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

Euler DAO Markets
1

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.

1 Like
[Oct 2025] Non-critical Parameter Updates by Risk Stewards
[Dec 2025] Non-critical Parameter Updates by Risk Stewards
[Jan 2026] Non-critical Parameter Updates by Risk Stewards
2

[Gauntlet] Parameter Updates on Ethereum(2025-09-01)

Market Vault Supply Cap
Euler Yield USD0++ 6M → 3.7M

Rationale

Gauntlet recommends lowering the caps for USD0++ given the recent volatility in token price over the last two days. We will reevaluate caps once volatility stabilizes.

Next Steps

  • We welcome community feedback.
2 Likes
3

Objective Labs is aligned with Gauntlet’s recommendation to lower the caps for USD0++ given the recent price volatility. We support revisiting the caps once market conditions stabilize.

2 Likes
4

[Gauntlet] Parameter Updates on Ethereum (2025-09-05)

Market Vault Supply Cap
Euler Yield PT-USDe-25OCT2025 120M → 130M
Euler Yield PT-pUSDe-16OCT2025 60M → 70M

Rationale

Both PTs have reached ~100% of their supply cap. With less than 30 days remaining in their maturity periods, Gauntlet recommends increasing the supply caps to better accommodate the demonstrated user demand.

Next Steps

  • We welcome community feedback.
1 Like
5

Objective Labs is aligned with Gauntlet for increasing supply caps for PT-USDe-25SEP2025 and PT-pUSDe-16OCT2025.

Rationale

Simulated Cap Increase vs. Current Liquidity Composition

PT-USDe-25SEP2025 currently holds $118M in total liquidity, of which $54M in USDe (Sept 2025) SY serves as the effective reference liquidity for stressed market events.

Under the proposed cap increase from 120M to 130M, analysis of scaled up current open interest shows that even under a 5% decline in PT-USDe value, available liquidity remains sufficient to absorb liquidations. The system continues to operate without generating bad debt for Euler.

shock_mult price_drop_pct liquidatable_accounts scaled_debt scaled_collateral stressed_liquidity solvency_status liquidity_status
1 0 2 212.36k 224.44k 54.00m No bad debt Inside threshold
0.95 5 97 41.40m 44.85m 54.00m No bad debt Inside threshold
0.9 10 171 66.94m 69.97m 54.00m No bad debt Exceeds threshold

On the other hand, PT-pUSDe-16OCT2025 currently holds $98M in total liquidity, of which $52M in pUSDe (Oct 2025) SY serves as the effective liquidity reference under stressed conditions.

Under the proposed cap increase from 60M to 70M, scaled simulations of open positions indicate that even under a 10% price decline, no bad debt would be incurred. Furthermore, the total collateral subject to liquidation remains comfortably within the available stressed liquidity buffer.

shock_mult price_drop_pct liquidatable_accounts scaled_debt scaled_collateral stressed_liquidity solvency_status liquidity_status
1 0 0 0 0 52m No bad debt Inside threshold
0.95 5 33 25.98m 28.15m 52m No bad debt Inside threshold
0.9 10 67 35.63m 37.35m 52m No bad debt Inside threshold
0.85 15 74 37.56m 37.38m 52m Bad debt risk Inside threshold
0.8 20 76 37.62m 35.25m 52m Bad debt risk Inside threshold
1 Like
6

Gauntlet] Parameter Updates on Ethereum (2025-09-09)

Market Vault Supply Cap
Euler Yield PT-pUSDe-16OCT2025 70M → 80M

Rationale

The PT-pUSDe-16OCT2025 vault is nearing full utilization of its 70M supply cap. To support ongoing demand and market growth, we recommend increasing the cap to 80M. Our analysis indicates that even under stressed conditions, the Value at Risk for a 10% shock event would be approximately $38.9 million. This amount could be swapped with less than 5% slippage and no risk of Bad Debt.

Next Steps

  • We welcome community feedback.
1 Like
7

Objective Labs is aligned with Gauntlet’s recommendation to increase the PT-pUSDe-16OCT2025 vault cap from 70M to 80M. Under mild to moderate simulated stress events (5–10% asset price drops), solvency is maintained, and liquidity remains within acceptable thresholds, with no evidence of bad debt.

