Author

Chaos Labs

Overview

Chaos Labs presents an update on pumpBTC’s peg and liquidity devolvement and provides recommendations to risk off the effective quota of the asset.

Motivation

The removal of liquidity from the Uniswap V3 pumpBTC/WBTC pool described in the asset’s listing recommendation has led to increased price volatility relative to its BTC peg. In the largest remaining pool, on Curve, pumpBTC largely traded at peg, dipping following the expiration of a Pendle market in December. More recently, the minor depeg was exacerbated by two [large](https://etherscan.io/tx/0…