Cap Automator

Since launch, supply and borrow caps have been managed by our risk team @BlockAnalitica.

But as liquidity matured over time, the maximum possible caps were often larger than the on-chain demand (e.g., USDT0, at one point our largest stablecoin market, had a 95M supply cap, with only 10-15M actually supplied). While not inherently problematic, this creates unnecessary risk exposure in long-tail risk scenarios (as seen in cases like rsETH).

To address this, we adopted the on-chain Cap Automator contract (originally developed by SparkLend), deployed at 0x01f550365b99aE5B76533241c5BA8255441BA312.

Caps now expand based on demand, within predefined limits and rate controls:

• Under normal conditions, caps adjust automatically in line with usage (with limits and timers visible in the UI).

• During stressed conditions, automation can be paused to limit exposure