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

Euler DAO Markets
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This is the monthly continuation of CapRiskSteward updates.

Previous update threads:

Summary

Euler Labs and Objective Labs recently developed 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.

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Objective Labs: Parameter Updates on Unichain (2025-06-03)

Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 6.75k → 10k 1.68k → 2.5k
Euler Unichain USDC 45M → 67.5M 40.5M → 60.7M
Euler Unichain USD₮0 45M → 67.5M 40.5M → 60.7M

Rationale

  • Euler Unichain weETH has hit 100% supply cap within hours of the last cap raise. Demand has increased after Optimism’s SuperStacks XP campaign that incentivizes this vault.
  • Euler Unichain USDâ‚®0 has hit 100% supply cap within hours of the last cap raise. Demand has increased after Optimism’s campaign.
  • Euler Unichain USDC is expected to grow in tandem with USDâ‚®0 as leverage traders borrow USDC.

Note: we have posted an out-of-CRS proposal to increase caps on the same Unichain vaults: Increase caps on Euler Unichain vaults. If the timelocked proposal passes before, then this CRS item will be moot. If not, we intend to execute this CRS as soon as possible to satisfy supply demand.

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As a response to demand on Unichain, this CRS proposal has been executed intermittently on Jun-04-2025 11:18:15 AM +UTC.

Intermittent parameter updates

Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 6.75k → 9k 1.68k → 2.25k
Euler Unichain USDC 45M → 60M 40.5M → 54M
Euler Unichain USD₮0 45M → 60M 40.5M → 54M

The multiplier for these increases ~1.33x, close to the maximum capacity (2/3 days * 1.5x).

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Gauntlet: Parameter Updates on Unichain (2025-06-06)

Asset Base rate Kink Rate at kink Rate at 100% (max)
weETH 0% 25% → 40% 0.5% → 1% 80%
Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 20,000 (No change) 5,000 → 8,000

Rationale

  • Euler Unichain weETH has hit 100% of the borrow cap within a few hours of the last cap raise. Demand has been steadily rising since the launch of the Optimism SuperStack XP Campaign.
  • Revising the kink should allow increasing the borrow cap from 5,000 to 8,000 for weETH without raising the supply cap, which is currently at approximately 75% utilization.
    weETH Borrow Demand
    weETH Borrow Demand3098Ă—1542 175 KB

Next Steps

  • We welcome community feedback.
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Optimism’s Superstacks XP campaign has exceeded expectations for borrow demand, pushing the WETH vault above 90% utilization for the last 48 hours. Objective Labs supports Gauntlet’s CRS proposal with an amendment to the IRM of the WETH vault. We believe these changes will act to balance forces of supply and demand in the Unichain market.

Asset Base rate Kink Rate at kink Rate at 100% (max)
weETH 0% 25% → 40% 0.5% → 1% 80%
WETH 0% 90% 2.4% → 2.7% 80% → 40%
Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 20,000 (No change) 5,000 → 8,000
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Objective Labs: Parameter Updates on Unichain (2025-06-08)

Market Vault Supply Cap Borrow Cap
Euler Unichain sUSDC 10M → 20M 8M → 16M

Rationale

  • Euler Unichain sUSDC has hit 100% of its initial supply cap and 58% of its initial borrow cap. Spark’s PSM3 contract currently has ~$10M instant redemption capacity.

Note: this CRS item will be executed together with the previous Unichain CRS items dated 2025-06-06.

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Objective Labs: Parameter Updates on Ethereum (2025-06-08)

Market Vault Supply Cap Borrow Cap
Euler Yield RLUSD 100M 13.5M → 27M
Euler Yield mEDGE 2M → 1M 0
Euler Yield mMEV 2M → 1M 0

Rationale

  • Euler Yield RLUSD has reached $55M in supply and has hit 100% borrow cap.
  • Euler Yield mEDGE and mMEV have $5.6M and $7.6M respective in borrowable USDC liquidity in their respective Frontier markets. This cap reduction is expected to encourage borrowers to migrate to Frontier.
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Gauntlet supports reducing exposure to mMEV and mEDGE on Euler Yield Markets, consistent with our rationale from May. We also support increasing the borrow cap on rlUSD, given the consistently strong demand shown by the cap regularly being fully utilized. Onchain liquidity supports increasing the borrow cap. We will monitor user demand moving forward to evaluate future cap adjustments.

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[Gauntlet]: Parameter Updates on Euler Yield (2025-06-12)

Summary

Gauntlet recommends the following risk recommendations to the protocol:

Cap Recommendations

We recommend increasing USDC on Euler Yield due to high utilization and supply & borrow caps being nearly full.

Symbol Supply Cap Borrow Cap
USDC 150M → 225M 135M → 200M

Rationale

  • Supply cap Utilization and Borrow cap Utilization are reaching closer to 90%.
  • USDC liquidity on Ethereum can support the cap increases.

Next Steps

  • We welcome community feedback.
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[Gauntlet]: Parameter Updates on Euler Yield (2025-06-13)

Summary

Gauntlet recommends the following risk recommendations to the protocol:

Cap Recommendations

We recommend increasing rlUSD on Euler Yield as borrow caps are full and have demonstrated clear user demand.

Market Vault Supply Cap Borrow Cap
Euler Yield rlUSD 100M (no change) 27M → 40M

Rationale

  • Euler Yield rlUSD has reached $58M in supply
  • rlUSD’s has hit 100% of its borrow cap

Next Steps

  • We welcome community feedback.
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Objective Labs: Parameter Updates on Unichain (2025-06-15)

Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 20k → 25k 8k → 10k
Euler Unichain sUSDC 20M → 40M 16M → 32M

Rationale

  • Euler Unichain weETH has hit 100% of its supply cap and 79% of its borrow cap.
  • Euler Unichain sUSDC has hit 98% of its supply cap and 71% of its borrow cap.
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CRS items on Ethereum dated 2025-06-12 and 2025-06-13 have been executed on Jun-16-2025 06:29:59 AM UTC.

CRS item on Unichain dated 2025-06-15 has been executed on Jun-16-2025 06:51:13 AM +UTC.

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Summary

Gauntlet recommends the following risk recommendations to the protocol:

Cap Recommendations

Market Vault Supply Cap Borrow Cap
Euler Unichain weETH 25k ->30k 10k ->12k
Euler Yield RLUSD 100M (No change) 40M ->50M

Rationale

weETH on Unichain

  • Both supply and borrow cap utilizations are consistently above 90%.
  • We recommend a cautious 1.2x increase considering weETH & USDT0 Superstacks points were recently reduced from 6x to 3x.
  • weETH liquidity on Unichain continues to mature.

RLUSD on Euler Yield

  • Borrow cap utilization has been maxed out since the recent cap raise.
  • Incentives are ending on July 18th.

Next Steps

  • We welcome community feedback.
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Objective Labs has reviewed Gauntlet’s CRS recommendations dated 2025-06-17 and agrees with the rationale.