[BNB Chain] Add support for Trust Wallet (TWT) on Venus Core pool

Summary

Recently, Trust has introduced Launchpools to their App. We believe it would be in the interests of Venus to deploy a new TWT market on the Core pool to support these.

Chaos Labs recommends moving TWT from the DeFi Isolated pool to the Core pool.

Usage on Venus

TWT is currently listed in the DeFi isolated pool alongside BSW, ALPACA, and USDT, along with some other less-used assets. Its supply cap is currently 36% utilized, while its borrow cap is less than 1% utilized.

Given this setup, TWT is only used to borrow USDT, with all of the largest positions displaying strong health scores, indicating low chances of liquidation.

The market briefly approached full supply cap utilization; its borrow cap has never shown significant utilization.

Liquidity

DEX liquidity has been relatively stable from the start of the year until now, with a 200,000 TWT swap generally incurring 10% slippage.

Additionally, we note that the launch of Trust Wallet Launchpool may increase on-chain activity involving TWT, including swaps, lending, and borrowing.

Recommendation

Given the anticipated increase in activity and the current structure of the market, we recommend moving TWT into the Core pool while maintaining the Collateral Factor at 50%.

ChaosLabs also recommend reducing its supply cap, which has been relatively underutilized. We recommend increasing its borrow cap in anticipation of increased borrow demand related to the Launchpool. This will provide Chaos Labs with the opportunity to observe the market’s use after the migration; we are prepared to increase supply and borrow caps should this prove necessary.