Anthias labs would like to propose the following risk parameters for a VVV asset listing on Moonwell’s core markets on Base.
Risk Parameters
| Parameter | Recommended Value |
|---|---|
| Collateral Factor | 50% |
| Reserve Factor | 35% |
| Supply Cap | 170,000 |
| Borrow Cap | 0.1 |
IR Parameters
| Parameter | Recommended Value |
|---|---|
| Base | 0 |
| Multiplier | 0.16 |
| Kink | 35% |
| Jump Multiplier | 3.5 |
Projected APYs
With reserve factor of 35%
| Utilization | Borrow APY | Supply APY |
|---|---|---|
| 0% | 0% | 0% |
| 35% (kink) | 5.60% | 1.27% |
| 100% | 200.60% | 130.39% |
Oracle Configuration
We recommend using Chainlink’s VVV/USD market price oracle to price VVV.
Link: VVV / USD Price Feed | Chainlink
Address: 0xaABc55Ca55D70B034e4daA2551A224239890282F
Liquidity
Liquidity is strong for VVV on Base. On Aerodrome, approximately 400K ($2.4M) VVV can be swapped for USDC before price impact nears the liquidation bonus of 7%. 24hr trading volume on Aerodrome also exceeds $2M.
Volatility
Looking at the 30d annualized volatility of VVV over the past year, we see it typically falling in line with other assets such as AERO and Virtual. However recently, VVV is experiencing a period of high volatility. Current metrics for assets depicted on the graph are as follows:
Recorded at 2026-03-12 00:00:00 UTC
- VVV: 262.87%
- CBBTC: 51.76%
- WETH: 69.29%
- VIRTUAL: 107.36%
- AERO: 114.08%
Volatility primarily determines how we set the collateral factor, as a higher collateral factor provides a larger buffer between the point where a position becomes eligible for liquidation and the point where it becomes insolvent (i.e., underwater). For reference, WETH has a collateral factor of 84%, and AERO 65%. Given VVV’s recent volatility profile, we recommend setting an initially conservative collateral factor of 50%.
Risk Disclosure
The main risk we see for the asset VVV lies with the mint function. Only the owner has access to the mint function, which allows an arbitrary (uncapped) amount of VVV to be minted. The owner role is currently granted to the staking contract, which schedules emissions of the token. This staking contract is an upgradeable proxy controlled by a 3/5 multisig. In other words, the integrity of the VVV token supply lies in the hands of this multisig. If this multisig were to be compromised, uncapped minting of VVV would become possible. This could create bad debt for Moonwell if a large amount of VVV tokens were minted and dumped on the open market, crashing the price of VVV and leaving borrowed positions undercollateralized. This particular risk can be effectively managed by setting conservative supply caps as well as by monitoring for any staking contract upgrade events or unusual emission activity.
Another risk, which applies to all non-bluechip volatile assets, relates to high collateral factors for assets like USDC and cbBTC. These permit borrowing of other tokens with only a small buffer. If those borrowed tokens are especially volatile and oracles underprice them by more than 12%, it opens the door for users to exploit the protocol by supplying USDC or cbBTC as collateral and over-borrowing the underpriced asset. For this reason, we wish to disable borrowing of VVV by setting the borrow cap to 0.1.
Summary
In summary, we propose launching VVV as a collateral-only market (borrow cap effectively 0) with conservative collateral factor and supply cap parameters to limit exposure.