Simple Summary
Gauntlet recommends the following risk parameter changes for the Polygon v3 USDC comet:
- Increase WBTC supply cap from 1k tokens (~$26.5M) to 1.5k tokens (~$39.8M)
This change will decrease WBTC supply cap utilization from 87% to 58%.
Analysis
Supply cap for WBTC has recently reached 87%, as seen in our dashboard.
Below are details of the top WBTC suppliers:
Top 10 WBTC suppliers and percentage of total WBTC supplies:
Top 10 entire supply positions for top WBTC suppliers:
Top 10 USDC borrow positions for top WBTC suppliers:
Top 10 WBTC suppliers and borrow usages:
Currently, $3.28M additional WBTC can be supplied to the comet, which is greater than all but two current users’ WBTC supply positions. Given the demand for WBTC supply and the high liquidity & low volatility of BTC, Gauntlet recommends increasing the WBTC supply cap from 1k tokens (~$26.5M) to 1.5k tokens (~$39.8M). This change will decrease WBTC supply cap utilization from 87% to 58%, resulting in $16.6M additional WBTC able to be supplied, to allow further long-term protocol usage and growth.
Next Steps
- Target on-chain vote 8/21/23.