# \[Sept 2025\] Non-critical Parameter Updates by Risk Stewards **URL:** \ **Category:** Markets\ **Created:** [September 1, 2025, 9:36pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636 "2025-09-01T21:36:27Z")\ **Posts on this page:** 20\ **Page:** 1
**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:** [September 1, 2025, 9:36pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/1 "2025-09-01T21:36:27Z")
_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) - [[Jul 2025] Non-critical Parameter Updates by Risk Stewards](https://forum.euler.finance/t/jul-2025-non-critical-parameter-updates-by-risk-stewards/1525/1) - [[Aug 2025] Non-critical Parameter Updates by Risk Stewards](https://forum.euler.finance/t/aug-2025-non-critical-parameter-updates-by-risk-stewards/1596/50) ## 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:** ![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:** [September 1, 2025, 9:39pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/2 "2025-09-01T21:39:57Z")
# [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. ---
**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:** [September 2, 2025, 10:54pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/3 "2025-09-02T22:54:44Z")
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. ---
**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:** [September 6, 2025, 4:11am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/4 "2025-09-06T04:11:57Z")
# [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. ---
**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:** [September 8, 2025, 10:06am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/5 "2025-09-08T10:06:31Z")
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 | ---
**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:** [September 9, 2025, 11:41pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/6 "2025-09-09T23:41:47Z")
# 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. ---
**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:** [September 10, 2025, 5:28am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/7 "2025-09-10T05:28:54Z")
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 | ---
**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:** [September 17, 2025, 5:39am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/8 "2025-09-17T05:39:12Z")
# **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 | ---
**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:** [September 18, 2025, 10:49am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/9 "2025-09-18T10:49:05Z")
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 ---
**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:** [September 18, 2025, 10:22pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/10 "2025-09-18T22:22:53Z")
# [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. ---
**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:** [September 18, 2025, 10:26pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/11 "2025-09-18T22:26:18Z")
# [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. ---
**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:** [September 18, 2025, 10:27pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/12 "2025-09-18T22:27:29Z")
# [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. ---
**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:** [September 18, 2025, 10:29pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/13 "2025-09-18T22:29:50Z")
# [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. ---
**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:** [September 19, 2025, 1:28pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/14 "2025-09-19T13:28:29Z")
# [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. ---
**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:** [September 19, 2025, 3:13pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/15 "2025-09-19T15:13:23Z")
Objective Labs is aligned with Gauntlet’s proposal to increase weETH in Euler Linea in order to support growing demand. ---
**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:** [September 19, 2025, 4:37pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/16 "2025-09-19T16:37:37Z")
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. ---
**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:** [September 19, 2025, 4:43pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/17 "2025-09-19T16:43:13Z")
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. ---
**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:** [September 20, 2025, 1:27pm UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/18 "2025-09-20T13:27:02Z")
# [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. ---
**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:** [September 21, 2025, 6:11am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/19 "2025-09-21T06:11:26Z")
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%. ---
**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:** [September 22, 2025, 2:01am UTC](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636/20 "2025-09-22T02:01:39Z")
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. [Next page](https://forum.euler.finance/t/sept-2025-non-critical-parameter-updates-by-risk-stewards/1636.md?page=2)