[Gauntlet] - VIRTUAL Recommendations
Summary
We recommend onboarding VIRTUAL as collateral on Moonwell’s Core lending markets on Base.
VIRTUAL
Risk Parameter Recommendations
| Parameters | Values |
|---|---|
| CF | 65% |
| Supply Cap | 4,500,000 VIRTUAL |
| Borrow Cap | 2,300,000 VIRTUAL |
| Protocol Seize Share | 30% |
IR Recommendations
| IR Parameters | Recommended |
|---|---|
| Base | 0 |
| Kink | 0.45 |
| Multiplier | 0.23 |
| Jump Multiplier | 5 |
| Reserve Factor | 0.3 |
Supporting Data
Volatility & Max DD
Over the past 180 days, VIRTUAL’s daily log returns have ranged from a maximum of 102.88% to a minimum of -36.8%. The annualized 30-day log volatility stands at 246.93%, indicating extended periods of high price fluctuation. In light of this volatility, we recommend setting the Collateral Factor at a more conservative 65%.
Supply and Borrow Caps
DEX TVL
| pool_type | pool_name | pool_url | pool_tvl_usd | volume_24h_usd |
|---|---|---|---|---|
| aerodrome-base | VIRTUAL / cbBTC | Link | 34.60 | 7933671.62 |
| aerodrome-base | VIRTUAL / WETH | Link | 34.60 | 2389605.70 |
| uniswap-v2-base | VIRTUAL / WETH | Link | 11.96 | 10993936.95 |
| aerodrome-slipstream | VIRTUAL / WETH 0.7% | Link | 4.76 | 17199791.70 |
| uniswap-v3-base | VIRTUAL / WETH 0.3% | Link | 2.44 | 2361867.85 |
| uniswap-v3-base | VIRTUAL / WETH 0.05% | Link | 2.07 | 23289796.13 |
| aerodrome-slipstream | VIRTUAL / WETH 0.05% | Link | 0.49 | 11774430.44 |
Total TVL: 90.92mil
The total DEX TVL of VIRTUAL on Base currently stands at $132M. However, we’ve discounted other sources of liquidity such as AGENT-VIRTUAL pairs. We’d also like to flag to the community the recent motivation to expand Virtual to Solana, which might bring short term variance to DEX TVL on Base.
Given the above reasons, we would like to set supply caps to be more conservative and at level that incurs only 10% slippage, implying a supply cap of 4.5M VIRTUAL and a borrow cap of 2.3M VIRTUAL.
IR Parameter Specifications
VIRTUAL IR Curves
| Utilization | Borrow APR | Supply APR |
|---|---|---|
| 0 | 0 | 0 |
| kink | 10.35 | 3.26 |
| 100 | 285.35 | 199.7 |
We recommend an IR curve with a borrow APR of 10.35% at kink.