Simple Summary
Gauntlet recommends the following supply cap adjustments to the protocol:
Supply Cap Recommendations
| Status | Comet | Asset | Supply Cap |
|---|---|---|---|
| Current | Base WETH | weETH | 15000 |
| Proposed | Base WETH | weETH | 7500 |
| Current | Arbitrum WETH | weETH | 24000 |
| Proposed | Arbitrum WETH | weETH | 12000 |
| Current | Arbitrum WETH | ezETH | 12000 |
| Proposed | Arbitrum WETH | ezETH | 6000 |
| Current | Arbitrum WETH | rsETH | 3500 |
| Proposed | Arbitrum WETH | rsETH | 1750 |
| Current | Arbitrum WETH | rETH | 7500 |
| Proposed | Arbitrum WETH | rETH | 3750 |
Rationale
The outlined markets have demonstrated low user demand over the past 30 days, with average supply cap utilization consistently staying below 10%. To reduce risk exposure to the protocol, we recommend lowering the supply caps for these markets by 50%. We note that cap reductions will not affect currently open positions.
| Comet | Asset | Supply Cap Utilization (average over last 30 days) |
|---|---|---|
| Base WETH | weETH | 2.01% |
| Arbitrum WETH | weETH | 6.63% |
| Arbitrum WETH | ezETH | 9.31% |
| Arbitrum WETH | rsETH | 9.88% |
| Arbitrum WETH | rETH | 0.19% |
Next Steps
- Gauntlet will continue monitoring market utilization and propose future cap adjustments accordingly.
- We welcome community feedback.