[Jul 2025] Non-critical Parameter Updates by Risk Stewards

Euler DAO Markets
21

CRS items for interest rate adjustments have been executed.

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22

[Gauntlet] – Parameter Updates on Euler Yield on Ethereum (2025-07-22)

Market Vault Borrow Cap Supply Cap
Euler Yield PT-cUSDO-20NOV2025 - 100M → 120M

Rationale:

  • PT-cUSD0 has a total TVL of 224M on Pendle, and $40M (Top 10 positions with lowest Health Factor) can be sold with <5% slippage.
  • The Supply Cap has reached 81% with strong demonstrated user demand.

Next Steps

  • We welcome community feedback.
1 Like
23

Objective is supportive of Gauntlet’s cap increase recommendation for PT-cUSDO-20NOV2025.

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24

This CRS item has been executed.

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25

[Gauntlet] – Parameter Updates on Ethereum (2025-07-24)

Market Vault Borrow Cap Supply Cap
Prime WETH 90K → 67.5K 100K → 75K
Prime cbETH 2500 → 1875 6250 → 4688
Prime ezETH 3120 → 2340 13000 → 9750
Prime rETH 1250 → 938 3130 → 2348
Prime rsETH 9000 → 6750 36K → 27K
Prime tETH 3000 → 2250 18K → 13.5K
Prime weETH 4500 → 3375 18K → 13.5K
Prime wstETH No Change 12.5K → 10K

Rationale:

  • Due to the increased number of withdrawal requests in the queue for LRTs / LSTs across the market, Gauntlet recommends reducing the Supply and Borrow Caps for WETH and its derivatives on Euler Prime to minimize the protocol’s risk exposure.
    • 25% decrease in caps if Borrow/Supply Cap Utilization is below 35%
    • 20% decrease in caps if Borrow/Supply Cap Utilization is between 35% to 50%

Next Steps

  • We welcome community feedback.
1 Like
26

[Gauntlet] – Parameter Updates on Base (2025-07-24)

Market Vault Borrow Cap Supply Cap
Base ezETH 1250 → 938 5000 → 3750
Base weETH 1250 → 938 5000 → 3750
Base wsuperOETHb 625 → 469 2500 → 1875
Base rETH 2000 → 1500 5000 → 3750
Base wstETH 2000 → 1500 5000 → 3750
Base cbETH 2000 → 1500 5000 → 3750
Base WETH 12700 → 9525 15000 → 11250

Rationale:

  • Due to the increased number of withdrawal requests in the queue for LRTs / LSTs across the market, Gauntlet recommends reducing the Supply and Borrow Caps for WETH and its derivatives on Euler Base to minimize the protocol’s risk exposure.
    • 25% decrease in caps if Borrow/Supply Cap Utilization is below 35%
    • 20% decrease in caps if Borrow/Supply Cap Utilization is between 35% to 50%

Next Steps

  • We welcome community feedback.
1 Like
27

[Gauntlet] – Parameter Updates on Unichain (2025-07-24)

Market Vault Borrow Cap Supply Cap
Unichain WETH 18K → 13.5K 20K → 15K
Unichain wstETH 750 → 563 3000 → 2250
Unichain ezETH 500 → 375 2000 → 1500
Unichain rsETH 500 → 375 2000 → 1500
Unichain weETH 12K → 9K 30K → 22.5K
LST wstETH 18K → 13.5K 20K → 15K
LST rsETH 9000 → 6750 10K → 7.5K
LST ezETH 9000 → 6750 10K → 7.5K
LST WETH 45K → 33K 50K → 37.5K

Rationale:

  • Due to the increased number of withdrawal requests in the queue for LRTs / LSTs across the market, Gauntlet recommends reducing the Supply and Borrow Caps for WETH and its derivatives on Euler Unichain to minimize the protocol’s risk exposure.
    • 25% decrease in caps if Borrow/Supply Cap Utilization is below 35%
    • 20% decrease in caps if Borrow/Supply Cap Utilization is between 35% to 50%

Next Steps

  • We welcome community feedback.

[Gauntlet] – Parameter Updates on Euler on Arbitrum (2025-07-24)

Market Vault Borrow Cap Supply Cap
Arbitrum weETH 15K → 11K 30K → 22.5K
Arbitrum wstETH 15K → 11K 30K → 22.5K
Arbitrum WETH 45K → 33K 50K → 37.5K

Rationale:

  • Due to the increased number of withdrawal requests in the queue for LRTs / LSTs across the market, Gauntlet recommends reducing the Supply and Borrow Caps for WETH and its derivatives on Euler Arbitrum to minimize the protocol’s risk exposure.
    • 25% decrease in caps if Borrow/Supply Cap Utilization is below 35%
    • 20% decrease in caps if Borrow/Supply Cap Utilization is between 35% to 50%

Next Steps

  • We welcome community feedback.
1 Like
28

Objective Labs is in agreement with Gauntlet’s CRS proposals. The rationale to reduce protocol risk downstream of the current LST withdrawal queue congestion is sound.

We remind that EVault’s AmountCap data type can only represent three significant digits, therefore some cap adjustments e.g. 15000 → 11250 cannot be internally represented, and must therefore be truncated (15000 → 11200).

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29

Objective Labs: Parameter Updates on Ethereum (2025-07-28)

Market Vault Supply Cap
Euler Yield PT-USDe-25SEP2025 5M → 10M

Rationale

Utilization has maxed out and to accommodate rising demand, Objective recommends increasing the supply cap by 100%. Liquidity depth simulation indicate a 10M PT-USDe-25SEP2025 swap can be executed with 0.5% slippage.

30

Gauntlet is aligned with the proposed cap adjustment for PT-USDe-25SEP2025.

PT-USDe-25SEP2025:

  • PT liquidity (~$20M) comfortably supports expanding the cap to 10M.

  • We note the PT matures in fewer than 60 days.

We will monitor demand post-implementation and recommend adjustments accordingly.

31

CRS updates dated 2025-07-24 and 2025-07-28 have been executed:

32

[Gauntlet] – Parameter Updates on Ethereum (2025-07-30)

Market Vault Borrow Cap Supply Cap
Euler Prime wstETH 5000 → 7500 10000

Rationale:

  • Due to an increase in recent user demand and wstETH’s Borrow Cap Utilization exceeding 85%, Gauntlet recommends increasing its Borrow Cap to 7500.

  • Liquidity onchain can liquidate the increased Borrow Cap with minimal slippage.

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Next Steps

  • We welcome community feedback.
1 Like
33

Objective is aligned with Gauntlet’s CRS item dated 2025-07-30. wstETH borrow demand has been going up across lending protocols due to the rate perturbations in ETH in the past few weeks.

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34

This CRS proposal has been implemented.

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