# Cap Automator

Since launch, supply and borrow caps have been managed by our risk team [@BlockAnalitica](https://twitter.com/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](https://x.com/BlockAnalitica/status/1765395680833740892)), deployed at [0x01f550365b99aE5B76533241c5BA8255441BA312](https://hyperevmscan.io/address/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

<figure><img src="/files/HZ55trTWz2rFrhyDnPBY" alt=""><figcaption></figcaption></figure>


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