Risk Parameters per Asset

ℹ 7/28/25 | Note: Supply Caps on Asset Markets (Expand to Read)

Bonzo Finance has crossed $70 million Total Value Locked (TVL) — an all-time high of TVL in $hbar denominated value, as well — powered by institutional inflows and a growing Hedera retail user base. As the protocol continues to mature and evolve, larger amounts of liquidity, relative to the size of Hedera's ecosystem, calls for additional risk controls. In coordination with risk partners, the Bonzo Finance protocol has implemented supply caps across asset markets for more adequate protection of lenders, the protocol, and supported tokens.

Supply and borrow caps in Bonzo Finance are configured as fixed token amounts (versus total value). At a high-level, supply caps are set on a per-asset basis and determined based on asset and liquidity attributes, including, but not limited to, their relative available liquidity across Hedera DeFi (DEXs, etc.).

With the introduction of supply caps, certain asset markets may have a cap configured lower than the amount currently supplied; this is often common in lending protocols across web3, as changing market dynamics shift risks, especially during volatile seasons.

If an asset's supply cap is configured below the amount currently supplied, funds can remain supplied and used as collateral (or “supply only”), until withdrawn, without issue. If an asset's supply has reached or is above its cap, users will not be able to supply this asset to a pool (or re-supply after withdrawing, if already in the pool) until the pool's total supply drops below the cap.

Safety for users, the protocol, and broader ecosystem is priority #1 to ensure long-term success — while certain limitations can feel restricting, they serve as critical safeguards which support the current state of Hedera's ecosystem as it continues on its trajectory towards more liquidity, users, and protocols.

Each asset in the Bonzo Finance protocol has configurable risk parameters, which influences how they are supplied and borrowed. The calibration of the parameters will be conservative as the protocol launches, to ensure safety, and become more aggressive as the Bonzo Finance ecosystem matures with educated users, greater liquidity, and a thriving liquidation ecosystem.

The table below offers a summary of the latest risk parameters per asset:

Asset	LTV	Liquidation Threshold	Liquidation Bonus	Reserve Factor	Supply Cap	Borrow Cap
$HBAR	62.72%	67.98%	1.98%	11.68%	-	57,034,268
$HBARX	62.98%	68.28%	1.18%	10.14%	-	9,641,854
$USDC	80.45%	83.50%	7.40%	13.50%	-	5,500,000
$SAUCE	40.00%	68.04%	3.95%	14.60%	18,138,944	4,534,736
$XSAUCE	40.00%	67.59%	3.95%	10.94%	14,936,519	3,734,129
$BONZO	40.00%	59.00%	6.66%	17.25%	14,116,318	3,529,079
$KARATE	20.00%	65.00%	3.46%	19.60%	385,208,012	77,041,602
$DOVU	20.00%	59.00%	6.66%	17.25%	19,379,844	3,875,968
$PACK	10.00%	57.00%	6.91%	12.97%	480,307	0
$HST	10.00%	52.00%	6.17%	15.22%	1,077,934	0
$STEAM	10.00%	57.00%	8.14%	13.88%	1,226,843	0
$GRELF	20.00%	59.00%	6.66%	17.25%	107,642	21,528
$KBL	10.00%	57.00%	6.66%	17.25%	1,161,440	0

The table above results from the asset risk assessment relating to security, governance and the markets. Tokens with high risk exposure to single counter-parties cannot be used as collateral.

Risk Parameter Changes

When market conditions change, risks change; Bonzo Finance is continuously monitoring the assets integrated into the protocol, which sometimes requires quickly adapting the risk parameters. The table below tacks parameter changes over time.

