[Anthias Labs] - Risk Parameter Recommendations (11/27/2025)
Anthias Labs proposes the following parameter changes for the month of December. For more information on current parameters, please refer to our monitoring dashboard here.
Base
Summary
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| AERO Reserve Factor | 30% | 35% |
| VIRTUAL Reserve Factor | 30% | 35% |
| cbXRP Reserve Factor | 15% | 35% |
| tBTC Collateral Factor | 84% | 82% |
| tBTC Supply Cap | 90 | 50 |
IR Parameters
| VIRTUAL IR Parameters | Current Value | Recommended Value |
|---|---|---|
| Base | 0 | 0 |
| Kink | 0.6 | 0.7 |
| Multiplier | 0.23 | 0.23 |
| Jump Multiplier | 5 | 5 |
Rationale
AERO, cbXRP, & VIRTUAL
In light of the incidents on 10/10 and 11/4, which have resulted in substantial bad debt in these markets, we recommend raising the reserve factors in order to increase the rate at which protocol/market reserves are built up.
Additionally, for VIRTUAL, we propose adjusting the interest rate curve to prevent bad debt from accruing excessive interest. Current utilization stands at 61%, which has triggered the jump multiplier and resulted in elevated borrow rates. To mitigate this, we recommend increasing the kink from 60% to 70%. This adjustment will lower the borrow rate at the current utilization level.
We will proceed with this interest rate change unless the recapitalization of the VIRTUAL market using protocol reserves significantly reduces utilization. In this case, the change will be unnecessary and we will omit it from the on-chain proposal.
Current APYs
With reserve factor of 30%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 60% (kink) | 13.8% | 5.8% |
| 100% | 213.8% | 150% |
Projected APYs
With reserve factor of 35%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 70% (kink) | 16.1% | 7.3% |
| 100% | 166.1% | 108% |
tBTC
We recommend decreasing the collateral factor and supply cap for tBTC due to its limited liquidity compared to other BTC derivatives. For example, cbBTC and LBTC support swaps of $12M and $4M to USDC respectively before incurring 5% price impact, while tBTC DEX liquidity is much worse, supporting $750K in swaps to USDC before incurring 5% price impact.
Additionally, we recommend lowering the supply cap from 90 to 50, as the current cap of 90 remains largely unused.
OP Mainnet
Risk Parameters
| Parameters | Current Value | Recommended Value |
|---|---|---|
| weETH Supply Cap | 1,200 | 10 |
| weETH Borrow Cap | 220 | 3.5 |
Rationale
weETH
DEX liquidity for weETH on OP Mainnet has decreased significantly; currently, less than 1 weETH can be swapped for USDC with under 5% slippage. Since September, large whales looping weETH (supplying weETH and borrowing WETH) have occupied nearly the entire supply cap. Although DEX liquidity was already limited at that time, these recursive positions were not at risk of liquidation due to the ~100% correlation between the supplied and borrowed assets. Following their exit, the cap remains greatly underutilized.
Given the limited DEX liquidity for weETH and the uncertainty that users will engage in recursive borrowing in the future, we recommend a risk-off approach in this market by substantially reducing both the supply and borrow caps, at least until DEX liquidity improves.
Moonriver
We recommend progressively reducing the collateral factors for assets on Moonriver. The price oracles supporting these markets are being deprecated, and as a result the markets themselves are being sunsetted. Minting and borrowing have already been disabled; users can now only withdraw their collateral or repay their outstanding debt.
To facilitate an orderly wind-down and encourage users to close their positions without unnecessary liquidations, we propose gradually lowering the collateral factors over time. This approach gives borrowers sufficient notice and opportunity to repay voluntarily, while avoiding abrupt forced liquidations wherever possible.
Chainlink is slated to deprecate the Moonriver price feeds on January 1st, 2026. Over the next month the plan is to fully reduce collateral factors to zero. The table below outlines the first reduction, the proposal is currently live and can be viewed here.
| Market | Previous CF | New CF |
|---|---|---|
| MOVR | 60% | 50% |
| xcKSM | 59% | 50% |
| FRAX | 50% | 40% |
In following proposals, the planned future CF reductions are as follows:
- 50/40% → 25%
- 25% → 0%
We advise that users with active positions on Moonriver repay loans to avoid liquidation. Below is a table of addresses that may get liquidated due to the proposed CF adjustment.
Newly liquidatable positions (after adjustment): 15
| Address | Collateral (USD) | Debt (USD) | HF change |
|---|---|---|---|
| 0x6b252eed6c28c076fa22c0f006d1d7161e0705ca | MOVR:$1,979 | MOVR:$1,112 | 1.068→0.890 |
| 0x341c0d386f630358e576a3bdfe10d9725867e142 | MOVR:$843 | MOVR:$487 | 1.039→0.866 |
| 0x016f4eb10196d247ae5eb2c9d6c2562d7db7e61c | XCKSM:$792 | XCKSM:$440 | 1.062→0.900 |
| 0x71f9b420a6b03d2fbe2c0d2aea5f4365b0e95774 | MOVR:$750 | MOVR:$432 | 1.042→0.868 |
| 0x749696fbee9c3b972d62bceb19ed38f9fedc261a | XCKSM:$362, MOVR:$273, FRAX:$7 | XCKSM:$208, MOVR:$122 | 1.154→0.971 |
| 0xbcba34246db4f560fc19b9a56111b90f8cadb248 | MOVR:$334, FRAX:$260 | MOVR:$169, FRAX:$143 | 1.059→0.869 |
| 0xfab783f85269b614ff41c80d8f46aef107ae3a90 | MOVR:$515 | MOVR:$260 | 1.188→0.990 |
| 0x391d396ebe8f48e17483561d6603066f7d7a0514 | MOVR:$414 | MOVR:$244 | 1.018→0.848 |
| 0xbd24b957413d1006ee642280e8777eeb7dbb0879 | MOVR:$323 | MOVR:$188 | 1.031→0.859 |
| 0xb3b535c41800b58fd8d52c3f312524500557e469 | MOVR:$129 | MOVR:$76 | 1.018→0.849 |
| 0xea4c5bd8fb85130439e01ee3a3f0348edcac0858 | MOVR:$97 | MOVR:$49 | 1.188→0.990 |
| 0xd1bf5f87c7f04f93e46521988940b5aea30eb7aa | FRAX:$75 | FRAX:$35 | 1.071→0.857 |
| 0xa88417d8c893248f2986c369e1bb62b2d9aec4f8 | MOVR:$24 | MOVR:$14 | 1.029→0.857 |
| 0x5be32da7627570c34da15b3410a15d6723d58306 | FRAX:$6 | FRAX:$3 | 1.000→0.800 |
| 0x3ddc62dc9901e1f4457ffaf728b934cc3de34105 | FRAX:$3, MOVR:$1 | FRAX:$2 | 1.050→0.850 |
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.