[VPD 1116] : Risk Parameter Update & Asset Off-boarding by GitGuru7 · Pull Request #706 · VenusProtocol/vips

GitGuru7 · 2026-05-11T11:06:35Z

VIP-622: May 2026 Risk Parameter Update & Asset Off-boarding

Background

The four active non-BNB Chain Venus deployments (Ethereum, Arbitrum, Base, zkSync) have been in an emergency-paused state since 2026-03-20, following the THE market exploit on 2026-03-15. BNB Core remained operational with parameter-level mitigations across several markets. This proposal specifies the formal off-boarding, parameter restoration, and cap right-sizing across all five Core deployments, and is a prerequisite cleanup pass ahead of unpausing the four chains.

BNB Chain Core Pool

Off-boarding actions

Removing as collateral (CF → 0%, borrow retained where useful)

DAI (current CF 75%, debt backed: $37k) — Sky Protocol's DAI → USDS migration has put DAI in effective deprecation. Leverage that depends on long-term DAI peg stability is a structurally worsening bet.

Already-deprecated assets (CF=0, caps → 0, borrows disabled)

THE, TUSD, FIL — collateral factor already 0%; this proposal formalizes the wind-down state.
MATIC — $94k supplied and $8k borrowed. Polygon's MATIC → POL token rebrand removes any structural path to renewed demand as collateral or debt.

BNB Core caps summary

Asset	Supply Cap	Supply Cap (rec)	Borrow Cap	Borrow Cap (rec)
BTCB	22,770	13,000	3,531	3,531
BNB	2.67M	1.6M	2.01M	800,000
WBNB	2.67M	300,000	2.01M	150,000
ETH	100,000	72,000	60,000	37,000
USDC	360M	180M	324M	110M
asBNB	216,000	130,000	—	—
xSolvBTC	2,000	1,200	—	—
wBETH	40,000	10,000	16,000	1,000
Cake	24M	18M	19.2M	500,000
FDUSD	100M	37M	80M	20M
XRP	24M	7.5M	6M	1M
USD1	16M	5M	14.4M	4M
lisUSD	12M	5M	10M	4M
DOGE	120M	80M	4.5M	3M
ADA	37.5M	15M	3M	3M
LTC	240,000	50,000	20,000	8,000
LINK	900,000	400,000	80,000	20,000
MATIC	—	—	—	0
SolvBTC	3,000	3,000	110	110
THE	14.5M	0	8M	0
TUSD	750,000	0	600,000	0
FIL	1.2M	0	90,000	0

(Markets not listed are unchanged or unaffected.)

Ethereum Core Pool

Off-boarding actions

Full delist (CF → 0%, caps → 0, borrow disabled)

TUSD (CF 75%, $230k supply, $78k borrow) — impaired issuer (2024 reserve discrepancy and 2025 SEC fraud charges against TrueCoin/TrustToken). Mint and redeem flows are no longer reliable.
EIGEN (CF 50%, $7k supply, $895 borrow) — governance token with dust usage; single borrower at 100%. Not an adopted collateral across the DeFi landscape in 2026.
BAL — governance token to a project with shutting-down leadership; we anticipate continued extreme volatility. CF already 0%.
yvUSDS-1, yvUSDC-1, yvUSDT-1, yvWETH-1 — empty markets; close out caps.

Removing as collateral (CF → 0%, kept as borrow asset)

DAI — same Sky DAI → USDS deprecation rationale as the BNB section.
crvUSD, USDe — less-robust non-yield-bearing stables. Keep them borrowable so users can borrow or earn deposit yield, but don't lend them collateral power that creates depeg risk on the collateral side.

Re-enable borrowing

Re-enable borrowing for USDT, WETH, WBTC, USDC, DAI, crvUSD, USDe, tBTC, USDS.