Date	Asset	Parameter Changed	From	To
8/13/2025	SAUCE XSAUCE BONZO KARATE GRELF DOVU PACK STEAM HST KBL	Supply Caps Supply / Borrow Cap Updates - Ecosystem Assets	10,000,000 35,000,000 30,000,000 2,000,000,000 949,834 102,000,000 10,120,275 19,781,362 26,725,453 45,450,838	18,138,944 14,936,519 14,116,318 385,208,012 107,642 19,379,844 480,307 1,226,843 1,077,934 1,161,440
8/13/2025	SAUCE XSAUCE BONZO KARATE GRELF DOVU PACK STEAM HST KBL	Borrow Caps Supply / Borrow Cap Updates - Ecosystem Assets	3,000,000 10,750,000 8,400,000 803,014,392 450,000 230,000,000 16,053,200 11,372,200 5,537,875 16,000,000	4,534,736 3,734,129 3,529,079 77,041,602 21,528 3,875,968 0 0 0 0
8/13/2025	SAUCE XSAUCE BONZO KARATE GRELF DOVU PACK STEAM HST KBL	LTV Risk Parameter LTV Updates - Ecosystem Assets	30.00% 30.00% 30.00% 25.00% 20.00% 20.00% 25.00% 20.00% 20.00% 25.00%	40.00% 40.00% 40.00% 20.00% " " 10.00% 10.00% 10.00% 10.00%
8/8/2025	$SAUCE $XSAUCE $BONZO $STEAM $PACK $DOVU $HST $GRELF $KBL	LTV	62.41% 61.83% 50.00% 50.00% 50.00% 50.00% 45.00% 50.00% 50.00%	30% 30% 30% 20% 25% 20% 20% 20% 25%
8/8/2025	$SAUCE $XSAUCE $HST $GRELF $KBL	Borrow Cap	4,376,629 18,755,218 12,537,875 678,611 17,335,529	3,000,000 10,750,000 5,537,875.00 450,000 16,000,000
8/8/2025	$SAUCE $XSAUCE $KARATE $STEAM $PACK $GRELF $KBL	Supply Cap	14,832,201 43,384,117 3,229,337,939 22,781,362 14,120,275 2,849,834 49,450,838	10,000,000 35,000,000 2,000,000,000 19,781,362 10,120,275 949,834 45,450,838
8/6/2025	$KARATE	LTV Liquidation Threshold	50.00% 57.00%	25% 65%
8/6/2025	$PACK	Borrow Cap	16,053,200	3,500,000
8/6/2025	$BONZO $DOVU	Supply Cap	41,480,000 435,394,769	30,000,000 230,000,000
7/30/2025	$USDC	Borrow Cap	3,449,222	5,500,000
7/28/2025	$SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM $GRELF $KBL $BONZO	Supply Cap	New Parameter	14,832,201 43,384,117 3,229,337,939 435,394,769 14,120,275 26,725,453 22,781,362 2,849,834 49,450,838 41,480,000
7/11/2025	$USDC $KARATE $BONZO $GRELF $KBL	Borrow Cap	3,449,222 750,000,000 5,000,000 500,000 13,000,000	4,000,000 803,014,392 8,400,000 678,611 17,335,529
5/13/2025	$BONZO $GRELF $KBL	Borrow Cap	3,500,000 160,000 5,000,000	5,000,000 500,000 13,000,000
5/13/2025	$KARATE $DOVU $STEAM $BONZO $GRELF $KBL	Liquidation Threshold	52.00% 52.00% 52.00% 52.00% 43.00% 43.00%	57.00% 59.00% 57.00% 59.00% 59.00% 57.00%
5/13/2025	$KARATE $DOVU $STEAM $BONZO $GRELF $KBL	Loan-to-Value (LTV)	45.00% 45.00% 45.00% 30.00% 30.00% 30.00%	50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5/1/2025	$BONZO	Loan-to-Value (LTV) Liquidation Threshold Liquidation Bonus Reserve Factor Borrow Cap	New Asset	30.00% 43.00% 6.66% 17.25% 3,500,000
4/25/2025	$KBL	Borrow Cap	29,200,000	5,000,000
4/24/2025	$KBL	Loan-to-Value (LTV) Liquidation Threshold Liquidation Bonus Reserve Factor Borrow Cap	New Asset	30.00% 43.00% 6.66% 17.25% 29,200,000
4/1/2025	$PACK	Borrow Cap	2,514,592	16,053,200
4/1/2025	$USDC	Borrow Cap	2,941,539	3,449,222
3/26/2025	$GRELF	Borrow Cap	656,716	160,000
