Simple Summary
Gauntlet recommends the following supply cap adjustments to the protocol:
Supply Cap Recommendations
| Status | Comet | Asset | Supply Cap |
|---|---|---|---|
| Current | Ethereum USDT | weETH | 25000 |
| Proposed | Ethereum USDT | weETH | 2500 |
| Current | Ethereum USDT | mETH | 4000 |
| Proposed | Ethereum USDT | mETH | 1000 |
| Current | Ethereum USDC | weETH | 12000 |
| Proposed | Ethereum USDC | weETH | 6000 |
| Current | Ethereum USDC | rsETH | 1500 |
| Proposed | Ethereum USDC | rsETH | 750 |
| Current | Ethereum USDS | weETH | 12000 |
| Proposed | Ethereum USDS | weETH | 3000 |
| Current | Ethereum USDS | tBTC | 285 |
| Proposed | Ethereum USDS | tBTC | 70 |
Rationale
The markets below 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) |
|---|---|---|
| Ethereum USDT | weETH | 0.91% |
| Ethereum USDT | mETH | 5.03% |
| Ethereum USDC | weETH | 7.73% |
| Ethereum USDC | rsETH | 1.96% |
| Ethereum USDS | weETH | 0% |
| Ethereum USDS | tBTC | 0.79% |
Next Steps
- Gauntlet will continue monitoring market utilization and propose future cap adjustments accordingly.
- We welcome community feedback.