Caps summary

Asset	Supply Cap	Supply Cap (rec)	Borrow Cap	Borrow Cap (rec)
USDT	50M	5M	45M	4M
WETH	20,000	2,100	18,000	1,600
sUSDS	30M	4.5M	—	—
WBTC	1,000	65	850	52
USDC	50M	5M	45M	4M
TUSD	2M	0	1.8M	0
weETHs	2,800	2,000	—	—
LBTC	450	65	—	—
EIGEN	3M	0	1.5M	0
DAI	5M	5M	4.5M	4M
BAL	4.1M	0	700,000	0
crvUSD	10M	5M	9M	4M
USDe	30M	5M	25M	4M
sUSDe	20M	4M	—	—
tBTC	120	65	60	52
USDS	65M	5M	7.68M	4M
sFRAX	10M	4.3M	2M	2M
yvUSDS-1	640,000	0	—	0
yvUSDC-1	400,000	0	—	0
yvUSDT-1	630,000	0	—	0
yvWETH-1	56	0	—	0

Arbitrum Core Pool

Off-boarding actions

Keep borrows disabled / do not re-enable

ARB (CF 55%, $213k supply, $27k borrow) — borrow demand for ARB has been structurally weak both on Venus and across Arbitrum DeFi at large. Recommend keeping new borrows disabled after the emergency pause while reducing CF to 25%.

Re-enable borrowing

Re-enable borrowing for USD₮0, WBTC, WETH, USDC.

Caps summary

Asset	Supply Cap	Supply Cap (rec)	Borrow Cap	Borrow Cap (rec)
USD₮0	20M	5M	18M	4M
GM (0x47c0)	2.65M	2.65M	—	0
WBTC	900	65	500	52
GM (0x70d9)	2M	2M	—	0
WETH	26,000	2,100	23,500	1,600
USDC	54M	5M	49M	4M
ARB	16M	10M	9M	0

Base Core Pool

Off-boarding actions

Full delist

wsuperOETHb (CF 73%, $106 supply, zero borrow) — near-zero organic demand on Venus, and on-chain liquidity for wsuperOETHb on Base is stressed. If demand returns, we can revisit by listing it directly into an eMode pool rather than re-listing outside.

Keep borrows disabled / do not re-enable (CF retained)

wstETH — no organic borrow demand.

Re-enable borrowing

Re-enable borrowing for cbBTC, USDC, WETH.

Caps summary

Asset	Supply Cap	Supply Cap (rec)	Borrow Cap	Borrow Cap (rec)
cbBTC	400	65	200	52
USDC	30M	5M	27M	4M
WETH	10,000	2,100	9,000	1,600
wstETH	2,600	1,700	260	0
wsuperOETHb	2,000	0	—	0

zkSync Era Core Pool

Off-boarding actions

Full delist

ZK (CF 40%, $0 borrow) — increased market volatility since launch, materially low on-chain liquidity. Current zkSync DEX depth cannot facilitate even mid five-figure liquidations without significant slippage.
wUSDM (CF 0%, debt backed: $543k) — USDM is an asset from a shut-down protocol. CF is already 0 and borrows are already disabled. This formally zeroes supply and borrow caps.
zkETH — deprecated asset; formal cleanup.
wstETH (CF 71%, $7k Venus supply) — wstETH is generally a high-quality blue-chip collateral, but chain-wide wstETH on zkSync has fallen to ~$500k, with insufficient liquidity to facilitate material-sized liquidations. Off-board rather than grow this market.

Keep borrows disabled / do not re-enable (CF retained)

WBTC — no organic borrow demand.

Re-enable borrowing

Re-enable borrowing for WETH, USDT, USDC.e, USDC.

Caps summary

Asset	Supply Cap	Supply Cap (rec)	Borrow Cap	Borrow Cap (rec)
wUSDM	5M	0	4M	0
ZK	300M	0	100M	0
WETH	6,000	450	3,400	225
USDT	4M	1M	3.3M	800k
USDC.e	31M	1M	28M	800k
WBTC	90	5	45	0
USDC	35M	1M	27M	800k
wstETH	350	0	35	0
zkETH	650	0	—	0

(zkSync caps sit below the standard non-BNB benchmark, reflecting chain-wide liquidity constraints flagged in the off-boarding bullets above.)

Methodology notes

Cap sizing. Active supply and borrow caps are generally set to ~2× the maximum observed supply / borrow over the past 3 months. This is tightened where on-chain liquidity, concentration risk, or liquidator capacity would be stressed. For non-BNB deployments, caps are also bounded around ~$5M notional for stables, 2,100 WETH, and 65 WBTC, conditional on meeting liquidity considerations. Full-offboarded assets have caps set to zero.

Liquidation thresholds. Unchanged across this proposal. CF→0 actions affect new borrow power only and do not trigger liquidations on existing positions.

Disclosure

Allez Labs has not been compensated by any third party for publishing this report.