3/25/2025	$GRELF	Loan-to-Value (LTV) Liquidation Threshold Liquidation Bonus Reserve Factor Borrow Cap	New Asset	30.00% 43.00% 6.66% 17.25% 656,716
3/18/2025	$KARATE $DOVU $PACK $HST $STEAM	Liquidation Threshold	41.00% 43.50% 43.00% 48.00% 43.00%	52.00% 52.00% 57.00% 52.00% 52.00%
3/18/2025	$KARATE $DOVU $PACK $HST $STEAM	Loan-to-Value (LTV)	30.00% 30.00% 30.00% 30.00% 30.00%	45.00% 45.00% 50.00% 45.00% 45.00%
3/18/2025	$HBARX $USDC $XSAUCE	Reserve Factor	14.58% 10.40% 12.86%	10.14% 13.50% 10.94%
3/18/2025	$USDC $KARATE $DOVU $PACK $STEAM	Borrow Cap	1,875,300 218,118,366 83,682,008 1,941,454 11,208,478	2,941,539 750,000,000 102,000,000 2,514,592 11,372,200
2/14/2025	$USDC $KARATE $DOVU $HST $STEAM	Borrow Cap	1,783,375 950,959,650 296,716,240 21,932,392 19,715,165	1,875,300 218,118,366 83,682,008 12,537,875 11,208,478
2/2/2025	$HBAR $HBARX $USDC $SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM	Borrow Cap	65,424,962 25,712,671 2,314,729 4,085,167 20,768,560 457,526,473 259,530,259 1,814,378 20,294,813 20,879,107	57,034,268 9,641,854 1,783,375 4,376,629 18,755,218 950,959,650 296,716,240 1,941,454 21,932,392 19,715,165
01/31/2025	$USDC $HBAR	Borrow Cap	1,017,153 12,696,906	2,314,729 65,424,962
1/28/2025	$HBAR $USDC	Borrow Cap	27,989,525 2,138,912	65,424,962 2,314,729
1/25/2025	$HBAR $USDC	Borrow Cap	13,493,843 1,257,182	27,989,525 2,138,912
1/13/2025	$KARATE $DOVU $PACK $HST $STEAM	Liquidation Threshold	0.02% 0.02% 0.02% 0.02% 0.02%	41.00% 43.50% 43.00% 48.00% 43.00%
1/13/2025	$KARATE $DOVU $PACK $HST $STEAM	Loan-to-Value (LTV)	0.01% 0.01% 0.01% 0.01% 0.01%	30.00% 30.00% 30.00% 30.00% 30.00%
1/8/2025	$HBAR $HBARX $USDC $SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM	Borrow Cap	12,874,870 23,930,116 696,641 5,020,146 21,258,578 456,725,925 251,807,558 1,928,615 20,254,780 19,076,860	13,493,843 25,712,671 1,257,182 4,085,167 20,768,560 457,526,473 259,530,259 1,814,378 20,294,813 20,879,107
12/27/2024	$HBAR $HBARX $USDC $SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM	Borrow Cap	13,147,016 23,934,448 1,335,740 5,440,193 20,566,527 170,317,292 101,344,300 812,343 8,454,396 7,801,459	12,874,870 23,930,116 696,641 5,020,146 21,258,578 456,725,925 251,807,558 1,928,615 20,254,780 19,076,860
12/23/2024	$USDC	Borrow Cap	745,902	1,335,740
12/20/2024	$HBAR $HBARX $USDC $SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM	Borrow Cap	12,696,906 23,338,766 713,273 4,751,002 20,411,784 98,497,690 101,194,454 811,403 8,458,395 7,389,362	13,147,016 23,934,448 745,902 5,440,193 20,566,527 170,317,292 101,344,300 812,343 8,454,396 7,801,459
12/18/2024	$HBAR $HBARX $USDC $SAUCE $XSAUCE $KARATE $DOVU $PACK $HST $STEAM	Borrow Cap	9,268,465 14,975,362 691,146 2,455,823 13,917,964 117,808,061 89,258,923 873,709 12,065,370 5,585,154	12,696,906 23,338,766 713,273 4,751,002 20,411,784 98,497,690 101,194,454 811,403 8,458,395 7,389,362
12/16/2024	$USDC	Borrow Cap	1,017,153	691,146
12/14/2024	$USDC	Borrow Cap	1,005,373	1,017,153