Simple Summary
Gauntlet recommends the following risk parameter updates for the Ethereum v3 WETH comet:
- Increase ezETH Supply Cap from 2,900 to 8,000
- Decrease cbETH Supply Cap from 40,000 to 10,000
Analysis
ezETH Supply Cap Usage
ezETH collateral market is currently operating at over 90% of its supply cap. Gauntlet recommends increasing the ezETH supply cap to 8,000. The current liquidity conditions support this adjustment, with an ~9% slippage expected for an 8,000 ezETH to WETH swap.
Top ezETH Suppliers
ezETH DEX liquidity totals 74.53 M.
| Dex Category | Pool address | TVL(mil) |
|---|---|---|
| balancer_ethereum | 0x596192bb6e41802428ac943d2f1476c1af25cc0e | 47.84 |
| curve | 0x85de3add465a219ee25e04d22c39ab027cf5c12e | 13.20 |
| balancer_ethereum | 0x848a5564158d84b8a8fb68ab5d004fae11619a54 | 9.65 |
| uniswap_v3 | 0xbe80225f09645f172b079394312220637c440a63 | 3.15 |
| uniswap_v3 | 0x1b9d58bea5ed5d935cc2e818dde1d796abff0bc0 | 0.69 |
cbETH has experienced low supply cap utilization within the Mainnet Comet, with only $225k supplied out of a $152M cap. Gauntlet recommends reducing the cbETH cap in accordance with the current DEX liquidity TVL.
cbETH Supply Cap Usage
Next Steps
- Submit risk recommendation proposal on-chain