Stress Test Results

Shock Multiplier Price Drop % Liquidatable Accounts Scaled Debt Scaled Collateral Stressed Liquidity Solvency Status Liquidity Status
1.0 0% 0 0 0 51M No bad debt Inside threshold
0.95 5% 38 31.21M 33.76M 51M No bad debt Inside threshold
0.9 10% 84 44.45M 46.65M 51M No bad debt Inside threshold
0.85 15% 94 53.16M 53.65M 51M No bad debt Exceeds threshold
1 Like
8

Objective Labs: Parameter Updates on Ethereum (2025-09-17)

Market Vault Supply Cap
Euler Yield PT-USDe-25SEP2025 130M → 140M
Euler Yield PT-pUSDe-16OCT2025 80M → 90M

Rationale

Both the PT-USDe-25SEP2025 and PT-pUSDe-16OCT2025 pools demonstrate sufficient liquidity to safeguard against potential liquidation risks when assessed using the liquidity cascade simulation. The PT-USDe-25SEP2025 pool holds $114.33M in total liquidity, with $53.67M allocated as USDe, and can withstand a 5% decline in Ethena’s price when the cap is increased to $140M. Similarly, the PT-pUSDe-16OCT2025 pool, with $93.76M in total liquidity and $46.55M allocated as pUSDe, can absorb all collateral liquidations even under a 10% price drop, provided the cap is raised to $90M. Together, the liquidity cascade simulation confirms that both pools maintain robust buffers to fully mitigate collateral liquidation scenarios.

Cap Increase Liquidation Cascade Simulation PT-USDe

shock_mult price_drop_pct liquidatable_accounts scaled_debt scaled_collateral stressed_liquidity solvency_status liquidity_status
1 0 1 65.09k 65.30k 53.67m No bad debt Inside threshold
0.95 5 110 42.24m 45.84m 53.67m No bad debt Inside threshold
0.9 10 201 73.51m 77.09m 53.67m No bad debt Exceeds threshold

Cap Increase Liquidation Cascade Simulation PT-pUSDe

shock_mult price_drop_pct liquidatable_accounts scaled_debt scaled_collateral stressed_liquidity solvency_status liquidity_status
1 0 0 0 0 47m No bad debt Inside threshold
0.95 5 35 26.97m 29.02m 47m No bad debt Inside threshold
0.9 10 76 36.14m 37.61m 47m No bad debt Inside threshold
0.85 15 86 47.31m 47.86m 47m No bad debt Exceeds threshold
1 Like
9

Gauntlet is aligned with the cap increases suggested by Objective Labs on PT-USDe-25SEP2025 and PT-pUSDe-16OCT2025. Both the PT tokens have been having high demand and have low risk for adding caps

1 Like
10

[Gauntlet] Parameter Updates on Euler Prime (2025-09-18)

Vault Supply Cap Borrow Cap
cbETH 2300 → 1150 900 → 450
ETHx 2500 → 1250
rETH 1100 → 550 400 → 200
mETH 6250 → 3130
USDe 25M → 13M 22.5M → 12M

Rationale

The outlined markets have demonstrated low user demand over the past 90 days, with Supply and Borrow Cap utilization remaining consistently below 10%. To reduce risk exposure we recommend lowering the supply and borrow caps for these markets by 50%. We note that cap reductions will not affect currently open positions.

Vault 90D Max Supply cap Utilization 90D Max Borrow cap Utilization
cbETH 0% 0%
ETHx 0% 0%
rETH 8% 5%
mETH 0% 0%
USDe 0% 0%

Next Steps

  • We welcome community feedback.
1 Like
11

[Gauntlet] Parameter Updates on Euler Unichain(2025-09-18)

Vault Supply Cap Borrow Cap
UNI 250K → 125K 200K → 100K
rsETH 1500 → 750 375 → 190

Rationale

The outlined markets have demonstrated low user demand over the past 90 days, with Supply and Borrow Cap utilization remaining consistently below 20%. To reduce risk exposure we recommend lowering the supply and borrow caps for these markets by 50%. We note that cap reductions will not affect currently open positions.