Source: Venus Community Forum

fred-venus

lgtm

fred-venus · 2026-05-14T07:03:55Z

+
+      const receipt = await tx.wait();
+      checkGasLimit("propose", receipt.gasUsed);
+


i believe similar logic has been added here https://github.com/VenusProtocol/vips/pull/708/changes

…of per-command checks

fred-venus · 2026-05-14T09:17:08Z

simulation on zksync wont work

GitGuru7 · 2026-05-14T21:00:24Z

simulation on zksync wont work

The issue was caused by a local ZkSync-node protocol version mismatch. I’ve updated the command and also added the instructions to run the simulations in the README. fixed here : 1a8b847.

fred-venus · 2026-05-15T07:54:43Z

https://venus.io/#/governance/proposal/622?chainId=56

- Add vip622Overrides.json hardcoding 20% floors for the 19 markets PR #706 right-sizes but hasn't yet executed on-chain - VIP merges overrides over the script snapshot per address, with a per-market source tag so reviewers can see at a glance which floors came from live state vs the VIP-622 hardcode - Unblocks publishing VIP-701 without waiting for VIP-622 to land

feat: add VIP for multi-chain core pool risk parameter cleanup

72171ad

GitGuru7 self-assigned this May 11, 2026

GitGuru7 changed the title ~~feat: add VIP for multi-chain core pool risk parameter cleanup~~ [VPD 1116] : Risk Parameter Update & Asset Off-boarding May 11, 2026

GitGuru7 added 3 commits May 11, 2026 17:54

refactor: simplify proposal commands

17ca2b7

refactor: verify unchanged caps

48599cb

refactor: clean up and improve code structure

32c2302

GitGuru7 marked this pull request as ready for review May 11, 2026 17:25

GitGuru7 requested review from Debugger022 and fred-venus May 11, 2026 17:26

GitGuru7 added 3 commits May 11, 2026 23:18

feat: add arb GM markets no-op config checks

33a7846

refactor: add eMode CF/borrow toggles and fold supply pause into delist

e7721fe

feat: add pool check in the simulations

983260c

fred-venus previously approved these changes May 13, 2026

View reviewed changes

GitGuru7 added 2 commits May 13, 2026 16:07

feat: add BNB governance tx gas tracking with 16M limit enforcement

69fcd30

feat: use CommandAggregator to reduce transaction gas costs

b473989

GitGuru7 dismissed fred-venus’s stale review via b473989 May 13, 2026 14:33

fred-venus reviewed May 14, 2026

View reviewed changes

revert: remove aggregator seeding script and tx limit check in favor …

e2d6fd6

…of per-command checks

fred-venus previously approved these changes May 14, 2026

View reviewed changes

chore: prepare VIP-622 for proposal

41b9de7

fred-venus dismissed their stale review via 41b9de7 May 14, 2026 09:26

fred-venus and others added 2 commits May 14, 2026 09:27

chore: update VIP-622 title, description, and import paths

5582190

fix: use zkSync protocol v29 for local anvil forks

1a8b847

fred-venus mentioned this pull request May 15, 2026

[VPD-1097]: add Phase1 Executor permission grant - BSC mainnet & Testnet #699

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fred-venus merged commit af8939b into main May 15, 2026
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[VPD 1116] : Risk Parameter Update & Asset Off-boarding#706

[VPD 1116] : Risk Parameter Update & Asset Off-boarding#706
fred-venus merged 13 commits into
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feat/vpd-1116-risk-paramater-update

GitGuru7 commented May 11, 2026 •

edited by fred-venus

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		const receipt = await tx.wait();
		checkGasLimit("propose", receipt.gasUsed);

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GitGuru7 commented May 11, 2026 • edited by fred-venus Loading Uh oh! There was an error while loading. Please reload this page.

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VIP-622: May 2026 Risk Parameter Update & Asset Off-boarding

Background

BNB Chain Core Pool

Off-boarding actions

BNB Core caps summary

Ethereum Core Pool

Off-boarding actions

Re-enable borrowing

Caps summary

Arbitrum Core Pool

Off-boarding actions

Re-enable borrowing

Caps summary

Base Core Pool

Off-boarding actions

Re-enable borrowing

Caps summary

zkSync Era Core Pool

Off-boarding actions

Re-enable borrowing

Caps summary

Methodology notes

Disclosure

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GitGuru7 commented May 11, 2026 •

edited by fred-venus

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