[Anthias Labs] Risk Parameter Recommendations (8/20/26)
Anthias Labs proposes the following parameter changes for the month of September. For more information on current parameters, please refer to our monitoring dashboard here.
Base
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| wrsETH Collateral Factor | 46% | 44% |
| rETH Borrow Cap | 200 | 0.01 |
Rationale
wrsETH
wrsETH is currently in the process of being deprecated. This proposal reduces its collateral factor from 46% to 44%, a change expected to have minimal impact on most existing users. However, it may affect one user in particular who is supplying 1.71 wrsETH and borrowing 0.84 WETH (0xea369b9b08e6247404d775e83bdae0adb8a9ab13). We urge this user to close their position to avoid liquidation.
| User Address | Collateral | Borrows | Health Factor |
|---|---|---|---|
| 0xea369b9b08e6247404d775e83bdae0adb8a9ab13 | 1.71 wrsETH ($4,294.38) | 0.84 WETH ($1,951.81) | 1.01 |
rETH
Historically, rETH has been one of the lowest-utilized markets on Moonwell, meaning there is little organic demand to borrow the asset. To reduce the impact of tail-risk scenarios and protect suppliers, we recommend decreasing the borrow cap from 200 to 0.01, effectively capping borrows at their current level (11.05 rETH). Notably, 11.05 rETH represents only 5.52% of current borrow cap utilization.
OP Mainnet
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| wrsETH Collateral Factor | 46% | 44% |
| cbETH Collateral Factor | 1% | 0% |
| VELO Borrow Cap | 6M | 4M |
Rationale
wrsETH
As mentioned above, wrsETH is in the process of deprecation. This proposal which reduces collateral factor from 46% to 44% should have no impact on existing users on OP Mainnet.
VELO
We recommend slightly reducing the VELO borrow cap to reduce tail-risk exposure. This is especially important for volatile assets such as VELO, as it limits the downside in tail-risk scenarios. For example, during periods of high volatility, an attacker could flash-loan USDC, borrow VELO, and swap it for USDC to repay the flash loan at a profit, provided the difference between the DEX price and the oracle price exceeds 12% (100% minus USDC collateral factor). By carefully managing the borrow cap, this risk is all but eliminated.
Pictured below: A DEX swap of 4M VELO for USDC yields ~5% slippage
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.