Simple Summary
Gauntlet recommends the following risk recommendations to the protocol:
- Increase WETH Base Comet’s ezETH Supply Cap from 1500 to 2000
Motivation
Please review the daily utilization of WETH Base Comet’s ezETH supply cap. Currently, the utilization has reached its maximum limit.
Analysis
ezETH DEX Liquidity Sources
Total DEX liquidity on Base is $1.84M.
ezETH → WETH
| pool_name | pool_type | pool_url | pool_tvl_usd | volume_24h_usd |
|---|---|---|---|---|
| ezETH / WETH 0.3% | aerodrome-slipstream | Link | $1.13M | $5.38K |
| ezETH / WETH 0.05% | uniswap-v3-base | Link | $399.72K | $180.58K |
| ezETH / WETH | aerodrome-base | Link | $199.19K | $0.37 |
| ezETH / WETH | aerodrome-base | Link | $112.29K | $0.48 |
Total DEX Volume 24H ($): $185.96K
Top Suppliers of ezETH
The top supplier currently holds a ~$500K position in ezETH. The total supplies from the top 5 supplier is $1.7M which is ~61% of the total supply cap. The use of exchange rate oracles insulates this market from transient deviations of ezETH market rate peg, however, sufficient liquidity exists externally to absorb these positions if they face liquidations due to elevated interest rates.
Next Steps
- Welcome feedback from the community
- Post recommendations to on-chain proposal