Objective Labs is aligned with Gauntlet’s recommendation to reduce caps for the outlined vaults in Euler Arbitrum. Our analysis confirms low supply and borrow cap utilization over the past 90 days.
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Objective Labs: Parameter Updates on Ethereum (2025-09-22)
| Market | Asset | Base rate | Kink | Rate at kink | Rate at 100% (max) |
|---|---|---|---|---|---|
| Euler Yield | USDC, USDT, PYUSD, RLUSD, wM, USDe, eUSDe, USDtb, rUSD, AUSD, frxUSD, USD1 | 5% → 4% | 90% | 10% → 8% | 20% |
Rationale
Objective Labs recommends lowering the base rate and the kink rate, as kink utilization for Euler Yield USDC and USDT has remained below 90% (64.3% and 67.6% of the time over the past 30 days, respectively). This adjustment will help ensure that we remain competitive with the current market dynamics.
| token | pct_below_90 |
|---|---|
| USDC | 64.3 |
| USDT | 67.6 |
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Gauntlet supports Objective Labs’ proposed updates to the IRM on Euler Yield and agrees with the outlined rationale.
Lowering the base rate from 5% to 4% and reducing the kink rate from 10% to 8% for the listed assets makes sense, especially since utilization has remained well below 90% for the past 30 days. If utilization trends begin to approach or exceed the kink, we can reevaluate parameters and recommend further adjustments.
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[Gauntlet] Parameter Updates on Arbitrum Yield (2025-09-24)
| Market | Vault | Supply Cap | Borrow Cap |
|---|---|---|---|
| Euler Arbitrum Yield | RLP | 7.5M → 11.25M | - |
Rationale
The RLP vault has reached its supply cap. To accommodate demonstrated user demand and support market growth, we recommend increasing the cap to 11.25M.
Next Steps
- We welcome community feedback.
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Objective Labs disagrees with the proposed increase to 11.25M at this time due to the current lack of sufficient liquidity. While we acknowledge the demonstrated user demand, raising the cap without stronger liquidity support could create unnecessary risks. We recommend maintaining the existing supply cap for now and will revisit the proposal to increase it once adequate liquidity becomes available to sustainably support further growth.
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[Gauntlet] Parameter Updates on Euler Prime (2025-09-25)
| Market | Vault | Supply Cap | Borrow Cap |
|---|---|---|---|
| Prime | sUSDe | 9.5M → 14M | - |
Rationale
sUSDe has demonstrated strong user demand on Euler Prime, consistently reaching its supply cap over the past several days. To accommodate this ongoing demand and support market growth, we recommend increasing the supply cap to 14M.
Next Steps
- We welcome community feedback.
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Objective Labs supports Gauntlet’s recommendation to increase the capacity of sUSDe on Euler Prime. Liquidity depth simulations shows up to $32M in sUSDe can be swapped with only 5% slippage, indicating strong market depth and stability.
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There are no new depositors in the eUSDe vault, and the APY keeps spiking. Could you provide any incentive rewards to attract new users,
[Gauntlet] - Parameter Update on Ethereum (10-08-2025)
Overview
Gauntlet proposes reducing supply and borrow caps for Euler Prime markets that have supply and borrow cap utilization below ≤10% over the past 60 days by 50%.
Rationale:
The outlined markets have demonstrated low user demand over the last 60 days, with peak utilization on both the borrow and supply sides 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.
| Markets | Borrow Caps | Supply Caps | Supply Cap Utilization 60 Day High | Borrow Cap Utilization 60 Day High |
|---|---|---|---|---|
| mETH | 0 | 6,250 | 0.00% | 0.00% |
| cbETH | 450 | 1,150 | 1.13% | 0.00% |
| ETHx | 0 | 2,500 | 0.00% | 0.00% |
| rETH | 200 | 550 | 8.86% | 5.00% |
Cap Recommendations
| Vault | Borrow Cap | Supply Cap |
|---|---|---|
| mETH | - | 6,250 → 3,130 |
| cbETH | 450 → 225 | 1,150 → 575 |
| ETHx | - | 2,500 → 1,250 |
| rETH | 200 → 100 | 550 → 275 |
Next Steps
- We welcome community feedback.
[Gauntlet] - Parameter Updates on Ethereum (10-08-2025)
Overview
Gauntlet proposes reducing supply and borrow caps for Euler Yield markets that have supply and borrow cap utilization below ≤10% over the past 60 days by 50%.