Vault 90D Max Supply cap Utilization 90D Max Borrow cap Utilization
UNI 0.87% 0.29%
rsETH 18.9% 0%

Next Steps

  • We welcome community feedback.
1 Like
12

[Gauntlet] Parameter Updates on Euler Base (2025-09-18)

Vault Borrow Cap Supply Cap
rETH 400 → 200 1000 → 500
ezETH 300 → 150 1000 → 500

Rationale

The outlined markets have demonstrated low user demand over the past 90 days, with Supply and Borrow Cap utilization remaining consistently below 10%. To reduce risk exposure we recommend lowering the supply and borrow caps for these markets by 50%. We note that cap reductions will not affect currently open positions.

Vault 90D Max Supply cap Utilization 90D Max Borrow cap Utilization
rETH 3% 0%
ezETH 7% 4%

Next Steps

  • We welcome community feedback.
1 Like
13

[Gauntlet] Parameter Updates on Euler Arbitrum (2025-09-18)

Vault Borrow Cap Supply Cap
wstETH 11000 → 5500 22500 → 11500
rsETH 30 → 15 60 → 30
weETH 11000 → 5500 22500 → 11300
ezETH 180 → 90 375 → 187
WETH 33000 → 16500 37500 → 18800

Rationale

The outlined markets have demonstrated low user demand over the past 90 days, with Supply and Borrow Cap utilization remaining consistently below 10%. To reduce risk exposure we recommend lowering the supply and borrow caps for these markets by 50%. We note that cap reductions will not affect currently open positions.

Vault 90D Max Supply cap Utilization 90D Max Borrow cap Utilization
wstETH 7% 7%
rsETH 5% 0%
weETH 4% 3%
ezETH 0% 0%
WETH 9% 7%

Next Steps

  • We welcome community feedback.
1 Like
14

[Gauntlet] Parameter Updates on Linea (2025-09-19)

Market Vault Supply Cap Borrow Cap
Euler Linea weETH weETH 5000 → 7500 2500 → 3700

Rationale

The weETH vault has reached full utilization of its 5000 supply cap. To support ongoing demand and market growth, we recommend increasing the cap to 7500.

Next Steps

  • We welcome community feedback.
1 Like
15

Objective Labs is aligned with Gauntlet’s proposal to increase weETH in Euler Linea in order to support growing demand.

1 Like
16

Objective Labs is aligned with Gauntlet’s recommendation to lower the supply and borrow caps of the outlined markets, as these markets have shown utilization below 10% over the past 90 days. Reducing the caps will help mitigate long-tail risks. This cap change will not affect any current open positions in these markets.

1 Like
17

Objective Labs supports Gauntlet’s proposal in reducing the Supply and Borrow Caps of UNI and rsETH in Euler Unichain. We can also confirm both of these markets have been used less than 20% over the last 90 days.

1 Like
18

[Gauntlet] Parameter Updates on Arbitrum Yield (2025-09-20)

Market Vault Supply Cap Borrow Cap
Euler Arbitrum Yield RLP 5M → 7.5M -

Rationale

The RLP vault has reached its supply cap. To accommodate demonstrated user demand and support market growth, we recommend increasing the cap to 7.5M.

Next Steps

  • We welcome community feedback.
1 Like
19

Objective Labs is aligned with Gauntlet’s recommendation to increase the cap of the RLP Vault in Euler Arbitrum Yield. Our analysis of open interest positions indicates that even with a 10% price drop, accounts remain well-collateralized with strong health factors. Furthermore, RLP has shown stable behavior, with its average daily price range over the past 90 days holding between 0.1% and 0.5%.

1 Like
20

Objective Labs is aligned with Gauntlet’s recommendation to reduce caps for rETH and ezETH in Euler Base. Our analysis confirms low supply and borrow cap utilization for the two vaults over the past 90 days.

1 Like