# USDS Asset Listing

**URL:** <https://forum.moonwell.fi/t/usds-asset-listing/1485>\
**Category:** Community Proposal\
**Created:** [December 31, 2024, 2:44am UTC](https://forum.moonwell.fi/t/usds-asset-listing/1485 "2024-12-31T02:44:14Z")\
**Posts on this page:** 1\
**Showing post:** 4

<div class="post-metadata">

**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/gauntlet/32/780_2.png) [@Gauntlet](https://forum.moonwell.fi/u/Gauntlet)\
**Post date:** [January 17, 2025, 9:05pm UTC](https://forum.moonwell.fi/t/usds-asset-listing/1485/4 "2025-01-17T21:05:29Z")

</div>

# [Gauntlet] - USDS Recommendations

## Summary

We recommend onboarding USDS as collateral on Moonwell’s Core lending markets on Base.

## USDS

### Risk Parameter Recommendations

| Parameters | Values |
| --- | --- |
| CF | 83% |
| Supply Cap | 750,000 |
| Borrow Cap | 690,000 |
| Protocol Seize Share | 30% |

### IR Recommendations

| IR Parameters | Recommended |
| --- | --- |
| Base | 0 |
| Kink | 0.9 |
| Multiplier | 0.067 |
| Jump Multiplier | 9 |
| Reserve Factor | 0.1 |

### Supporting Data

**Volatility & Max DD**

 ![Screenshot 2025-01-18 at 2.24.44 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/6/6cdf26026514269423578e9ecf85ad0e53e3e292.png)

The maximum and minimum daily log returns for USDS are 16.877% and -21.48% respectively over the past 180 days, this large deviation was primarly seen during USDS’s nascency. However, the annualized 30D log volatility stands at 11.82% indicating convergence of USDS to its underlying. Given this we recommend aligning USDS’s initial CF to that of USDC.

**Supply and Borrow Caps**

**DEX TVL**

| Pool Type | Pool Name | Pool TVL (USD) | 24H Volume (USD) | URL |
| --- | --- | --- | --- | --- |
| Aerodrome Slipstream | USDS / USDC 0.01% | $1.71M | $99,745.24 | [Link](https://www.geckoterminal.com/base/pools/0xa441378a1cb4df371535296e539a1e0def6924e4) |
| Aerodrome Slipstream | USDS / WETH 0.05% | $0.00M | $2,023.41 | [Link](https://www.geckoterminal.com/base/pools/0x4289a0666397f517c2a761652aaebaf6a4f7a693) |

**Total TVL:** $1.71 million

The total DEX TVL of USDS on Base currently stands at $1.7M. However, the on-chain circulating supply has surged exponentially from 1M USDS to 100M USDS, representing a 100x increase. This significant growth suggests that a portion of the increased supply is likely to flow into DEX liquidity.

 ![image](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/1/18763d2cb8b796acfc53ad8316688a1a907e5493.png)

Given this context, Gauntlet recommends implementing a conservative initial cap to align with current market conditions. As market demand and liquidity evolve, Gauntlet will leverage the cap guardian to adjust and increase caps accordingly.

 ![Screenshot 2025-01-18 at 2.20.50 AM](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/5/52ea97c26f4531af19092b923dcddbeb60a7968f.jpeg)

On Base, there is sufficient liquidity to trade upto 1M USDS tokens with a slippage of ~27%. We recommend setting the borrow cap at 690k USDS to adjust for kink level.

### IR Parameter Specifications

**USDS IR Curves**

 ![usdsir](https://europe1.discourse-cdn.com/flex017/uploads/moonwell/original/2X/3/3cdd6b490cdc0e30fe55fc67f9289fa5dfff26d9.png)

| Utilization | Borrow APR | Supply APR |
| --- | --- | --- |
| 0 | 0 | 0 |
| kink | 6.03 | 4.88 |
| 100 | 96 | 86.4 |

We recommend an IR curve with a borrow APR of 6% at kink.

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_[View the full topic](https://forum.moonwell.fi/t/usds-asset-listing/1485)._