Rationale:
The outlined markets have demonstrated low user demand over the last 60 days, with peak utilization on both the borrow and supply sides 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.
| Markets | Borrow Caps | Supply Caps | Supply Cap Utilization 60 Day High | Borrow Cap Utilization 60 Day High |
|---|---|---|---|---|
| PYUSD | 4,500,000 | 5,000,000 | 0.00% | 0.00% |
| AUSD | 900,000 | 1,000,000 | 0.00% | 0.00% |
| mUSD | 4,500,000 | 5,000,000 | 0.00% | 0.00% |
Cap Recommendations
| Vault | Borrow Cap | Supply Cap |
|---|---|---|
| PYUSD | 4.5M → 2.25M | 5M → 2.5M |
| AUSD | 900K → 450K | 1M → 0.5M |
| mUSD | 4.5M → 2.25M | 5M → 2.5M |
Next Steps
- We welcome community feedback.
[Gauntlet] - Parameter Updates on Base (10-08-2025)
Overview
Gauntlet proposes reducing supply and borrow caps for Euler Base markets that have supply and borrow cap utilization below ≤10% over the past 60 days by 50%.
Rationale:
The outlined markets have demonstrated low user demand over the last 60 days, with peak utilization on both the borrow and supply sides 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.
| Markets | Borrow Caps | Supply Caps | Supply Cap Utilization 60 Day High | Borrow Cap Utilization 60 Day High |
|---|---|---|---|---|
| ezETH | 150 | 500 | 6.95% | 4.33% |
| USD₮0 | 5,400,000 | 6,000,000 | 0.00% | 0.00% |
| rETH | 200 | 500 | 4.27% | 0.13% |
Cap Recommendations
| Vault | Borrow Cap | Supply Cap |
|---|---|---|
| ezETH | 150 → 75 | 500 → 250 |
| USD₮0 | 5,400,000 → 2,700,000 | 6,000,000 → 3,000,000 |
| rETH | 200 → 100 | 500 → 250 |
Next Steps
- We welcome community feedback.
[Gauntlet] - Parameter Updates on Arbitrum (10-08-2025)
Overview
Gauntlet proposes reducing supply and borrow caps for Euler Arbitrum markets that have supply and borrow cap utilization below ≤10% over the past 60 days by 50%.
Rationale:
The outlined markets have demonstrated low user demand over the last 60 days, with peak utilization on both the borrow and supply sides 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.
| Markets | Borrow Caps | Supply Caps | Supply Cap Utilization 60 Day High | Borrow Cap Utilization 60 Day High |
|---|---|---|---|---|
| weETH | 5,500 | 11,300 | 3.85% | 2.59% |
| ezETH | 90 | 188 | 0.14% | 0.00% |
| ARB | 8,000,000 | 10,000,000 | 0.65% | 0.46% |
Cap Recommendations
| Vault | Borrow Cap | Supply Cap |
|---|---|---|
| weETH | 5,500 → 2,750 | 11,300 → 5,650 |
| ezETH | 90 → 45 | 188 → 94 |
| ARB | 8,000,000 → 4,000,000 | 10,000,000 → 5,000,000 |
Next Steps
- We welcome community feedback.
[Gauntlet] - Parameter Updates on Unichain (10-08-2025)
Overview
Gauntlet proposes reducing supply and borrow caps for Euler Unichain markets that have supply and borrow cap utilization below ≤10% over the past 60 days by 50%.
Rationale:
The outlined markets have demonstrated low user demand over the last 60 days, with peak utilization on both the borrow and supply sides 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.
| Markets | Borrow Caps | Supply Caps | Supply Cap Utilization 60 Day High | Borrow Cap Utilization 60 Day High |
|---|---|---|---|---|
| UNI | 100,000 | 125,000 | 1.19% | 0.30% |
Cap Recommendations
| Vault | Borrow Cap | Supply Cap |
|---|---|---|
| UNI | 100,000 → 50,000 | 125,000 → 62,500 |
Next Steps
- We welcome community feedback.
Objective Labs confirms the low activity on the listed Euler Prime vaults and supports Gauntlet’s recommendation to lower the Supply and Borrow caps as a proactive measure to reduce long tail risks and enhance protocol safety.
Objective Labs confirms the low activity on the listed Euler Yield vaults and supports Gauntlet’s recommendation to lower the Supply and Borrow caps as a proactive measure to reduce long tail risks and enhance protocol safety.
Objective Labs confirms the low activity on the listed Euler Base vaults and supports Gauntlet’s recommendation to lower the Supply and Borrow caps as a proactive measure to reduce long tail risks and enhance protocol safety.
Objective Labs confirms the low activity on the listed Euler Arbitrum vaults and supports Gauntlet’s recommendation to lower the Supply and Borrow caps as a proactive measure to reduce long tail risks and enhance protocol safety.
Objective Labs confirms the low activity on UNI for Euler Unichain vault and supports Gauntlet’s recommendation to lower the Supply and Borrow caps as a proactive measure to reduce long tail risks and enhance protocol safety.
