce... | Etherscan](https://etherscan.io/tx/0x6c228995ce2b0d02f38943bec35dc0d8d3f5cde1c03d803f51ec574673d1e3b4)** > > Call Exec Transaction Function By 0xb12e6e49...8819Eda87 on 0xBdAa3FCc...3896a976d | Success | Jul-14-2025 09:19:23 AM (UTC) ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 14, 2025, 9:20am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/14 "2025-07-14T09:20:33Z")
This CRS proposal has been executed on Jul-14-2025 09:18:51 AM UTC. > **[Unichain Mainnet Network Transaction Hash: 0x4415f2371c... | Uniscan](https://uniscan.xyz/tx/0x4415f2371c9d16427db542f4b0c6c0519e469c0b4a5ce0baeb35ad76bd4cce24)** > > Call Exec Transaction Function By 0xb12e6e49...8819Eda87 on 0xBdAa3FCc...3896a976d | Success | Jul-14-2025 09:18:51 AM (UTC) ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 16, 2025, 6:37am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/15 "2025-07-16T06:37:06Z")
# Objective Labs: Parameter Updates on Ethereum (2025-07-16) | **Market** | **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** | | --- | --- | --- | --- | --- | --- | | Euler Yield | USDC, USDT, PYUSD, RLUSD, wM, USDS, DAI, USD0, USDe, USDtb | 0% | 90% | 7.5% **→ 9.0%** | 40% | | Euler Yield | rUSD | 0% | 90% | 7.0% **→ 8.5%** | 40% | | Euler Yield | eUSDe | 0% | 85% | 7.0% **→ 8.5%** | 40% | | Euler Prime | USDC, USDT, USDS, wM, USDtb, RLUSD, USDe | 0% | 90% | 5.5% **→ 6.5%** | 40% | ## Rationale - Raising stablecoin rates reflects current market conditions of increased borrowing demand and aligns Euler with prevailing DeFi interest rate trends. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 16, 2025, 6:40am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/16 "2025-07-16T06:40:52Z")
# **Objective Labs: Parameter Updates on Base (2025-07-16)** | **Market** | **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** | | --- | --- | --- | --- | --- | --- | | Euler Base | USDC, EURC, USDS, USDT0 | 0% | 90% | 5.0% **→ 6.5%** | 80% → **40%** | ## Rationale - Raising stablecoin rates reflects current market conditions of increased borrowing demand and aligns Euler with prevailing DeFi interest rate trends. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 16, 2025, 6:53am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/17 "2025-07-16T06:53:16Z")
# **Objective Labs: Parameter Updates on Arbitrum (2025-07-16)** | **Market** | **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** | | --- | --- | --- | --- | --- | --- | | Euler Arbitrum | USDC, USDT0 | 0% | 90% | 6.0% **→ 6.5%** | 40% | | Euler Arbitrum | sUSDS, sUSDC | 0% | 80% | 1.5% **→ 2%** | 40% | ## Rationale - Raising stablecoin rates reflects current market conditions of increased borrowing demand and aligns Euler with prevailing DeFi interest rate trends. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 16, 2025, 6:53am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/18 "2025-07-16T06:53:54Z")
# **Objective Labs: Parameter Updates on Unichain (2025-07-16)** | **Market** | **Asset** | **Base rate** | **Kink** | **Rate at kink** | **Rate at 100% (max)** | | --- | --- | --- | --- | --- | --- | | Euler Unichain | USDC, USDT0 | 0% | 90% | 6.0% **→ 6.5%** | 40% | | Euler Unichain | sUSDC | 0% | 80% | 1.5% **→ 2%** | 40% | ## Rationale - Raising stablecoin rates reflects current market conditions of increased borrowing demand and aligns Euler with prevailing DeFi interest rate trends. ---
**Author:** ![Gauntlet](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/gauntlet/32/611_2.png) [@Gauntlet](https://forum.euler.finance/u/Gauntlet)\ **Post date:** [July 18, 2025, 2:47am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/19 "2025-07-18T02:47:13Z")
# Adjusting Euler Stablecoin IRM Recs ## Background Objective Labs recently recommended raising kink rates for stablecoins across lending markets to reflect strong demand. We reviewed industry trends over the past 30 days and observed: - **Flat SSR** : Sky Savings Rate (SSR) has remained largely unchanged. ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/a634749fd2df17164f4bdd2a3bef4445e27eaf3b.jpeg) - **APY Spikes on Aave** : Sudden supply APR spikes for USDT and USDe on Aave, driven by rapid supply liquidity withdrawals. ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/eeda20f9f58e4ff78579a261cc102cca4154b47a.jpeg) While increasing kink rates can improve supply liquidity, repeated APY spikes on Euler Prime suggest an additional lever is needed to mitigate these sudden drops in supply liquidity. ## Key Observations - **Utilization Spikes on Euler Prime** - Frequent sudden drops in supply liquidity for USDC and USDT in Prime vaults over the last 30 days. ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/0a389703faa57f4abca5a2ba5f95b03eabed0dd1.jpeg) - Utilization briefly hits 100%, triggering the max-borrow APY (40%) and prompting APY-sensitive borrowers to exit positions. ![image](https://canada1.discourse-cdn.com/flex007/uploads/euler/original/1X/ed2e6138a61e63f50055c53cea4a563c08e5a941.jpeg) Chart: USDC APYs on Euler Prime Other Stables: - Similar utilization spikes are _not_ observed on other stablecoins, indicating that this happens more often with USDC and USDT. ## Proposed Parameter Changes To smooth borrow APY sensitivity and discourage abrupt position closures, we recommend: - Reducing the max‐borrow rate for USDC/USDT on Prime from 40% → 25% - As there are no major shifts observed from other lending protocols, a smaller increase in Kink rates for Euler Yield - Agree with the recommendations on other networks proposed by Objective Labs | Market | Asset | Base Rate | Kink (%) | Rate @ Kink | Rate @ 100% (Max) | | --- | --- | --- | --- | --- | --- | | **Euler Yield** | USDC, USDT, PYUSD, RLUSD, wM, USDS, DAI, USD0, USDe, USDtb | 0% | 90% | 7.5% → 8.0% | **40% → 25%** | | **Euler Yield** | rUSD | 0% | 90% | 7.0% → 7.5% | 40% | | **Euler Yield** | eUSDe | 0% | 85% | 7.0% → 7.5% | 40% | | **Euler Prime** | USDC, USDT, USDS, wM, USDtb, RLUSD, USDe | 0% | 90% | 5.5% → 6.5% | **40% → 25%** | ## Expected Outcomes & Risk Mitigation - **Reduced Borrower Churn** : Lowering max-APY cap to 25% makes brief utilization spikes less punitive, keeping positions open. - **Improved Liquidity Depth** : Higher kink-rate APR in Yield markets incentivizes additional liquidity provisioning. ## Summary By combining Objective Labs’ kink-rate adjustment with a reduced max-borrow rate on Prime, Euler can reduce APY volatility and encourage higher supply liquidity. Gauntlet actively monitors liquidity across lending protocols and will propose an increased kink rate when we see outsized borrowing demand across markets. We welcome community feedback. ---
**Author:** ![Objective](https://yyz1.discourse-cdn.com/flex007/user_avatar/forum.euler.finance/objective/32/830_2.png) [@Objective](https://forum.euler.finance/u/Objective)\ **Post date:** [July 18, 2025, 9:11am UTC](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/20 "2025-07-18T09:11:18Z")
Objective agrees with Gauntlet’s analysis of developing interest rate dynamics and is aligned with the adjusted recommendations. [Next page](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525.md?page=2)