[Anthias Labs] Risk Parameter Recommendation (2/19/26)
Anthias Labs proposes the following parameter changes for the month of March. 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 | 83% | 82% |
| cbBTC Borrow Cap | 640 | 90 |
| AERO Borrow Cap | 25M | 7.5M |
| wstETH Borrow Cap | 1200 | 500 |
| cbETH Reserve Factor | 15% | 20% |
Cap changes will be made via Cap Guardian
IR Parameters
| USDC IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.9 | 0.9 |
| Multiplier | 0.08 | 0.068 |
| Jump Multiplier | 9 | 9 |
| cbETH IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.35 | 0.45 |
| Multiplier | 0.061 | 0.081 |
| Jump Multiplier | 3.5 | 3 |
Rationale
USDC
Over the past 30 days, stablecoin interest rates have declined amid the onset of the bear market. Borrow rates have remained below 6%, while utilization has stayed under 75% under the current interest rate model.
We propose reducing the multiplier from 0.08 to 0.068. This adjustment would lower the kink interest rate from 7.2% to 6.12%. The goal is to push utilization closer to the kink point, thereby improving overall capital efficiency.
Pictured below: USDC interest rate and utilization history past 30d
Current APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 90% (kink) | 7.20% | 5.83% |
| 100% | 97.20% | 87.48% |
Projected APYs
With reserve factor of 10%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 90% (kink) | 6.12% | 4.96% |
| 100% | 96.12% | 86.51% |
LBTC
To further differentiate the distinct risk profile of LBTC from cbBTC (which currently has a collateral factor of 85%), we propose reducing LBTC’s collateral factor by 1%. This small adjustment is deliberately conservative and designed to avoid any impact on existing positions. As previously discussed, the rationale for assigning LBTC a modestly lower collateral factor stems from its unique risk characteristics relative to custodial BTC wrappers like cbBTC (e.g., slashing & depeg risk).
cbBTC, AERO, wstETH
We propose modestly lowering the borrow caps for cbBTC, AERO, and wstETH to better protect suppliers during tail-risk events, where large amounts of unutilized supply could be borrowed rapidly and en masse, risking liquidity strain or amplified downside. Borrow caps limit the total amount of an asset that can be borrowed at any time. When set well above current supply, they offer little protection, allowing up to 100% of supplied assets to be borrowed out. By aligning caps closer to existing supply levels, we ensure: normal borrowing activity remains unaffected, exposure to severe tail scenarios (mass borrowing in stress, oracle issues, or exploits) is significantly reduced, and suppliers gain meaningful downside protection tied to current supply levels in these markets.
cbETH
In the wake of a recent incident stemming from a configuration error in the cbETH oracle, we propose adjustments to the interest rate curve to facilitate the repayment of bad debt. With current high cbETH utilization levels (above kink), interest rates have surged to unsustainable levels. The revised curve would lower the rate at full utilization, providing breathing room as funds are assembled to address the bad debt and restore fairness to suppliers impacted by unjust liquidations. Additionally, we suggest elevating the reserve factor to 20%, ensuring that a larger share of the elevated interest accrues to reserves and curbing the risk of compounding debt through runaway interest accumulation.
Current APYs
With reserve factor of 15%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 35% (kink) | 2.13% | 0.64% |
| 100% | 229.64% | 195.19% |
Projected APYs
With reserve factor of 20%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 45% (kink) | 3.65% | 1.31% |
| 100% | 168.64% | 134.92% |
OP Mainnet
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| VELO Borrow Cap | 20M | 6M |
Cap changes will be made via Cap Guardian
Rationale
VELO
We recommend decreasing the borrow cap from 20M to 6M. The current borrow cap is currently only 9% utilized. With little borrowing demand, this change should have little effect on borrowers while offering more protection for suppliers. This change is necessary due to decreased on-chain liquidity for VEVO, where around $60K or 4M VEVO can be swapped under 7% slippage (liquidation bonus).
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.