[Anthias Labs] Risk Parameter Recommendation (1/21/26)
Anthias Labs proposes the following parameter changes for the month of February. For more information on current parameters, please refer to our monitoring dashboard here.
Base
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| LBTC Collateral Factor | 84% | 83% |
| tBTC Collateral Factor | 82% | 81% |
| WELL Borrow Cap | 22M | 34M |
Cap changes will be made via Cap Guardian
IR Parameters
| cbBTC IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.7 | 0.45 |
| Multiplier | 0.0615 | 0.0615 |
| Jump Multiplier | 2 | 2 |
| LBTC IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.7 | 0.45 |
| Multiplier | 0.0615 | 0.0615 |
| Jump Multiplier | 2 | 2 |
| tBTC IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.7 | 0.45 |
| Multiplier | 0.0615 | 0.0615 |
| Jump Multiplier | 2 | 2 |
Rationale
cbBTC, LBTC & tBTC
The recommendation for a lower collateral factor for LBTC and tBTC stems from its distinct risk profile compared to assets like cbBTC. Unlike custodial BTC wrappers, LBTC introduces unique tail risks via Babylon staking, including slashing (currently capped/low-probability but non-zero) and depegs due to the unstaking period. tBTC faces unique depeg risk as well. These factors warrant a lower collateral factor compared to cbBTC (85%).
Additionally, we recommend amending the IR curve for cbBTC, LBTC, and tBTC. Over the past 90 days both has experience low utilization (<18% for cbBTC, <25% for LBTC, and <28% for tBTC). The current IR curve allows for smooth rate discovery under 70% utilization before rates spike. Since most of this range us not used we recommend a lower kink of 45%. Put simply, the protocol takes on unnecessary liquidity risk when it permits high utilization in under-utilized markets.
Pictured below: cbBTC utilization past 90d
Pictured below: LBTC utilization past 90d
Pictured below: tBTC utilization past 90d
Pictured below: Proposed IR curve for cbBTC, LBTC & tBTC
Current APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 70% (kink) | 4.31% | 2.71% |
| 100% | 64.31% | 57.87% |
Projected APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 45% (kink) | 2.77% | 1.12% |
| 100% | 112.77% | 101.49% |
WELL
WELL currently sits at 100% borrow cap utilization. We propose increasing the borrow cap by 12M WELL, an amount that whose DEX swap price impact is below ~5%.
Pictured below: WELL borrow cap utilization past 30d
OP Mainnet
Summary
IR Parameters
| USDC IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.9 | 0.9 |
| Multiplier | 0.067 | 0.0615 |
| Jump Multiplier | 9 | 9 |
| USDT IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.9 | 0.9 |
| Multiplier | 0.067 | 0.0615 |
| Jump Multiplier | 9 | 9 |
| USDT0 IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.9 | 0.9 |
| Multiplier | 0.067 | 0.0615 |
| Jump Multiplier | 9 | 9 |
Rationale
USDC, USDT, & USDT0
USDC, USDT, and USDT0 have experience lower-than-usual utilization over the past 30d. This signals a change in borrower behavior. Lower borrowing demand coincides with lower interest rates. To improve capital efficiency, we recommend amending the interest rate curves by reducing the multiplier. This flattens the curve from 0–90% utilization and lowers the borrow rate at the kink (90%), enabling the protocol to lend out more liquidity at more competitive rates
Pictured below: USDC utilization past 30d
Pictured below: USDT utilization past 30d
Pictured below: USDT0 utilization past 30d
Pictured below: Proposed IR curve for USDC, USDT, & USDT0
Current APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 90% (kink) | 6.03% | 4.88% |
| 100% | 96.03% | 86.43% |
Projected APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 90% (kink) | 5.53% | 4.48% |
| 100% | 95.53% | 85.89% |
Additional Links
Anthias Labs has not been compensated by any third party for any statements made. All opinions and suggestions provided are based solely on our independent analysis and are not influenced by external entities.